The site, which stretches 13 hectares to the south of Victoria Park, has been unused since livestock stopped being sold there in October 2018. There have been notable delays in the council schedule to clear the site and prepare a clear plan for its long-term future.

The state government said the funding was not just for the saleyards site but also for the wider precinct, including the "surrounding 116 hectares of land consisting of industrial, residential, farming and public uses".

A statement released this week said funds were part of the "Streamlining for Growth" grant program which would help shape "a plan which identifies new community assets, plans for a new western gateway to the city and unlocks key development sites."

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The program will be overseen by the Victorian Planning Authority.

The mayor Cr Daniel Moloney also referenced the broader zone. He said potential changes to council run sites nearby such as the animal shelter and the waste transfer station could free up more space for development.

"Both [the animal shelter and transfer station]... over time will move away from there so there's another big parcel of land as well."

He said there had been early conversation with traders in the area too.

"If you look even a bit beyond the saleyards itself, there's a massive potential development around there. We're not quite sure yet whether that could be a state asset - education, health, sporting or even residential.

"For us to even get to that conversation, we need to have state government backing around the planning. Having the Victoria Planning Authority part of it is important.

"There are so many pieces of the puzzle [that] need to be brought together - there's transport connections, there's water connections, even discussions around education improvement in the area. This is not something council can do in isolation."

The aim of the program is stated as to "unblock or fast-track planning projects and processes to accelerate the delivery of employment and residential land, achieve employment growth, housing choice and affordability, and improve the alignment of infrastructure delivery with planning."

The saleyards were in constant use from 1864 to 2018, when they were moved to a new, expanded site in Miners Rest following an exhaustive planning process.

The site is on crown land. In October 2019, councillors approved a heritage overlay over some of the more historic parts of the site, including the 1909 administration building, sheep yards and a 1963 selling pavilion.

READ MORE: Ballarat saleyards: What will become of Latrobe Street precinct?

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City of Ballarat starts consultation on Latrobe Street Saleyards, Bakery Hill and Bridge Mall

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Ideas now in for old Latrobe Street saleyards

Latrobe St saleyards gear goes up for grabs

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