An advisory committee set up to connect the community with new owners met on Monday and refused a request from investors to shut down the group, for now.

Beechworth’s Matt Pfahlert, the representative of the investor group, wrote to Indigo Council saying owners would only work with councillors, its executive team and government organisations.

Committee member Mark Stephens said the advisory group needed to continue as the council’s voice for the community on “such a huge issue of the gaol, which is central to our heritage”.

“You should be proud, as a council, to encourage this committee and to allow it to keep an eye on private developers such as Mr Pfahlert,” he said.

Mr Pfahlert and the council’s tourism and community services manager Clayton Neil ran a not-for-profit organisation together, which public at the meeting said created a conflict of interest.

Committee member Christine Cansfield-Smith said the community wanted assurances investors would work with them.

“Just because we have a local face on a new owner doesn’t mean we can rest easy on any of this, it’s exactly the same situation as a developer from Sydney,” she said.

Cr Jenny O’Connor questioned what power an advisory committee had over a private business.

“Matt has said he won’t communicate with us, he’ll go through the other channels that exist, and why should he?” she said.

“It’s not that we shouldn’t have concerns, it’s how to go about it.”

The committee voted unanimously to defer a decision on dissolving until the sale was finalised in October.

Mr Pfahlert said purchasing the gaol was only possible due to a community buyback initiative, so he gave an assurance Beechworth would be involved in planning.

“We are deeply committed to developing opportunities for the community to participate,” he said.

“It’s just not appropriate for us to release anything between now and settlement.”

The investors were committed to developing a new master plan.

“There are a number of local investors who are interested in being known and there are some who are not interested in being known,” Mr Pfahlert said.

“No one should be worried about that.”

CLARIFICATION: A previous version of this story stated the meeting was held on Friday and investors would only work with the council’s executive team and government organisations.