The developers behind the demolition of Carlton's Corkman Irish Pub will be hauled before the planning tribunal to force them to replace the illegally demolished 159-year old hotel with another heritage-style building.
If that bid by Planning Minister Richard Wynne and the city council fails, the owners will still be forbidden by new planning rules - about to be introduced by the state government - from developing anything except a two-storey venue of similar size and style.
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Historic Carlton pub illegally bulldozed
Corkman Irish Pub opposite Melbourne University's law building has been demolished after being sold to a local developer for $1.56 million above its reserve in 2014. (Video courtesy: Francisco Ossa)
The Corkman Irish Pub, previously known as the Carlton Inn, had a heritage overlay but was demolished on October 15.
Its owners Stefce Kutlesovski and Raman Shaqiri had no building or planning permits.
It was demolished by Shaq Demolition and Excavation, half owned by Mr Shaqiri. Building waste and rubble - including asbestos - from the historic pub were later found dumped in Cairnlea.
The waste was dumped on another property the two men own, where they are midway through developing townhouses and apartments, in an estate called Havenlea.
Public outcry over the illegal demolition and subsequent asbestos dumping has been strong, putting pressure on the government and its agencies to act.
Mr Wynne said the law changes would, in effect, mean any re-build would force the developers to "replicate the site immediately prior to demolition".
"Any application for a permit for buildings and works on the site will require the restoration and reconstruction of the Carlton Inn in its entirety in the form it was in prior to demolition," he said.
Neither Mr Kutlesovski nor Mr Shaqiri have been contactable since the demolition, despite repeated attempts by The Age to reach them.
The pair are now being represented by lawyer Kimble Stynes, who is negotiating with the state government's agencies over the penalties their companies could face over the illegal demolition.
This may include fines of up to $750,000 for the asbestos and building waste dumping, which caused outrage among residents of Cairnlea on Wednesday.
Some of the dumped waste from the Corkman Pub at new luxury development site called Havenlea in Cairnlea. Photo: Justin McManus
The new planning overlay to be placed on the Carlton site will also allow it to be temporarily used for parkland if Melbourne City Council supports it - although the site is opposite a park.
The planning law will be created, Mr Wynne said, so the council had "time to consider permanent controls and involve the community".
Mr Wynne said it was not possible for the Corkman Irish Pub to be replicated perfectly. "But the overlay requires that its built form is as close as possible to what was there prior to demolition".
He said if the owners decided to sell, it was a decision for them, but the planning law changes meant nothing could be done on the site for now without the pub being replaced by another heritage-style building.
Main image shows the Corkman Irish Pub in Carlton. Inset: Rubble is all that remains of the pub.
If Mr Kutlesovski and Mr Shaqiri's company 160 Leicester Pty Ltd went into liquidation or bankruptcy, the planning rules would still apply to the land, Mr Wynne said.
He said the combined actions would show that the government wanted to preserve public confidence in the planning system, so that rogue developers and demolition teams could not knock down buildings without permission and suffer no consequences.
The planning law amendment will not force the owner to rebuild by a set date, although this is being pursued via the action in Victorian Civil and Administrative Tribunal.
The changes being pursued by the state government and city council will not remove penalties being pursued over the illegal demolition.
Possible penalties the owners of the site face include up to $186,552 for breaking planning laws, $466,380 for illegal demolition and a range of other fines for illegal dumping of building materials and asbestos.
"No one in the community would expect that we would have such behaviour, such brazen behaviour demonstrated in a way that has really left people aghast," Environment Minister Lily D'Ambrosio said.
She said the government was also looking at restructuring the fines in response to the pub's destruction.
"Fines need to be a deterrent, they should not be incorporated as part of the usual cost of doing business," she said.
"We want to make sure that these cowboys do not get away with what they've done."
Opposition leader Matthew Guy on Wednesday said tough penalties needed to be sought against the owners of the demolished pub. "You can't have a bunch of rogues running around the city demolishing buildings - heritage buildings that could have and should have been saved."
"There should be an overlay put on that site so that any approval given in the future means that the original facade must be rebuilt," Mr Guy said.
Multiple sources have told The Age on and off the record of the pair's plans to develop the site for apartments.