A report going before the council at this month's ordinary meeting on Wednesday says the council rejected an offer from the Department of Environment, Water, Land and Planning in May because it was "significantly below" the valuation the council commissioned.

The council appointed an independent valuer to undertake a valuation on its behalf, while the Victorian Valuer-General also commissioned a valuation.

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The valuers held a valuation conference last November, but could not come to an agreement on the current market valuation.

The report to the council says the main discrepancy came from the value of improvements the council had undertaken at the site.

The valuer appointed by council argued that these improvements - which included internal roads, lighting, fencing, a works depot area and underground services - facilitated the use of the site as a recreational area.

But the government's valuer said these works were insignificant and should not be included in the value of the site.

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The report says the council's valuer reviewed the valuations but did not accept the argument from the government's valuer.

Council officers believed it was not in the interests of the community or ratepayers to accept the government offer based on their valuation, so the offer was rejected.

There has been no further correspondence on the matter since the council informed the government of its decision in May.

The government's valuation and DELWP's offer remain confidential at the government's request, but the report to the council recommends councillors approve the public disclosure of the council's valuation of the land.

East Paddock is zoned for public recreation and open space, and has hosted concerts for national and international music acts.

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