The committee of a Serbian club and adjoining Orthodox church at Mawson want to rebuild their venue alongside apartments and commercial spaces.
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The Serbian Culture Club and church must apply to have the concessional status of the land removed, in order to have extra development added to the site.
Proponents of the plan say the deconcession of the land will "enable future redevelopment comprising a new mixed use building with a new Serbian community activity centre, commercial tenancies, childcare centre, residential apartments and basement car parking".
But, after a 15-year history of attempts to redevelop or sell the property, the plan has opposition from parts of Canberra's Serbian community.
Public consultation was held at the Serbian Culture Club site on Wednesday night when committee members and consultants provided a broad outline of the deconcession proposal.
A lack of electricity to the building, which has kept the club empty and locked up recently, meant temporary construction lighting was brought in to illuminate the consultation area.
Feedback from the meeting will be added to the development application, which is expected to be submitted to the government later this year.
Capital Crown Leasing director Deb Barnes, who is assisting the club with the application, said removing the concessional status of the club's lease could have wider benefits for the community.
"We've suggested that, in discussions with a developer, one deal of a sale could be to have some of the apartments reserved for aged Serbian community members," she said.
"This could be seen as a community asset ... at the moment the building is just sitting here with a chain around it."
Visitors to the consultation asked about space for a community centre and the church if the concessional status was taken off the land, as well as the ability of other church groups to use the area.
Opponents of the proposal handed over 98 signatures from members of the Free Serbian Orthodox Church who have been criticising the planned changes and opposing any future sale of the land.
The sale of the land to a developer, which would have resulted in the site being rebuilt with medium-density apartments on top, was challenged in the ACT Supreme Court in 2011.
It followed a similar attempt to sell the land in 2001, a move that was challenged successfully after attempts were made to sell the site and adjoining blocks of land.
The proposal will be discussed at Woden Valley Community Council's July meeting later this month.