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The Tasmanian Government is facing a $50 million bill to prepare a large slice of Hobart waterfront for development.
The State Government is conducting a federally-funded study into the potential uses for Macquarie Point rail yards.
The Economic Development Minister, David O'Byrne, says the site could be a mix of residential, commercial and tourist facilities.
It will cost $50 million to clear the site before any development can start but he says it would be worth the big price tag.
"This is a once in 100-year opportunity," he said.
The Minister says there is potential to use the site for education.
"Of course we will talk to the University of Tasmania about what they see as their future and what opportunities that site opens up for them."
Shadow Treasurer Peter Gutwein says the study is not needed.
"It would make this area probably one of the most studied areas in Tasmania at the moment."
The study is expected to take up to three years.
This article first appeared on www.abc.net.au
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