Hobsons Bay Caravan Park may close after a state government-appointed planning panel supported the rezoning of industrial land at Williamstown North.
The rezoning allows four-storey residential development on the caravan park site and paves the way for a 90-bed nursing home next door.
Florence Care, which plans to build the aged-care home, had requested a planning scheme amendment to rezone 222-258 Kororoit Creek Road from industrial to residential.
Florence Care owns the land at 240-258 Kororoit Creek Road.
The caravan park, established 38 years ago and home to about 190 people, owns 222-238 Kororoit Creek Road. It supported the rezoning proposal, as did Hobsons Bay council.
The rezoning is expected to increase the likelihood the caravan park will be closed and the land used for residential development.
The council said it was concerned about the possibility of closure but would support the future developer and help residents find alternative low-cost accommodation.
Nancy Belyea, a resident of the caravan park for 10 years, said it would be very difficult for the 120 long-term tenants to find new homes.
“I’d have to look outside the area,” she said. “There are some existing caravan parks that may have some spaces, but I’m hoping people will realise that it’s a good business and perhaps a young couple or some people may in fact set up a new caravan park.”
Last week’s council meeting heard that Half Moon Caravan Park in Brooklyn was also on the verge of closing.
The owner of Hobsons Bay Caravan Park could not be contacted.