The mayor and chief executive of Indigo Council will meet with the head of the Victorian Planning Authority in the next couple of weeks to try to resolve the red tape issue that is stopping development in Stanley.
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It has been more than a year since a Victorian government panel slammed the council for failing to consider the impacts of bushfire in its plans, despite the town being under serious threat on Black Saturday.
"The panel finds it puzzling why the threat of bushfire has not been identified in the structure plan as one of the most significant planning issues for the town," it stated at the time.
An amendment to zoning within Stanley was then put on hold, as was the town's ability to construct places like a post office or medical centre.
Resident Ed Tyrie asked for an update at this week's council meeting.
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The council's planning and corporate services director Greg Pinkerton said recommendations from the 2009 Victorian Bushfires Royal Commission came out as plans for Stanley were being developed.
They were stalled because they did not meet the new requirement to protect human life and restrict development in areas of high bushfire risk.
"Stanley is an area of high bushfire risk and so with this royal commission recommendation, it throws a spanner in the works because it's very difficult for the amendment in the form that it was to be supported," Mr Pinkerton said.
"We're still working on that and there's nothing I can give you at the moment on how that way forward will be."
Discussions will take place with the Victorian Planning Authority and CFA, but Mr Pinkerton could not give a timeframe on when they would some up with a solution.
"This is something that council is still pursuing. We're very much aware that the residents of Stanley want this amendment to proceed," he said.
Mr Tyrie said this was the same response he had received months ago from the council when looking for an update.