Citing strong community opposition, a lack of safety access and poor environmental documentation, the eight councillors present (Cr Hargreaves being absent) supported director of development and growth Natalie Robertson's team in its decision to oppose the five 'barrel' buildings.

The decision is somewhat moot, as developer David Penman has already indicated the matter would be heard through the Victorian Civic and Administrative Tribunal (VCAT), arguing the City of Ballarat failed to consider his application in due time. Council's decision will be their position at VCAT.

A compulsory conference for the matter is scheduled for March 2 with a hearing date set for May 17.

Mr Penman has approval for a building on the site next door and one unassociated building on the Yendon No 2 proposal.

Ms Robertson told the meeting she had an 'frank' discussion with Mr Penman prior to the meeting.

"In the lead-up to this evening's meeting I had many conversations with the landowner," Ms Robertson said.

"Undertaken on my advice, this application on the information provided, was not acceptable to be able to determine an outcome through planning permit conditions.

"We had a frank conversation where I advised (the developer) would need to have a traffic engineering report that demonstrated access could be achieved to the requirements of CFA... revisit provision of environmental health requirements... provide thorough photomontages for assessment against the rural landscape...to demonstrate impact... the applicant undertook to do this but then withdrew... saying they would form their position at compulsory consultation."

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"This application as we all understand is accommodation that consists of six independent buildings, to be used as tourist accommodation catering to a maximum of 12 at any one time." Ms Robertson told the meeting.

"It's important to note the context: public notification took place as required... 57 objections were received and five in support."

Ms Robertson said the key issues for consideration were the visual impact the development would have on Mt Buninyong; the visual impact upon neighbours of the development to neighbours, an inconsistent purpose to the planning zone; wastewater contaminant concerns; and limited access to the site for CFA and emergency services.

Officers would recommend for council to refuse the application on those grounds, Ms Robertson said.

"It does not enhance the rural character or the natural scenery," Ms Robertson said.

"The development of the land is inconsistent with the objectives contained within the Rural Living Zone that does seek to protect landscape values."

Ms Robertson also said the developers had failed to provide sufficient information regarding wastewater containment and safety access in the case of fire - an issue of which one objector, the editor of the Buninyong News Barry Fitzgerald, was also highly critical.

"Mt Buninyong is fire-prone," Mr Fitzgerald said, and allowing the development to go ahead could open the City of Ballarat to potentially "fatal litigation."

He said he had spoken to just three people who supported the development, and there was a "clear groundswell of anger, cynicism and disbelief" within the community about the proposal.

"I do not believe any commercial benefit (for Buninyong) exists," Mr Fitzgerald said.

All councillors expressed their support for the kind of project on the application, but said it was clear it was unsuitable for the position and Mt Buninyong, and the community had made this clear.

"We must listen to what the community have said," Cr Taylor told the meeting.

The proposed accommodation was recently offered forsale at $1,000,000 for each barrel.

Billed as "Australia's most talked about villas", they would be a "turnkey, worry-free investment." It also advertised an eight per cent return for up to 10 years.

The developer has since confirmed the barrels were no longer for sale.

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