Artist's impression of the development.
PLANNING Minister Matthew Guy's decision to approve the Woolworths Canning Street development has outraged North Melbourne residents and Melbourne City council.
The Canning Street proposal includes two residential towers, one 16 storeys or about 55 metres tall. The $110 million plan features about 300 apartments and a retail component including a Woolworths supermarket.
Residents were told last week the plans had been approved.
Residents About Integrated Development president Peter Hogg said the Woolworths proposal was an overdevelopment that would create a height precedent in the area.
"It will be no holds barred development," Mr Hogg said.
The City of Melbourne's structure plan for the area recommends a 30-metre height limit with a discretionary additional 30 per cent subject to council approval.
City of Melbourne councillor and planning committee chair Ken Ong said council would challenge the decision at the Victorian Civil and Administrative Tribunal. He said the council had attempted to negotiate with Woolworths to develop a plan more in line with the council's vision for the area, but was ignored.
Mr Guy's spokeswoman Emily Broadbent said the minister had taken all views into consideration.
"The proposal provides housing choice and diversity and is located in close proximity to public transport and Melbourne's CBD," she said.