The Tasmanian Ratepayers’ Association has demanded immediate clarification from the Launceston City Council on a “reckless economic deal” that could see over $9 million of ratepayer funds given to a private property developer.
Media release – Lionel J. Morrell, President, Tasmanian Ratepayers’ Association Inc, 22 September 2025
The Birchalls Project Affair – Brisbane Street Mall Launceston
The Tasmanian Ratepayers Association is horrified to hear of a proposal being considered by Launceston City Council to give away over $9M to a property developer.
This year, Launceston City Council have just imposed a 5.7 per cent rate increase, and this gift is equal to the rates income from about 4500 residences.
We demand the council clarify the matter immediately and let the community know if this reckless economic deal is seriously being considered. We believe the matter was discussed in closed council at the 11 September 2025 meeting. A deal like this should be discussed openly in full public view.
In 2020 Launceston City Council purchased the Birchalls and Katies retail shopfront sites in the Brisbane Street Mall to facilitate a project which failed to go ahead.
Council paid $8.8m and the properties have been vacant since with significant loss of rate revenue.
The council item recommends working with a private company to redevelop the sites into a mix of residential, commercial and retail spaces with a covered arcade connecting Paterson Street Central Car Park with the Mall.
The private company is to arrange finance, complete design (in discussion with the council), gain approvals, complete construction and lease the tenancies.
Council for its part is proposing to:
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- Give the developer the sites for nothing.
- Waive rates for three years maximum.
- Waive all fees and charges associated with planning and approvals.
- Provide $1m to the developer on successful completion of the redevelopment.
- Maintain and clean the arcade.
- Redevelop play equipment in the mall.
This beggars belief.
Mayor Tsinoglou [former Mayor] was often heard to say that the council should treat ratepayer funds as though they were their own!
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- No one in their right mind would get their home redeveloped and then give it away.
- The council should put the properties on the market and get back what the market is prepared to pay.
- At least funds will be retrieved for public works.
- The private sector can then develop the sites and take the commercial risk.
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