After sitting derelict for about a decade, Jobs Warehouse in Bourke Street is being transformed into a hospitality location.
The venue's operator, O'Brien Group, is spending $50 million to turn the building into what it calls a "high-end" mix of restaurants and bars.
"This isn't a King St venue," O'Brien Group chief executive Michael O'Brien said.
The O'Brien Group had applied for a late-night liquor licence to trade until 3am, but was only granted a licence until 1am.
In 2008, the state government brought in a freeze on the granting of new liquor licences in inner-city areas, to try to reduce violence after a spate of incidents.
The government granted the O'Brien Group an exemption to apply to the regulator for an extra 2 hours of late-night trading, stating that the premises were of "major cultural importance to the state".
But that exemption failed to sway the City of Melbourne and the Victorian Gambling and Casino Control Commission.
The O'Brien Group took its application to VCAT after being rejected by the commission but after a long and protracted fight, it eventually lost.
Mr O'Brien is calling for a relaxing of licensing laws and believes a re-think is needed to bring the city back to life after the pandemic.
"When international people come here, and more and more will come, they will expect a good late-night offering."
City of Melbourne Lord Mayor Sally Capp attended a recent photo shoot at the Job Warehouse site, posing with Mr O'Brien.
Despite that show of support, she will not confirm if she also agrees with Mr O'Brien's push.
"I've supported the 11am to 1am [trading hours] and that's the permit and approval that was given," Ms Capp said.
"I think at the end of the day it's part of the normal push and shove for everybody to try to get the best outcome they can."
Residents' group in favour of freeze
Some CBD residents argue the pause on granting new late-night licences needs to remain, claiming rowdy behaviour will stop people from moving to the city.
Dr Stan Capp has lived in Melbourne's CBD for over two decades and is president of residents' association EastEnders.
"You come to the city. Therefore, you're going to have more noise, more sort of stuff. Well, that's fine. And we know that, and we live in closer proximity to other things," Dr Capp said.
"But I don't think getting awakened at two o'clock or three o'clock in the morning as a regular event 365 days a year, is going to be conducive to having people stay. People aren't going to like that."
Dr Capp said he was opposed to fuelling the revitalisation of the CBD with alcohol-related business.
"Of course, I want to do it for more business and all the rest of it. But if you're so adjacent to residents, where they actually live, then I just think it's anathema. We should not be doing that."
Family of one-punch victim says problems extend beyond alcohol
It has been five years since Jon Walker's son Jaiden was killed in a one-punch assault in Melbourne's CBD. It still impacts his family every day.
"People say that time, things heal with time and it just doesn't, it just doesn't at all," Mr Walker said.
"It's bad enough losing a child in the first place. But when you throw into it, the court side of things and having to deal with the offender, police, detectives, it's not good."
He's now part of a campaign led by boxer Danny Green to raise awareness about one-punch attacks.
Mr Walker said simply banning late-night liquor licences isn't the answer.
"Looking at some other coward punch events, the only one common denominator that I've seen is the background of the offender," he said.
Mr Walker said shorter opening hours could lead to more incidents of binge drinking and alcohol abuse.
"You'll probably just cram down as many drinks as you possibly can in a shorter period of time, which is actually more harmful than actually drinking over a longer period of time," he said.
Academics call for balance between business and harm reduction
After years of researching alcohol policy and violence, Dr Claire Wilkinson is in favour of the pause on new licences remaining.
A senior research fellow at UNSW, Dr Wilkinson said overseas research and data show the need for a delicate balance between people enjoying themselves and reducing violence.
"I think they're a good approach. Other cities have put blanket bans on licences where you can't get a new liquor licence at all. So, it's not as harsh as that," she said.
"While we may be focused on economy-building and growing the night-time economy, we need to recognise that alcohol is associated with a range of harms."
There are currently exemptions to the freeze for some smaller venues and live music locations.
The state government says the pause will remain in place until June 2023, insisting it is balancing the need for a "strong and vibrant night-time economy while continuing to combat alcohol-related harm".
