Melbourne’s Palace Theatre saved … but battle not over, warns lobby group

A proposal to knock down Melbourne live music venue The Palace Theatre’s building and turn it into high rise apartments and a five-star hotel has been rejected by the Department of Transport, Planning and Local Infrastructure.

The $180 million application by site owner Jinshan Investments to knock down the venue on Bourke Street in the city galvanised the local music community. The ’Save the Palace Theatre’ group was set up, while Melbourne Heritage Action also swung into action.

This week, the Department of Transport, Planning and Local Infrastructure began sending out letters to those who objected confirming its decision. “The proposal will adversely impact the low scale character of the Bourke Hill Precinct,” it stated.

The ’Save the Palace Theatre’ group welcomed the news – but warned that the battle is not over yet.

In a post on its Facebook page, it said, “Whilst this is a win and we’d love to dance around and celebrate, we also need to recognize that it isn’t a victory. The Palace Theatre site still remains unprotected and vulnerable to redevelopment. The developer can submit subsequent proposals that may satisfy the planning requirements.

“It is for this reason that we are working to have the Palace Theatre formally protected. Please stay tuned and up to date with our page as we will be bringing more new information to all in the coming weeks. But for now, go ahead and reach for that top shelf, open a drink and raise a toast to the Palace Theatre!”

The Melbourne Heritage Action welcomed the news: “Now to get the interiors heritage listed and keep live music at the venue.”

Some say the proposal was doomed to fail. Last August Jinshan was told to rework its design and apply again. The Melbourne City Council’s planning officials last November argued that the proposed building was still too high for the area, while Planning Minister Matthew Guy last month also signaled he would push against an approval for the same reason.

Jinshan Investments owner Xian Xu wanted to completely demolish the old building and build a 72.25 metre-high tower with 200 hotel rooms and 91 apartments in its place.