'A sorry saga': How a bold plan to redevelop a CBD went awry

A highly anticipated $80 million plan to transform Launceston's city center into a vibrant creative precinct has dramatically collapsed, leaving a trail of debt estimated at over $16 million. The ambitious project, which had enthusiastic backing from the state government and Launceston City Council, now faces intense scrutiny.

Chris Billing, the entrepreneur behind the vision and operator of the defunct creative education institution Foundry, is at the center of the controversy. Liquidator reports suggest that Creative Property Holdings, the company spearheading the precinct development, may have been insolvent at the time the project was publicized in 2020. This raises serious questions about the financial viability of the venture from its inception.

The proposed precinct was to be built on prime real estate, including a car park on Paterson Street. The plan received substantial government support, with $12 million in state and council funding pledged, and an additional $10 million secured from a federal drought grant. The council even purchased an adjacent building for $8.8 million to integrate the development with the Brisbane Street Mall.

However, investigations by a court-appointed liquidator indicate that Foundry, intended as the cornerstone of the project, may have been insolvent since late 2016. The company reportedly owes more than $8.5 million, while a second company directed by Billing, For The People, has an estimated $8 million in debts, largely to the Australian Taxation Office. Foundry also owes employees over $200,000 in unpaid superannuation. Community members are now questioning the adequacy of the due diligence performed by government authorities before committing public funds to the project.

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The man behind a bold vision to develop a creative precinct in the heart of Launceston with enthusiastic state government and council backing may have been running insolvent companies at the time, according to liquidator reports, ultimately racking up debts estimated at more than $16 million.