Midfield paid $1.7 million in May for the Crown land sold by the state government to the council for $1.41 million to facilitate the meat processor’s expansion plans.

It has submitted plans for a 34-metre high milk drying plant on the site which abuts the southern boundary of its abattoir and also a 29-metre cold storage facility nearby.

Those plans and associated rezoning, including a proposed six-lot subdivision by another developer for light industry, triggered 187 submissions, mostly opposition on noise, traffic, safety and property values.

In response to a written question from a concerned local resident in the public gallery at last night’s  council meeting, Mr Anson said negotiations with Midfield International began in 2003.

“At that stage there were no plans for the freezer or milk plant,” he said.

“In 2012-13 discussions were about a logistics centre on that site. It wasn’t until a matter of weeks before settlement did I hear about the milk plant.”

The dairy factory was publicly revealed by Premier Denis Napthine in March when he announced a $1.5 million government grant to the company for improvements to waste disposal and operating efficiencies as part of its $20 million expansions. 

Up to 200 jobs were then touted, but later the figure was found to be only about 30 direct staff on shifts.

Merrivale residents are preparing to take their fight to the next level at a special panel to be appointed by Planning Minister Matthew Guy to hear all parties and make recommendations to the council.

A preliminary directions hearing will be held on November 24 in the Lighthouse Theatre and a full hearing in early February.

Mayor Michael Neoh said the council was required to seek a special panel to hear the issues first before making a decision.

“This is the most complex issue to come to Warrnambool City Council in the past eight years,” he said.

“Council has had many roles in this as a land buyer, seller, developer, economic development unit and decision maker.”

Cr Neoh said a noise assessment by the Environment Protection Authority and a detailed traffic management route were required before the panel hearing.

Cr Jacinta Ermacora said the company should communicate better with the Merrivale community.

“Midfield has shown plenty of support for the broader community, but Merrivale ought to have special support,” she said. “There’s a level of frustration by the Merrivale and South Warrnambool communities.

“Midfield needs to have an open and honest talk with the community.”

Cr Peter Sycopoulis said while the company had a pre-existing right for its abattoir, there was no such right for a milk plant.

Cr Peter Hulin suggested the council in future should help Midfield find another area more suitable for expansion.