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Two major Caulfield racecourse planning application have been approved by Glen Eira City Council giving the green light to the much maligned $750000 Caulfield Village development.

The "package deal" was struck between the Melbourne Racing Club and the council, allowing the controversial Caulfield Village and a revamp of the racecourse reserve, in the centre of the course, to go ahead. Racecourse committee chairman, Cr M Lipshuts said negotiations had not been rushed. "It was a compromise...this is the longest planning application that we've ever had", he said.

"It's a package deal, in that the MRC wanted to have the centre of the racecourse to go through." At Thursday's meeting, the council's special committee approved C60, which paves the way for the MRC's high rise development, including 1200 units housing 2000 people and 35,000sq m of commercial, office and retail space between Station St and Kambrook and Normanby roads.

There will be height restrictions with buildings in the Smith St precinct capped at 20 storeys. Despite vocal residents fighting the plans since 2006, the Thursday meeting went ahead with little fanfare.

Planning Minister Mathew Guy will now decide the C60 plans.

The night before, councillors voted 6-3 in favour of the MRC creating five activity precincts in the racecourses' centre , which include a picnic and barbecue area, a jogging path, a junior-sized sports oval, and an off-leashed dog and agility area at a cost of $1.8m

It will be open every day from 9.30 am until sunset , except scheduled race days and on 10 predetermined events days.

The work must be completed by MRC within 12 months.

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