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The gang had been fighting police over an application to remove fortifications from their Thomastown club house, but today agreed to remove cameras, barbed wire and steel gates from the premises.
"They want to change this establishment in to a federation style villa," said David Grace QC for the club.
Magistrate Charlie Rozencwajg said the agreed changes would transform the clubhouse.
"It's taking on the appearance of a Toorak mansion," Mr Rozencwajg said.
Earlier it was understood talks were held between lawyers representing the police and the outlaw motorcycle club and the Angels decided to make the alterations themselves.
The Hells Angels had engaged top barrister David Grace QC to fight the force's application, made in October, to strip the clubhouse of its fortifications.
Police said the Lipton Drive clubhouse in Thomastown is being used "in connection with the commission of a specified offence … or to conceal evidence of a specified offence".
They had applied to remove steel gates, night vision cameras, infrared sensors, CCTV monitors and barbed wire from the Thomastown clubhouse.
The order was originally set to be ruled upon in January and was yesterday delayed until March 31.
Assistant Commissioner Steve Fontana made an application to the Melbourne Magistrates Court last month for a Fortification Removal Order under new laws designed to crackdown on outlaw motorcycle gangs.
Yesterday both the prosecution and lawyers for the Hells Angels agreed to redraft affidavits from anti-bikie Echo Taskforce detectives and remove confidential information that police wanted to rely on.
"The legislation has not been tested, certainly not in this state," said Magistrate Charlie Rozencwajg.