Blue Mountains councillors have voted to open expressions of interest for the potential sale of the Wayzgoose Cafe building.
Ward one Labor councillor Don McGregor asked at the March 31 council meeting if this would commit council to selling at rock bottom price, given the slowing real estate market.
A council staffer said council wouldn't be locked in to selling; it was about "keeping the matter progressing."
Ward one councillor Kerry Brown asked if councillors would be told what it would cost to restore the building instead.
CEO Rosemary Dillon said that information would be provided in the next report to council.
Cr Brown was critical of the time it had taken to reach this point and the damage it had done to council's reputation and hip pocket, as the building fell into further disrepair.
"I hope we have something left to sell," she said.
"The cost in lost rent, multiple consultants' reports and development plans for the planning panel, legal fees and staff time is now approaching three-quarters of a million dollars," she later said.
"Council has also had several very large offers for the purchase of the building that have been declined without councillors being consulted. We need an internal investigation into the processes around this heritage building over the last four years to identify the pitfalls so this does not happen again."
In December 2018, the Independent Hearing and Assessment Panel gave the go ahead for the refurbishment and restoration of the council-owned building, so long as its historic heritage features were retained. It followed a long battle to save the building, which had been slated for demolition.
Wayzgoose Cafe owner Bec Alchin will not be required to pay rent while the coronavirus pandemic continues, after the council voted on March 31 to waive rents for all tenants in council buildings under commercial agreements.