In the latest chapter of a three year saga a deposit of $1 million has been paid by Creative Property Holdings (CPH) to car park owner Car Parks Super Pty Ltd with a settlement date in August 2023.

In 2020 CPH director Christopher Billing proposed a $90 million Creative Precinct on the site formally known as Paterson Central car park.

On Monday Mr Billing said: "Creative Property Holdings has various projects under consideration none of which are announceable at this time."

However, since the Creative Precinct proposal a $10 million Building Better Regions Fund grant towards the project has been withdrawn by the Federal Government.

The price is almost double the $12 million that Mr Billing attempted to buy the car park site for in 2020.

Car Parks super directors Don and Janet Allen said they agreed to sell the site because CPH offered a price which was close to five times the current Government valuation.

"It was described to me by commercial agents Shepherd and Heap as a stratospheric price,'' he said.

Mr Allen had proposed a $60 million retail development but said high interest rates and delays in getting development approval contributed to his decision.

"Delays by a hostile and vindictive Launceston City Council cost me more than $100,000," he said.

Mr Allen said he endured more than three years of bullying and intimidation by the council who repeatedly threatened to compulsorily acquire the car park at a price lower than the price which had earlier been offered by CPH.

The council refused Mr Allen's development application because it had 25 too many car parking spots but after an appeal the Tasmanian Civil Administration Tribunal ordered its approval.

The City of Launceston council in 2020 pledged to be a guarantor for Mr Billing and paid a $1.2 million deposit.

The saga also included a Federal Court case whereby CPH unsuccessfully attempted to enforce $12 million contract.

A subsequent appeal to the full bench of the Federal Court was withdrawn.

Mr Allen expressed disappointment at a perceived lack of support from the business community in Launceston.

He particularly criticised the Launceston Chamber of Commerce which actively opposed his locally funded development in favour of an out-of-town developer and financiers..

"Other favoured developers have received rapid approval of development applications and waiving of fees and in the case of CPH financial backing," Mr Allen said.

The Examiner understands that the deposit was paid by way of cheques for $450,000 and $550,000 on March 24 to Mr Allen's legal firm Archer Bushby.

Mr Allen said lawyers for CPH had told his company that the deposit funds were a loan to CPH from an associated entity.

The council has advocated a bus interchange for the site and paid $8.4 million for the adjoining Birchalls building which has lain idle since.

Mr Allen said he believed any development which reduced car parking would be disastrous for the CBD and relocation of buses would be detrimental to retailing in the area.

Council chief executive officer Michael Stretton said the council's focus remained on bringing the redevelopment of the former Birchalls and Katie's building to fruition.

"Later this month, the Council will consider a proposal from the developers that were selected following the Council's expression of Interest process for the re-development of the site," he said.

"Any question relating to the current status of the Paterson Street Central car park site is a matter for the property owner.

"Having said that, I can say that the Council is not party to any contract and/or contract negotiation for the property."

Real estate agent Blake Shepherd said: "I can confirm that Shepherd & Heap has been involved in negotiations pertaining to the site but unfortunately cannot confirm if there has been an agreement reached nor the specifics of the negotiations at this time."