JAC Group's Gorge Hotel proposal on Margaret Street has been approved by the City of Launceston council.
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Councillor Tim Walker was the only person to vote against the decision.
The public gallery was packed to the hilt, with a number of people speaking against the proposal, but also in support.
More than 25 people spoke about the item. Six people were for the development.
Those supporters included Launceston Chamber of Commerce's Neil Grose, JAC's planners, Josef Chromy, and Dean Cocker.
Launceston Chamber of Commerce executive office Neil Grose said the development was a fantastic example of the faith in Launceston, and that it was "strongly supported" by the chamber.
Against the item were many residents, and representatives from Keep Your Hands Off Our Gorge.
Representors spoke about the item for nearly an hour, with the discussions taking nearly two hours all up.
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Councillors Janie Finlay, Rob Soward, and Tim Walker spoke for longer than their allowed time limits and were both granted time extensions.
Cr Soward likened the development to the Sydney Opera House for the benefits it could give the city.
Councillor Tim Walker, however, apologised to the residents because he believed their concerns would not be heard by his fellow councillors.
He challenged his other councillors to make a mockery of him for that statement.
Councillor Nick Daking said he doesn't see why height was such an issue in the city.
"I'd like to see height in the city ... what the JAC Group proposes shows restraint," he said.
Councillors Finlay, Soward, Danny Gibson, Alan Harris, Andrea Dawkins, Karina Stojansek, Jim Cox and Hugh McKenzie voted for the development.
Councillor Paul Spencer was not at the meeting due to being in hospital.