The facility requested access from Ovens Street to a new part of the development, via a council-owned car park used for the Wangaratta Performing Arts Centre, but was denied by administrators.

St Catherine’s Hostel vice chairman John McSweeney argued he never asked for a new road, just a “right of way” through the car park.

The administrators accepted Wangaratta had a growing need for aged care beds, but the 14 car parking spaces that would be lost were too valuable.

Irene Grant said the development would “compromise an important cultural precinct” and move “a substantial amount of traffic onto a busy street”.

The council resolved to have further discussions with the hostel.