RSL Victoria is eyeing off TAFESpace for its "groundbreaking" $5 million veteran welbeing centre.
The organisation is in early talks with Wodonga TAFE about a sale of the building, adjacent to the city's library development.
RSL Victoria chief of veteran services Adam Lawson said TAFE had been accommodating in talks.
"I cant thank them enough, and we're still working through a few things," he said.
"There is another site in town that has been identified as an excellent second option.
"TAFESpace is probably our preferred option, because it's so contemporary and right in the heart of the CBD, next to the senior citizen's centre."
The Australian government announced $5 million for the centre in December, and Mr Lawson hopes to have its location decided by March.
"It will be the absolute premier Victorian, if not national, veterans and families wellbeing centre; a one-stop-shop for all," he said.
"If you were in the military right now, we will help you. If you got out 20 years ago, or were married to a person in the military, we will help you.
"We are collaborating with all the other major ex-service organisations."
Wodonga TAFE chief executive Phil Paterson said he had been in discussion with Wodonga Council for "some time" about "how to best utilise" the building.
"Some of that actually involved potentially the council playing a greater role in the utilisation of that site in the meantime," he said.
"We believe that there could be a fantastic opportunity to partner with Veterans around the sale of the property to the RSL.
"So, we're working with them at the moment ... and we have to make sure that we follow the right processes.
"It's unique in that the building is owned by Wodonga TAFE, but the land is owned by the council, so therefore it has a lease that sits across the land.
"It has to be a three-way-agreement about 'where to next?'."
Mr Paterson said the building could provide more opportunities as a veteran well-being centre, with TAFE potentially playing a role in education, than as a satellite site for TAFE.
"The original intent for the building was probably never fulfilled," he said.
"Originally, it was designed to be a sustainability centre, when there was funding for that activity.
"The purpose of the building was then changed ... we ran it successfully for a while as a business centre.
"There was some discussion with the council about utilising it as an innovation hub.
"They're great ideas, but really, I think the veterans centre is one that I can see has a really viable benefit to the community.
"It's really about an asset that's probably not being fully utilised and how to best utilise it."
The $5.5 million building was opened in 2010 as a "sustainability skills centre" as joint venture between TAFE and Wodonga Council.
A long-time tenant was the Wodonga Chamber of Commerce, now Business Wodonga, which relocated to Beechworth Road at the end of last year.
Wodonga Council chief executive Mark Dixon said Council was aware of ongoing planning.
"Our council is very supportive of this excellent initiative and proud to be associated with Defence and our veteran community," he said.
"We welcome a "one-stop shop" veterans hub in our CBD and, while the final location is yet to be determined, we are working with all interested parties to facilitate a great outcome for Wodonga and our veterans."
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The facility is one of six to be established across Australia and the Hume Veterans' Information Centre has plans for it to be named after former Deputy Prime Minister Tim Fischer.
Chairman Wayne Taylor has been heavily involved in planning.
"It's going to be a wonderful project, providing a holistic approach," he said.
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