Heritage Victoria had last year recommended the motel for state heritage listing, which would provide the state's highest level of heritage protection against development.

At a meeting last December, Monash councillors voted eight to two not to list the motel on the register and asked Heritage Victoria to hold a public hearing before making a decision.

Cr Geoff Lake also proposed a review of the council's own heritage overlay of the site.

At a Heritage Council hearing in March, experts in cultural, historical and architectural heritage presented written submissions in support of the motel's inclusion on the register.

Monash Council came under heavy criticism for failing to attend the hearing, giving Heritage Victoria just five days' notice of its intended absence.

The council's written submission comprised an agenda and minutes from its December meeting.

Oakleigh and District Historical Society president Felicity Smith said the motel's heritage listing

showed councillors had a "lack of understanding" of what heritage values meant.

"I think we've been vindicated in our stance right from the beginning," Ms Smith said.

Last year, the Journal reported that Oakleigh Developments had applied for a permit to partially demolish the motel and turn it into 54 town houses.

The council denied a permit on the basis the proposal would result in an unacceptable standard of living for future residents and was an overdevelopment of the site.

Last week, a consultant for the developer contacted Ms Smith to see if she would agree to a delay in the Victorian Civil and Administrative Tribunal hearing.

Ms Smith said the developer wanted to discuss the possibility of modifying its planning application with the society before it went to VCAT.

In a report, the Heritage Council said the motel was of architectural, historical and aesthetic significance to the state of Victoria.

It also met four of Monash Council's criteria for heritage listing because it was the first motel built in Victoria and the only surviving example of a boom in motel development between 1955 and 1959.

It was also considered a significant example of a new type of building associated with changes occurring after World War II and of aesthetic significance as an example of 1950s modernism and American 'Googie'-style architecture.