Melbourne-based company Brile Ltd's plans for the multimillion-dollar development at the derelict city site were released for public comment this week.

The proposal, for two levels of retail and commercial outlets with car parking for more than 250 vehicles underneath, is a significantly smaller version than the $30 million development of up to five storeys touted in April.

It is significantly less extravagant than the $126 million project with skybridge planned by Tasmanian developer Serge de Kantzow in 2007.

That was scrapped after months of public debate before Mr de Kantzow sold it to Brisbane company Citimark for a bargain basement $7 million.

The latest development application, still under Citimark's name, is expected to go to the Launceston City Council for approval as soon as the public comment period is finished.

But Citimark won't be building the new commercial and retail centre.

Citimark director Angus Johnson yesterday confirmed that his company had sold the site.

The sale deal is due to be finalised in September.

Hobart design company Ireneinc Planning has been involved in drawing plans, which allow for seven restaurants among the retail outlets.

The development, to be known as the C.H. Smith Lifestyle Centre, is described as a "mixed use development" with the shops and other tenancies accessed from behind the historic street facade.

It is understood that interest has already been shown in the proposed retail and commercial hub from electrical and hi-fi franchises.

The first building on the C.H. Smith site was built in 1833.

It was Launceston's major trading centre until the turn of the 20th century because of its proximity to the town wharves and jetties.

The site has fallen into disrepair over nearly 20 years despite several attempts to buy and develop it. It came close to being demolished in the 1990s.

It has been the target of several major community campaigns to preserve it. Several of the existing buildings carry heritage listing.