The old Gillies pie factory on Garsed Street, which was earmarked for residential development in 2013 but has laid dormant since, is a site the council is keen to see developed into short-term flexible accommodation.  

Off-campus student accommodation in the CBD may help attract future students to Bendigo, while also reactivating the precinct, according to industry experts.

Related: Gillies on way to restoration

City of Greater Bendigo manager of regional sustainable development Trevor Budge said accommodation has always been a “big issue” for La Trobe University, which, combined with TAFE expanding its Charleston Road and Chapel Street campuses, created a need for more flexible options.

City-centre accommodation could double as low-cost short-stay rooms for visitors during the summer months, Mr Budge said.

He said some universities have identified Bendigo for a number of work placements, but the biggest impediment was available short-term accommodation.

“If we don't have ready accommodation it’s just another reason why they (parents) might not send their child to Bendigo,” he said.

La Trobe University has 600 on-campus beds, while it’s hoped a new CBD development could add another 200 rooms.

A financial proposal hasn’t been considered as yet, but it could involve a developer fronting the initial costs, with universities or educators negotiating leasing arrangements.

La Trobe University head of campus Rob Stephenson said the new accommodation would cater to different markets, and may provide opportunities for local schools.

“There’s relatively little low-medium cost accommodation in central Bendigo so it could open the CBD up to new group of people,” he said.

The plan is one of 18 shortlisted projects on the council’s Plan Greater Bendigo, which councillors endorsed via a vote on Wednesday evening.

Several of the large-scale items – including upgrades to the law courts, Chinese museum, the Bendigo railway station and a proposed “Gov Hub” that would house several government agencies  – are located inside the CBD.

The plan details infrastructure projects the council believes are required for the next 30 years.

The Bendigo Advertiser has attempted to contact the company that owns the site.