Victoria’s planning tribunal allows delay in controversial $285 million Windsor Hotel redevelopment

VCAT, Victoria’s planning tribunal, has today given Windsor Hotel owner Adi Halim the extension he sought – until January 2015 – to get the controversial hotel redevelopment under way.

“I am unable to conclude there are any compelling reasons to refuse to extend the time as requested,” VCAT senior member Jeanette Rickards said in her ruling.

Halim had warned that the historic hotel built in the marvellous Melbourne era  might have to shut its doors and cancel guest and event bookings if the development permit were not extended.

His legal team was fronted by barrister C J Canavan, QC, who was instructed by Norton Rose.

The permit required work to begin by November 4 this year and be finished by November 2014. 

Planning Minister Matthew Guy was critical the request to extend the permit had not been submitted earlier and argued the applicant continued to take bookings in 2012 and was promoting its 130th birthday celebrations also for 2013.

But Jeanette Rickards found the bureaucratic process of obtaining the second heritage permit took approximately 13 months.

"As a result the applicant has been left with only seven months at most, and more like three months, given the endorsement of plans by the minister in April 2012, to go through the compliance processes to ensure the proposal is ready for the development to commence," she noted.

"I do not accept the submission of the minister that the applicant should have commenced the development earlier.

"This is an unrealistic suggestion that does not appear to take account of the integration of the planning and heritage requirements of the proposed development and a recognition that the processes under each approval must be integrated to ensure the development is properly carried out.

"Whilst it is in the interests of the public that the development be undertaken in a timely manner, given the significance of the heritage building, it is also in the public's interest that such development is done carefully and in a proper manner," the ruling concluded.

The land currently contains the 19th-century Hotel Windsor building and an adjoining 1960s building on the corner of Spring and Bourke streets.

The applicant sought a review of the decision of the Minister for Planning that refused to extend time.

The applicant sought the time for commencement to be extended January 2015 and for completion t0 January 2017.

 The permit allows development of a residential hotel comprising part demolition of existing hotel and construction of a new 26-storey tower and north wing extension.