THE Corner Hotel could be under threat because of a 13-storey tower proposed for a site across the road from the live music venue.
Developers have submitted plans for a 43-serviced apartment complex, plus a cafe at 63-65 Swan Street, Richmond.
The hotel is located at 57 Swan Street. High-profile acts that have performed there include U2, Queens of the Stone Age and The Black Keys.
Under current planning laws, residential developments built near established live music venues have precedence over noise complaints. Venues can be liable for paying fines, be forced to close early or spend thousands of dollars on sound-proofing.
CLICK HERE for MTW's in-depth feature on development encroaching on live music venues and the threat facing Cherry Bar and AC/DC Lane.
The state government last year set up a live music working group to discuss changing the laws and addressing other challenges facing the industry.
Music Victoria president Patrick Donovan said the proposal was "very worrying" for the hotel and laws needed to be changed quickly to protect established venues from noise complaints stemming from new developments. "It's definitely under threat and the uncertainty is one of the most worrying things," he said. "The demise of the Corner Hotel would be catastrophic for the live music scene - it hosts album launches, hundreds of overseas acts perform every year; there's bands seven nights a week."
Corner Hotel booker Richard Moffat said the building was sound-proofed and the front doors always closed when bands were playing.