The State Administrative Tribunal (SAT) resolved that Psaros build a temporary storeroom for Mr Mackenzie and that the demolition of the house at the back of the building would continue.
A Psaros spokesman said the company was “satisfied” with the decision, which would allow it to carry out the demolition.
“We are pleased an agreement has been reached which allows us to complete demolition of the derelict house and return the site to a safe working environment,” he said.
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READ NOW“This offer has been made to the tenant many times previously and we are pleased he has now accepted.
“We will continue attempts to work with the tenant so that he is able to see out the remainder of his lease.”
The dramatic four-day protest during which Mr Mackenzie and partner Janina Groger slept out on the roof of the building attracted significant attention last week.
Mr Mackenzie said while he was not a fan of the limelight, he was glad the protest prompted action from the developer.
“I’m a shy person, I just want to run my business and spend time with my kids,” he said. “In hindsight it’s good for the business, I guess, but apart from that, I don’t want to be thought of as the guy on the roof causing a hullaballoo.”
The Psaros spokeman said a timeframe for the work was yet to be decided.
“It will occur as soon as possible in the interests of both parties,” he said.