Cabonne Shire Council is negotiating with Uniting Care to deliver a 14 unit retirement village in Canowindra.
Cabonne councillors were presented an update on the project, which has been on the drawing board since 2008, at the May council meeting.
"The project involves the construction of 14 aged care units on a property situated at the corner of Blatchford and Mill streets, Canowindra," councillors were told at the meeting.
Cabonne Council loaned the Canowindra Retirement Village Project Association (CRVPA) $100,000 to purchase the site for the units in 2008.
"As per conditions of the proposed lease Uniting Care require council to be the registered proprietor of the premises," Cabonne Director of Corporate and Financial Services Luke Taberner reported to councillors.
"Consequently CRVPA are in the process of transferring the land to council via a deed," Mr Taberner said.
A Development Application (DA 2010/80) approved for the project more than eight years ago remains current.
"Due to initial works occurring this DA is still current.
"Should a different concept plan be proposed, a new development application will need to be prepared and submitted for appropriate approval.
"There have been many meetings over the years, the most recent was a meeting between CRVPA, Uniting Care and the (Cabonne) Director of Finance and Corporate Services which took place in Orange on 19 February 2019.
"Since that date there has been negotiations over lease documents which have been sent by Uniting Care but council have not yet found satisfactory.
"Negotiations will continue and council may seek legal advice.
"Under the proposed lease council will be required to complete the works within 18 months of the lease commencing.
"It is therefore imperative that a lease is developed that ensures that Uniting Care proceed with the project once the infrastructure has been completed," Mr Taberner said.
Cabonne Council has $1.042m carried forward from previous budgets to fund the infrastructure associated with the project.
If additional funds are required Council was told these could be sourced from the council's capital works reserve.