The 136ha parcel of land at Ambergate has been earmarked as a major source of funding for the proposed new shire administration building on Rotary Park.

The Mail understands the advice to the shire by a valuer was based on the offer being too high in the current economic climate.

The shire was told that speculative buyers were no longer in the market and that there would be no growth in property values in the next 12 to 24 months.

Also, that the development of the property was at least 15 years away, which ties in with the shire’s strategic plan.

The prognosis is supported by information contained in the officer’s report, submitted at a special council meeting to consider outcomes of the civic precinct and Ambergate business plans.

Though the report says confirmation had been received from the “potential purchasers” that they were still interested in acquiring the land, it also said advice had been received from a licensed valuer advising that residential prices had softened by 10-15 per cent in the past 12 months.

“This impacts upon the possible returns which can be received from the sale of land to assist in the funding project,” the shire report said.