The Serbian Club "St Sava" Incorporated has applied to have the concessional status of the lease on the club's land removed and for a payout of its market value, allowing the organisation to redevelop the site with additional amenities such as a childcare centre, retirement units or apartments.

The buildings have been closed since December 2010, when the club found rising maintenance costs, frequent break-ins and a lack of revenue were too problematic to remain open.

Since then, metal gates have barred the entrance to the blocks, which have been vandalised, graffitied and looted of copper pipes and electrical wires.

A community meeting held in the building in July to discuss the club's plan was lit with portable flood lights because the premises did not have working lights.

A valuation of the land found a payout of the concessional lease would be worth a combined $305,000, with an additional $140,000 estimated for the value of improvements.

In the application, prepared by Canberra Town Planning, the club wrote that it could not restore the facilities to a usable level without "financial assistance".

The application noted the club was uninterested in reapplying for its poker machine licence, proposing other revenue streams instead.

"The Serbian Club also wishes to have the ability to explore the re-development of the site with a mixed-use building, which will incorporate new club and church facilities as well as a number of commercial tenancies, childcare centre, residential apartments and basement car parking," the application said.

"The establishment of these uses could both generate funds for the redevelopment of the club/church site, as well as provide opportunities to ... generate a sustainable income stream for the club."

The 50-year concessional lease of the Crown land, first provided to the club in 1979, limits its use to club and church activity, as well as restricting the floor area of the sites.

The Serbian Orthodox Church St Knez Lazar on the site was wound up in 2003 and its assets were handed over to the club.

After several court battles through the 2000s and continuing revenue and maintenance issues, the committee at the 2010 annual general meeting of the club raised a motion declaring it was itself in financial crisis and in "substantial debt".

The next annual general meeting was scheduled for this month.

"It appears that the most appropriate way forward for the lessee would be to explore opportunities to redevelop the site and existing facilities rather than investing capital into renovating the existing structures," the application said, calling for a "modern", low-maintenance structure in its place.

The public notification period on the application has closed.