The next steps in the Sloane Street residential development project have been taken, with Northern Grampians Shire Council selecting the preferred contractor.
At its ordinary meeting on Monday afternoon, council elected PassivePlace as the preferred developer for the project situated between Ararat Road and Cahill Road, in Stawell.
Council will now proceed into negotiations for the project which is tipped to alleviate the housing shortage in the area.
Mayor Murray Emerson said it was too early to put a timeline on the project.
"The only timeline we would like on it is sooner, rather than later," he said.
"This project will not only provide much-needed housing stock in Stawell but will also provide a blueprint for the future of residential housing in Victoria.
"One of our major incentives would be to get this project done as soon as possible. We understand the urgency for housing."
The eight-hectare site was rezoned in 2013 to a Residential 1 Zone and has the potential to allow the development of anywhere between 60-110 dwellings.
"Stawell has very low residential tenancy vacancy rates and a projected increase in residents with the development of Nectar Farms and the Stawell Underground Physics Laboratory, it's great to have this housing project moving forward positively," Cr Emerson said.
"PassivePlace's innovative style and clever design will lead a new direction for residential buildings in regional and rural areas and we are excited to begin the conversation on exactly what that new direction is going to look like."
Council will establish a connection with PassivePlace in the coming weeks to discuss the project and contractual particulars.
"We've factored into our expressions of interest a percentage of the development must be done by our local trades," Cr Emerson said.
"It's hard to estimate what the economic benefit of this project will be for the town and region, but it will be gigantic.
"The fact we will be able to have extra housing available is an extra boost to be able to cater to the people we believe will move to the region because of employment options.
"Council will advise residents of any updates as they are available because it is such an important development for the area."
Monaghan Real Estate owner Terry Monaghan said the development of this size was "great news" for Stawell.
"This project is desperately needed," he said.
"We're losing residents on a weekly basis because there is no where for them to live."
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