LAUNCESTON'S new $1.8 million recycling facility will be open on Calvary Road by the end of the year.
The facility will include the long-awaited return of a city tip shop, which is expected to be trading by November.
Resource recovery in Launceston was effectively shut down in January 2009 when the council installed a $2 million conveyor belt at its waste centre, which meant rubbish could no longer be dumped at the tip face.
Launceston Mayor Albert van Zetten said the new facility would prevent recyclable material ending up as landfill, which would eventually save the council costs.
He said hundreds of dollars of timber and repairable items had been wasted by the facility's absence, including three paintings which were later salvaged _ worth a combined $1500.
Launceston City Mission was last year named the tip shop operator, and will receive a $317,800 fee to do so.
It will receive a $25 per tonne bonus from the council for recycling.
Launceston City Mission chief executive Stephen Brown said the money generated from tip shop sales would be directed to youth services, particularly for a youth drop-in centre.
He said the shop was expected to employ eight people.
Completion of the new recycling facility will coincide with a new fee structure at the waste centre to start in January 2015.
Tip users will be charged a domestic disposal rate of $58.25 a tonne, with a minimum $10 entry charge.
There will be no charge for disposal at the recycling centre and reuse shop.
The council needs to increase its revenue by $1.8 million annually, from its current $5 million earning.
Non-commercial tip users from July will be charged $8 a carload, $14 for a covered ute or single-axle trailer, $20 for a uncovered ute or single-axle trailer, and $24 for a covered double-axle trailer or small truck. Venarchie Contracting was awarded the $1.8 million tender for the new tip shop, a dedicated recycling centre, a new weighbridge and modifications to the existing site.