Launceston City Council is making no apologies for demanding a lengthy list of studies for a now-scrapped upmarket unit complex in the Invermay flood zone.
Developer Errol Stewart has withdrawn his rezoning application for the Kings Wharf towers opposite his silos hotel, blaming 31 issues raised by council planners.
Launceston Mayor Albert Van Zetten says they had to do their due diligence.
"The land is levee-protected and subject to inundation in larger flood events, and the land is potentially contaminated; it needs to be demonstrated that it is safe for people to live there," he said.
"The site is next to a concrete batching plant which is inherently noisy and dusty. Obviously the height of the building was proposed at 32 metres and the public's obviously very keen on building heights around Launceston."
Mr Stewart says the red tape would have delayed the start of construction to 2021.
He's now pondering whether to resurrect the idea in Hobart, questioning why sizeable Bunnings and UTAS developments were approved for the area.
"Probably we'd do better in Hobart than in Launceston...there's probably bigger jobs and more money," he said.