appellant. The Tribunal set aside the decision of the responsible authority and directed that a permit be issued under s.85(1)(b) of the Planning and Environment Act 1987 for the construction of three...
Key principles
Where a residential site sits at the cusp of an activity centre and transport corridor, metropolitan strategy encouraging increased densities (Melbourne 2030) and local planning...
Neighbourhood character controls (Clause 22.10) and ResCode (Clause 55) do not automatically prohibit robust double-storey development in a location influenced by adjacent...
Where amenity or safety concerns arise from the interaction of dwellings and an adjoining laneway, the Tribunal may grant a permit but impose detailed conditions (setbacks,...
Issues before the court
Does metropolitan strategy and local planning policy (encouraging higher density near activity centres and transport corridors) justify approval of...
Do the proposed setbacks, building bulk and first-floor scale offend neighbourhood character objectives (Clause 22.10) so as to require refusal?
Are pedestrian safety and sightline issues created by a southern boundary wall and a 3.66 metre right-of-way sufficient to justify refusal?
Plain English Summary
VCAT allowed Creative Design Studio's appeal against Moreland City Council's refusal to permit three double-storey townhouses at 2 Hatter Street. The Tribunal found the site lies at the edge of a shopping/transport precinct where higher density is encouraged. Rather than refusing because of bulk, setbacks and safety concerns, the Tribunal held these could be managed by detailed permit conditions (adjusted setbacks, pedestrian path, lighting, landscaping, garage and façade treatments). The Tribunal set aside council's decision and directed the issue of a permit with those conditions.
AI-generated legal information, not legal advice. Zoe can make mistakes. Check the cited source, and for advice about your situation consult a qualified Australian lawyer.
Deep Dive
1,499 words · generated 10/08/2026
What happened
Creative Design Studio applied for a permit to construct three two-storey dwellings on 2 Hatter Street, Pascoe Vale South (a 480m² lot with a 12.8m frontage) which directly abuts a 3.66 metre laneway serving a row of shops in a Business 1 Zone. Moreland City Council refused the application. Neighbouring owners objected on grounds including building bulk, reduced setbacks, obscured sightlines to rear entrances and pedestrian safety where driveways and the laneway interact (THE ISSUES [2]-[4]).
What role do detailed permit conditions have when a proposal raises amenity concerns but is broadly supported by higher-level policy?
Cited legislation
No linked legislation citations have been extracted yet.
VCAT (Senior Member Tonia Komesaroff) conducted a merits hearing and, on 7 August 2009, set aside the council's decision and directed that a permit be issued under s.85(1)(b) of the Planning and Environment Act 1987 for the construction of three two-storey dwellings generally in accordance with the endorsed plans, subject to a detailed schedule of conditions (ORDER; Reasons). Key conditions required amended plans (setback adjustments, garage dimensions, pedestrian pathway, lighting), a landscape plan specifying number and placement of canopy trees and shrubs, irrigation, architectural treatments of blank walls, vehicle crossings, undergrounding of services, and various works to be completed prior to occupation (ORDER conditions 1–15).
The Tribunal's decision rests on a site-specific balancing exercise: it placed significant weight on metropolitan strategy and local policy encouraging increased density at sites adjacent to activity centres and transport corridors, while also accepting council and neighbour concerns and addressing them by conditions rather than refusal (BACKGROUND [3]; PLANNING CONTROLS AND POLICY [1]; ANALYSIS OF THE ISSUES [1]).
Why the court decided this way
The Tribunal's reasoning can be distilled into three connected strands.
Policy context: The site is immediately adjacent to a commercial precinct which the Tribunal accepted has the attributes of a Neighbourhood Activity Centre, and it abuts a transport corridor. Senior Member Komesaroff emphasised that Melbourne 2030 and local policy at Clause 21.05-1 encourage higher density in such locations (BACKGROUND [3]; PLANNING CONTROLS AND POLICY [1]-[2]). This strategic push for change is central: the site is a 'cusp' location where increased housing intensity is envisaged.
Contextual assessment of neighbourhood character: The Tribunal followed the approach in McGann (Member Read) that assessing whether a proposal is 'respectful' requires giving weight to context and broader policies that may call for higher densities (ANALYSIS OF THE ISSUES [1], quoting McGann). In short, 'respectful' development in a location promoted for change can accept forms that differ from the prevailing single-storey character, provided impacts are managed.
