Cr Mike Neoh put forward a motion that the Atkinsons Lane site was inappropriate, did not provide an orderly planning outcome and would result in adverse social and amenity impacts.

The motion was supported 4-2, with Crs Peter Hulin, David Owen and Tony Herbert in favour and Crs Kylie Gatson and Rob Anderson against.

Cr Sue Cassidy declared a conflict of interest as she is on The Lookout steering committee. 

The Victorian Civil and Administrative Tribunal called on the council to state its position on the facility before making its decision. 

In a passionate 20 minute speech Cr Neoh said while residents were desperate to have a rehabilitation service in the region, it should not come at the cost of "good planning and compromise because of our desperation".

"We have found this to be a very difficult decision," he said.

"On the one hand the need to provide drug and alcohol rehabilitation facilities are compelling and undisputed. However the need for a facility doesn't automatically demonstrate the need to be located at this specific site. The first question we have to ask ourselves is however desperate the need for this service, will this application do zero damage to a resident of Dennington, their amenity, the neighborhood's character and the community's social dynamic, or will it do the opposite?

"The second question we need to ask ourselves is the amenity and well-being of a resident of Dennington any less important than any other human soul?"

Cr Hulin said Cr Neoh's speech was the best he had made over his 10 years on council.

"People aren't against a rehab centre," he said.

"But first we have to do no harm to people in the community when we do it.

"We have a great opportunity to do it right. In my opinion this is arguably the worst site you could possibly think of to put this facility. I really mean that.

"The land itself has had the topsoil taken from it, it's a windswept part of the city. I think it would almost actually put people onto drugs. You would not want to be on edge out there with the cows bellowing and the wind blowing. The community deserves better than what has been put to them."

Cr Owen also said it was not a suitable site.

"I went up there several times and sat and imagined my well-being if I was living there or if I was needing rehab," he said.

"I find it not to be a place of well-being. The wind was howling most days, there was no top soil and I thought if I was sick I thought I could not get well here."

Mayor Tony Herbert was tight-lipped on his reasons for voting against, but said it had been an "incredibly difficult decision".

"There is no doubt our city needs this facility," he said.

He said drug and alcohol abuse touched many families across the region.

"I have three boys and this is my greatest fear as a father that they will be involved in this type of activity," he said.

Cr Gaston said she made her decision to support the application purely from a planning perspective.

"This is a really difficult decision," she said.

"I am making my decision on the planning merits of the proposal, as asked for by VCAT.

"The way the assessment report is written is in my mind consistent with objectives and strategies of the planning policy framework.

"In purely planning terms the proposal can be supported at this location because there is no strategic direction/policy that discourages such use in this locality, the site is large enough for the accommodation extensions, adequate room exists for car parking and landscaping, people using the centre will already be drug and alcohol free, there are strict rules governing behaviour, security measures will be in place with trained staff on the premises, noise levels are likely to be unreasonable and there is ease of access to Warrnambool's facilities and services.

"Ultimately VCAT will make their own ruling taking into account the views of the objectors, proponents and expert advice."

Cr Anderson said he "echoed Cr Gaston's views".

VCAT will hold a compulsory conference on April 26 in Melbourne before a hearing from June 24 to July 1, with three days in Warrnambool and three in Melbourne.

It is proposed The Lookout will be a 20-bed medical facility to assist people recovering from health issues related to drug and alcohol use.

The original planning permit application to the council drew 34 objections, with four submissions in support. Objectors had concerns about safety and security for community groups and Dennington residents.

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