The council rejected an offer to buy the two blocks last year on the grounds it would have a negative impact on its cash flow in the short to medium term.

But at its most recent meeting, the council agreed to buy the blocks for $98,750 and a further $22,621 in rates and charges relating to the retirement village be written off.

The council’s move is a strong pointer a sale of the Sweetwater retirement complex is getting closer which, if successful, will enable the re-opening of a closed section of Rosler Parade.

The road was previously shut as part of the original development plans.

The company behind the retirement village went into receivership in 2011 with 16 homes occupied and a further four homes completed and ready for sale.

The council agreed to the land purchase in a confidential session of last week’s meeting.

The $15 million retirement village was launched almost a decade ago with plans for 50 independent living cottages, 21 serviced and assisted care living units and 90-bed high care nursing home.

But it has been dogged by setbacks including a court challenge by the Murrumbidgee Catchment Management Authority to the original planning consent granted by council due to the disturbance of a natural habitat.

The project was then caught up in the global financial squeeze in 2008 with contractors and suppliers left out of pocket.

Greater Hume Shire first considered the purchase of the two lots more than a year ago.

It was felt at the time its involvement could breathe new life into the project and would cap its exposure to future rate write-offs.

The council has engaged solicitors Commins Hendricks to act on our behalf and talks with receivers Jirsch Sutherland have been ongoing.

It has pledged to undertake community consultation about re-opening the closed section of Rosler Parade if a buyer can be found.

The motion to buy the two Rosler Parade blocks was moved by deputy mayor Doug Meyer and seconded by Cr Tony Quinn.