After more than a year’s worth of struggle and repeated bids to stop developers, Melbourne’s beloved Palace Theatre will be demolished and replaced with a boutique hotel, after Victoria’s planning tribunal rejected an appeal to save the iconic venue.

As The Age reports, developer Jinshan Investment Group, who now own the site on which the 1912 music and entertainment venue stands, have been granted a permit to proceed with their plans to erect a 12-storey hotel, which will feature 143 rooms, a gym, swimming pool, and restaurant.

As Tone Deaf previously reported, Jinshan allegedly began razing the venue even before VCAT had made a final decision regarding the fate of the space. Melbourne City Council and members of the Save The Palace group had attempted to gain heritage listing for the venue.

“At this stage there is nothing stopping the developer bulldozing the Palace tomorrow,” the National Trust’s Anna Foley told Fairfax. “The system has really failed the Palace Theatre. It’s a building that was obviously significant.”

“It’s only through the course of the many heritage hearings conducted over the past two years that we have really come to understand how special it is.” The venue’s outer facade is the only section of the original venue to be retained.

According to VCAT senior member Michael Wright QC and member Cindy Wilson, keeping a section of the facade above ground level constitutes “an acceptable response to the heritage values of the precinct”.

But what’s perhaps most frustrating about VCAT’s decision is that they found parts of the Palace’s interior did indeed reflect potential for heritage listing, but its destruction and removal by construction workers had “diminished that legibility”.

Melbourne councillor Rohan Leppert, who’s long championed the venue, told Fairfax he’d asked the council to see if there were grounds for appeal, “but on the face of it, it’s looking more and more difficult to retain it now”.

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However, Save The Palace Theatre are not giving up their fight. They immediately took to Facebook to organise a peaceful protest at the Palace site and spokeswoman Rebecca Leslie told Fairfax they would be asking Melbourne Council to apply for an injunction.

“If the Council votes in favour of filing an appeal demolition of the Palace Theatre can be put on hold. So gather yourselves, your instruments, banners, placards, costumes, whatever you deem fitting and get down and make some ‘noise’ and let our representatives know that they should vote in favour of pursuing an appeal,” they wrote.

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