Preparations are being made for stage one of Montarosa Pty Ltd's $9 million Princetown Eco Stay project, which will include a restaurant, accommodation and parking.

The state's planning tribunal approved the project after all parties agreed to a mediated permit with 70 conditions in June 2017.

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Montarosa director Gavin Ronan said all pre-approvals associated with the conditions had been ticked off.

"The Princetown Eco-Stay project has received all necessary planning and environmental approvals to allow the project to commence," Mr Ronan said.

He said Corangamite Shire, Corangamite Catchment Management Authority and the Department of Environment, Land, Water and Planning had endorsed documents confirming conditions had been met in June.

"Preparations are being made to commence works," he said.

Corangamite Shire chief executive officer Andrew Mason said the permit allowed for the development to be staged.

"Stage one works comprise enabling infrastructure works, intersection works at the Great Ocean Road and Old Coach Road intersection, upgrading of Old Coach Road to the site entry, and the replacement of the bridge over the Gellibrand River," Mr Mason said.

"Council officers have assessed all plans received from the proponent. This process includes advice from referral agencies including DELWP and Corangamite CMA.

"The permit requires plans to be submitted in accordance with the approved staging plan."

He said the environmental impacts of the project had been assessed by the council.

"Environmental impacts arising from the project were assessed in accordance with planning and environment regulatory framework by council, including technical advice provided by relevant government agencies, with conditions included on the permit for detailed technical assessments and management plans to be undertaken," he said.

Princetown Wetland and Estuary Preservation Inc said the conditions had not been met and was concerned the development would go ahead without them.

They are calling on residents to send a petition to Planning Minister Richard Wynne.

"The checks and balances the group fought for in VCAT are being ignored and reports accepted by council without appropriate expert scrutiny," group convener Kim Morton said.

"We think the reason they (the works) haven't gone ahead is because they haven't addressed all the conditions. They say they have, we say they haven't.

"We think because they haven't started we are right."

Ms Morton said they wanted to see a construction management plan and reports for the whole development before work started.

"A normal development would have staging, whereas they are saying they don't have to give the reports in until stage two and three.

"In it they have to show their open construction site won't flush into the estuary and river in the case of a big flood.

"They are not allowed to let any silt or construction materials in any of the waterways. We don't think they can do it.

"The reason the community wanted these reports before development starts is because we can't see how they can do the development without really impacting on the environment."

Corangamite Shire in 2016 supported the project four votes to three.

Cr Simon Illingworth was one of three councillors who voted against the permit and said he was concerned about the location.

"We need eco-development but the fact that the site is a flooding wetland and has been underwater twice since the permit was granted does little to appease my original concerns," he said.

He questioned the council's ability to assess the adequacy of the technical reports provided by Montarosa.

"Council is not an investigative agency and is not in a position to check the veracity of every document," Cr Illingworth said.

"Information about some endangered species was not included in the Montarosa reports.

"This is a significant omission and council should in my view refer the matter to the planning minister for a peer review panel to assess the veracity of the findings in the reports."

Cr Illingworth dismissed claims that Princetown residents were against any large-scale development on the coast.

"Coast locals are not anti-development. The very same locals agreed to a massive hotel complex near the Twelve Apostles just months after protesting against this one," he said.

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