Application documents submitted to Hepburn Shire Council and currently under advertisement reveal capacity for the development at 254 Daylesford-Trentham Road could be cut by half should plans be approved.

The original plans for the development featured 100 lake house accommodation units, a conference centre, wellness centre and a permitted capacity of up to 400 patrons.

However, under the amended plans, only 23 lake houses would be constructed, the conference centre would be reduced from 2216 square metres to 1800 square metres, the wellness centre from 2400 square metres to 510 square metres with capacity in turn reduced to 200 patrons.

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Car parking capacity would also be reduced, while a tennis court and entertainment pavilion, boat house, and self-contained guest house have been added to the plans.

Planning documents said decreased lake houses would also decrease the intensity of the resort's use as a function centre, group accommodation, health retreat and spa and its contribution to Daylesford and Hepburn Shire tourism economies.

Council approved the original plans in early 2019 with development yet to commence on the 18-hectare property.

The Courier reported in 2018 that the resort, under the approved plan, was expected to employ 56 staff, create 60 jobs during construction and bring an additional $34 million into the shire annually.

Planning permits for similar proposals of a larger scale were also approved in 2005 and 2009 but lapsed before construction could begin.

According to documents lodged by development consultant Urbis, the changes have been proposed as a result of new ownership of the property and after ongoing detailed design work.

"It is submitted that the proposed amended plans facilitate a more streamlined development that can be afforded by the current owner of the land given the changing and uncertain nature of this COVID-19 pandemic period," the document said.

The development is expected to be delivered across five stages over the course of seven years.

The Courier contacted the Urbis, who are yet to respond.

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