Lygon Court developer raises concerns over council planning strategy

The owner of Lygon Court, Banco Group, has expressed concerns regarding the City of Melbourne’s Municipal Planning Strategy (MPS), arguing that it does not align with the Victorian Government’s Planning Policy.

The prominent developer commenced construction of what would become Lygon Court in the late 1980s. However, it has expressed concerns that future development of the premises may be restricted by the MPS.

At the Future Melbourne Committee (FMC) meeting on April 15, Urbis, on behalf of Banco Group, lodged a submission highlighting the discrepancies between state and local planning strategies for Carlton.

The submitter stated that "the local policy for the next 10 to 20 years for Carlton should be broadened to align with Victorian Planning Policy and encourage potential for more diverse built form outcomes.”

It suggested that more diverse outcomes would involve increased densities in commercial, economic, and residential activity, while continuing to respond to the heritage environment.

In light of receiving an influx of public submissions on the MPS and the state government’s release of its housing targets for the Melbourne municipality, the council, deferred the approval of the revised strategy to late 2026 at its April 15 meeting.

However, Banco Group made clear that it believed there was a disconnect between the state and local planning strategies in the MPS that was tabled at the meeting.

A key point of contention was that Lygon St had been identified by the Victorian Government as a Metropolitan Activity Centre, which are intended to play a major service delivery role for essential services, housing, and retail and commercial opportunities.

Under the proposed MPS, however, Carlton was identified as an “established area”, with management noting that change will be more subtle and gradual, and growth will be managed to ensure areas maintain their distinctive character, sense of place, and protection of local heritage significance.

Banco Group suggested that Lygon Court Shopping Centre should be identified as a key strategic site within the Lygon Street Activity Centre and that redevelopment of significant sites should be actively encouraged by the City of Melbourne to support the Activity Centre.

It also argued that there should be broader recognition of the role that varied building heights play within the Carlton precinct, expanding the focus beyond low-scale, heritage buildings to acknowledge and accept the diversity of scale that already exists.

However, council management responded that under the revised MPS, it would ensure any large sites provided a varied scale that respected and connected with the surrounding environment, and that the strategic role outlined in the MPS was appropriate.

The council also noted that changes to specific planning controls affecting the submitter’s site were beyond the scope of the amendments to be made to the MPS. •