Energy company chief left stunned after Wodonga Council opts not to enter into deal on land at its Logic industrial hub

Birdwood Energy chief executive Scott McGregor was left dumbfounded by councillors snubbing a motion to enter into a sale of Logic estate land to his company and Derwent Industries for a manufacturing and renewable energy operation.

"I was incredibly shocked and disappointed," Mr McGregor said of his reaction to the council resolution at its meeting on Monday night to seek further negotiation with the firms after being "uncomfortable" with the sale price.

"I've done these projects around the world and I've had councils throwing themselves at myself to get them to come to their local area.

"We're doing this without asking Wodonga for any economic subsidy and gone through the process of fair valuations.

"It's just not logical, I suppose that's a pun on the estate's name, but I just don't get it."

Councillors had expressed concerns ratepayers would not receive value for money with the proposed sale price of $5 per square metre, which former city investment attraction director Michael Gobel submitted to them was inadequate.

Derwent's director of manufacturing/supply Craig Evans said the proponents were looking elsewhere, although he did not rule out a deal still being reached to set up in Wodonga.

"Wodonga had the option on the table, it was their first right of refusal and they've refused," Mr Evans said.

"On that basis we will open other options, that's not saying we're closing the option for Wodonga, but they've gone from having it on their own (to among others)."

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Asked whether Albury was under consideration, Mr Evans declined to say but added sites across NSW, Victoria and South Australia would be contemplated.

The project which involves steel making and power generation has the potential to provide 100 permanent jobs after construction.

Wodonga mayor Kevin Poulton said on Tuesday the door was still "wide open" for the enterprise, but at the same time accepted it could be lost to the city.

"It's a tough balance to be able to get people into town and interested and we're making no bones about it we think the idea and vision of it being in Logic is absolutely brilliant and we hope there's continued discussions, but if they do go somewhere else we wish them well," Cr Poulton said.

Councillors voted 6-1 to not enter into a sale with Cr Poulton noting investment by the Victorian and federal governments was also a factor for councillors to consider.

"I'm more than comfortable with the way it's played out, it can and should be in the best interests of ratepayers," he said.

Mr McGregor said "not much had happened" in Logic in 15 years with land prices offered unrealistic and purchasers that had occurred involving government or council incentives.

Mr Gobel was delighted with the council's decision which followed him presenting his "fire sale" concerns to a meeting in December.

"It was good leadership and governance by the council and in the best interests of ratepayers," Mr Gobel said.

"I want to see economic development in Wodonga and I want to see jobs, but they need to be done on the right terms.

"My hope would be that this deal can be restructured in a more commercial manner."