VCAT grants approval for $317m retirement home at Mt Eliza

A retirement home operator has won the right to forge ahead with its four-storey facility at a site once owned by Sir Reg Ansett.

Protesters at the Mt Eliza site that will become a retirement village. Picture: Ian Currie

A $317 million retirement home with a bowling green, cinema and indoor swimming pool will be built on a prime bayside site once owned by Sir Reg Ansett despite community opposition.

VCAT has overturned a decision by Mornington Peninsula Council and its own previous support for that ruling, paving the way for a 396 resident, four storey, aged care and retirement village at Mt Eliza.

New Zealand’s Ryman Healthcare won a “repeat appeal” at VCAT, giving it the green light for “a development of a significant scale’’ on green wedge land outside the Urban Growth Boundary.

Residents fearing overdevelopment of the picturesque and historic 8.9ha site had appealed to the state government to intervene, claiming it would ruin neighbourhood character.

Objectors raised concerns the development would ruin neighbourhood character. Picture: Supplied

VCAT initially supported the council rejection of a planning permit for the development but recently changed its stance.

“Our ultimate finding is that the proposal, with some modifications and subject to permit conditions, is an acceptable planning outcome having regard to the provisions of the planning scheme,’’ it said.

“We will grant a permit.’’

The development at 60-70 Kunyung Rd, on the site of the old Melbourne Business School, will comprise 104 independent apartments, 27 assisted living suites, and a 60-bed aged care centre.

The development is at 60-70 Kunyung Rd, on the site of the old Melbourne Business School. Picture: Supplied

It will provide low and high care and specialist dementia support.

Moondah Mansion, a grand 42-room heritage-listed property on the site built by James Grice in 1888, will be fully restored.

And a hair and beauty salon, gym, place of worship, craft room, residents’ workshop, library, games room and 229 carparking spaces are to be built.

VCAT, it its finding, said there were “no material changes in the circumstances of the subject land and its surrounds … no substantial changes in planning policy’’ and “no material changes in the interpretation of the facts or law’’.

“Although the proposal is similar in an overall sense to the previous scheme, we are satisfied it incorporates material changes,’’ it said.

The site was once owned by Sir Reg Ansett. Picture: Supplied

Changes included removal of a planned building, relocation of the bowling green and reduction in the footprint and some building heights and setbacks.

Ryman Healthcare Australia chief executive Cameron Holland said the move would provide aged care for locals, free up housing stock in the area and take pressure off strained health services.

“Residents will be able to stay in the community they know and love even if their health needs change over time,’’ he said.

Residents group Save Sir Regs Wedge had fought for public access to the beach through the site but VCAT said “it would be unreasonable and unnecessary’’.

Amended plans will need to be approved by the council before development starts.