Under pressure to defend his inner-city seat from the Greens at next year's state election, Planning Minister Richard Wynne has stepped in to pacify Fitzroy North residents fighting a proposed apartment tower.

But Mr Wynne has enraged the developer, BRW rich-lister Tim Gurner, by placing a 10-storey limit on a former industrial site he controls in Queens Parade – that until Tuesday had no height limit.

The 12-level plan for the Queens Parade site in North Fitzroy that was to go to VCAT on Monday. It has now been thrown into disarray after the state government intervened. Credit:Koichi Takada Architects

Mr Gurner's firm had originally proposed 16 levels for the site, but had dropped it to 12 levels ahead of a state planning tribunal hearing due to start on Monday.

Mr Gurner said Mr Wynne's last-minute intervention had cost his firm $500,000 in planning and legal costs.