Planning Panels Victoria supported the council’s application to rezone the land, but ruled that an “uncooperative landowner and a project’s feasibility” were insufficient justification for applying a public acquisition overlay when other options were available.

The council had earmarked the land for a purpose-built estate designed to accommodate a range of business operators across the industrial, transport and business sectors.

But the independent state government body cautioned the council against adopting the amendment in light of its findings.

“Based on the amendment being strategically supported and the subject land being suitable for a business park, the panel recommends that the amendment be adopted subject to changes,” the report reads.

“However, council should seriously consider whether it seeks to adopt an amendment where the public acquisition overlay has insufficient strategic basis and where the landowner is unwilling to sell the land.”

The council has not ruled out pushing ahead with the project, but landowner Adele Patterson said the decision was a “big win” for residents.

“The panel has said there’s absolutely no strategic basis for putting the public acquisition overlay on when there’s other industrial land available in Bendigo and that’s the end of it,” she said.

The land grab would have encompassed Max and Pauline Carter’s farmhouse, rendering their business unviable, and neighbour Adele Patterson said the couple would never be prepared to sell.

“I know the Carters well, without a public acquisition overlay the council hasn't got a hope in hell of acquiring that site, and we’re very happy that our land has not been blighted by an overlay,” she said.

“As Max said, ‘they’ll never get it then, that’s it’.”

Ms Patterson, whose land would also have been affected by the public acquisition overlay, said she, the Carters and their other neighbours, Janine and Graeme Cornish, were relieved by Planning Panels Victoria’s decision.

“We’ve been through 13 years and hundreds and hundreds of thousands of dollars and heartache for the Cornish family and Carter family, whose land was under the public acquisition overlay, for nothing,” she said.

Council planning and development director, Prue Mansfield, emphasised the panel’s support for the council’s bid to rezone the land, but acknowledged its reservations about the PAO and buffer zone.

“The panel agreed its benefits would far outweigh any detrimental impacts, but it has not supported the public acquisition overlay, which sees property owners offered the market value of their land plus compensation,” she said.

“The proposed amendment results from extensive investigation and reviews over the past 10 years which identified 313 hectares of farming land to the northwest of Marong as the preferred location to accommodate industrial growth for the next 30 years.

“Council will consider the recommendations before making a final decision on how best to progress Marong Business Park, which has the potential to generate thousands of jobs and provide a stimulus for future investment in Greater Bendigo.”