Due to having no heritage value, the replica corn mill at the Penny Royal will be demolished to expand the car park.
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City of Launceston councillors approved a development application to demolish the Paterson Street corn millm, which formerly housed Gourlay's factory, and to extend the carpark.
The corn mill on 145-151 Paterson Street is not heritage, rather a replica. It was built in the 1970s with no reference to what may have been in that location in the past.
The actual heritage items within the mill will be moved to another location, would remain within 5 kilometres of where the original mill was located in 1828.
Once demolished, 10 new carparks will be developed for the area, bringing the total to 40 for the location, all located behind the building.
A member of the Tasmanian Heritage Council board spoke for the motion, saying "there was no heritage value" to the mill.
In October, the Tasmanian Heritage Council found the works for this development would "not result in change to the nature or appearance of the multi-storey stone mill buildings for which the place is permanently entered in the Tasmanian Heritage Register."
A business developer of the JAC Group, who own the site, said the corn mill was in a "poor state of repair" to the point where it could be redeveloped into a tourist attraction and was not compliant in any of today's standards.
He said this was designed as the second stage for the Penny Royal development works and the additional car parks would "significantly improve the car parking situation" and "increase safety".
The carpark will include a new pedestrian path.
Another representative said the improvements to the car park will help tackle safety issues such as visitors walking through active driveways to get to their accommodation and trip hazards in the area.
Concerns raised by representors during the plans advertisement period were about protecting the mill, which council officers stated the site was not in a heritage precinct and the building was not considered to have heritage value.
Councillor Hugh McKenzie said the issues raised had been covered by council officers.
Cr Alan Harris said the parking would be beneficial to the area.
"The 10 new car parks would relieve some of the on-street parking issues currently in the precinct," he said.
Cr Tim Walker disagreed there was no heritage value, he said there was "minimal" heritage value on a tourist level but would support the development application.
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