Eurobodalla Meals and Wheels says any sale or lease of the Batemans Bay Community Centre would be "short-sighted" and "wrong".
Eurobodalla Shire Council planners recommend the centre's closure, once the new Mackay Park complex is opened.
Meals on Wheels said it was excited about the planned Mackay Park complex, but it would not accommodate the organisation's freezer, forcing the charity to relocate.
"We believe the recommendation from the council's staff to councillors, that the Batemans Bay Community Centre should be leased or sold, is short-sighted and wrong," Meals on Wheels president Phil Armstrong said.
"We understood the MacKay Park facility was not proposed to be a community centre, but this appears to have changed."
(We) are concerned how (Meals on Wheels) will maintain its services without having to find a commercially-expensive location if the Batemans Bay Community Centre is not available in a couple of years.Alan Russell
At the August 27 council meeting, councillors passed a motion to continue to work with Meals on Wheels to identify an alternate base.
"In the case of Meals on Wheels, it is strongly believed that suitable alternate arrangements can be made in collaboration with them," the report said.
"An initial meeting has been held with the manager of Meals on Wheels and further collaboration is proposed to occur, to find a suitable alternate location.
"As a result of recent media about the potential closure, sale or lease of the Batemans Bay Community Centre, council has received a number of enquiries from parties interested in the purchase or lease of the facility.
"Given the above circumstances it remains the proposed position that council close the Batemans Bay Community Centre, once the new centre is opened and look at opportunities to either sell or lease the site."
Meals on Wheels manager Alan Russell is concerned how the organisation can stay afloat "without having to find a commercially-expensive location if the Batemans Bay Community Centre is not available in a couple of years".
"I am pleased that council passed a motion that they are to work with us to find a new location for our freezer," Mr Russell said.
"To me this strong recommendation is a definite sign that something will happen to the Batemans Bay Community Centre."
He hoped alternative options would improve on the one already put to him.
"The first proposal, which I have yet to visit, is a space under the grandstand at Mackay Park," he said.
He was pleased the organisation had time to view options and have discussions.
He said volunteers packed meals for their northern clients each Wednesday and also held group social support activities each Thursday at the community centre, where a meal was provided.
He said it was impossible for an activity room to be next to the kitchen at the new Mackay Park complex.
"This would provide a number of issues," Mr Russell said.
The council report said: "Consideration of the activities and bookings currently undertaken at the Batemans Bay Ccommunity Centre has identified that outside of the requirements of Meals on Wheels, there is no impediment or adverse impacts arising from the closure of the Batemans Bay Community Centre, following the opening of the Batemans Bay Regional Aquatic and Arts Leisure Centre."