An art gallery, makers' workshop, cafe and bar and restaurant, will be constructed at the Launceston gas works site.
On Thursday, the City of Launceston council approved a $7 million development application for the gasometre tower.
A 30-seat cafe will be on the lower floor. The cafe will have a glass window where diners can watch artists work. It will be accessed from the second floor which is where the art gallery starts. There will then be three floors of art gallery and an art storage area.
A bar and restaurant, seating between 120 and 150 people, will be on the building's top level. It is set to have panoramic views across Launceston.
It is understood the art work for the site has already been sourced and is in storage. It will take about 12 months to build.
The site's architect Richard Hall said the gallery would be a new icon for Launceston.
A number of challenges were involved in planning the gallery, as the land was contaminated and heritage listed.
"The existing concrete ring is six-foot high. We've got to be able to access that," he said.
"I'm doing my very best to keep all the original structure there, which we have. And obviously heritage loved that."
The application was passed unanimously. Councillor Janie Finlay said it was a significant development, as it is one of Launceston's most stunning structures.
Deputy mayor Danny Gibson said approving the plan was an exciting day.
"Only attracting one representation suggests to me there is great support," he said.
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Councillor Tim Walker said the proposal would complement the historical nature of the site, as it incorporated the city's cultural and built heritage.
In the future, a walkway could be constructed from the art gallery across to City Park.
A separate development application in relation to a multi-storey car park also on the site is yet to be considered by the council.
Councillors Hugh McKenzie, Karina Stojansek and Andrea Dawkins were not at the meeting.
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