GREATER Bendigo councillors have blocked an attempt to build a three-story, 63 room hotel in Golden Square.
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Developers wanted to build a three-storey hotel at 471 High Street, on the corner with Elm Street.
Elected representatives discussed the bid when they gathered on Monday night.
Councillor Jennifer Alden said the building was not in keeping with the area's neighbourhood character.
She said buildings along that part of the Calder Highway should be set further back from the road to maintain neighbourhood character.
Cr Alden said the site was "obviously" too small for the number of guests and workers that the hotel would attract if built.
"A quiet residential area will be overrun with cars seeking street parking," she said.
Council officers have previously estimated as many as 39 on-street parks would be needed despite developers planning to offer 29 spaces in a basement level.
The developers themselves had estimated less on-street parking would be needed on Elm Street and High Street.
They calculated that they would need 26 staff and guest parks on the streets when the premise was 80 per cent full.
Cr Alden also took issue with the the three story height of the proposed building and potential problems with noisy guests impacting neighbours.
She agreed with 21 members of the public who objected to the proposal during public consultations.
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Councillors Vaughan Williams and Greg Penna agreed the hotel, its cafe and swimming pool would be an overdevelopment of the site.
"It will have an immediate and ongoing effect with neighbours, overshadowing, traffic, parking, foot traffic, bulk and noise issues," Cr Penna said.
All nine councillors voted to reject the hotel bid on the site.
Their decision backed a council officer report submitted ahead of Monday night's meeting which found the hotel would have represented an "unacceptable planning outcome".
Council staff had conceded the hotel had an interesting design, was on a major road and sat in an area where such a hotel would be acceptable.
Their concerns focused largely on the site itself.
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