The City of Launceston may seek a variation in its Building Better Regions Fund grant so that it can reclaim a $10 million from the federal government.
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The grant was in doubt when the proposed developer of a $90 million Creative Precinct at the Birchalls car park site lost a Federal Court case that found no binding sale contract for the then $12 million car park existed.
Under guidelines for Round 4 of the BBRF, the grant was payable only to a creative and cultural development at the car park site.
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However, a Department of Infrastructure, Transport, Regional Development and Communications spokesperson said: "The department recognises that unexpected events may affect project progress [of BBRF projects]".
"In these circumstances, grantees can request a variation to their grant agreement, which the department will consider according to Section 12.5 of the grant guidelines."
The original grant had tight timelines because projects funded under Round 4 of BBRF must be completed by 31 December 2022, with all funding expended before June 2023.
Since the Federal Court decision last year the car park owner, Car Parks Super, has lodged its own $60 million development application for the site.
In addition, the proposed creative precinct developer, Creative Property Holdings, has appealed to a full bench of three judges of the Federal Court.
No date for the appeal has been set down, but last year's Federal Court case took from February to December for a hearing to take place and for a decision to be handed down.
The council was a guarantor of CPH last year and initially paid a $1.2 million deposit for the Paterson Street Central site.
"The council is not currently involved in the appeal lodged by Creative Property Holdings," Launceston mayor Albert van Zetten said.
As a respondent in last year's Federal Court case, the council was not liable for costs, but spent $18,700 on legal representation.
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Cr van Zetten would not confirm that a Section 12.5 variation would be sought.
"The City of Launceston has had ongoing discussions with the federal government around the Building Better Regions Funding and we will have more to say in due course," he said.
The Departure of Infrastructure spokesperson said the department was finalising the project grant agreement and delivery timeframes.
"The department continues to work toward finalising a project agreement with the proponent, including any variations," they said.
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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.
