Developers had asked permission to transform the vacant land at the intersection of Strathfieldsaye Road, Tannery Lane, Wellington Street and Club Court.

They have since taken the council to the Victorian Civil and Administrative Council, saying it had taken too long to make a ruling on the proposal.

The City of Greater Bendigo's council endorsed opposition the development when it convened on Thursday night.

Councillor Matthew Evans said residential houses should rise at the site, with only a light focus on commercial businesses.

He said the proposal did not align with the council's vision for Strathfieldsaye's future.

Cr Evans said the land straddled a commercial and residential area.

"The main focus should be residential, with the incorporation of offices or light commercial where appropriate," he said.

Cr Evans was also concerned about the amount of tree native vegetation that would be removed.

"I also considered the objections made by members of the public and I particularly agree with ones around traffic and safety," he said.

Cr Evans said councillors only needed to look a few blocks down Strathfieldsaye Road at the Blucher Street intersection.

"Local residents will tell you the experience around traffic there - particularly around pick-up and drop-off time - is a huge issue," he said.

"The proposed site neighbours a primary school and the same issues could occur ... it is foreseeable that this development could have an impact on traffic."

Councillor Dave Fagg was among those who agreed but said he hoped a compromise could be reached around the blend of businesses and homes.

"It seems that one of the key sticking points is that it's in a precinct that calls for mixed-use development," he said.

"So while I'll be voting in line with this [council staff] recommendation I think there is scope for a compromise-solution at the VCAT compulsory hearing."

"Strathfieldsaye does need commercial developments and also needs housing. So there's an opportunity for the applicant to come up with a solution that honours both these needs."

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