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Committee unable to decide on UTAS student housing development proposal for CBD

The University of Tasmania's plans to develop student accommodation in Hobart's CBD have hit a snag.

Hobart City Council's Development and Environment Committee was unable to reach a resolution on the development proposal with four votes going each way for the $73 million project.

The University of Tasmania has applied to build housing for 433 students on the corner of Melville and Elizabeth streets in Hobart's business centre.

Committee chairwoman Helen Burnett said some aldermen were concerned by the size of the development.

"The concern was the high density and the height of the towers which were going to dominate that area of the city," she said.

One of the towers would be 36 metres tall while council regulations only permitted building to a height of 12 metres.

Concerns have also been raised over the impact the building would have on the area's heritage values.

A special committee meeting has been called to consider the approval before council elections on October 28.

"It's not what we might have for the city but it's what we might lose should this go ahead," Ms Burnett said.

"We have significant heritage in that area and having something that dominates that area could be folly, which is the opinion of two out of the four aldermen considering this tonight."