The $50 million investment is expected to turn the former Gunns Mill site into a tourism and arts centre, and create more than 200 jobs.

Last week, pressure mounted on the state government  to answer calls for it to become a partner in the multi-million dollar development.

In a statement yesterday, Mr Woods confirmed the site will be a two-stage transformation that will see the construction of a hotel and restaurant, among other attractions. 

‘'Our commitment to Tasmania  means that we will contract out the tenders for development works in a staged process that will ensure Tasmanian businesses can be competitive in tendering for the work,’’ he said.

‘‘Stage one of the development will see about $20 million invested and 80 jobs created over a period of two years. That’s a direct investment by Spring Bay Mill - we’re not using any multipliers to come up with these numbers.

‘‘It will see a 40-room hotel accommodation built as well as the completion of the performance and conference centre, exhibition shed, cafe´/bar and restaurant. We will also begin landscaping and the establishment of the botanical style gardens and food garden.

‘‘Stage two will see around $30 million invested and a total of 120 jobs created. It will see the marine education and research centre completed, the culinary school completed, major garden infrastructure, boardwalks, and further accommodation built in the form of self-contained units as well as mooring facilities added to the wharf for private  vessels and tour operators." 

Mr Hodgman yesterday confirmed the government had heard the message loud and clear.

‘‘The Minister for Resources has now received the report into southern export options for wood residues ,’’ he said.

‘‘Now that this report has been received the government will move quickly to make a decision on a southern  export port in the coming weeks.’’

Tourism Tasmania also threw its support behind the development plan.

Tourism Industry Council Tasmania chairman Simon Currant said the plans could open up new markets in state.

East Coast Regional Tourism Organisation chairman David Reed agreed. 

‘‘This is a generational investment in our region that will be the catalyst for a whole wave of new visitor activity and opportunities for the Coast,’’ he said.

First stage of the development is expected to get under way next year.