Use of conditions to address amenity and safety: The Tribunal accepted many of council's criticisms (bulk, blank walls, sightlines and pedestrian safety) but concluded those could be cured by targeted permit conditions (setback amendments, a pedestrian pathway of 1.0m abutting the laneway, a light between Dwellings 2 and 3, landscaping and architectural treatments). The decision thus balances strategic policy favoring density with site-specific measures to protect amenity and safety (Shared use of the laneway and pedestrian safety [1]-[3]; Building bulk against the neighbours' boundaries [1]-[3]; ORDER conditions).
The operative principle is balance: the Tribunal read neighbourhood character policies flexibly in a place where metropolitan policy explicitly encourages higher densities, but it insisted on concrete measures to prevent unacceptable impacts.
Before and after state of the law
Before this decision
VCAT and responsible authorities routinely assess medium-density developments against neighbourhood character policies (e.g. Clause 22.10), ResCode (Clause 55) and broader metropolitan policy (Melbourne 2030). There is established authority that context matters and that some locations are suitable for increased density.
After this decision
Creative Design Studio v Moreland CC records an instance where VCAT explicitly favoured metropolitan/local policy for increased densities at a cusp location and authorised double-storey townhouses subject to detailed conditions to mitigate amenity and safety concerns. The case reinforces that:
The planning scheme's metropolitan policy can carry decisive weight at sites adjacent to activity centres and transport corridors.
Neighbourhood character objectives must be read in context and balanced against policy promoting change.
VCAT will often prefer tailored conditions to refusal where impacts can be meaningfully mitigated.
It does not create new statutory tests. Rather it illustrates application of established planning principles: contextual assessment, balancing policies, and use of conditions.
Key passages with plain-English translation
Quotation (ANALYSIS OF THE ISSUES [1]):
"there is no doubt that this cusp location abutting a rear shopping centre car park and delivery access way, around the corner from a transport corridor, is just the location envisaged by metropolitan strategy for increased densities."
Plain English: Because the site sits next to shops and a transport route, it is exactly the kind of place state and regional planning policies expect to be developed more densely.
Quotation (ANALYSIS OF THE ISSUES [1], quoting McGann):
"... in assessing whether a proposal is 'respectful' consideration needs to be given to the context, the thrust of the planning schemes, other policies such as those that call for higher densities in some locations and any special provisions that apply..."
Plain English: Determining whether new development fits the area is not just about copying existing houses; you must look at the wider policy push for growth and the particular local context.
Quotation (Building bulk against the neighbours' boundaries [3]):
"Council is undoubtedly right to criticise the bland and blank nature of the double storey walls to all three buildings. This can be improved greatly by the use of stencilling or inscribing them to the satisfaction of the responsible authority."
Plain English: The Tribunal agrees that the buildings need better architectural detail; this issue can be fixed by requiring façade treatments as a condition.
Operative order (ORDER):
"The decision of the responsible authority is set aside. A permit is granted ... which allows the construction of three, two storey dwellings generally in accordance with the endorsed plans."
Plain English: The Tribunal overturned council's refusal and directed that the permit be issued, subject to conditions.
What fact patterns trigger this precedent
This decision is most directly relevant where:
A residential lot directly abuts or is adjacent to a Business/Activity Centre and a transport corridor or similar 'cusp' location promoted for higher density under metropolitan/local strategies.
The proposal seeks multiple dwellings or medium-density development including double storey forms in a street otherwise characterised by single-storey houses.
The site has constrained vehicle/pedestrian interactions (e.g. narrow laneway) that raise amenity or safety concerns.
The responsible authority refuses on character, bulk, setback or sightline grounds while higher-level policy points to increased density.
If those elements converge, Creative Design Studio suggests VCAT may give substantial weight to metropolitan strategy and local policy favouring density, and is likely to consider whether conditions can mitigate impacts rather than mandate refusal.
How later courts have treated it
This deep dive is limited to the single judgment provided. The judgment itself explicitly follows Member Read in McGann v Bayside CC [2006] VCAT 2259 (ANALYSIS OF THE ISSUES [1]) and thus is part of a line of VCAT decisions adopting a contextual approach to 'respectful' development when metropolitan/local policy encourages change. To trace how later courts or tribunals have treated Creative Design Studio, one would need to search subsequent VCAT decisions and any appellate authorities citing this decision. The present judgment demonstrates the Tribunal's willingness to give effect to metropolitan strategy in site-specific determinations and to prefer conditions as a balancing device.
