Expressions of interest have been called for the sale of the former Shellharbour City Council chambers building in Warilla and the adjoining lot that houses Warilla Library.
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Shellharbour City Council general manager Michael Willis said the proposed sale was the next stage in planning for the development of the council's $57 million City Hub project, which is being funded through a combination of developer contributions, loans and the sale of some council properties.
Potential buyers will also have the option of purchasing the current Warilla Library site and the adjoining land containing the Freedom Wall and Peace Grove.
In December the move to include the land containing the library and freedom wall in the expressions of interest campaign drew an angry response from community members and some councillors.
Mr Willis stressed that Warilla would continue to have its own library, regardless of the outcome of any sale.
"If a buyer were to make an offer that included the current Warilla Library site, the council would need to consider it carefully and make a financially responsible decision in the best interests of the whole community," he said.
"If the library site were ultimately included in the sale, council would need to look at other options for a library location in Warilla."
Mr Willis said whatever the result of the sale process, the Freedom Wall and Peace Grove located on the Warilla site would be preserved, and most likely moved to another location.
"These memorials would be handled with the utmost care and respect during any relocation, and would continue to be accessible to the community," Mr Willis said.
Expressions of interest close on April 17.
The City Hub is a multi-purpose community and civic facility planned for the Shellharbour City Centre.