This is according to the site developer Brile’s financial controller Peter Velt who yesterday said he was extremely disappointed with the recommendation to come from the heritage council.

The matter will go back before the Launceston City Council on Monday, however, little can alter the decision now due to new legislation.

Under the Historic Cultural Heritage Act 1995 introduced in March, developments involving buildings of historical significance hinge on the approval of the heritage council.

If it refuses a development, then so must the local council.

The heritage council is understood to have made its decision on the 1830s building last week.

Its decision is in opposition to that of five independent reports by local and interstate consultants and released last month.

All five stated the building was too far gone and to retain it, it would have to be pulled down and rebuilt, so impacting on its historic integrity.

One consultant put the ‘‘conservative’’ repair bill at $600,000.

Mr Velt said the company would discuss the decision and their future involvement at the site and proposed $17 million development at a board meeting on Friday and from there determine what to do next.

‘‘It’s [the development] not dead in the water, but this could potentially set it back another five years,’’ he said.

Mr Velt said its previous commitment to retain the building had become unviable as its initial proposed development had shrunk in size considerably due to the economic situation, so it could no longer restore or fund it.

He said it had lost its major tenant and others had been hesitant to move to Tasmania and Launceston since the global financial crisis.

Mayor Albert van Zetten said he was extremely disappointed by the heritage council’s decision that may now put at risk the development and 120 proposed jobs.

He said he expected Brile to appeal against the decision and had also spoken to local government minister Peter Gutwein to see what the state government could do.

In a statement from the heritage council’s chair Dr Dianne Snowdon, she reiterated the new Act guidelines, but would not disclose what its decision was.

Heritage Protection Society Tasmania president Lionel Morell said the developer bought the site with the full understanding of the historical significance, yet it did not look after it to a satisfactory level and now it was in even worse condition.

However, Mr Morell believed the council was also to blame for not insisting on better care of the historic site, such as a protective roof.