But with constructions costs soaring, a decision is looming on how the building project will proceed.

A spokesman from developer BNAA Group said the facility was still aiming to open sometime next year.

"I'd open it tomorrow if I could. It's absolutely crazy the demand. I'm pushing as hard as I can and as fast as I can," he said.

The spokesman said the plans, which were first submitted in November 2021, were given the final tick of approval last week after a 16-month wait.

He described it as a "positive move forward".

The spokesman said working drawings would be completed in about four weeks for the development which would be called Bright Start Child Care and Early Learning Centre.

"Then we can go to tender on the building and get started," he said.

"It's kind of at the pointy end which is great."

Last month, the spokesman said costs of construction had jumped 30 per cent.

"It's significant money. We're talking millions of dollars. We've got to find that," he said.

The developer was now weighing up options for the construction of the centre and the neighbouring land, which was part of the original development plans submitted to the city council, was on the market.

In September last year, development plans for the 150-place childcare centre and neighbouring 16 townhouses won the unanimous support of Warrnambool City councillors.

The parcel of land and development plans for the 16 townhouses is now on the market with expressions of interest to close next week.

"That's not my expertise building townhouses, so I was happy to move that on to somebody else who has that expertise and they can move forward and build those," the BNAA spokesman said.

The sale could help fund the construction of the child care centre.

The townhouse development includes 14 two-bedroom, town bathroom properties and two with three bedrooms and two bathrooms

One of the townhouses will be set aside as affordable housing.

Even with the sale of the townhouse development, the BNAA group was weighing up whether to build the child care centre themselves or hand construction on to another developer.

He said there were a few decisions to be made.

"It will either be I build it, or I sell the land and plans and permit for someone else to build and I remain tenant," he said.

"Whichever way I go, I'll be running the child care centre, and that was always the main priority."

He said the timing of the build now came down to the work drawings to be released which would be around the end of April and the tender process being completed by the end of June.

A decision on how to proceed with the construction will be made after the tenders come in.

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