Victoria’s planning tribunal is investigating whether the development of Mallee Family Care’s new $28 million headquarters in Mildura, in the state’s far north west, has taken place unlawfully.

The family support service provider is embroiled in a challenge at the Victorian Civil and Administrative Tribunal (VCAT) about whether the planning permit provided by Mildura Rural City Council had lapsed while contractors were clearing the land.

Submissions to VCAT show it will consider when work at the former Hutchinson Motors site began, and whether the council acted appropriately when it gave Mallee Family Care an extension on its planning permit in 2023, if the permit had already expired.

Financial documents and annual reports from Mallee Family Care show the organisation bought the former Hutchinson Motors site in December 2019 for about $2.5 million.

It has spent about $22.7 million on the development since mid-2023, and last year secured a federal government grant of $5.4 million.

In August, the Mildura Working Man’s Club lodged an objection with VCAT about the traffic and car parking conditions attached to the planning permit.

The club wrote to council pointing out “anomalies” in the council’s documents supporting Mallee Family Care’s request to reduce car parking.

Mildura Working Man’s Club is also arguing that Mallee Family Care’s application to seek an extension of time to the original planning permit was not made to the council within six months of the expiry date.

A side profile of the Mallee Family Care building along Madden Avenue

More than $25 million has been spent on the Mallee Family Care building so far. (ABC News: Tyrone Dalton)

Council’s manager of growth and strategy, Phil Stone, said given the matter was still before VCAT, the council “would prefer not to go into further detail to avoid pre-empting discussions at next week’s hearing”.

“The permit was issued legally and work started on this project legally after the permit was issued in November 2021,” he said in a statement.

“We’re continuing to work with all parties to resolve the issue as quickly as possible.”

 Mallee Family Care CEO, Teresa Jayet, said “both Mallee Family Care and Mildura Rural City Council consider that all construction on the land has occurred pursuant to a valid planning permit”.

The Mildura Working Man’s Club has been contacted for comment.

A concept drawing of a design of the new building, which is three-storeys tall.

A concept design of the Mallee Family Care building, which will bring all its services under one roof. (Supplied: Mallee Family Care)

Permit timing

Documents show the original permit was granted in December 2021 and gave Mallee Family Care two years to start works and four years to complete those works. 

But another condition, which has created some confusion, stated use must start within two years of the permit issue date.

It’s alleged that the use had not started within the two-year window by November 12, 2023, and the extensions given in 2023 and 2025 should not have been granted.

In letters to VCAT, the council and Mallee Family Care contend that the terms “use” and “development” are relatable, and that the use began at the same time development began.

In it, aerial images show land had been cleared in August 2023 — three months before the November expiry date.

The case is set down for a two-day hearing in mid-February.