The Launceston City Council yesterday unanimously agreed to sell the former Kings Wharf grain silos.
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The council acquired the land in 2008 from Roberts, and under state legislation is required to offer the 6500 square metres of riverside land to the company first now it has decided to sell.
Launceston developer Errol Stewart approached the council last year with a $250,000 offer to buy the land to develop an 11-storey hotel, worth $10 million.
The decision at yesterday's general meeting means the development's fate rests on whether Mr Stewart is successful should Roberts buy the land and seek expressions of interest.
Launceston general manager Robert Dobrzynski said the land would be sold under open space zoning.
Also, at yesterday's meeting:
The council decided to delegate authority to Mayor Albert van Zetten and Deputy Mayor Jeremy Ball to fix the wording on two 2/40th Battalion memorial plaques to be officially unveiled in Kings Park next weekend.
The original wording had been deemed by council officers as insensitive despite its approval by 2/40th Battalion veterans.
Alderman Annette Waddle voted against the decision, saying the original wording should be used.
The council unanimously approved a Launceston circus school to operate in a former church in Frederick Street.
Noise restrictions have been placed on the school after noise complaints were raised by a nearby resident.
Up to 20 people could be employed to run up to 12 sessions at the facility each week. Programs will be offered to school children and those with disabilities.