Mornington Peninsula Shire Council in Victoria will move ahead with its plan to rezone land at Mt Eliza, where Ryman Healthcare is looking to convert the historic Moondah Estate into a retirement village and aged care home, as “green wedge” despite a planning panel’s recommendations.

The planning panel last month said the site should be excluded from the green wedge – which would prevent Ryman’s development if it went ahead – and that the decision to include it was “unfair and bad policy making… not founded on strategic research”.

Despite this, however, Council has voted unanimously to proceed with the push to have Planning Minister Lizzie Blandthorn rezone the land as green wedge.

David Laing (pictured), Ryman’s General Manager of Development, said he was surprised Council had decided to ignore the independent experts’ assessment.

“The panel’s report not only systematically dismantled every argument the council has made about the site for more than five years, it explicitly said the council used the C270 planning amendment solely as a tool to stop Ryman getting a permit.

“We purchased the site in good faith with the Special Use Zoning it has had for decades. On two occasions now the independent umpire has ruled that our site’s current zoning and our proposed use are suitable,” he said.

David warned that the green wedge zoning would likely prevent anyone else from gaining permission to reuse the existing vacant buildings, which would be a “disaster” for the site and the heritage-listed mansion.

“In contrast, our plans would see more than $10m spent restoring the mansion to its former glory, and establish a community that will care for the needs of some of society’s most vulnerable people for decades to come.

“Council has failed at every stage to present an alternative vision to preserve and protect this site. It's now time for them to work constructively with us to secure the site’s long-term future, and provide the services the community so desperately needs,” he said.