Neil Grose, the chamber's chief executive, described the proposal as "another boost" which showed people were willing to invest significantly in the city.

Historian Marion Sargent also welcomed the plans, noting a previous proposal which would have also seen construction within the remaining steel gasholder structure.

The proposal, from gasworks site owner and developer Ross Harrison, would build on previous site works which now include the centralised TasPort offices and Hogs Breath Cafe restaurant off Willis Street.

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A combination of permanent, leased and public bays would make up the 290 car spaces across the seven-storey parking structure. Also proposed, on a separate application, is a six-level building to be constructed within the gasholder structure.

The ground level would contain a cafe, with the middle floors to host a new modern art gallery. That building's top floor would feature a restaurant and open-air bar.

Mr Grose said the site's close proximity to the planned University of Tasmania expansion was a great opportunity for the private sector given uncertainty over its parking and traffic management plans.

"[The proposal is] really grabbing hold of one of Launceston's great heritage precincts and really doing something amazing with it," he said.

Eight full-time jobs are anticipated to be created by the complex, with additional casual staff across the bar, restaurant and cafe, application documents state.

Due to its historical use the site also has a "well understood" history of soil contamination, with an assessment concluding that though still remaining, pre-existing management measures would ensure no risk to either construction or ongoing use.

Additional documents prepared by architect Richard Hall note that a clear coat would "lock in" the faded red zinc colour of the gasholder frame. The gallery development would also retain and "enhance" the concrete base and valve set despite the structure not featuring in the site's conservation plan.

"The gasworks site has so much to offer," Harrison Group business manager Scott Towns said Friday.

Engineering work could begin as soon as September, pending council approval, with the car park operational by mid to late 2020. Construction on the art gallery building would be expected to start toward the end of that process.

The public notice period closes on September 23.

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