July 14, 2026 — 2:49pmThe Boroondara Council has sued Planning Minister Sonya Kilkenny and a James Packer-backed consortium over the government’s approval of a controversial $520 million Kew development on the former site of Leo’s Supermarket.The council has taken action in the Supreme Court of Victoria, where it seeks to have the minister’s fast-tracked approval of the consortium’s plans to build an 18-storey residential and retail precinct on the Kew Junction site thrown out or declared invalid.Boroondara Council is suing Planning Minister Sonya Kilkenny over her approval of a development in Kew. Eamon GallagherIn its submission to the court, the council argued Kilkenny’s decision to grant the permit to developer Orchard Piper “was legally unreasonable or irrational” and was based on “errors in law”.The legal action centres on a parcel of council-owned land adjoining the development, which Orchard Piper has offered to spend up to $12 million turning into new public area open space under the approved permit. However, council has hit back over the proposal, saying the developer “does not own or control” the land.“In making the decision to grant the permit, the minister took into account … a theoretical ‘offer’ by the [developer] to unilaterally carry out specified works on adjoining land,” the council’s claim says.“The [developer] does not own or control the adjoining land, and it is not within its control to carry out those works.”The Orchard Piper development, dubbed “Kew Village”, is set to comprise 194 homes across four buildings of varying heights, including one, two and three-bedroom apartments and townhouses, alongside ground floor retail and public spaces. Construction is planned to start late next year.Approval was granted by Kilkenny in May via the Development Facilitation Program, which allows the state government to override local regulations – including state-imposed activity centre limits – to fast-track major housing projects that include affordable housing.The site is located within an area of the Kew activity centre that allows for buildings up to 16 storeys tall, while a few hundred metres away Development Victoria is bulldozing the VicRoads site for housing.Boroondara Mayor Wes Gault said the council submitted extensive feedback to the planning minister on how the development could be improved and was “disappointed that few changes were made”.Changes the council wants to see include a height limit of 16 storeys to reduce overshadowing, in addition to “better landscaping” and materials for the part of the project on council-owned land.“We are not opposed to this development – in fact we agree that this is a great site for a new mixed-use development,” he said.“But we want to ensure the best result for our community with a building that better fits in the space, has affordable housing, and includes a public environment that delivers for all of us.”The council’s legal action was taken against Kilkenny and a company called Princess Kew Investments Pty Ltd, which is owned by a company controlled by Orchard Piper and billionaire James Packer’s property investment vehicle, NPACT Pty Ltd.An artist’s impression of the proposed development in Kew.Orchard PiperA Boroondara spokesperson also raised broader concerns about the state government’s pathway to approve developments, saying they believe local councils should be decision-makers for development applications lodged within their municipalities.A spokesperson for the Victorian government said the “status quo is not an option” for the Kew site.“We need to deliver more housing choice close to trains, trams, schools and jobs – and the development at the former Leo’s Supermarket does exactly that,” they said.“Well-connected suburbs like Kew can’t stay locked up forever. Jess Wilson’s Liberals and Boroondara Council are working overtime to block young people from buying a home close to where they grew up.”Orchard Piper declined to comment.Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.Rachael Ward is a journalist in the City team at The Age. Contact her at rachael.ward@theage.com.auConnect via email.From our partners