A failure to test the site at the corner of Tamar and Cimitiere streets before the granting of council approval has been argued as a main ground of appeal, in addition to concerns about the hotel's height.

The appeal, brought by Launceston Heritage Not Highrise before the Resource Management and Planning Appeal Tribunal, started in September, but was paused due to a request for more evidence.

Launceston Heritage Not Highrise spokesman Jim Collier said a full and proper environmental assessment of the site should have been prepared by the developers and then assessed by the City of Launceston council, before it granted development approval.

This included environmental testing for contaminants, assessment risks to human health and plans for remediation if contamination was found.

"My barrister Andrew Walker requested that the information be made available and the tribunal agreed that it should be. They directed the developers to provide that information for the next hearing so it can properly assess," Mr Collier said.

In evidence at the tribunal last month, the council's development manager Richard Jamieson said from his experience such testing does not occur prior to approval.

He told the tribunal that the history of the site made it likely that the site was contaminated, but the likelihood of those contaminants being dangerous and difficult to eradicate was low.

"The site's history shows they are likely to be known contaminants which have known decontamination processes," he said.

Launceston Heritage Not Highrise successfully appealed against the approval of a $50 million Gorge Hotel in 2019.

This latest appeal resumes in Hobart on November 9.