The State Government backs away from development plans for Yarra housing estates Yarra councillor Stephen Jolly, who has been campaigning against government plans to redevelop Yarra's housing estates. THE STATE Government has backed away from major redevelopment plans for the Fitzroy and Richmond housing estates following community opposition. The State Government was drawing up plans to build private housing, shops and offices on open space - with up to 913 new apartments at Richmond and 650 at Fitzroy. The planning process was due to be complete in 2015, but Housing Minister Wendy Lovell last week requested it be suspended after running into staunch opposition from Yarra Council and the community. Ms Lovell said the government remained committed to the project - part of a Commonwealth-State agreement entered into by the previous Labor State Government - but didn't provide a new timeline. Yarra councillor Stephen Jolly claimed a key victory for the campaign against the development. He said the shift followed the Building Industry Group alliance of five unions joining the campaign last week and pushing for development to take place on other sites in the area. ``This back down shows that no government is unbeatable in the face of organised opposition from the people,"" Cr Jolly said. Yarra Council has consistently said it would not support loss of open space on the sites. The announcement comes after the State Government softened its stance on other unpopular policies including TAFE funding cuts and performance pay for teachers. But Ms Lovell blamed ``ill-informed scaremongering"" which had caused residents ``undue stress"." ``At this point, we feel it's more productive to delay the master-planning process for the estates in the City of Yarra and concentrate on delivering a plan for the Prahran Estate in the City of Stonnington,"" Ms Lovell said. Ms Lovell has pledged no net loss of public housing and that the towers would not be demolished. The minister has requested an extension for the Yarra project from the Commonwealth Minister for Housing and Homelessness Mark Butler.