Construction of a mechanical workshop and the relocation of a freight delivery business to sites on Windsor Street at Ivermay prompted residents in the area to raise concerns with the City of Launceston council.
In submissions which were considered at a council meeting last week, neighbours said the street was "residential long before parts of it were given over to commercial interests".
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Invermay resident Bill Evans feared surrounding properties would be devalued if council gave Aramax consent to move into the old Sigma Pharmaceutical warehouse.
"The proposed development has the potential to change the character of the street, because it will operate after hours, late at night and early in the morning," Mr Evans said.
"I am concerned about the appropriateness of trucks coming and going whilst residents are in their beds trying to get a good night's sleep."
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Other residents expressed concern parking problems would increase on the narrow street and more development would have a negative impact on the streetscape.
Councillors approved the Aramax relocation and the construction of a new mechanical workshop, with tenants not yet confirmed.
General manager of Aramax Tasmania Hannah Bradley empathised and said she'd have concerns if she lived on the street too.
"My staff and customers have ample parking within the grounds of the proposed depot, therefore none of my staff will ever be blocking the street," Ms Bradley said in response to neighbours concerns.
Aramax needed to move from its old Mowbray site to a bigger, safe space because the business had grown, Ms Bradley said. She also vowed to plant rosemary at the new site and invited residents to help themselves to some to use with their Sunday roasts.