The end of a Federal Court appeal about the privately-owned Paterson Central car park has cleared the way to new development possibilities for the site in addition to a potential $90 million Creative Precinct.
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On Monday the car park owner Car Parks Super and Creative Property Holdings, the proposer of the Creative Precinct, agreed to discontinue a Federal Court appeal.
Car Parks Super director Don Allen said that the company is negotiating with CPH but that others were interested in the 41-55 Paterson St site.
On Monday, CPH applied to the Court for leave to discontinue their appeal. Mr Allen said by agreeing to the discontinuance it would allow CPS to freely deal with the company's property.
CPH director Christopher Billing said on Monday that he was working towards an agreement between the parties.
"We have voluntarily withdrawn our [Federal Court] appeal due to positive discussions that are working towards an agreement," he said.
However, it is understood that other developers do not propose a Creative Precinct and the bus interchange being sought by the City of Launceston council.
The Examiner understands that latest negotiations for the car park are at a price which significantly exceeds the $12 million sale price touted in the Federal Court case and which involved the City of Launceston council paying a $1.2 million deposit in July 2020.
An alternative development would result in the loss of a controversial $10 million Federal Government grant under the Building Better Regions Fund, allocated to assisting in drought relief.
The BBRF grant is tied to the vision of the Creative Precinct and the Paterson St site.
The council invested $8.8 million in the former Birchalls building in the hope it would dovetail with a Creative Precinct and bus interchange.
At the time of early negotiations between Car Parks Super and CPH the council was guarantor of Mr Billing's obligations.
However, council withdrew from that role in December 2020. It has also spent at least $20,000 of ratepayers' funds on legal fees in relation to the Federal Court.
Launceston Mayor Albert van Zetten said the City of Launceston was still working through the developments from Monday's discontinued Federal Court appeal with the parties involved.
"As we have said previously, the Council remains of the view that a centrally located bus interchange is an important strategic objective for the CBD," he said.
"In terms of the BBRF grant, the Council will have further discussions with the Federal Government given the recent developments.
"We are continuing to work with parties concerning the re-development of the Birchalls building and hope to make an announcement on this matter shortly.
The withdrawal of both parties at the 11th hour from the Federal Court appeal caused significant displeasure from the judiciary which had finalised a written judgement.
Mr Allen has lodged his own $60 million development plan for the site which is presently before the Tasmanian Civil and Administrative Tribunal because it was refused planning approval by the council.
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