A developer planning to subdivide 6.25 hectares of land for 44 lots near the Longford Racecourse has disputed claims that it could lead to conflict between housing and racetrack users, believing the two can "co-exist".
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Carlton Dixon recently submitted the plans with Northern Midlands Council after purchasing three individual blocks of land in the area, which was rezoned low density residential in 2013.
Last year, it prompted opposition from a group of local residents who feared that the proximity of more housing development to the racecourse could threaten the viability of Australia's oldest continuously operating track.
But Mr Dixon said the development would only have four houses fronting onto Anstey Street, which faces the race course, with 16 other houses already bordering the track.
"I am unaware that any of these people that live in these properties have complained about the noise of activities around the racetrack," he said.
"The racetrack and this proposed subdivision can co-exist - like they do in rural and regional cities and towns all around Australia."
The council passed a draft amendment to the zoning that attempted to allow for more racing-related uses - such as a vet centre and domestic animal boarding - but it was rejected by the Tasmanian Planning Commission this month.
Opponents claim that encroaching housing development had caused the closure of tracks on the mainland, and launched a petition to council calling for zoning changes that would keep a buffer to the track.
Mr Dixon said there was no other available land zoned for housing in Longford, however.
"There's been talk that the Northern Midlands Council will rezone land which is currently rural to low density or general residential - for years - and to date nothing has eventuated," he said.
"Longford has missed the boat in terms of having suitably zoned land that can be developed compared to most other towns in the northern area. This has the correct zoning and it should be developed."
Horse trainer George Blacker, who sold one of the blocks to Mr Dixon and has lived near the racecourse for over 30 years, said he could not see how the housing proposal would impact the track's future.
"I've lived on the corner here for years and there's never been any trouble on trial days," he said.
"The Deloraine track closed for a different reason - 30-odd years ago - during rationalisation in Tasmania when they had to get rid of a couple of courses when TAB came in.
"Longford will never close. They just spent half a million on fencing and upgrades to the track."
Mr Blacker said Longford, Devonport and Hobart alternated for trial days.
The subdivision proposal is set to go to council at its next meeting.