Centre director Geoff Soma said the condition it was contesting with the Victorian Civil and Administrative Tribunal related to required staff numbers at the facility.

"The staff numbers prescribed by the condition are vastly different to similar-sized residential rehabilitation centres operating safely and effectively across Victoria," Mr Soma said.

"Because of this difference WRAD has decided to make an application under Section 87A of the Planning and Environment Act to amend this condition to reduce the required staff numbers to a level more commensurate with similar facilities."

Mr Soma said the goal to operate the residential rehabilitation centre was very much alive and the facility had considerable support from the community.

"WRAD will continue to progress this project over the next 12 months," he said.

"As part of this process WRAD will continue to seek support from the broader community."

VCAT recently granted a planning permit for the facility to be located and operated at 43 Atkinsons Lane in Dennington.

It announced its decision in August.

VCAT's report said it acknowledged there would be different opinions about what represented a net community benefit.

"We consider that on balance, there is such a benefit in approving a residential alcohol and drug rehabilitation centre on the review site," the report said.

Objectors had concerns about safety and security for community groups and Dennington residents which were raised at the hearing.

Warrnambool City councillors voted against the proposal 4-2 in April.

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

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