Uncertainty about $10 million worth of Federal Government funding has arisen as a result of recent moves involving the Birchalls' car park site.
A Federal Court decision last week threw doubt over a $90 million Creative Precinct development with Creative Property Holdings director and Precinct proponent Christopher Billing saying he is examining alternative sites and legal options.
And this week car park owner Don Allen lodged a development proposal for a $60 million investment at the Paterson St Central car park site.
It is understood $7.5 million allocated to the Creative Precinct under the Community Development Grants Programme is safe.
However, $10 million committed by the Federal Department of Infrastructure through the Building Better Regions Fund "bring this vision [Creative Precinct] to life" is in doubt. No project funding agreement has ever been concluded for the BBRF money.
"The Government is working with Launceston City Council to progress our funding commitment's in light of the court's decision," a Department spokesperson said on Tuesday.
The Examiner understands there is no provision under the BBRF Guidelines that allow for funds approved for a successful project to be transferred to a different project.
Meanwhile a State Government spokesman said the court decision does not affect a [$6 million] Covid loan with the Council.
"But any questions as to Council's intentions would be best directed to it," the spokesman said.
A City of Launceston council spokesman said it would be inappropriate for the council to comment on Car Park Super's development proposal because it was the planning authority that would oversee the development.
"The Council remains of the view that a centrally located bus interchange is an important strategic objective for the city, and that the proposed creative precinct represents a significant cultural, economic and employment opportunity for Northern Tasmania," the spokesman said.
"Any questions relating specifically to the future of the creative precinct itself should be directed to Creative Property Holdings."
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