Residents are disputing Central Goldfields Shire Council's approval to demolish what they say is a historic house in central Maryborough.
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Maryborough and District Health Service is planning to knock down the inter-war period house, at 1 Nightingale Street, and use the block to build a new accommodation building for student nurses.
However, some residents and heritage advocates say not enough community consultation was completed before the approval was granted.
The house is not listed on any heritage register, however it does fall under a council heritage overlay of "historically significant" properties.
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According to assessment documents released by council, the brick house, with its distinct architectural shape, "forms no streetscape of any consistency", according to one heritage report.
"The house is a modest inter-war dwelling, which has had its context altered," the report states.
"Given this change, its removal will not impact upon a streetscape of any appreciable value within (the heritage overlay).
"(O)n balance, the benefits to the community of an enlarged hospital facility will mitigate any negligible impacts from the removal of this house, a house of little architectural and no streetscape value."
Wayne McKail, president of the Central Goldfields Ratepayers Association, said while he appreciated the need for modern accommodation for the nursing students, council should have investigated ways of incorporating the historic facade into the new building's design.
"(The council) took excerpts out of heritage assessments that stipulates this new building will fit in with the vista of the existing area, it will complement the hospital and ambulance station," he said.
"They've considered this new building with modern structures, but from what we can read, they haven't compared it with the other buildings in the area."
A historic church and several other inter-war houses are on Nightingale Street.
Mr McKail said the issue is that council advertised for public submissions as coronavirus lockdown measures began, and there was no notice in the local newspaper.
"We'd like to prevent the demolition, but at least retain the facade, but also let people be aware of the processes in place, and encouraging them to be part of this," he said.
The planning application received four objections, and has been approved by council.
In a statement, council's infrastructure assets and planning general manager Rebecca Stockfeld said all "normal processes" were followed.
"Council advertised the application on March 4, for a 14 day period. State and Federal COVID-19 restrictions were not in place," she said.
Objectors now have until June 28 to review council's decision at the Victorian Civil and Adminstrative Tribunal, she added.
"Council's Notice of Decision to Grant a Permit was issued on 1 June 2020 to permit the use and development of the land for student accommodation, buildings and works and demolition of a dwelling within the General Residential Zone and Heritage Overlay," she said.
"If no review appeal is lodged within the 28 day period the planning permit will be issued."