Still-open questions
Degree of weight to metropolitan policy in marginal cases: The decision supports strong weight to metropolitan/local policy at cusp locations, but it does not set a precise threshold for when such policy outweighs neighbourhood character concerns. Future cases may test the boundary where local amenity impacts are more severe.
Role of laneway width and shared access: The Tribunal accepted that a 3.66m laneway together with open car spaces allowed adequate sightlines in this case. That finding is fact-specific. Different laneway configurations, higher traffic flows, or narrower carriageways could yield different outcomes.
Architectural mitigation vs substantive design change: The Tribunal often uses conditions (façade treatments, stencilling, landscaping) to resolve aesthetic concerns. Questions remain about when such treatments are sufficient versus when refusal or substantive redesign is necessary to protect character.
Precedential weight: As a single VCAT decision, the judgment is persuasive for other merit tribunals but not binding on courts. The extent to which courts or other VCAT panels will follow its balancing approach will depend on differing facts and policy emphasis.
Interaction of neighbourhood character policies within adjoining precincts: The site sat between precincts (No. 27 and No. 34). The Tribunal treated the cusp effect as determinative. Future disputes may present more finely balanced precinct distinctions that require different weighting.
This document provides legal information about the reasons and outcome in Creative Design Studio v Moreland CC [2009] VCAT 1582 based solely on the judgment text you supplied. It is not legal advice, and I can make mistakes. Before you rely on this analysis, act on it, or use any draft derived from it, get a qualified Australian lawyer to check it.
Judgment (22 paragraphs)
[1]
Creative Design Studio v Moreland CC [2009] VCAT 1582 (7 August 2009)
The decision of the responsible authority is set aside. A permit is granted and directed to be issued by the responsible authority under the provisions of section 85(1)(b) of the Planning and Environment Act1987 for the land at 2 Hatter Street, Pascoe Vale South which allows the construction of three, two storey dwellings generally in accordance with the endorsed plans. The Tribunal directs that the permit must contain the following conditions:
[4]
Before the development commences, amended plans to the satisfaction of the responsible authority must be submitted to and approved by the responsible authority. When approved, the plans will be endorsed and will then form part of the permit. The plans must be drawn to scale with dimensions and three copies must be provided. The plans must be generally in accordance with the plans by Creative Design Studio Sheets 1 of 7 Rev A, 2 of 7 Rev A both hand dated 15/06/09 (and on the Tribunal file) and Sheets 3 of 7 to 7 of 7 inclusive but modified to show:
(a) Setback of the entire eastern wall of Dwelling 3 to 2.05 metres to align with the entry setback;
(b) a setback of the entire southern boundary of Dwelling 1 by 1.0 metre to provide a pedestrian pathway abutting the laneway;
(c) the setback of Dwellings 2 & 3 reduced to 1.74 metres with the increased area provided in the secluded private open space to Dwellings 2 & 3 and not within the units internally;
(d) Provision of a 1.0 metre wide pedestrian pathway abutting the laneway along the entire sideage up to the entry porch for Dwelling 3;
(e) the pedestrian pathway constructed to the same level as the existing laneway but in a different colour and materials to the laneway and the driveways;
(f) a minimum access way width of 5.4 metres from the southern edge of the laneway to the garage doors of Dwellings 2 & 3;
(g) the garage doors at least 3.2 m wide;
(h) the length of the garages increased to 6.0 metres internally;
(j) all blank upper level north, east and south walls of the proposed buildings broken up by further architectural detailing either by inscribing them or stencilling to the satisfaction of the responsible authority;
(k) the provision of a light between Dwellings 2 & 3 to provide appropriate lighting for pedestrian access to these two dwellings;
(l) A landscape plan in accordance with Condition 3 of this permit.
(m) A schedule of all proposed exterior decorations, materials, finishes and colours, including colour samples (3 copies in a form that can be endorsed and filed).
[5]
The responsible authority may extend the periods referred to if a request is made in writing before the permit expires or within three months afterwards.
