Wagga City Council has agreed preliminary terms with the state government for the purchase of the city's historic ambulance station.
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The agreement comes after months of campaigning from community leaders and Wagga residents following reports the NSW government was preparing to sell it for $1.2 million.
The price council will pay for the building is currently undisclosed however Wagga mayor Greg Conkey admitted his push for it to be gifted back to the community was unsuccessful.
"It was gifted by the community to the state government in the 1920s and I have been advocating strongly for it to be gifted back for a dollar but it appears I have lost that argument," Cr Conkey said.
"So while on one hand I am delighted it will be kept in public hands I am also disappointed as I believe it is morally wrong for the government to sell it."
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The red brick Johnston Street station was built in the 1920s and has been vacant for four years following the $4.4 million construction of Wagga's current ambulance station.
Council's director of regional activation Michael Keys said the potential purchase of the historic building is a big win for the Wagga community.
"I think it's a fantastic outcome for the city that we've been able to retain a key site in our civic centre," Mr Keys said.
"The deal still needs to be finalised and we need the treasury to sign the offer that's on the table ... but we're fairly confident that we can afford it and that it's the best outcome for the city."
Mr Keys said council is hoping to have the deal finalised before the end of the year at which time the price will be revealed.
Council plans to repair the building and transform it into a creative arts and business hub for the Wagga community.
Mr Keys said local businesses would be able to lease parts of the building while other parts will be available for exhibitions and events.
"We're working in partnership with others in the cutural and creative arts industries to try and promote the broadening and depth of that industry," he said.
"It will hopefully help people get a start, get some confidence up and then hopefully head out and start their own business. That way we create more employment and create more attraction around that industry here in Wagga."
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