A multi-million dollar Princetown resort development will go ahead after a compromise was reached at the state’s planning tribunal.

Princetown Wetlands and Estuary Preservation Inc and Kangaroobie combined to take the case to the Victorian Civil and Administrative Tribunal (VCAT) after Corangamite Shire approved the $9-million project in December last year.

The VCAT hearing resulted in what the wetlands group is calling “significant changes” to planning conditions, while the site’s developer said he was grateful for the “good faith negotiations” that led to the amended planning permit.

Princetown Wetlands and Estuary Preservation Inc secretary Mara Pacers said the conditions would ensure more detailed assessments of the site would be made, as well as continued public access to the recreation reserve and jetty.

“The conditions on the permit now ensure that many of the threats and impacts identified in the over 150 submissions to the planning department must be addressed prior to the development starting,” she said.

Ms Pacers said the wetland group, which united to fund the legal challenge, remained frustrated that the permit was unable to be challenged further due to planning policy they say is designed to favour “chasing the tourism dollar”.

“As a result, we are left with a permit to build a development on a site that has always been deemed inappropriate for development, that results in the risks of building on the flood plain and threatens the water table used for town water for Princetown, and the loss of the environmental values of the wetland and estuary,” she said.

Montarosa director Gavin Ronan said the development, which includes a 20-room lodge, 20 cabins, restaurant, car parking, boat shed, and viewing structure, would encourage further tourism growth in the area.

“As the first private project inspired by the Shipwreck Coast Masterplan, this outcome adds weight to further public and private investment in the region,” he said.   

“We are now working through permit conditions that need to be met before construction begins, and we look forward to making further announcements in due course.”

Mr Ronan said the amended planning permit helped provide more detail.

“These amendments have improved visual amenity and more explicitly detailed the environmental checks and balances for the development – which align with our existing objectives – whilst maintaining the uses proposed,” he said.