The council has confirmed its purchase of the former mill site on the corner of Young and Wilson streets, but negotiations continue with Australian Rail Track Corporation and Transport NSW for other parcels of land tied up in complex lease deals which had proven a major disincentive to developers for a decade.

General manager Frank Zaknich said the cost to ratepayers would be made public once the entire site had been freed up for development.

“It is the first piece of the jigsaw to unleashing the development of this whole precinct," he said..

It has been on the council’s radar since 2009, but the difficulties have been related to the leaseholds and licences that existed on the land.

“The head lessee and the owners are different people."

The block initially bought by council is located next door to the former Bunnings warehouse site which will be redeveloped to include an Amart Furniture store after plans were ticked off by council late last year.

Mr Zaknich said the council had no plans to develop anything on the site with the area earmarked for further commercial and retail development.

But “connectivity” to the rest of the Albury CBD with upgrade streetscape, open space and bike paths is on the council's radar.

“The cost will be detailed once the final lease negotiations are completed," he said..

“The cost to ratepayers will be a short-term investment in the land and council will receive that return on investment when the land is sold."

Cr Alice Glachan welcomed the initial purchase.

"This is a fantastic opportunity and has been a decade in the making," she said.