The council plans to meet Premier John Brumby as soon as possible to discuss the approach to the Villa.

A report by City of Greater Bendigo director of city futures Stan Liacos on Fortuna Villa was presented to the council last night.

The report outlines Defence Department due diligence studies and the process the council plans to go through before deciding on making a priority purchase of the property.

First, the council intends to approach the Federal Government for a three-month extension on the October 30, 2009, deadline.

“We think that’s a pretty tight timeline, considering the extent of the material we have to go through,” chief executive Craig Niemann said.

“There’s been a lot of work done, but we still think there’s a lot of work that we’ve got to do.

“On behalf of the community we need to get a total picture of whether this is a good asset for the community, what the role of the State Government might be in future ownership, and what are the financial and other risks.”

The council has also resolved to commit several staff to complete a more detailed analysis of the due diligence report.

It has called for community proposals on the Villa’s future use.

A total of $25,000 has been allocated in the budget to complete investigations.

The report estimates that $16 million to $24 million would be needed to give Fortuna the best prospect of being commercially viable, assuming the land is not substantially redeveloped.

The report says the buildings lack furnishings and would have to meet regulations and standards.