THE Launceston City Council has lost a controversial development appeal at the Resource Management Planning and Appeal Tribunal, but the ultimate cost of defending the case is still to be determined.
In August last year the council unanimously refused a development application from Housing Tasmania to build five units on a 2000 square metre block in Newstead's Wentworth Street.
Aldermen refused the proposal largely on the issue of density, saying five units was excessive.
Housing Tasmania appealed against the decision to the tribunal.
In November, the council resolved to fight the case in the tribunal, despite receiving legal advice that it would probably lose - potentially leaving ratepayers to foot a legal bill of tens of thousands of dollars.
Yesterday, acting general manager Rod Sweetnam said the legal bill for defending the case so far had been estimated at $3500.
However, it is understood the tribunal deferred the final awarding of costs in the case until new condition agreements are signed by both parties.
Mr Sweetnam said the council had recently signed the conditions and was "waiting to hear back" from the tribunal.
It's understood the council has lost three recent tribunal cases on density and has also had costs awarded against it in the past - including a case with legal bills of more than $20,000.