New plans for a scaled down townhouse development featuring a medical centre on a prime Warrnambool site have been lodged with the city council.
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Details of the development plan for the corner of Dales and Aberline Road are yet to be put on public display by the council but the site, which was last year put on the market, is now under offer.
The potential sale of the land comes with a development plan for 33 townhouses - the five fronting Dales Road are all single-storey.
The two and three-bedroom townhouses - most of them two-storey - are aimed at downsizers, first homeowners or investors.
The new plan halves the number of properties that were in the original concept but the corner of the new-look development has still been set aside for a potential medical centre.
Original plans - featuring 74-apartments for the site - was knocked back by councillors in December 2019 even though the developer had worked with council staff to scale it back from the original 99 low-cost apartments.
The original proposal aimed to fill a gap in the market for higher density affordable housing with properties expected to be in the sub-$300,000 range.
Councillors at the time slammed the original proposal saying it was "opportunistic" and more like a hotel complex than residential accommodation. They said if it went ahead it would set an alarming precedent for the city.
Expecting it to end up at the Victorian Civil Administrative Tribunal, the development was seen as a litmus test which would open the floodgates if approved.
The council's decision at the time prompted a rebuff from those behind the proposal who were shocked that it was knocked back despite working with council for more than two years on it.
The decision even upset Standard Facebook readers who labelled the decision "ridiculous", "disappointing" and "bizarre".
The then councillors were accused of inaction over helping to address the city's growing housing crisis.
Since then shortage of housing in the city has only increased in the wake of the pandemic as more people seek to move to regional areas. The new-look development looks set to head back before the new councillors for a decision. Warrnambool City Council said the new development plan had been lodged.
"After an assessment by council planning staff, it will be placed on public exhibition ahead of a decision on the proposal which will be made at an open council meeting," it said.
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