The new development, on the former St John's Bowls Club site off Princess Street, would provide 13 new units to the Heatherlie Homes portfolio which aims to address the housing shortage for older people.

Chairman Charlie Armitstead said it was unfortunate the development, which also had access from Manifold Street, had been delayed because of two objections from neighbouring properties.

"Heatherlie is a very respected and well-managed organisation, and it's disappointing that this long-awaited and planned project is being delayed because the waiting list for entry into Heatherlie grows by the day," Mr Armitstead said.

"The objectors have decided to take their objection to the Victorian Civil Administrative Tribunal (VCAT) after the Warrnambool City Council issued a notice of decision to grant a permit on December 21, 2021."

The plans include eight units on the former bowling site and five units on the adjacent parcel of land on Manifold Street.

"The objection is based on a claim that Heatherlie has no right of use of a public road connecting Manifold Street to the proposed development," Mr Armitstead said.

"It is unfortunate because this delay has already cost Heatherlie a considerable sum of money in addressing the concerns of objectors - we've satisfied the council in order for the planning department to issue the decision to grant a permit.

"The legal costs and increased construction costs caused by the delay will add further to the development budget which has been well supported by many local philanthropic trusts and private donations."

Mr Armitstead said they were now "in the hands of VCAT" while the council waited for a date to be set down for a hearing against its decision.

Heatherlie Homes is now seeking a meeting with the council planning department to discuss this issue.

Hopes of securing Federal Government funding to help with the project were dashed when the project was overlooked.

The development was kept single-storey to cater for the residents, many of which use motorised scooters.

It's the sixth development Heatherlie Homes has undertaken since its first development on Koroit Street was officially opened in 1979, and there are plans in the pipeline for further developments on land opposite the railway station on Merri Street.

IN OTHER NEWS:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:

Now just one tap with our new app: Digital subscribers now have the convenience of faster news, right at your fingertips with The Standard: