The demolition of the Carlton Inn received extensive media coverage in state and national media, with both the Victorian Planning Minister
Richard Wynne and
Lord Mayor of Melbourne Robert Doyle conducting media interviews on the site. In response to the incident, several calls were made for increasing penalties for illegal demolition. An investigation by the Victorian
Environment Protection Authority confirmed the presence of
asbestos on the site. Victorian Planning Minister
Richard Wynne initially sought to have the pair rebuild the building through court action in the
Victorian Civil and Administrative Tribunal. Wynne eventually scrapped initial plans to try and compel Shaqiri and Kutlesovsky to have the pub rebuilt, instead allowing them to build a 12-storey tower on the site, The deal allowed the pair to not have to rebuild the pub at all on the condition that the new tower development is completed before 2022. A further condition was that the site must be landscaped as a temporary public park by November 2019.
Crikey's Guy Rundle lamented that the pair were likely to make "millions" from the deal they had struck to build a 12-story tower on the site. Following Wynne and the council's decision to allow the developers to develop the site and build a 12-story tower, the state opposition and planning groups demanded that the Government compulsorily acquire the site, which was within their legal power to do so under section 172 of the
Planning and Environment Act 1987. It was argued this was the main method of setting a precedent and sending a message to further rogue developers. A wooden scale replica of the Carlton Inn's facade was included as part of a public artwork by
Sean Lynch. It is located in University Square across from the hotel site since 2021. == Court action ==