The section of Osburn Street between St Augustine's Primary and the Aussie Car Wash is set to be closed, but only subject to the latter ceasing operations.
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At the school's request for the closure, Wodonga Council sought feedback on the idea in November.
Some raised concerns about impacts to the church and parking, however there was largely support and the Department of Transport did not object.
However, council officers were contacted by the current owner of the car wash who saw the notice.
"As was reported in the council meeting ... the land was implied to have been sold with a new development to be undertaken on the site that would no longer require the access off Osburn Street," the report says.
"A Planning Permit for these works had been issued.
"In the phone conversation, the current owner advised that the sale of the land has not yet been completed and until such time that this has occurred, the car wash will continue to operate.
IN OTHER NEWS:
"The advice provided to the current owner was that the road closure would not be undertaken until such time that the car wash business ceases to operate."
Council staff have also proposed in their report to Monday night's meeting that council should enter into an agreement with the school about use of the land.
