In June the City of Launceston council announced it would partner with New Creative Group, a consortium of investors made up of Foundry, For the People and Creative Property Limited, to develop a bus exchange and education precinct in the heart of the CBD.

The council will be responsible for the bus exchange and mall walkway while New Creative Group would be responsible for the education precinct.

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New Creative Group and Foundry chief executive officer Chris Billings dodged questions about what investors were behind Creative Property Limited, which was established to help fund this development, in June.

A spokesperson for Mr Billings again declined to say who was behind the investment when questioned last week.

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The spokesperson said the project was going through the building due diligence process, but declined to elaborate on why that prevented them from disclosing who the investors were.

City of Launceston general manager Michel Stretton said the council was confident the private investment was secure. He said the council had all the required legal arrangements in place to support the development.

"Preliminary design work for this project is underway. The council meets regularly with the Department of State Growth and the creative industries precinct proponents around this process, which includes input from transport experts regarding the potential operational requirements of the interchange on the site," Mr Stretton said.

The development has been the source of controversy since being announced, after it was revealed the council received a $10 million grant from the federal government meant for drought affected regions, to help cover the cost.

The council and the federal government have vehemently denied any wrongdoing in regards to the grant.

But, Labor and Independent MP Andrew Wilkie have both accused the government of pork-barrelling.

Launceston council have also faced criticism for partnering with the investment group which includes Foundry due to reports of the company failing to pay staff entitlements.

At the time of the announcement in June, Mr Billings said Foundry had received a new round of investment and all issues with staff entitlements had been resolved.

Launveston mayor Albert van Zetten said some media reporting of the Foundry situation was incorrect, but said the council hadn't checked with staff to ensure the situation had been rectified.

Mr Stretton said the council has now undertaken due diligence in regards to the creative precinct and are satisfied with the result. He said the council was confident the private investment would go ahead.

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