The proposed development, to be built at 91-93 Canterbury Road, includes two storeys of office space, two storeys of residential space (including four two-bedroom apartments and two three-bedroom apartments) and 40 car parking spaces.

About 10 residents last Thursday attended a mediation hearing in Ringwood East led by Arrabri Ward councillors Natalie Thomas, Paul MacDonald and councillor-elect Tony Dib, who was formally sworn in at last night's council meeting.

Representatives from the applicant, Buzzbee Homes, also attended.

Stoda Street resident Rod Alsop, who has collected about 70 signatures for a petition against the project, said he was "not opposed to the development as such" but was concerned with the lack of privacy in his backyard and the increase in traffic and noise in an "already busy area".

"It will devalue our property by about $50,000. If passed, it would set a precedent for the other wards in Maroondah."

Another resident, who did not wish to be named, said the development was "not in keeping with the character of Heathmont".

"Heathmont is leafy and green; it is a neighbourhood centre. The only people to benefit from this project are the developers. It will be an eyesore and I don't think it is appropriate in this neighbourhood."

Ron Busby, of Buzzbee Homes, said the proposed development, which he described as "pleasant and modern", had been designed to be as "unintrusive as possible".

"You have to move forward - things are going to become more modern. I think it would do Heathmont good to have this building, it will enhance this area and do good as time goes on.

"We haven't overdeveloped it, we've tried to be as sympathetic [towards residents] as we can. We're not against you, we're with you."

In a letter to the council, seen by the Journal, VicRoads declared no objections to the granting of a planning permit for the development.

It recommended 10 conditions be imposed to the development. They included issues related to the vehicle crossover, access to the driveway, on-site parking and a request for a traffic management plan before works begin.

Maroondah Council planning co-ordinator Tony Comrie said a report on the proposed development would be prepared in the coming weeks, with the council expected to vote on the plan at its March 22 meeting.