North could take capital from Hobart

NORTHERN Tasmania will attract more investors thanks to “anti-development councils” in Hobart, according to the head of the Launceston Chamber of Commerce.

But Neil Grose, the chamber’s executive officer, has warned that Launceston must embrace projects like the controversial Gorge Hotel if the city is to capitalise on potential growth.

The $50 million Gorge development — a 39-metre tall hotel that includes a function centre capable of hosting more than 500 delegates and a day spa — has been given planning approval by the Launceston City Council, but is going to be the subject of a Resource Management and Planning Appeal Tribunal appeal.

A group called Heritage Not Highrise, inspired by the Hobart group of a similar name, has formed in opposition to tall buildings and is backing the appellant, restaurateur Susie Cai.

Mr Grose said Launceston would pay a heavy price if it rejected high-rise development proposals that were being put forward.

“The clear consequence is that investors will take their money elsewhere,” he said.

“Launceston must be competitive with other regional cities here and overseas in order to keep investment flowing and creating a firm economic future for the city.”

Ms Cai and Heritage Not Highrise said they would not have opposed the Gorge Hotel if it were being built “a bit further out of town” than the Margaret Street block on the outskirts of the CBD.

Proponents of the Gorge Hotel, the JAC Group founded by Josef Chromy, declined to comment.

Two even taller buildings have been proposed by Launceston businessman Errol Stewart at Kings Wharf, although those apartment towers — expected to cost a combined $50 million — are yet to gain planning approval.

“In the long-term, Launceston will become more attractive to investors as Hobart gets harder to navigate through anti-development councils,” Mr Grose said.

“In the short-term, the demand for development is in Hobart, but the constraints on creating supply will soon become too difficult in the southern capital.

“There will always be a minority opposed to anything that represents change, however it is clear the majority in the community wish to see Launceston move ahead,” he said.