Being a marginal seat has been able to give Launceston the best chance at success, the city's Chamber of Commerce chief executive says.
Neil Grose welcomed the funding for the Launceston City Deal from both major parties.
"It's one of those great advantages of being in a marginal seat is that we can actually leverage that to the advantage of the city," he said.
While he says the money is critically important, the most significant factor is that the funding will allow the deal to be carried out over 10 years.
"We were the third in Australia to have a city deal, but it was only for five years. Every other city in the nation was 10 years," he said.
"Five years has been a great start for Launceston, but to really achieve what our true potential is we needed it to be extended over 10 years."
Bass Liberal federal candidate Bridget Archer said the chamber and the City of Launceston council had been strong advocates for deal.
"The Launceston City Deal enables a mechanism that rewards local, state and federal government collaboration and I think that the best way forward for Northern Tasmania," she said.
Ms Archer was with Prime Minister Scott Morrison when he made the $20 million funding announcement on Tuesday.
She said it is an important project for the election and because of that it was fitting for Mr Morrison to deliver the announcement.
Bass Labor MHR Ross Hart has also promised $20 million for projects within the city deal for Albert Hall upgrades and the Northern Suburbs Community and Recreation Hub.