THE state government has provided the Launceston City Council with $1.5 million to build a 170-metre flood levee intended to protect the city's new silos redevelopment.
The former grain silos on the North Bank is to be recreated by developer Errol Stewart into a 73-room hotel complex worth $15 million.
The hotel development is set to open in early 2015
Premier Lara Giddings said the hotel redevelopment would create 50 full-time jobs during its 14-month construction period and 30 full-time jobs when the hotel was operational.
Mr Stewart said the $1.5 million grant secured the $15 million investment for Launceston.
He said groundwork, engineering and design work was well in motion.
Mr Stewart said he hoped for planning approval early next year.