Approving the first stage of the University of Tasmania relocation to Inveresk was a "landmark moment", City of Launceston councillors say.
At the council's meeting on Thursday, the application to allow the $300 million project was approved nine votes to one.
Nine members of the public attended the meeting and spoke in support of the application, with no residents speaking against the motion.
Josef Chromy was a surprise supporter of the project speaking about why a good education was so important to him.
He said he failed grade three and had to repeat, but without the education he received he would not have been able to achieve everything he has in the tourism and wine industry today.
Chamber of Commerce executive officer Neil Grose said the approval would take the city forward.
Local businessman Sam Tucker said the relocation of UTAS excited him.
"There is nothing wrong with people moving to study interstate, but it should be a choice not a necessity," he said.
The recommendation to approve the development application was moved by councillor Janie Finlay, who said the community "rightly so" had concerns about flooding, traffic and parking.
She said the university was "on notice" to find a parking solution before any further development applications were lodged for the relocation, which other councillors also agreed with.
Councillor Alan Harris said the approval was a "great day for Launceston". He said the long discussions meant it was finally time "to get on with it".
Councillor Paul Spencer, who was the only one to vote against the motion, had a point of order called on him during discussions by deputy mayor Danny Gibson. He said Cr Spencer's points had no relevance to the development application.
"I care and think about future generations. They will suffer with our choices," Cr Spencer said.
The first stage of the relocation is for the Library. A number of conditions have been imposed on the development, including the proposed demolition of a concrete annexe to the main workshop and Stone building being refused.
An archaeological method statement must also be completed within six months and submitted to Heritage Tasmania.
Councillors Tim Walker and Rob Soward were not at the meeting.
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