An important Aboriginal site where tribal people gathered to trade and hold weddings and initiation ceremonies, Hanging Rock - now a conservation reserve - was in the 19th century the refuge of notorious bushrangers such as Dan "Mad Dog" Morgan. Joan Lindsay used it as the setting for her 1967 novel Picnic at Hanging Rock, about three girls who disappear while climbing the rock during a school outing on St Valentine's Day, 1900. Peter Weir directed the critically acclaimed 1975 film based on the book.
Nowadays, despite its popularity, the site is failing to pay for its own upkeep, according to the council, which says that work costing A$8.5 million ($9.1 million) is needed to upgrade buildings, eliminate weeds and pests and regenerate native vegetation. The decision to seek private investment was passed 5-4 by councillors at a meeting last year.
Critics say that, as well as being out of keeping with the special character of the place, the hotel and conference centre could destroy a wildlife corridor used by vulnerable species such as the powerful owl, Australia's largest owl, and greater glider, a small marsupial.
Hanging Rock was the main draw for Spielvogel, who moved to the area with his wife, Megan, eight years ago. He walks his dog daily there and also runs nearby.
"It has a real sense of mystery and isolation," he said yesterday. "You can get up on the rock and sit there and ponder the world. It's a great retreat."
He disputes that the site is in dire straits, citing the council's own financial returns, which show it has made a profit every year over the past decade, thanks to income from entry fees, the cafe and concerts.
In April Hanging Rock will host the Rolling Stones during their tour of Australia and New Zealand.
He and other residents hope the state government will intervene to protect the rock from development. Victoria's Planning Minister, Matthew Guy, has agreed to visit, and is expected some time this month.