STAWELL - Northern Grampians Shire Council is eager to see development take place at the former VicRoads depot in Griffith Street.
Mayor, Cr Wayne Rice, has asked VicRoads to consider handing over the site, as interest has been shown in a residential development.
However, negotiations have reached a stalemate at present.
"We have had interest expressed to us in developing the site, but it's at a stalemate at the moment," Cr Rice said.
"VicRoads has acknowledged that the depot is surplus to their needs, but there is no money in their budget to investigate if there is soil contamination at the site. Obviously, if contamination was discovered, there would be no money to clean it up either."
Cr Rice raised the matter with VicRoads representatives at a forum last month and it was acknowledged the situation was a difficult one.
"VicRoads don't want the site, but they can't do anything to release it either," he said.
"I have since raised the matter with Planning Minister Matthew Guy and advised him of the situation. At the moment, we are in a no win situation, but we are hopeful it will be resolved soon."