Bendigo East MP Jacinta Allan has countered a Liberal senator's opposition to the GovHub project.

Senator Sarah Henderson called for an independent inquiry before the GovHub land was sold, citing concerns about lack of transparency.

Ms Allan said Ms Henderson appeared to be opposed to job creating projects in Bendigo.

She said the GovHub would bring 100 construction jobs to Bendigo.

In 2019 the City of Greater Bendigo voted to sell its Lyttleton Terrace offices to the state government. It opened the way for the construction of a 1000 desk building, with the city as a tenant.

The state government is expected to use the other 600 desks.

Ms Allan said the GovHub project came from a key recommendation in the 2013 Independent Review of Council.

"The Bendigo Gov Hub will bring together in one new modern building, over 1000 Victorian Government and council staff, provide staff with the modern workplace they deserve, give residents more state and council services in one location and help bring activity back into the Bendigo CBD," Ms Allan said.

Earlier

A federal senator has intervened in the Bendigo GovHub plan, calling for the sale of City of Greater Bendigo land to be put on hold.

Liberal Senator Sarah Henderson said she was so concerned about a lack of transparency and information on the plan that she intended to raise the issue in federal parliament.

Senator Henderson has called for an independent inquiry before the land is sold, and said it was "almost unprecedented that a council could go about selling one of its biggest assets without any sort of independent financial analysis".

"It's a bit like if you decided to sell your house, and then rent it back for 40 years, and then after 40 years end up with nothing," she said.

Read more about the Bendigo GovHub:

Last year, the council was presented with seven options regarding the proposed GovHub, including options that included the council staff not selling the land or moving into the GovHub building.

These options were reviewed by consultants PricewaterhouseCoopers and Urbis.

The option councillors voted for 6-2 was recommended by staff, the council says in a FAQ document, because it would revitalise the city centre and would not put the council under "extreme financial pressure" as other options risked doing.

It was the third-ranked option by PricewaterhouseCoopers, which assessed five of the options, including one to retain the existing building with minimal refurbishments.

But council staff determined the two options ranked above it would put the council's financial sustainability at risk.

Other options included retaining ownership of the land and buying the new building; retaining ownership of the land and entering a long-term lease, with the asset reverting to council ownership in 40 years; a shared ownership structure; demolishing and rebuilding a council building; and renovating the existing building.

The council is now awaiting the final valuation of its Lyttleton Terrace site from the Valuer-General.

This will be considered alongside the council's lease for space within the proposed GovHub building.

Senator Henderson wants an inquiry and analysis before the valuation is completed, saying all the financial information needed to be made available.

Under the Local Government Act, the council must give public notice of its intention to sell land at least four weeks before the sale, and a person has a right to make a submission on the proposed sale.

The council has set maximum prices it will pay as a tenant, and it is anticipated it will cost the council $36.9 million over 40 years for tenancy.

Senator Henderson's concerns were echoed by the Liberal Party Bendigo branch chair, Matthew Evans, who called on the council to provide the community with more information.

He said he was receiving a lot of feedback from people concerned about the plan.

Former Liberal MP for Bendigo West, Max Turner, has continued to campaign against the plan as it stands.