Hobart Approves $48M Waterfront Overhaul Plan

Hobart City Council has greenlit a $48 million redevelopment of the Sullivans Cove waterfront corridor following months of community consultation, marking the most significant infrastructure commitment to the city's cultural quarter in a decade.

The project, which will reshape the precinct stretching from Davey Street to the Tasmanian Museum and Art Gallery, includes new public spaces, improved pedestrian pathways, and enhanced accessibility between the harbour and Macquarie Street. Council voted 8-4 in favour on Wednesday, with several aldermen citing the need to revitalise the area's appeal to both residents and the estimated 1.3 million annual visitors to the city.

However, tensions surfaced during the debate. Concerns were raised about the $12 million allocated for new hospitality and retail developments, with some councillors worried that rising rents could displace independent traders who have anchored the precinct for years. The Salamanca Arts Centre and several small gallery operators have previously expressed fears that gentrification could alter the area's character.

In separate council business, the contentious AFL stadium proposal resurfaced as a key agenda item. While no binding decisions were made, councillors discussed revised cost estimates now sitting at $387 million-a $67 million jump from initial projections released last month. The Liberal state government has signalled it expects the council to contribute a share of escalating costs, a position that has drawn sharp criticism from local labour representatives who argue public funding should take priority.

The council also confirmed its commitment to advancing Aboriginal land recognition initiatives within municipal boundaries. Following months of dialogue with Palawa groups, the council voted to establish a dedicated working group to identify opportunities for land acknowledgment and cultural partnership agreements-a move welcomed by the Tasmanian Aboriginal Community as a step toward genuine reconciliation.

Parking pressures in the CBD also dominated discussion, with parking inspector data showing a 23 per cent increase in permit applications across the Macquarie Street and Argyle Street precincts over the past financial year. The council flagged potential changes to permit allocation rules in the coming quarter.

Beyond the chamber, Elizabeth Street precinct retailers have begun lobbying for streetscaping improvements and extended trading hours permissions ahead of the busy AFL season and winter tourism push. A formal proposal is expected before council by August.

The next full council meeting is scheduled for July 15.

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