Fate Of Melbourne's Palace Theatre To Be Decided Tuesday

News websites this week widely reported that the Melbourne City Council has been advised to reject the applictation to demolish the city's Palace Theatre.

The expert advice sought by the council, ahead of a Future Melbourne Committee meeting to be held on Tuesday, is believed to rule that demolishing the theatre's facade is acceptable but the luxury hotel planned for the site is deemed not acceptable.

If the council heeds this advice it will be the second time that construction plans have been rejected for the iconic Bourke Street address.

Despite the theatre ceasing to function as a venue last month, and its fittings having been stripped and sold, campaigners are still battling to save the historic building.

The new considerations may not be enough to save the building but they may bring a halt to developers maintaining interest in the site for hotel or apartment construction.

According to The Age, this latest report described the current plans to build a W-Hotel on the site as "over-development" and suggested it would compromise the "unique character" of the Bourke Hill precinct.

It was also noted that the proposed hotel would 'completely obscure' the views of the city from Parliament House.