Greater Bendigo councillors this month decided to refuse Central Victorian Welding and Fabrication Pty Ltd a permit to use the land at 45 Ingham Road for industrial purposes.

The business has been operating at the Axedale property, which it owns, for several years.

The land is in a farming zone.

City staffers noticed the property was being used for industrial purposes because a works crew saw a large number of vehicles and equipment being stored outside the site in the Ingham Road reserve.

A compliance officer subsequently inspected the site and notified the business it needed a permit.

An application was lodged in October 2016. City staffers believed the business had been operating at the site since that year, having previously been in an industrial zone in East Bendigo.

A number of issues were identified with the use of the land.

"Ingham Road is not suitable [for] the frequency and type of heavy vehicles currently utilising it; and the intersection with the McIvor Highway is not of an appropriate standard to handle such traffic," city staffers said in their report to councillors.

Wastewater management for the property was also deemed unacceptable, as city staffers believed the septic system had been altered and a toilet block was connected without approval.

Concerns were raised about the potential for noise, light and "visual amenity" associated with industrial activity to negatively affect the site's surrounds.

City staffers deemed the proposal contrary to the state and local planning policy framework, as well as the purpose and decision guidelines of the farming zone in which the site was located.

"The proposal will not result in an orderly planning outcome," councillors were advised.

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The decision to refuse the permit was controversial among the city's councillors.

Councillors James Williams and Malcolm Pethybridge said refusing the permit could adversely affect the business and its employees.

Cr Williams said the applicant provided 40 jobs, including 10 apprenticeships.

"That is significant," he said.

Cr Pethybridge believed the business had employed up to 70-odd staffers in the past 12 months.

He said the city had received 20 letters in support of the business, compared with five complaints.

Cr Pethybridge said many of the city's concerns could be addressed.

City staffers noted in their report to councillors that Central Victorian Welding and Fabrication Pty Ltd had not supplied additional information requested in June 2017 with respect to noise and wastewater management concerns.

"It could be fixed. I know it hasn't been but it could be and it should be," Cr Pethybridge said.

Cr Williams said he was disappointed the applicant hadn't done more to address the council's concerns.

He suggested the city defer its decision on the matter pending further discussions with the Central Victorian Welding and Fabrication Pty Ltd.

"What I want to see is a positive resolution for all involved," Cr Williams said.

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Cr Andrea Metcalf said any loss of employment associated with the decision would not be a good outcome. But she said there were too many outstanding areas of concern to grant the applicant a permit.

She said it was imperative council decisions resulted in orderly planning outcomes.

"I'm not convinced supporting a proposal like this would deliver that," Cr Metcalf said.

Cr Yvonne Wrigglesworth stressed that the use of farming zoned land for industrial reasons was not supported by the planning policy.

She said to allow the land to be used as such "makes a complete mickey of people doing the right thing, to be honest," and urged her fellow councillors not to issue the permit.

"The thing we need to remember here is the precedent something sets," Cr Wrigglesworth said.

Enforcement proceedings will start in 60 days, unless Central Victorian Welding and Fabrication Pty Ltd appeals the decision to VCAT.

The business was contacted for comment.

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