{"id":165158,"date":"2025-09-24T05:51:08","date_gmt":"2025-09-24T05:51:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/165158\/"},"modified":"2025-09-24T05:51:08","modified_gmt":"2025-09-24T05:51:08","slug":"concerns-launceston-city-council-could-give-away-birchalls-cbd-site-it-bought-for-8-8m","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/165158\/","title":{"rendered":"Concerns Launceston City Council could give away Birchalls CBD site it bought for $8.8m"},"content":{"rendered":"<p class=\"paragraph_paragraph__iYReA\">A ratepayers association says it is concerned a council-owned, multi-million-dollar Launceston CBD property is going to be given to developers &#8220;for nothing&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In 2020, the Tasmanian council purchased the historic former Birchalls building in the Brisbane Street Mall for $8.8 million.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Now, the Tasmanian Ratepayers Association says it has learnt a proposal is being considered to effectively hand over the vacant site to a development consortium.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The ABC has confirmed commercial-in-confidence discussions are underway, with a developer planning to spend about $15 million on reviving the &#8220;white elephant&#8221; building, in order to inject new life into the CBD.<\/p>\n<p><a href=\"https:\/\/iview.abc.net.au\/show\/mystery-road-origin?utm_source=abc_news_embed&amp;utm_medium=&amp;utm_campaign=%5Bscreen%3Atvmain+abciview%3Amystery-road-origin-s2%3A0925%3Aabc_news_embed%5D&amp;utm_term=%5Bscreen%3Atvmain+abciview%3Amystery-road-origin-s2%3A0925%3Aabc_news_embed%5D&amp;utm_content=%5B20250831_watch_trailer%3Aimage%3Aabc_news_embed%3Ascreen%3Atvmain+abciview%3Amystery-road-origin-s2%3A0925%5D\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Add to your watchlist<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The critically acclaimed Mystery Road: Origin returns as Detective Jay Swan (Mark Coles Smith) and Mary (Tuuli Narkle) uncover dark secrets in a haunted timber town, where the past threatens to tear them apart.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The ratepayer association&#8217;s president, Lionel Morrell, described the potential handing over of a council-owned building worth millions of dollars as an &#8220;economically reckless deal&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Why did they buy it? And why don&#8217;t they simply put it back on the market?&#8221; he said in an interview on ABC Mornings.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Launceston Mayor Matthew Garwood declined to comment.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">According to a Tasmanian government property information report, the Birchalls building on Brisbane Street was bought by the council in March 2020 for $8.8 million.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Four years earlier, the property had sold for $4.75 million.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">In May last year, it was reported council wrote down the property&#8217;s value to $7.1 million.<\/p>\n<p><img decoding=\"async\" alt=\"A building facade in a pedestrian mall.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/09\/a042238eff093c0b7ee9bf47318c0cfb\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The Tasmanian Ratepayers Association says it has learnt a proposal is being considered to effectively hand over the vacant site to a development consortium. (ABC News: Hayden Smith)<\/p>\n<p>Developer in talks to get site &#8216;for less than what council paid&#8217;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The Launceston City Council selected Tas City Building as the &#8220;preferred partner developer&#8221; for the site in July, along with architects S. Group, but made no mention of transferring property ownership at the time.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Tas City Building principal director Steven Simeoni\u00a0told the ABC he was looking at &#8220;getting the site for\u00a0less than what council paid\u00a0for it&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">He did not provide details of the negotiations but said it &#8220;was not a large amount&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;It&#8217;s a tricky site,&#8221; he said.<\/p>\n<p>&#8220;[It&#8217;s a] bit of a white elephant that&#8217;s been there for a while.&#8221;<\/p>\n<p class=\"paragraph_paragraph__iYReA\">He said the site had restrictions on it, mainly due to its heritage listing, which presented further challenges.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Mr Simeoni said the consortium planned to fund a $15 million development of the site, which would likely include 21 apartments over four storeys, with commercial, retail and eateries below.<\/p>\n<p><img decoding=\"async\" alt=\"A building facade in a pedestrian mall.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/09\/7ea56ea6464c6748b8e61a91f63dedc4\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The Launceston City Council selected Tas City Building as the &#8220;preferred partner developer&#8221; for the site in July (ABC News: Hayden Smith)<\/p>\n<p class=\"paragraph_paragraph__iYReA\">He said he applauded council, &#8220;for their vision&#8221; in trying to make the most of the property.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Mr Simeoni hoped a contract would be signed in the next month, and it would be redeveloped over 18 months from next March.<\/p>\n<p>&#8220;It&#8217;s great \u2026 the council is using a vision to get rid of a white elephant out of the Launceston CBD to make our CBD better,&#8221;  he said.<img decoding=\"async\" alt=\"A building facade in a pedestrian mall.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2025\/09\/985b9e592547f4e1bfb20f84857ae98e\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">The Launceston Chamber of Commerce says it is seeking &#8220;clarity&#8221; from the council on the proposal. (ABC News: Hayden Smith)<\/p>\n<p>Birchalls building currently &#8216;substandard&#8217;, councillor says<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Minutes from the September 11 ordinary council meeting show that, in a closed session, councillors approved for chief executive Sam Johnson to sign the term sheet for the agreement.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">Mr Morrell said it &#8220;beggars belief&#8221; that the site would be effectively handed to the developers &#8220;for nothing&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">However, the ABC understands there was widespread support among councillors to offload the building, which one councillor described as &#8220;substandard&#8221;.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">The Launceston Chamber of Commerce said it was seeking &#8220;clarity&#8221; from the council on the proposal.<\/p>\n<p class=\"paragraph_paragraph__iYReA\">&#8220;Council for many years has promoted and failed to deliver any activity on the Birchalls site that would aid demand generation across the CBD precinct,&#8221; the chamber&#8217;s Gaile Lillico said.<\/p>\n<p>&#8220;When will we see actual confirmation of a development starting that benefits the community?&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"A ratepayers association says it is concerned a council-owned, multi-million-dollar Launceston CBD property is going to be given&hellip;\n","protected":false},"author":2,"featured_media":165159,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,108645,22674,99,2467,1022,16553,23273,13650,12152,108646,7134,8539],"class_list":["post-165158","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-au","tag-australia","tag-birchalls","tag-building","tag-business","tag-council","tag-developer","tag-development","tag-donate","tag-give","tag-launceston","tag-ratepayers","tag-sale","tag-tas"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/165158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=165158"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/165158\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/165159"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=165158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=165158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=165158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}