Northern Midlands Council will have to vote again on its decision to sell the Campbell Town Hall, this time in a public meeting rather than private.
The original decision was taken to Tasmania's planning appeals tribunal on grounds that public land matters must be held in open council, unless it relates to possible legal action involving the council.
During the proceeding, Northern Midlands agreed to vacate their original decision and will hold the vote again, in public.
Mayor Mary Knowles OAM refuted that council had made an error when they approved the sale in March during a closed session.
"No, absolutely not, you make those decisions in closed council ... it's not backtracking it is actually doing things correctly," she said.
The matter will be discussed at the next council meeting on July 19 in a public session. It had been a race against time as the council needed the RMPAT decision to be delivered before the council could discuss the issue at the upcoming meeting.
Previously, the council decided to sell the Town Hall in a closed session of its March meeting, a decision which was supported by Watershed Solution's report.
The decision to sell the land is linked to the existence of the multi-million dollar Campbell Town Oval precinct which features function rooms with a capacity of 150 people.
The decision to sell the Town Hall is recommended ahead of the meeting, Cr Knowles said there was an opportunity for a private developer to give the site new life.
"That's the best option for that building to go into private hands and then it can be developed into whatever ... it's got great potential for someone who has got big dreams," she said.
Cr Knowles reiterated that the council was unable to fund the maintenance cost of the aged Town Hall facility.
"This facility is not being used as it was, and as long as we cater for the current tenants, which we will ... we will make sure they're catered for," she said.
Residents had gathered together to create a petition designed to save the town hall which attracted over 200 signatures.
Potential ideas for the site include transforming the facility into a cultural arts and civic centre for the region.
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