A 500-space car park was presented in the University of Tasmania master plan, released in June, as the solution to concerns over traffic congestion at Invermay, as the campus development proceeds.

However, the University of Tasmania revealed on Saturday negotiations had broken down between the two parties and that the owner had decided to walk away from any deal.

Developer Joe Pintarich said a final offer had been presented by the UTAS negotiators, which placed the burden of preparing the site, which included the removal of an existing helicopter hangar on him.

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He said the offer as proposed placed conditions on him as the owner of the property which he did not agree to, which is why negotiations between the two parties broke down.

"They [UTAS] wanted me to be 100 per cent committed to this before they were [committed]," Mr Pintarich said.

With the deal now off the table, Mr Pintarich challenged UTAS to publicly commit to their campus redevelopment.

"What we don't want to see is the uni use this as a reason to not develop what they have in mind because they can't find a solution to adequate parking," he said.

Mr Pintarich has spent years developing the site at Glebe Farms and owns 141 hectares of rural property at the site.

He said he was never averse to the sale, or the campus development, but it was "about common sense" and it had nothing to do with the value or money offered.

"If we need parking and I have a big chunk of land here, I'm not about to take it with me," he said.

"I'm still a willing player."

Mr Pintarich said initially, UTAS had begun negotiations in February, for the 500-space car park to service the campus at Inveresk however, as discussions continued, they began talking about more land and more uses.

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"They began to look at the land and what other activities they could do on the site," he said.

It is understood there would have been no impact on the existing farm and all animals would remain.

While the deal between UTAS and Mr Pintarich has ended, he said he would still be willing to negotiate a sale, even if it wasn't to the university.

"If the City of Launceston needs parking and they want this to happen, the university should work with the city to make it happen," he said.

"The car park (land) is here, and the city has my full support if that is what they need."

Mr Pintarich said he believed car parking would still be needed, because of the amenities close by in the area, particularly UTAS Stadium and it the uni students would benefit as a result, then so be it.

A UTAS spokesman confirmed the university was seeking to acquire further land from Mr Pintarich , which was detailed in a letter of offer that was signed in May.

It declined to comment on the specifics of the conditions posed in the final rejected proposal.

"We are inactive, positive discussions about multiple alternative parking solutions. We are working closely with the City of Launceston," the spokesman said.

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City of Launceston general manager Michael Stretton hosted a meeting between the two parties during the negotiations and said it was general practice for a general manager to perform that duty.

"A positive outcome around the UTAS relocation is a positive outcome for the city both in terms of improving educational outcomes for future generations and injecting millions of dollars into the local economy during the construction phase."

"The university relocation to Inveresk is an extremely important project for Launceston. It underpins the Launceston City Deal, of which the council is a signatory."

UTAS is working on alternatives to the parking questions posed by the Inveresk campus but is yet to detail what those options are.

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