VCAT set aside the Council's deemed refusal and granted a permit for construction of a three-storey, eight-dwelling townhouse development at 28 Station Street, Highett, subject to conditions including modifications to the front fence alignment. The Tribunal held that maximum building heights in the RGZ3 and DDO12 are not minimum or mandatory heights, and that townhouse development is not precluded merely because policy language 'promotes' or 'supports' apartment-style development. Lot consolidation is encouraged but is not a precondition for development, and housing diversity and affordability are to be assessed across the activity centre and municipality rather than on a site-by-site basis. Minor non-compliance with DDO12 side setback requirements for primary outlooks was accepted where it made no meaningful difference to building bulk or equitable development potential of adjoining lots.
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