DROMANA and District Historical Society says it has been left in the dark about the historic lookout tower at Arthurs Seat.
In an artist's depiction of the new precinct, recently circulated to community members, the lookout tower was absent from the plans, raising concern with historians about the tower's future.
Historical society president Peter Holloway said he wanted to know why the tower wasn't included.
"The lookout tower is of state significance and was built as part of the centenary celebration for Victoria in 1935," he said.
"It requires legal permission to be demolished; it is illegal to demolish a heritage-listed building in the state of Victoria."
Mr Holloway was still unsure about what the planning proposal would include.
"At the moment, it is a major heritage issue on the peninsula," he said. "The peninsula is full of the most wonderful heritage, which is sometimes taken for granted."
Mr Holloway was quick to point out that the historical society was not opposed to a new chairlift development, but believed there were alternatives to demolishing the lookout tower.
The tower, which is owned by Parks Victoria, remains closed to the public as it is corroded, has significant structural issues and has been deemed unsafe.
A bill passed in Parliament in March granted a 50-year lease of the site - which is on Crown land - to the Arthurs Seat Consortium.
At the time the bill was passed, a state government spokeswoman said extending the lease did not affect the lookout tower.
"The bill is not connected to the lookout tower - it is simply about the extension of the lease for the site. Parks Victoria is currently exploring options of what can be done with the site."
Mr Holloway said he hoped the developers of the new Arthurs Seat Consortium would release a written statement on what was going to happen with the tower.
Mornington Peninsula Shire's director sustainable environment Stephen Chapple said the consortium would require a planning permit to develop the site.
"A planning permit would be required for redevelopment of this site, including any work to the existing tower, under the current provisions of the Mornington Peninsula planning scheme," he said.
"No application has yet been received by the council for any work relating to either the tower or chairlift."