The proposed site for a McDonald's restaurant in Prospect Vale has high levels of petroleum contamination in the groundwater, a report to Environment Protection Authority has found.
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The EPA reviewed an initial decommissioning report for the 345-347 Westbury Road site but says further assessment is required to "determine the level of risk posed by high levels of petroleum contamination in groundwater".
A spokesperson said the EPA required that a further decommissioning report be submitted by September 22.
Jim Lowish, the former owner of Jim's Car Care Centre, has signed a conditional sale contract with the McDonald's franchisee in Launceston, Steven Nicholas.
It is understood that a leaking fuel tank at the former service station site caused the contamination.
The greater Launceston area has three existing McDonald's restaurants at South Launceston, Kings Meadows and Invermay, operated by Mr Nicholas's companies Nico Holdings Pty Ltd and Steekim Pty Ltd.
The decommissioning report is required under the Environmental Management and Pollution Control (Underground Petroleum Storage Systems) Regulations 2020 (UPSS Regulations).
The Meander Valley Council told the Examiner that it was waiting for further information before it could set a date for the advertising of the application.
Acting general manager Jonathan Harmey said that the EPA held regulation responsibility for the site.
"The EPA will work with the property owner to ensure the decommission of the site is completed in accordance with the relevant regulations," Mr Harmey said.
Mr Harmey said the council could not publicly advertise the application until all required information was submitted.
"Until this happens we are not in a position to decide definitively whether the proposed development would be considered at a Council meeting," he said.
"The general manager retains delegation to approve applications with one or no representations, or to meet statutory time limits.
"That said it is likely that it will go to a Council Meeting for determination."
The 0.4 hectare site was first advertised for sale in 2020.
Mr Nicholas said: "Unfortunately at this time I can't comment".
Nick Clark
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
I am the Supreme and Magistrates Court reporter for the Examiner for the past 18 months. My journalism career has clicked over 30 years and encompasses four different spells at Tasmanian newspapers.
