WORKS to convert the dilapidated Gillies factory into modern apartments are progressing, with the site clean-up complete.
City of Greater Bendigo place manager Philip DeAraugo said the clearing works opened up opportunities for restoration and development.
He said the site was now free from asbestos and other building materials that were being damaged.
"The building has now been stripped back to allow detailed measurements to be taken and an architectural scheme to be developed," Mr DeAraugo said.
"This will allow for the conversion of the old factory and the construction of a new building at the rear."
The Riverside Group, which owns the site, will restore the former pie factory, with Bendigo house prices and growing demand for inner-city living spurring on the decision.
Mr DeAraugo said early analysis suggested the site was capable of accommodating about 120 apartments of various sizes and layouts.
"The developers still need to do some financial modelling to determine the final mix, scale and staging of the project," he said.
It is expected that a planning permit will be lodged in the next couple of months.
"It is hard to tell when exactly the application will be submitted though due to the complexity of the project," he said.