Construction at Maldon's Porcupine Village tourism complex is on hold following revelations work has taken place without the proper permits.
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In November 2020, businessman Frank Hutchinson purchased the site for $1.7 million, hiring Doug and Debra Baird as managers.
Since then, an extensive range of works have been undertaken, from restoring the colonial-style buildings to the construction of fully-furnished motel rooms, glamping tents, a petting zoo and caravan park.
The village also includes the Golden Nugget restaurant, which opened to patrons in September last year.
In May last year, the managers received $1.7 million from the state government for works. At the time, Mr Baird said Porcupine Village could officially open in five weeks.
In a Facebook post, the managers announced the opening has been further delayed.
"It is with much sadness and frustration that we convey some further delays in the opening of the Village to the public," the post said.
"Let us be clear that it is not the Mt Alexander Shire that is directly responsible for these delays.
"We certainly have the general support of the shire, who recognise the huge economic value this project will be for the region."
The village has been subject to objectors who have made enough noise "to effectively have works at the village completely shut down", according to the post.
"We have followed the instructions of the council for nearly two years, but we have breached a couple of permit application conditions, based on advice given to us from a private consultant.
"They are not game ending breaches, but they mean we have to cease works until such time as they are resolved, and permits are issued.
"None of us are planning or building permit experts so we have relied on the advice from others, some of which was flawed."
Mount Alexander Shire councillor for the Tarrengower ward, Stephen Gardner, said the stakeholders involved in the Porcupine Village project haven't followed the proper planning process.
He said people have called council and spoken to the village managers about the lack of permits.
"Council has then had to ask them to cease building until they get a permit, which is probably coming to council in March, April," he said.
A planning permit would need to respond to issues associated with the project, including neighbour amenity and noise, native vegetation removal, heritage impacts, water flows and large scale events hosted at the location.
Mr Gardner admitted he was "pretty excited" when he first heard about the village being bought and developed "because the village has been sitting vacant for a very long time".
"I even spoke to a representative and they talked to me about it when they first purchased it and I said I would be very supportive, but obviously they have to follow the planning process and they've for some reason at this point seem to have decided not to, which is causing problems," he said.
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Mr Gardner said people who oppose the project have a right to point out potential issues and have their voices heard without being victimised.
"I just wish that the right thing was done and hopefully with what the objectors are saying, they'll be listened to and we can get a planning permit done," he said.
In a comment on the original post, Porcupine Village stated staff have been verbally abused and photographed while working.
Up to 25 employees have been laid off while the permit is sought, according to the post.
"It's been tough to remain enthusiastic about the project over the last few weeks," the comment said.
The 1850s-style township opened as a tourist attraction in 1993 across 15 acres of land before closing just over 10 years ago.
The managers of Porcupine Village were contacted for comment.
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