The ACT government has confirmed a private company is seeking to build a McDonald's fast food restaurant on the site of the Chisholm Tavern.
McDonald's has not confirmed it will build on the site but does say more outlets are planned for the ACT.
The owners of the Chisholm Tavern, who are now on a month-by-month lease, say they want to remain on the site and "continue as a family-operated business as we have done since 1991".
A petition, signed by more than 200 people, and sponsored by Brindabella Labor MLA Joy Burch, calls on the Assembly to ensure the government conducts thorough community consultation around the bid and investigates whether an alternative to a fast food restaurant should be considered.
The petition also takes note that there are three major fast food chains within 10 minutes of Chisholm Village - at Erindale, Conder and Greenway.
An ACT government spokesperson said a formal development application for the Chisholm site had been held up because the proponents had yet to pay a lodgement fee.
"In October 2018, Chisholm Village Pty Ltd submitted a direct sale application to acquire Block 45 Section 539 Chisholm, which includes a public toilet facility," a statement read.
"Chisholm Village Pty Ltd also submitted a development application to remove the existing tavern and toilet block and construct a McDonald's family restaurant.
"Chisholm Village Pty Ltd has not yet paid a lodgement fee for this application.
"They must pay a lodgement fee to progress the application and it would be assessed by the independent Planning and Land Authority through its standard process. This would include a public notification period."
It's understood the government is looking for $1.5 million for the land, but this was not confirmed.
"The proponent would pay market value for the land, determined by EPSDD obtaining three independent valuations and using the highest valuation as the sale price. The Suburban Land Agency will receive the revenue from this transaction," the spokesman said.
McDonald's head of property NSW/ACT, Diana Grosmann, would not directly answer the question of whether Chisholm would have a McDonald's or not.
"Canberra will always be an important region for McDonald's, and we're continually looking into different sites that might be suitable for us. Nationwide we have a number of new restaurants and reinvestments planned for the coming years, and the ACT is a part of this plan," Ms Grosmann said.
The potential redevelopment of the Chisholm Tavern site follows the shock closure of the Valley Tavern in Wanniassa in February.