The focus of the debate for the approval of the Launceston Health Hub was on parking during the City of Launceston council meeting.
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The development at Wellington Street will include the demolishment of the former union building and build a six-storey medical hub with medical consulting rooms, pathology laboratory, radiology and a day surgery.
The hub also has a development application for a staff car park with 34 spots.
The health hub is situated near the Launceston General Hospital, an increase in traffic in the area will impact parking in the area.
Three people spoke for the application, including Gary O'Keefe and general practitioner Jerome Wilson.
Mr O'Keefe said car parking was "always on the forefront of the management team, the owners of the property and the development".
A Honeywell building has also been bought for car parking to free up space for people who need to park closer to medical services.
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Dr Wilson said collaboration between council for parking in the "health precinct" was important in getting the hub up and running.
Dr Wilson noted patients often parked at the staff parking area as it was free and there was no were else to park but this wasn't something that was monitored.
"We don't see it as enough of a problem to install a boom gate at this stage," he said.
The plan was amended to include an additional condition for parking sensors and signs at the Cleveland Street car park to show how many parks are available.
Councillor Hugh McKenzie said parking was addressed by both council officers and development representative speakers.
"I live in the area, so I know the parking issues very well," he said.
"It's a broader concept of LGH parking not just this particular parking."
Cr McKenzie said it was important to have the centralised medical hub.
There will be 71 practitioners, but staff parking will be provided on another site.
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Councillor Tim Walker raised concerns over the area being called a "health precinct" without the infrastructure to support it.
"Parking has been the primary concern of the community," he said.
"This now being talked about as a medical precinct and yet no medical precinct exists formally in terms of planning ... perhaps we should, perhaps that would help to elevate the parking issues."
He argued if council recognised the area as a medical precinct, they would be able to make appropriate planning.
The development application was passed.
Works are anticipated to start as early as March.
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