Developers of a $60 million development at the Birchalls car park site refused by the City of Launceston council have lodged an appeal with the Tasmanian Civil and Administrative Tribunal.
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Carparks Super's plan for a multi-level building and mixed-use development involving retail tenancies, dwellings, car, motorcycle and bicycle parking was refused by the council on the grounds that its car parking spaces exceeded regulations surrounding sustainable strategies.
A preliminary telephone conference will be held on Friday, July 1.
The legal move follows an appeal to a full bench of the Federal Court last week by Creative Property Holdings the proposed developer of a $90 million Creative Precinct on the same 41-55 Paterson Street site.
Creative Property Holdings appealed arguing that it had a valid $12 million contract for the purchase of the site dated November 2020.
The decision of the full bench has been reserved.
Car Parks Super grounds of appeal claims that its application complies with a provision of the Launceston Interim Planning Scheme 2022.
It says it complies "insofar as the proposal incorporates on-site parking, the proposed parking is necessary for the operation of the use and does not exceed the minimum provision required by Table E6.1".
The City of Launceston council rejected the Car Parks Super proposal on June 2 after the officer's recommended refusal.
Councillors Alan Harris and deputy mayor Danny Gibson argued against the development and to follow recommendations to not provide approval.
Cr Harris said the reason the area was exempt was to reduce the circulation of cars and make Launceston a pedestrian-safe city.
"This very easily integrates with the parking precinct plan, the transport strategy, and this has been ongoing since 2012, so this is not new," he said.
Lack of compliance has put a stop to Paterson Street car park development
Cr Gibson said going against council strategies would not create a "city of the future".
"This is not the city we are aiming to achieve," he said.
"I understand for some people it is difficult for us to not back a development of this scale, but at the same time, we are offering an opportunity to achieve compliance.
"You can't be going to create a sustainable city one day and not backing it up the next, you either have these documents that guide the city or you don't."
The council argued the application went against the Parking and Sustainable Transport Code.
A $10 million Building Better Regions Fund grant towards the Creative Precinct is contingent on the outcome of the cases.
The Australian National Audit Office is investigating the awarding of funding under the Building Better Regions Fund with a report expected in July.
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