Footscray’s iconic 501 Receptions site is back on the market just weeks after a Victorian Civil and Administrative Tribunal decision paving the way for a five-storey development on the site.

VCAT last month knocked out a number of conditions imposed on the 198-unit development on the site, paving the way for the $30 million project to proceed.

The decision overturned Maribyrnong Council’s move to cap the project at four stories and insist on the inclusion of three-bedroom apartments.

The plans for 495-507 Barkly Street includes twin five-storey blocks housing 104 one-bedroom and 94 two-bedroom units above eight retail ground-floor tenancies.

In 2010 approval was granted for 111 units but FSG Corp Australia later applied to almost double the number of units and decrease their size “to respond to the current market demands”.

VCAT has also allowed for a reduction of car spaces and overturned Council’s requirement for 10 three-bedroom apartments for reasons including their availability in the neighbouring Banbury Village development.

Council argued in VCAT that a five-storey building “is not an appropriate response to the area’s built form character”, noting no buildings of this height exist between Geelong Road to the east and Ashley Street to the west.

Council also claimed the development would impact the ‘village feel’ and unacceptably affect the neighbouring dwellings to the east and south.

VCAT member Bill Sibonis found future development in the area woua fifth storey would not overwhelm the area or appear at odds with its context. “The contrast with surrounding built form will diminish over time as properties are redeveloped.”

The 6288-square-metre site was rezoned from industrial to mixed-use in 2009.

The developer reportedly paid $8.4 million for the site, home to 501 Receptions since 1980.

The site is being marketed by commercial real estate agents Savills and Fitzroys as a landmark opportunity “strategically positioned within one of Melbourne’s key growth locations”.

The site is for sale by expressions of interest, closing 2pm Thursday May 12.