Council officers had recommended approving demolition of an old boat shed used by Peter Somerville's Blackbird Cruises.

This would make way for a 130-seat cafe and restaurant on the river bank, with decking for outdoor dining, mooring for Blackbird Cruises, public berths and a jetty 125 metres long for 15 private berths.

The application sought to have the required car parks reduced from 84 to 35, and for opening hours of 7am-10pm from Monday to Thursday and 7am-11pm on Friday and Saturday.

Resident Rod Gaskell said the proposed eatery was in the wrong place and would create parking headaches for residents.

Late-night noise would be a nuisance for residents, and people would lose their view and use of the river.

Mr Gaskell said not all residents had been properly informed of the proposal.

The site extends 180 metres along the river bank and is close to the three-storey apartment complex behind and to the side of the site on Moreland Street and Saltriver Place.

More residential development is expected to add 380 dwellings close to the proposed restaurant.

Residents have complained about lack of notification. After raising the matter with the council, Mr Gaskell was told residents had been notified.

However, a letter from the council confirmed that only those close to the proposed parking were informed.

Mr Gaskell said a claim that the restaurant would add to overall recreational use of the riverside area was wrong.

"That area is used quite extensively for fishing and we're seeing more rowing on the Maribyrnong.

"More pontoons will cramp the river. For some people it will take away their view.