'A good thing for the area': Plans to tear down dilapidated textile mill

The former James Nelson mill will be razed and 21 storage units and workshops will be built in its stead, subject to City of Launceston council approval.

Owner and director of Streetwise Developments Allan Virieux said storage wasn't his first choice for the site, but plans for housing were scuppered after environmental studies.

"We've got some contamination on the border between our site and the ACL building - contamination in the ground there," Mr Virieux said.

"What I wanted to do was housing first up, but it's just not going to allow it."

Environmental studies suggest the level of groundwater contamination is decreasing, and the site will be suited to commercial use with appropriate designs.

The textile mill began operations in 1951 and James Nelson ceased operations at the site in 2017.

Mr Virieux's company bought the property in 2018 and it had lain dormant for most of the time since, with the vacant building attracting vandals and others.

"I've had the building for quite a while, and I cannot keep the thieves out. I've had to put lights up to stop people drinking and doing drugs there," he said.

"The storage units will be completely safe, with top-level security.

"It can only be a good thing for the area when you haven't got children breaking windows every night, people stealing copper. It's really unsafe for them to be breaking in every night and having a party in there."

There was also the matter of asbestos, and Mr Virieux said "probably 70 per cent" of the building was the hazardous material which had since been removed.

As part of the development application the site's boundaries will be expanded to include an adjoining lot at 25-29 Cadorna Street, with entrances and exits onto Invermay Road and Cadorna Street.

The developer said the new development would have minimal impact on the neighbouring Mowbray Heights Primary School.

"It's not something that's going to be detrimental to the school," Mr Virieux said.

"There won't be mega traffic because it'll be for storage and small trades - electricians, plumbers and stuff like that."

Mr Virieux said it had been a long, costly process to get to this point - the environmental testing and monitoring bill running north of $150,000 - but he was optimistic the plans would pass council muster.

"We've been dealing with the council since day dot," he said.

"We met the council two or three times before we even started the process, to come up with an idea of how to best utilize the site."

Plans for the development are available at the town hall and on the City of Launceston website, and public consultation runs until April 11.