At Monday night's meeting, the Liberal councillor said he hoped calling for proposals on how best to use the manor house would reduce the "cost burden" on the council.

The historic property's future has been in limbo since January 2013, when councillors turned down a proposal to allow the University of Wollongong to build a creative arts precinct.

Cr Dorahy said rejecting the $40 million plan was "the worst decision for this council", which had been left with ongoing costs.

"Now we have a second chance to gain a cost improvement for Gleniffer Brae," he said.

"I do hope for this council's sake this time, that it does receive some excellent options to consider and maybe, just maybe, with some experience under its belt might make a sensible business-minded decision."

Cr George Takacs believes the call for proposals will lead to a better outcome for the city than the university's plan.

"I'm one of those people who thinks we made the right decision," he said.

"There are some values you can't put a dollar sign in front of and part of our job as councillors is to decide which of those we are willing to spend ratepayers' money on."

He said the Paul Sorenson-designed gardens at Gleniffer Brae were a valuable botanical asset for the city and he was pleased to have seen more people accessing the site in recent months.

"It's great to see more people up there enjoying the view, which is one of the great views of Wollongong," Cr Takacs said.

"Anything that comes out of this process that leads to more members of the public going up there is going to increase its value, which doesn't have a dollar sign in front of it."

Proposals must not conflict with the activities of the Wollongong Conservatorium, which has the right to occupy most of the manor house and former school classrooms until 2023 under historical lease terms.

They also need to address six community values: heritage conservation, financial viability, community access, tourism, compatibility with the conservatorium and links to the botanic garden.