[6]
Mr Russell Hocking, Town Planning Consultant of Cityside Planning Pty Ltd.
[7]
Mr W Abrahams appeared in person. Mr Rodney Mounsey appeared for Audrey Mounsey.
[8]
The issue in this case is whether policy supports three double storey dwellings with large ground and first floor footprints accessed via a 3.66 metre wide right-of-way (ROW) which also serves shops fronting Bell Street. The site abuts a commercial context of car parking and businesses to the south and dwellings to the north, east and west. The developer contests council's refusal of its application and neighbours support council's refusal.
South of the subject site is a cluster of shops located within the Business 1 Zone which front Bell Street.
The site directly adjoins a commercial precinct which has all of the attributes of a Neighbourhood Activity Centre as defined within Clause 12 of the Planning Scheme and Melbourne 2030 Metropolitan Strategy. It has small businesses and shops, local convenience services and public transport. Melbourne 2030 encourages higher density housing in and around Neighbourhood Activity Centres.
Furthermore, the site immediately abuts a transport corridor along Melville Road serving the Bell/Melville shopping centre.
[9]
As there was no objection, plans by Creative Design Studio Sheets 1 of 7 Rev A and 2 of 7 Rev A, hand dated 15/06/09 were substituted by the Tribunal. Sheets 3 of 7 to 7 of 7 inclusive remain the same.
[10]
The subject site lies on the eastern side of Hatter Street, between O'Hea Street to the north and Bell Street to the south. It has a frontage of 12.8 metres, a depth of 37.51 metres, with an area of 480m². A 3.66 metre wide laneway is located along the southern boundary of the site. The site contains a single storey weatherboard dwelling, with a hip tiled roof. The existing dwelling is setback 8.1 metres from Hatter Street with side setbacks of 1 metre from the southern boundary and 2.4 metres from the northern boundary.
The character of Hatter Street is predominantly suburban with generous front setbacks, which provide views of established simple gardens. The surrounding area is characterised by residential development to the north, east and west comprising detached single and double storey dwellings and medium density infill.
But the character and appearance of this corner site[1] is heavily influenced by the abutting laneway which is heavily used by shopkeepers, delivery trucks and shoppers using the parking spaces, as well as the three double storey townhouses built to the south in the Business 1 zone behind the shop at 430 Bell Street.
[11]
Dwelling 1 is three bedrooms with a ground floor area of 79.66m² and a first floor area of 63.59m². Like dwelling 1, dwellings 2 and 3 have first floor footprints that are not much smaller than the ground floors. Both are two bedrooms. Dwelling 2's ground floor area totals 86.42m² and first floor area totals 56.45m². Dwelling 3's ground floor area totals 89.25m² with a first floor area total of 57.82m².
The two rear dwellings obtain their driveway access off the abutting right of way.
Dwelling 1 is to be setback 5.0 metres from Hatter Street and mediates between the 8.1 metre house setback to the north and the townhouse setbacks of 1.2 metres to the south.
[12]
The land is zoned Residential 1 with no other overlay controls. A permit is required to develop more than one dwelling per lot. Planning policy for housing at clause 21.05-1, objective 3 seeks to ensure increased density development is appropriately located and designed to contribute to achieving environmental sustainability. To that end it supports increased housing intensity within designated activity centres, urban villages and transport corridors, in accordance with Neighbourhood Character Local Planning Policy.
The site immediately abuts a transport corridor along Melville Road serving the Bell/Melville shopping centre, although council says the right of way is the boundary between that precinct No. 34 (Bell/Melville) and the subject precinct No. 27.
Clause 55 encourages medium density housing across the municipality that achieves good amenity for occupants and neighbours and contributes to preferred urban character statement for the area, as described in the neighbourhood character policy and guidelines.
The site lies within neighbourhood character precinct No. 27, although I note that for residential areas within precinct 34, the objectives do not differ. The objectives of clause 22.10, which deals with neighbourhood character, are:
to ensure that new development respects the existing scale and siting of the predominant built form of the precinct;
to improve the landscaped and "green" character;
double storey development will be considered only where reduced building site coverage is consistent with existing surrounding character of rear yards and garden outlooks;
prevailing setbacks (front and side) should be retained. Rear setbacks should have regard to the importance of rear yards and garden outlooks in accordance with the characteristics of the precinct.
