First announced in early 2021, the Ballarat station precinct southside masterplan sought to find out how best to develop the area south of the station, from Lydiard Street along Mair Street to Peel Street.

At the time, city leaders and advocates said the masterplan was an opportunity to bring new investment to the CBD, with further upgrades to the train station itself, creating a welcoming new area for visitors, and attracting new businesses and even in-fill residential spaces.

READ MORE: Train station precinct redevelopment project 'paused'

However, the project has "paused" after 12 months and a single community engagement report, with the lead agency - the Victorian Planning Authority - reporting last week further "technical investigations" would be needed, particularly for the regional bus interchange on the station's southern side.

The project will resume "when the further technical investigation is completed," a spokesperson said in a statement.

"The VPA understands the importance of this project and will provide timeframes once they become clearer."

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This bus interchange, which hosts V/Line coaches and airport shuttles, has long been an issue, with concerns about pedestrian and driver safety.

As part of the 2018 heritage permit issued before construction work could begin on the new bus interchange, Heritage Victoria stated the regional bus shelter would have to be moved from its current location within four years - that deadline is rapidly approaching.

According to Heritage Victoria, this means VicTrack, which owns the land, will need to seek a new heritage permit to remove the interchange before November 2023, with penalties of up to $109,000 for non-compliance.

The City of Ballarat partnered with the VPA on the masterplan project, and mayor Daniel Moloney said he remained hopeful it could continue when the bus interchange problem is solved, but noted there were still "challenges".

"The planning really does need to identify the uses for that (southside) site and it hasn't quite evolved there," he said.

"I think there's still a lot more planning (needed) to understand what the potential for that area could be."

The CBD's continued evolution - as well as a push for more in-fill housing and the Bakery Hill Urban Renewal Project, Federation University recently announced it would be consolidating its campus at the southern end of Lydiard Street - means the situation is becoming more complex.

"There's also a range of private development interest around there, and we're yet to see the private plans for the buildings around the intersection of Mair and Lydiard streets," he said.

"It's got a lot of potential, but that potential won't be unlocked until we know what the Goods Shed does - if that really does attract the business market we're wanting it to attract, it may bring opportunities to play more to that market, and that whole southside of the station could be the zone where we bring residents back to the CBD.

"There's a train stabling building there, a beautiful bluestone building that fronts onto Mair Street - over time, there's opportunities for V/Line to potentially stable their trains out towards the (Ballarat West Employment Zone) area - typically you stable trains out past your end station, and at the moment they run empty to Wendouree, it usually makes sense to stable trains a bit further out and that's part of the reason why the Link Road (stage one) bridge is so big, because it could be over a future train stabling area.

"You see a lot of that in parts of Melbourne, and that would unlock the potential there at the station."

Committee for Ballarat chief executive Michael Poulton, who also supported exploring new ideas for the precinct, said all parties needed to come to the table to work out a solution, noting industrial disputes also needed a resolution.

"There's an important part here for transport infrastructure, that can't sit in front of the station when you're trying to deliver it as a public precinct," he said.

"I understand there's complexities in the planning process, but we have to encourage our leaders to ensure those processes are being looked after and dealt with - let's get together and talk about it.

"We want to see the station open up to the rest of the city and link up to Lydiard Street and Mair Street, those things have to happen for that to be a truly exceptional experience and a great precinct for the city."

Heritage advocates Save Our Station called for a conservation management plan for the station complex, to ensure valuable elements aren't lost.

In a statement to the VPA, president Gerald Jenzen said the precinct must be focused on its primary purpose, which is public transport, and improving accessibility should be addressed as a priority.

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Save Our Station also noted the importance of attracting more residents to the CBD, with the caveat that a height limit be brought in for in-fill residential development.

V/Line will continue to provide feedback on how customers, staff, and coach services use the station so it can be factored into the master plan.

"We welcome the improvements being made around the Ballarat Station precinct and will continue to work with project delivery agencies to create a more comfortable and enjoyable experience for passengers before and after boarding our services," a spokesperson said in a statement.

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