The developer behind a controversial plan for an 82-room hotel, restaurant and convention centre for the top of Rosny Hill on Hobart's eastern shore has withdrawn them.
Clarence City Council has been negotiating with Hunter Developments since 2013 after the council called for expressions of interest from developers for the native bushland site.
It now appears council officers have decided the development may have breached their own landowner consent regulations.
"Some of the components did comply with the act, in my view. Some of them I had concerns with," Clarence Council acting general manager Ian Nelson said.
The concern surrounded the scale of the restaurants, hotel and convention centre proposed for the site — operations that would provide the revenue to underpin the entire development.
The community group fighting the proposal were happy with the withdrawal, but said it raised questions about the Council's judgement.
"We congratulate them [Hunter Developments] for doing that, but we do suggest that Clarence Council will now need to consider whether the whole issue is largely about Council's failure to communicate and do the necessary research," Peter Edwards from the Rosny Hill Friends Network, which gathered more than 1,000 signatures for a petition opposing the plan, said.
For the development's proponent, today's withdrawal was only a hiccup.
They still plan to resubmit their plans after next month's council elections.
"We've got all the documents, we've got all the reports. We believe what we're doing is a very, very sound development," architect Robert Morris-Nunn said.
"And we'll amend things as required to suit the legal parameters and resubmit it."
About 300 people attended a meeting in July to air concerns about the proposal.
