The Department of Transport, Planning and Local Infrastructue has rejected a proposal to knock down popular live music venue, The Palace Theatre, and turn it into high rise apartments and a five-star hotel.

The historic Palace Theatre in Bourke Street, Melbourne

Site owner Jinshan Investments’ $180 million application to knock down the venue on Bourke Street, Melbourne has met with resistance from local planning bodies and encouraged local musicians and Melbourne Heritage Action to create a ‘Save the Palace Theatre’ group.

The Department of Transport, Planning and Local Infrastructure sent a letter to objectors, stating that, “The proposal will adversely impact the low scale character of the Bourke Hill Precinct”.

According to the Save the Palace Theatre Facebook page, The Palace Theatre site still remains unprotected and vulnerable to redevelopment. The developer can submit subsequent proposals that may satisfy the planning requirements.

The page said, “It is for this reason that we are working to have the Palace Theatre formally protected. Please stay tuned and up to date with our page as we will be bringing more new information to all in the coming weeks”.

Jinshan Investments owner Xian Xu applied to demolish the old building and build a 72.25 metre- tower with 200 hotel rooms and 91 apartments, with the major objection being that the structure was too high.