The assessment is in newly-released cabinet documents from 2010, which show the government considered four options for the future of the Flynn Primary School site.

It was also flagged that it might be possible to open 50 supported accommodation places on the site, which would have offset the cost of refurbishment.

The Enrico Taglietti-designed school closed in 2006 as part of a controversial government program to consolidate the number of public schools in the territory.

"It is likely that a freestanding childcare centre could be constructed for less than the cost of refurbishing the existing Flynn school building and in this sense the expenditure is not cost effective," ACT cabinet was told in a submission.

"However there are a number of unquantifiable social and political benefits of using the school building. The cost of refurbishing the existing building in addition to building a new childcare centre would certainly by higher."

The then community services minister, Joy Burch, recommended cabinet note the options for the site in April 2010, newly-released documents show.

The government considered a minimal option to redevelop less than half of the building and open up some rooms, including the former library, as a community hall. This would have cost $2.5 million.

A second option considered was to renovate less than half the building but for a childcare centre only, at a cost of $4 million.

Two-thirds of the building would have been redeveloped under a third option, that included the hall, canteen and other areas for community uses, at a cost of $4.5 million.

The final $7.5 million option was for a complete refurbishment of the building and included a child-care centre.

Cabinet agreed to pursue the redevelopment option for a child care centre only, at a cost of $2 million, and that Ms Burch pursue the relocation of childcare providers to the site.

However, ACT Treasury expressed concern about the need for a 120-place childcare centre and the potential for cost blowouts.

The John Flynn Group, a local community action group, advocated for a community centre on the site.

MORE A.C.T. CABINET DOCUMENTS:

A cabinet decision warned the viability of the facility would depend on "enlivening the building, managing the vacant space ... and the capacity to create a perimeter to the centre that would be less likely to attract vandalism".

The decision to spend $4 million over two years to open a childcare centre at the Flynn site was announced in April 2010.

The ACT government committed another $4 million in the 2011-12 budget to convert the rest of the school into a community hub.

Then acting planning minister Katy Gallagher used call-in powers in July 2011 to approve plans for a 110-place childcare centre at the site. It opened in January 2012.

A community led bid to have the school heritage registered was knocked back in April 2012, after a failed appeal to the ACT Supreme Court.

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