Urban design policy at clause 21.05-5 objective 2 seeks to ensure that development contributes to and reinforces local identity, sense of place and a sense of safety. To that end it encourages development that incorporates elements which promote safety such as clear sightlines, safe movement, good connections and access, mixed use activities promoting public use, and clear signage.
The parties and the witnesses in the appeal made both written and verbal submissions, a number of plans, photographs and other documents were tendered to me and remain on the Tribunal's file.
[13]
This site lies in between the cusp of two precincts, No. 34 covering the Bell/Melville shopping centre and transport corridor and No. 27 covering the Hatter Street hinterland. Nevertheless it cannot be denied that it is affected by its abuttal to a heavily trafficked laneway. The proposed townhouses will face a harsh and unattractive environment.
Council criticises the sheer double storey scale of all dwellings when Hatter Street is more single storey. Council seeks greater articulation and a more diminutive first floor to integrate better with the existing single storey character of the area.
The adjoining properties at 4 Hatter Street and 1 and 3 Turner Street to the rear have open rear yards with some outbuildings located adjacent to the subject site. Council criticises that dwellings 2 and 3 provide minimal ground floor setbacks from the rear and side setbacks of between 1 metre and 4.1 metres.
Council also criticises that Dwelling 1's wall on boundary results in obscured sightlines to the entrances of the dwellings 2 and 3 and forces pedestrians to use the laneway adjacent to reversing cards that park at 2a, 2b and 2c Hatter Street. In other words, pedestrians would be required to stand in the laneway to see the entrances to the rear dwellings. Moreover, street lighting would be insufficient to provide appropriate lighting for pedestrian access to the dwellings 2 and 3.
[14]
There is no doubt that this cusp location abutting a rear shopping centre car park and delivery access way, around the corner from a transport corridor, is just the location envisaged by metropolitan strategy for increased densities.
In respect of neighbourhood character policies in clause 22.10 and the Character Precincts, I follow the sentiments of Member Read in McGann, Carr Architects v Bayside CC[2] where he says:
[15]
... in assessing whether a proposal is 'respectful' consideration needs to be given to the context, the thrust of the planning schemes, other policies such as those that call for higher densities in some locations and any special provisions that apply. In a location like this, the notion of what constitutes 'respectful' development needs to embrace the "change" that is encouraged by metropolitan local policy ......
[16]
Front setback mediating between townhouses and Hatter House
[17]
Firstly, council is happy with the 5.0 metre setback of Dwelling 1, mediating as it does between the 8.1 metre house setback to the north and the 1.2 metres townhouse setback to the south.
To improve the landscaped and "green" character in accordance with clause 22.10, the front setback needs two canopy trees on each side, permeable surfaces for all open spaces excluding pathways and driveways and irrigation to ensure the landscaping survives and matures. The same applies to the rear yards, all three of which have enough room for canopy trees of a species to the satisfaction of council.
[18]
I have given thought to Council's criticism of the Dwelling 1 south boundary wall obscuring sightlines to the entrances of the dwellings 2 and 3, but I agree with Mr Hocking that the combination of the 3.66 metre wide laneway together with the open car spaces serving 2a, 2b and 2c Hatter Street allows for clear views to the rear townhouses.
However, I will require Dwelling 1's southern boundary to be set off its title boundary by 1.0 metre to provide a pedestrian pathway abutting the laneway in a different colour and materials to the laneway, for safer access to the rear units by separating pedestrians from vehicles in accordance with cl. clause 21.05-5 objective 2.
I will also require a light between Dwellings 2 & 3 to provide appropriate lighting for pedestrian access to these two dwellings.
[19]
Other than increased setbacks to provide a spine of landscaping between residential properties, as suggested by Mr Mounsey for his mother, I do not think that this corner location justifies a diminutive upper level for all three dwellings. They face a robust environment and can be robust themselves, thereby supplying better living accommodation for occupants.
Mr Hocking has suggested a way to move the bulk away from Mrs Mounsey, at the same time increasing the secluded private open space which can include canopy trees. Mrs Mounsey's criticism was that the wide eaves limited the ground floor rear setback from 1.0 metre to effectively 500mm which is inadequate.
Council is undoubtedly right to criticise the bland and blank nature of the double storey walls to all three buildings. This can be improved greatly by the use of stencilling or inscribing them to the satisfaction of the responsible authority.
