But construction of the project has been stalled after the Mornington Peninsula Council refused an application by the developer, over the number of townhouses to be built on the 6131 square metre site.
It is pushing for eight townhouses – one less than Bourskope’s proposal.
The developer must also build a new street, Corsair Place, off Back Beach Road as part of the project. Homes in the project, also called Corsair Place, are designed by prominent Melbourne-based architect Nicholas Day.
The dispute is expected to be decided by the Victorian Civil and Administrative Tribunal by next month.
Early last year Bourskope paid a speculated $2.1 million for the 50-year old caravan park after the former banking executive who owned the site and ran the business, Cliff Breeze, decided to sell.