Kew jumps hurdle
Jen Kelly

The State Government's planned controversial redevelopment of the site won approval from Heritage Victoria, the Government's heritage arm.

But the authority imposed conditions, including the retention and re-use of three of the six heritage-listed buildings -- a schoolhouse, dining room and residential cottage.

Kew Cottages Coalition president Brian Walsh said it was disappointing that the other three heritage-listed buildings would be demolished.

Community Services Minister Sherryl Garbutt said in a statement the decision was significant and meant the Government would earn more money from the site.

She said every cent from the sale of the 27ha site would fund services for people with disabilities.

The permit imposes several conditions on the redevelopment, including that the three buildings to be demolished are photographically recorded.

About 100 people with intellectual disabilities will continue living at the site.

The rest of the 380 people are being moved into the wider community.

The Government must still clear a legal battle before it can proceed, with Boroondara City Council fighting the plan at the Victorian Civil and Administrative Tribunal.

The redevelopment must also be approved by Planning Minister Rob Hulls.