The City of Greater Bendigo is looking to move the Kangaroo Flat Library out of its Lansell Square site.
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City of Greater Bendigo Director Vicky Mason confirmed the organisation was assessing different locations for the community facility.
"The City is looking at other options as the landlord of the Kangaroo Flat branch has indicated that they would like the current site back," Ms Mason said.
"We have been looking at a range of sites with the current preference being the Senior Citizens Building at Lockwood Road.
"This looks like the most accessible, cost effective short term solution that can be delivered within current resources."
The move could happen this financial year but "timelines have not been finalised", Ms Mason said.
"The City is currently developing a Library Service Planning and Infrastructure Strategy that will guide future decision making for Library Services across Greater Bendigo," she said.
"This will be released for public consultation soon."
A centre management spokesperson for Lansell Square, owned by Charter Hall, said "no firm decision" had been made on the future of the site.
"Initial conversations were held with the library in January 2019," a spokesperson said.
"Centre management seeks to work collaboratively with the library if a decision was taken to relocate them."
The Kangaroo Flat Library holds a range of activities for patrons, including story time sessions for preschool children during the school term.
Kangaroo Flat resident Dennis Tickell, who uses the library on a regular basis, said he was concerned about what would happen to the programs in a new location.
"It can certainly continue in a different building," Mr Tickell said. "But the advantages of the building where they are now is that parking is virtually limitless.
"It's the perfect location. We go to the library and then we got to Lansell Square for some shopping."
The Kangaroo Flat Library is one of five public libraries in the Bendigo CBD. The people of Kangaroo Flat should have a say on what happens to their library, Mr Tickell said.
"I think the community needs to know what's going on," he said. "I understand that the Library is under lease from Lansell Square and I understand they look at it from a commercial view point.
"But I also believe that when the original builders of Lansell Square built it, they built the library because they wanted a community facility there. But now they're going to turf the Council out of it."