A CONTROVERSIAL Golden Square redevelopment will go back to the Victorian planning tribunal for a second time following an appeal from residents.
City of Greater Bendigo councillors last month voted against the officer's recommendation in approving an 86-lot subdivision in Aspinall Street.
Council officers recommended that councillors refuse the permit meeting, due to the quality and density of vegetation at the site.
However most councillors agreed that while the proposal had its flaws, it was the right way to go.
It was the second time councillors had voted against the officer's recommendation.
The development, originally citing 78 lots, was approved by councillors in 2010 and later refused by the Victorian planning tribunal in 2011.
Aspinall Street Action Group member Greg Williams said the group had decided to appeal the decision again.
He said the plan submitted did not meet the requirements of the previous VCAT determination.
"We were extremely disappointed with the actions of the councillors who voted in favour of the development and who have again failed to listen to the concerns of local residents and their own planning department," he said.
"We have received great encouragement and support from the wider community and believe that the decision by councillors left us with no option but to take it back to VCAT.
"We strongly agree with the recommendation of the City of Greater Bendigo planning department."
The council said it would defend its decision to approve the application for subdivision.
No date for a VCAT hearing has been set.
Stage one of the development, which includes 35 lots, is scheduled to begin in October.
Almost half the property will be donated for use as a nature reserve.
The Catholic Diocese of Bendigo is the applicant.