The Albury Street property, which once housed the Australia Cafe, has issues with loose-fill asbestos.

Property NSW has applied to knock down the building.

Greater Hume councillors voted to defer a decision on the application last month while possible ways to save the building were considered.

Staff now say the demolition should be supported, noting the high costs of removing the asbestos using a slower and selective demolition process, which would require the facade to be braced and the property redeveloped for alternative uses. 

“It was advised that the Public Work Advisory does not have a budget to accommodate these significant costs and alternate sources of funding would need to be found,” staff note in an agenda. 

Councillors will vote on the proposal during a meeting in Culcairn on Wednesday.