The Federal Court legal battle over a Launceston car park and the proposed site for a $90 million Creative Precinct will go to a hearing in October.
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The Paterson Street Central car park, known as the Birchalls car park, is the subject of legal action between proposed private developer Creative Property Holdings and owner Car Park Super.
CPH has alleged misleading and deceptive conduct by Car Parks Super over a series of proposed sale contracts in June, September and November last year.
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Car Parks Super says in its defence that no exchange of contracts occurred and that no enforceable contract was entered into.
Federal Court judge Justice David O' Callaghan ordered CPH file and serve affidavits upon which it intended to rely on by 4pm on September 21 and for CPH to respond by 4pm on September 28.
The proceeding is fixed for hearing on October 22.
CPH and Car Parks Super negotiated a price of $12 million with the City of Launceston to pay a $1.2 million or 10 per cent deposit on behalf of CPH in July last year.
Although no contracts went ahead, the amount was not received back by the council until February 23 this year.
Several of the proposed contracts last year stated that the City of Launceston was the guarantor for CPH in the proposed car parks deal -although the council subsequently denied that it was.
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Documents lodged with the Federal Court said: "that the second respondent [council] would as guarantor complete the contract in the event that the purchaser defaulted in its obligations".
The proposed Creative Precinct development has attracted more than $20 million of federal and state government funding commitments.
Launceston mayor Albert van Zetten said in a statement that it would look at buying the entire site if the Creative Property Holdings development did not proceed for any reason.
"The acquisition of the site is currently before the Federal Court and the council is hopeful a resolution will be reached in the near future," he said.
"The City of Launceston has an agreement with Creative Property Holdings to secure council ownership of the land required to facilitate the Launceston bus interchange, post-acquisition."
Creative Property Holdings director Christopher Billing said last week he was waiting on the court schedule. He said he was hoping for a decision which facilitated him getting on with the project.
"All I'm hoping is to carry on the project as always planned," he said.
The move to embrace a hearing is a recent change by CPH which in July preferred to continue negotiations with Car Parks Super. Car Parks Super director Don Allen declined to comment.
At the end of last year, Federal Court documents suggest that the City of Launceston withdrew as a guarantor for CPH.
Council solicitors Simmons Wolfhagen wrote to Car Parks Super solicitors Archer Bushby saying that the exchange of contracts had to occur by December 10 and that settlement occurs by December 18.
"If this time frame is not met the second respondent [council] will cease to be the guarantor," the Car Parks Super defence says.
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Nick Clark
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