[20]
With permit conditions designed to improve the interface between neighbours, I am able to direct the issue of a permit for double storey townhouse at this commercial cusp with the rear of the Bell/Melville shopping centre.
[21]
[1] At the corner of Hatter Street with the 3.66 metre wide right of way
The Tribunal set aside the decision of the responsible authority and directed that a permit be issued under s.85(1)(b) of the Planning and Environment Act 1987 for the construction of three two-storey dwellings generally in accordance with the endorsed plans, subject to detailed conditions (see ORDER conditions 1–15).
The development as shown on the endorsed plans must not be altered without the written consent of the responsible authority.
Prior to the commencement of any development works, a landscape plan must be submitted to and approved by the responsible authority. The landscape plan must provide the following:
(a) A schedule of all proposed trees, shrubs and ground covers (including numbers, size at planting, size at maturity and botanical names), as well as sealed and paved surfaces. The flora selection and landscape design should be drought tolerant and based on species selection recommended in the Moreland City Council landscape Guidelines and Technical Notes.
(b) Identification of any existing tree(s) and vegetation proposed to be removed and retained. Vegetation retainment must include strategies for the retainment (ie. Barriers and signage during the construction process).
(c) the provision of the following canopy trees planted at a minimum planted height of 2.5 metres to assist in the integration of the development within the existing streetscape:
Two on each side of the front yard of Dwelling 1;
One in each of the backyards of Dwellings 1 & 2;
Two in the secluded private open space of Dwelling 3, one to the north and one to the east.
(d) The provision of tall shrubs along boundaries to create a green landscaped spine to the north and along the southern interface with the laneway wherever possible.
(e) A row of closely planted James Stirling pittosporum along the eastern boundary at a minimum planted height of 2.5 metres.
(f) Installation of an in-ground automatic drip irrigation system to all landscaped areas in the development.
(g) Details of the location and type of all paved and sealed areas. Extensive hard surfaces are not supported. The adoption of porous/permeable paving, rain gardens and other water sensitive urban design features is encouraged.
Following completion of the development the areas designated as garden areas on the endorsed landscape plan must be maintained and used as garden areas. Any dead or diseased plant or tree must be replaced.
An in-ground automatic drip irrigation system must be provided to all landscaped areas in the development.
Prior to the occupation of the dwellings hereby permitted, a street light must be installed between Dwellings 2 & 3 to illuminate public access to the four rear dwellings, at the cost of the permit holder to the satisfaction of the Responsible Authority. This light must remain lit daily from dusk to dawn, must be powered by electricity and must be maintained at all times.
Prior to the occupation of the development, a vehicle crossing must be constructed in every location shown on the endorsed plans to a standard satisfactory to the responsible authority (Moreland City Council, City Infrastructure Department).
Prior to the occupation of the development, all visual screening measures shown on the endorsed plans must be installed to the satisfaction of the responsible authority. All visual screening and measures to prevent overlooking must be maintained to the satisfaction of the responsible authority. Any screening measure that is removed or unsatisfactorily maintained must be replaced to the satisfaction of the responsible authority.
The garage doors to Dwellings 2 & 3 must be automatic remotely controlled roller shutter doors.
All stormwater from the land, where it is not collected in rainwater tanks for reuse, must be collected by an underground pipe drain approved by and to the satisfaction of the responsible authority.
Prior to the occupation of the development, all boundary walls must be constructed, cleaned and finished to the satisfaction of the responsible authority.
A mailbox, with separate aperture for newspapers and other non-mail articles must be provided for each of the premises at the street frontage. The mailbox dimensions, placement and numbering must comply with the Australia Post - General Post Guide 2004 (Point G4.3) as published on its website to the satisfaction of the responsible authority.
All telecommunications and power connections (where by means of a cable) and associated infrastructure to the land must be underground to the satisfaction of the responsible authority.
Unless with the prior written consent of the responsible authority, any plumbing pipe, ducting and plant equipment must be concealed from external views. This does not include external guttering or associated rainwater down pipes.
This permit will expire if one of the following circumstances applies:
(a) the development is not commenced within two (2) years from the date of issue of this permit;
(b) the development is not completed within four (4) years from the date of issue of this permit.