The University of Canberra has lodged plans to demolish a vacant student accommodation block near Belconnen town centre, seven years after it was gifted to it by the ACT government.
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Demolition of Arscott House and its three adjoining buildings would pave the way for a redevelopment of the 10,379-square-metre Aikman Drive block - although the university says it has yet to decide on the site's future.
A university spokeswoman said the three-storey buildings, which has been vacant since 2015, had in recent months been heavily vandalised and was "beyond economic repair".
"In order to reduce safety risks to the public, the university has applied to demolish the building," the spokeswoman said.
The site's car park and 26 trees would also be ripped up as part of the clearing works, according to an application lodged with the ACT Planning and Land Authority.
The planned demolition of the 335-room facility comes eight years after the ACT government gifted the site to the university, in a deal which attracted scrutiny from then Auditor-General Maxine Cooper.
In the 2015 report, Dr Cooper said the university needed to make a decision about the future of the then recently-closed building, given it was gifted for the purpose of student housing.
She recommended that if the site, which was valued at $9 million, was sold for a profit, then the university should make an "appropriate" repayment to the government.
In November 2016, The Canberra Times reported the university was in negotiations with a potential buyer for the site. A sale never eventuated, with property records last week showing the university still owns the block.
The accommodation was managed by the University of Canberra Student's Association until 2014 when it declared it could no longer afford to run the residence. The university then took over management.
The university spokeswoman would not be drawn on whether it still wanted to sell the site, saying only that "no decision on the future use of the site has yet been made".
"Dr Cooper's report found the university had approached the government about a transfer of Arscott House, which it intended to upgrade as part of a wider student housing strategy."
She said the gift was part of the $23 million the ACT government was required to contribute to the university so it could access funding under the Commonwealth's national rental affordability scheme.
Her report also highlighted the university's apparent urgency to secure the site before the end of 2011, quoting an email from its vice-chancellor stating the timing was "important for the UC 2011 result".
"The transfer of Arscott House in December 2011 allowed the UC to report an amount of $9 million as revenue. In 2011, the UC made an operating surplus before tax of $10.1 million," the report found.
Public consultation on the planned demolition is open until April 12.
