The Josef Chromy Group say it no longer has any new job-creating projects in Launceston.
Managing director Dean Cocker said the JAC Group was currently investing $50 million into new projects in Hobart.
"We are disappointed about that because Joe Chromy has always sought to invest in the local community where we are based," he said.
The call comes after the developers' plans to build a $50 million hotel in Launceston was stopped in its tracks when the Resource Management and Planning Appeals Tribunal upheld an appeal against the development.
The City of Launceston council approved the development application for the hotel, but RMPAT upheld the decision on height and compatibility, but not shadowing.
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Mr Cocker said it would be at least a few years until JAC looked at investing again.
"The future of the Gorge Hotel is now in the hands of the Launceston City Council," he said.
"Meanwhile JAC has no alternative but to focus all of our new job creating investment in Hobart where there are more opportunities for our business to grow over the next decade."
Mr Cocker said he was unable to confirm exactly what projects the JAC Group was now working on.
"We have recently expanded our residential subdivisions in and around Hobart which will see the development of over 1000 housing lots," he said.
"This new investment will ultimately generate $500 million in new development over the next decade in Southern Tasmania. I can't say more at this stage."
GORGE HOTEL STORIES:
- Gorge Hotel approval 'protest'
- Disappointment over Gorge Hotel decision
- RMPAT hearings underway on Gorge Hotel
- Gorge Hotel approved by City of Launceston council
- Gorge Hotel development application lodged
- Gorge Hotel petition unable to be submitted
- Hotel readvertised after council miss title
- Gorge Hotel to be readvertised for third time after council mistake
City of Launceston council chief executive Michael Stretton said the council shared JAC Group's frustration with RMPAT about the Gorge Hotel appeal.
"The council strongly supported this development and advocated strongly to the Tribunal that the development be allowed to proceed.
"Council is in the process of developing updated planning provisions and advice to the development community designed to facilitate and encourage appropriate new development in the city. It is anticipated that these will be finalised in the coming months."
The council said the framework will give developers the framework, and confidence, to deliver projects like the Gorge Hotel.
"At this stage, I would encourage the JAC Group to positively engage with this process so it can realise its development opportunities in the city," Mr Stretton said.
"The Council is working extremely hard behind the scenes to secure job-creating, new development in Launceston and when we are in a position to do so, we will make the details of these projects public."
JAC Group is behind the Penny Royal redevelopment and Mantra on Charles. It just recently lodged a $1 million development application to expand its winery at Relbia with the Northern Midlands Council.
Late last year, developer Errol Stewart announced he was also moving his developments to Hobart.
The announcement for the 13-storey, 40-metre luxury apartment blocks overlooking the Tamar River was made in May. The process to rezone the land from commercial and industrial to residential was underway when he withdrew the application.
Mr Stewart said he had received 11 pages of requirements from council officers that he was "not prepared to do as a developer".
At the time, mayor Albert van Zetten said the withdrawal was disappointing, but the project was always going to be difficult to deliver.
JMC was behind the Silo Hotel and the Seaport development.
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