The proposal to raze Melbourne’s Palace Theatre in order to construct a $180 million luxury apartment complex has been denied.

Following an ongoing campaign from live music supporters to rescue the iconic live music venue from a redevelopment to build a five star hotel and residential complex, Victoria Planning Minister Matthew Guy has refused to grant a permit to demolish the Palace.

The controversial application from property developers Jinshan Investments first surfaced in June last year, wanting to create Melbourne’s first ‘W Hotel’ on the top-end of Bourke Street, to which Minister Guy stated that the application was “too tall” and “in the wrong location.”

Jinshan then altered its plans last October, resubmitting a proposal to a reduced height of 72.25 metres for a luxury tower containing 200 hotel rooms and 91 apartments, before the Dennis Napthine Government made the unprecedented move of lodging an appeal to challenge the Palace redevelopment following pressure form Melbourne Heritage Action and Melbourne City Council.

On Wednesday night however, the Save The Palace Theatre Facebook group shared the news that Minister Guy had denied the Palace proposal, with objectors who’d petitioned against the project beginning to receive official letters from the Department Of Planning.

“This is terrific news! and we sincerely thank you all for submitting your objection letters. If it hadn’t have been for the overwhelming mass of objections that were sent in to the Planning Minister who knows what the outcome could have been,” reads the Save The Palace post.

(Image: Save The Palace. Source: Facebook)

Outlining the reasons for knocking back the Palace redevelopment, the letter states: “the proposal will adversely impact the low scale character of the Bourke Hill Precinct.”

Campaigners emphasise however, that while victorious the live music theatre is still at risk

“Whilst this is a win and we’d love to dance around and celebrate, we also need to recognise that it isn’t a victory,” the Save The Palace group emphasises, pointing out that the venue is still vulnerable to future residential applications as it remains only partially listed under heritage protection.

“The developer can submit subsequent proposals that may satisfy the planning requirements. It is for this reason that we are working to have the Palace Theatre formally protected.”

In their vigorous fight against the redevelopment proposal, Melbourne Heritage Action pointed out that currently only the venue’s facade is protected, pushing for an updated listing that would protect the rest of the building that is still at risk. “Whilst this is a win and we’d love to dance around and celebrate, we also need to recognise that it isn’t a victory.”

Earlier this month, Minister Guy had already telegraphed his intentions to reject the Jinshan Investments application when outlining the timetable for introducing the coveted ‘Agent Of Change’ principle to fix noise complaint issues as part of a raft of Melbourne live music reforms.

“I’ve said I’d love to see a W Hotel in Melbourne but the proposal being put forward was off kilter for that site,” said the Planning In Minister in January. “We want the restrictions to be adhered to. I don’t want another Windsor Hotel debacle.”

Minister Guy also has the final word on approval of another (though supposedly less controversial) construction proposal, a $70 million redevelopment of The Forum Theatre that includes the construction of an adjoining 32-storey boutique hotel and office complex to the rear of the live music venue put forward by the site’s owners, the Marriner family.

Melbourne Heritage Action have welcomed plans to restore the 84-year-old, 1,500 capacity venue but were reserving official acceptance until they could properly scrutinise the plans, which are also in violation of the area’s height restrictions with the final decision falling to Matthew Guy.

The Palace news emerges shortly after a number of Melbourne’s live music venues were named among the world’s top venues in an international poll and the Victorian Government’s plans to support inner-city live music venues with a ream of 36 reforms and red tape cuts announced earlier this month.

(Image: Len Panecki. Source: Karnivool & Dead Letter Circus Photo Gallery)

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