The former VicRoads headquarters at 60 Denmark Street in Kew, under demolition this month, would make way for nine buildings under a state government masterplan. Two towers would rise 16 storeys, with the remainder between 10 and 14 storeys.
The 2.5-hectare block, close to the Kew Junction shopping precinct, has been sought after by developers for more than a decade because of its size, transport connections and affluent location. The land falls within the Victorian government's activity centre regime, under which relaxed planning laws aim to boost housing development and lower prices.
In a report prepared for Monday night's council committee meeting, Boroondara council officers criticised the plan for providing no more than the 10 per cent minimum affordable housing, for lacking social housing, and for failing to justify the building heights. Council had preferred buildings of between three and eight storeys.
"Instead, the proposed master plan provides for approximately 630 dwellings, compared with the earlier indication of around 500 dwellings ... and buildings of up to 16 storeys (52.5 metres)," the report said. "The rationale for this increase in height and yield, and the corresponding public benefit, has not been demonstrated in supporting documentation, or captured in the masterplan itself."
Officers also labelled as "inferior" plans for some of the proposed 579 car spaces to sit above ground, saying parking should instead be in basements. They pushed for more commercial space beyond "small-scale" retail, given the site sits in a designated activity centre, and argued the council, rather than Planning Minister Sonya Kilkenny, should have the final say.
"Given the site's former public ownership and strategic importance, officers consider it essential that the redevelopment delivers enduring public benefit," acting urban planning manager Jock Farrow wrote. "The Boroondara City Council remains the most appropriate authority for this responsibility, not the minister for planning."
Development Victoria, the government agency behind the masterplan, said it sought to balance housing, urban design, sustainability and connectivity, and that the plan was intended only as a guide, not a prescription for developers. It includes a pocket park, a light-filled plaza and a network of paths prioritising cycling and walking, with about 500 bike spaces.
"The former VicRoads site in Kew is being transformed into a vibrant new residential community with much-needed homes, close to jobs, transport, schools and green spaces," a Development Victoria spokesman said. Four private developers have been invited to submit detailed proposals after a two-stage market process in early 2025, with successful partners expected to be announced in 2027.
An earlier plan for about 500 homes, including 125 retrofitted into the VicRoads tower, was ditched earlier this year in favour of full demolition. The offices were decommissioned in 2024 and staff relocated to Ringwood, Sunshine and the Melbourne CBD. The site hosted the state's road authorities from 1961, when it opened for what was then the Country Roads Board.
Mayor Wes Gault said council was "supportive of additional housing" adjacent to the Kew Junction activity centre and that officers had been working with Development Victoria, while the council continues to push for ownership of a "tail" section of the site for green space and a shared path. Officers backed the masterplan's new north-south and east-west pathways as "pivotal". Federal independent MP Monique Ryan, whose Kooyong electorate includes Kew, has called for the site to include a significant allotment of social and affordable housing.