Wodonga Council understands the assessment of the planning permit for the bottle shop at Junction Place will be put on hold following discussions between Wodonga Council and the private developers.
It comes after the council pushed for the timing of applications related to the master plan and retail development be reconsidered to allow for proper consultation with the community.
Wodonga Chief Executive Officer Mark Dixon said the council was working hard to ensure this precinct continued to deliver on the expectations of the community.
"We all want the same thing and that is getting the best outcome for our community and we think it is fantastic to see our community engaged and passionate about what they want for their city," he said.
"We have heard the community and understand their concerns and aspirations for our City Heart. We have also identified that we need to communicate more clearly to the community about the process, how they can participate and the next steps, outside the regulatory process.
"We continue to talk with Development Victoria and the private developers of Junction Place, urging them in the strongest terms to commence genuine community consultation as soon as possible.
"We look forward to being able share details of those sessions in the coming days and encourage the community to attend, find out more and provide their feedback."
Council staff have been working with the developers on the technical aspects of the master plan. The assessment is being undertaken by an independent consultant and they have sought further information from the applicant which will determine the actual timing and next steps of this application.
Wodonga Mayor Cr Kev Poulton said councillors fully appreciated the unique position the city was in being able to redevelop its CBD.
"I've been well aware of the incremental steps being undertaken - and Development Victoria presented to councillors last month - and we have been speaking up on behalf of the community already" he said.
"There is a long history to this project, and previous councillor groups are recognised for their vision and advocacy. My fellow councillors and I are mindful that our role is to continue working towards that vision.
"We have heard from our community on what they want to see on this very important site in our city and I want to thank them for standing up and speaking out. I'm confident we will be able to deliver a great outcome for the community."