Community groups are "unsettled" and disappointed Eurobodalla Shire Council plans to rent out the Batemans Bay Community Centre, with one calling it a "disaster".
The council is seeking expressions of interest from organisations to lease the centre for "community purposes".
A spokesperson said the process came after the council earlier this year received unsolicited requests from organisations wanting to lease the centre.
"Only leases for community purposes will be considered," the spokesperson said.
"EOIs must include a detailed synopsis of expected community benefits and how the proposed use generates local economic activity.
The spokesperson said the council in recent months had contacted existing users to identify alternative venues.
"Should a lease be awarded this process will continue," the spokesperson said.
EOI's which met the assessment criteria will be presented to a council meeting.
Expressions of interest opened on Friday, September 18 and close on Thursday, October 8, 4pm.
Batemans Bay U3A president Ross Thomas said eviction would be "a disaster" as the elderly depended on the centre for Tai Chi and dancing classes three times a week.
He said it was "unsettling" to contemplate moving: "We hope a solution can be found that's acceptable for all groups that use the center. It's unsettling and has taken us by surprise. There's nowhere else in the shire suitable."
Mr Thomas said U3A lacked resources to take over the lease: "Perhaps we would like to explore with other community groups whether a combined response could be prepared - however there's not much time."
Shugyo manager Kat Culic said it was the perfect space.
"We have really enjoyed being there; it will be disappointing and inconvenient to shuffle on," she said.
"It's important to have somewhere we can train consistently, and that's central to town; members don't want to get mucked around."
Students needed a permanent space with a wooden floor and storage.
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