Edward River Council said it became evident the business, which had plans to expand into the depot space and create extra local jobs, would not be able to meet the requirements to allow the sale to go ahead.
Mayor Norm Brennan said with the level of interest shown in using the space, a new buyer should be easy to find.
He said a new expressions of interest period will open, ‘‘hopefully by next week’’.
‘‘We are looking for someone who is going to use the site and not just sit on the land,’’ he said.
‘‘Having vacant blocks in the middle of the town is undesirable because we know it can be used to support businesses who want to operate in Deniliquin.
‘‘We hope it is an opportunity to create jobs to boost the local economy, however it is not essential because it could go to someone who has outgrown where they are and need a bigger block to continue providing their service to the community and the region.
‘‘We have already had enquiries from other local businesses which is fantastic to see, as we want to support our community in growing through their business.’’
After the mergers of Deniliquin and Conargo Shire in 2016, Edward River Council had staff working from both the former Deniliquin depot in Hardinge St and former Conargo depot in Wanderer St.
It decided to consolidate the workforce at the Wanderer St site, and upgrades there will continue.
‘‘We are getting the site ready for further works and the two homes adjacent the north depot, which we purchased last year to allow for an expansion, are now gone,’’ Cr Brennan said.
‘‘The demountable building currently located between the Town Hall and Estates Building, which houses both our customer service operations as well as our council chambers, will then be relocated to the depot after Estate Building upgrades are complete.
‘‘It will free up the area between the Estates Building and the Town Hall to be redesigned as an open public space.
‘‘The north depot works will provide workers there with more suitable and improved amenities, office spaces and staff lunchroom.’’