The Launceston City Council has rejected the Launceston Skyway development in the Cataract Gorge, leaving one group happy and developers asking for answers.
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The council voted unanimously to reject the proposal on Thursday, blocking the Larter family from lodging a development application after five years of planning.
The $20 million project included the operation of 24 gondolas, with seating space for eight people, on a triangular-shaped return route.
Eleven councillors at a March workshop evaluated the development against nine assessment points, a procedure developed in November for unsolicited proposals on council-owned land.
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The maximum possible score it could have achieved was 680, it needed to achieve 69 percent or more to advance the project but councillors' gave it only a 25 per cent score.
General manager David Larter said the council's decision was extremely disappointing and should concern everyone.
He said its assessment procedure against unsolicited proposals set a dangerous precedent and he was concerned the council may have had a predetermined position against the project.
"Rather than test an application under the planning scheme, if the council don't like it, they will predetermine a development outcome," he said.
"The process needs to be without bias and the people making the assessment must have the qualifications to interpret the information. We are not sure that is the case in this instance.
"If the council does not want a particular development for the people of Launceston... it should be open and honest and ensure that a proponent is made aware of the council's opposition."
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However, the Hands Off Our Gorge group was "ecstatic" with the decision.
President Anna Povey gave praise to the council's new assessment process and said it was rigorous.
"Council looked into the gondola proposal thoroughly, but Launceston Skyway clearly failed the test," she said.
"They were concerned about gaps in the assessment of economic, heritage and environmental impacts, the potential impact on our Aboriginal community's connection to place, and potential additional management costs to council.
"Importantly, council recognised the deep emotional response people have to the Gorge and they centred on its cultural and natural values."
She said a petition against the project was signed by thousands of people, by locals, people around Australia and even around the world, who were all horrified of the potential project's impact.
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