The City of Launceston council remains confident a $90 million CBD investment will go ahead despite a key stakeholder being evicted from its Cameron Street premises this week for allegedly failing to pay rent.
Private education provider Foundry was evicted from its Launceston residence, with a note saying the building had been reclaimed by the owners.
Foundry is a key stakeholder in a proposed $90 million creative precinct planned for the Launceston CBD with chief executive officer Chris Billings also heading the group behind the development.
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Launceston mayor Albert van Zetten said the council had contacted Foundry about the rental dispute after media reports relating to the matter were published on Wednesday.
He said the council was working with Creative Holdings Pty Ltd and was confident commitments remained in place.
Chris Billings is the director of Creative Holdings and the chief executive officer of New Creative Group, an investment consortium made up of Foundry, For the People and Creative Property Limited.
"However we will be seeking further assurances from the entities involved," Cr van Zetten said.
Cr van Zetten said the council had multiple means to deliver a bus exchange, which is set to be part of the precinct, depending on future circumstances.
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In a letter, sent to Foundry and seen by The Examiner, legal representatives for the owners of Foundry's Launceston campus said the organisation hadn't paid rent in months.
Rowan Browne, of FitzGerald and Browne, wrote that no evidence had been provided to show the organisation was protected by hardship rental eviction laws.
The outstanding rent owed by Foundry is $83,614.82.
In the letter Mr Browne also said unlike other businesses seeking rental exemptions Foundry had provided no information regarding their eligibility.
In response to questions regarding the eviction, what would happen to staff and students and the future of the Launceston creative precinct, Foundry's chief executive officer Mr Billings said it was inappropriate for the media to be interested in the matter.
He said the organisation had provided landlords with proof of their eligibility for JobKeeper.
"So many businesses are going through difficult times at the moment and just like us are working through these matters with their landlords under the coronavirus tenancy protection legislation," Mr Billings said.
"I have to ask why we have been singled out of the thousands of businesses going through these difficult times and the rental relief process."
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