The Tasmanian Government says it will build a 23,000-seat stadium south-east of Hobart's CBD on what is understood to be the AFL's preferred site — but only if club presidents allow the state to have its own team.
The stadium proposal is contingent on the Federal Government paying half of its cost, estimated to be $750 million, and on private investment.
Premier Jeremy Rockliff confirmed the stadium would be built on the nine-hectare Macquarie Point site, which had been set aside for mixed-use housing development, a reconciliation park and an Antarctic and science precinct, if Tasmania gets its AFL team licence.
The decision comes less than 24 hours before Tasmania is due to present its formal bid for an AFL team on Monday.
Mr Rockliff said the reconciliation park and science precinct would still be built but declined to clarify the future of the housing development.
It is understood AFL CEO Gillon McLachlan and General Manager of Property Development Matthew Chun were impressed by Macquarie Point during a tour of the site in June — a view reinforced after a second visit to Tasmania by Chun and AFL Chief Financial Officer Travis Auld in July.
But Mr Rockliff said his government would make its own decisions.
"We've always said that we won't be dictated to by the AFL when it comes to our own stadium," he said.
"We'll make our own decisions.
"We believe in this project — the economic analysis says this will be a game changer."
He said the stadium and surrounding precinct would "liven up southern Tasmania".
"Today's announcement is about ensuring that our preferred option for a new stadium, an arts, culture, and entertainment precinct is built right here in Macquarie Point," he said.
"Surrounding that, of course, will come the investment in tourism, hospitality, business, allied health — a huge opportunity for jobs and growth for the entirety of Tasmania."
Stadium 'an insult' during housing, health crises
Greens Leader Cassy O'Connor described the decision as "an insult" to Tasmanians at a time when thousands of people were without housing and the health system was in crisis.
"News that they want to put a $750 million stadium on this site is an insult to Tasmanians who can't pay their rent or are living in a tent," she said.
"It's an insult to people who are languishing on the elective surgery waiting list or worried about an ambulance arriving on time when they need help.
"It's pretty clear that what's happened here is that the Premier has allowed himself to be railroaded by the AFL."
Ms O'Connor said housing should be the government's priority.
"We've got people who can't afford to rent," she said.
"We've got people who are facing homelessness and evictions, and a government that's promised to build all these homes but the budget's off in the budget never-never."
Deputy Labor Leader Anita Dow also said the Government had its priorities wrong.
"We're in the midst of a health, housing and cost of living crisis, and this government needs to do more to get the basics right for Tasmanians," she said.
"Tasmanians deserve their own AFL team — what we don't support is that being contingent on a stadium being built in the south."
But Mr Rockliff said Tasmania "can't say no to things every single time" and the state could build the stadium while also spending money on improving the public health system.
"We are bringing down our [elective surgery and outpatient] waiting lists," he said.
"They're still too high, I've always said that, but we're investing more and more into health.
"We've always got to have a go — we've always got to build aspiration and confidence in Tasmania."
Housing development in question
The decision reverses an earlier preference for nearby Regatta Point, and throws the future of a long-planned residential development at Macquarie Point into question.
Land parcels for 'The Escarpment' mixed-use development have already been released to the market.
Mr Rockliff would not say whether the residential development would still go ahead but said the government's relationship with developer Milieu would continue.
"We're working through all aspects of design when it comes to Macquarie Point and working with all developers," he said.
"We've got a positive working relationship with the developer, we'll continue those discussions and we want to facilitate investment."
Mr Rockliff also did not respond directly when asked whether Milieu would have to be compensated.
The ABC has attempted to contact Milieu for comment.
