The major proposal, lodged with the City of Yarra council this week, will also see the existing two levels of Dimmeys retail space developed into a shopping centre with nine tenancies, and new entrances on both Swan and Green streets.
Dimmeys, which sold the building last year for about $16 million, is widely tipped to lease one of these retail spaces in the new development.
“Dimmeys is recognised as being as architectural significance as a fine intact and early example of the American Romanesque style in Victoria,” said Mayor Cr Amanda Stone.
“As noted in the Heritage Victoria Register, the significance of the building is increased by the clock tower which is a prominent and well-known Melbourne landmark,” she said.
“We know the Dimmeys building is treasured by our local community – as it is by our Council – and we will be working to ensure it retains its integrity.”
The applicant, Richmond Icon Pty Ltd, has separately made an application to Heritage Victoria, seeking approval for the redevelopment.
Last month, Dimmeys was recognised on the Register as being of architectural and historical significance to the state.