Community groups have expressed disappointment after Eurobodalla Shire Council voted at Tuesday's meeting to lease the Batemans Bay Community Centre.
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Meals on Wheels manager Alan Russell was not surprised.
"At council briefings, the councillors spoke about it and returned the motion to the table with no changes and were happy with it, with the vote going how I predicted 6-3," he said.
"It came as a disappointment they hadn't taken the time to think about the cases and scenarios of groups."
After community outcry at previous council meetings, Mr Russell hoped the motion would have been "thrown out completely".
He said the decision was a "backwards step" and "really sad for the community".
At the meeting, Mayor Liz Innes said a six month period would allow groups to "test the waters" of the shire's alternative facilities with "significant support around fees and charges".
Councillor Anthony Mayne shared his concerns over the financial gap of the new Regional Arts and Aquatic Centre and believed leasing the community centre was "not a wise approach" for the council to yield additional income.
Mr Russell said he supported the new Mackay Park facility, however agreed with Cr Mayne.
"I think with the number of brains and people working at council, they could have done more creative thinking on how they would balance their books," he said.
Mr Russell said the community would support Cr Mayne's rescission motion.
"I wish him good luck and I hope he gets someone to second the motion, but I think he would find it would be on the same lines, voted down 6-3," he said.
"I hope he puts it there and certainly has community support."
Mr Russell said the new lessees were likely to allow Meals on Wheels access to the kitchen facilities.
"The council has put a clause into the discussion, whoever wins the lease to look after the meals side of Meals on Wheels," he said.
"I am sure that will happen; there has been a guarantee from the leading group looking to get the lease."
Mr Russell said many smaller community groups who used the centre were "very agitated" and could not afford commercial rates.
"It was built as a community center, by the community, for the community," he said.
"Every rural and regional town has a community centre with a no-fee structure for the community to use.
"Now that's not the case for us - we don't have one.
"It's really not going to work to the community's advantage at all."
U3A president Ross Thomas said the result of Tuesday's meeting was "very deflating" and "disappointing".
During public forum, U3A was one of many groups to raise their concerns and difficulties in finding other suitable venues.
"We are hoping to make an arrangement with the new lessee to enable us to use the hall for dancing and AGM meetings," Mr Thomas said.
Once the lease begins, Mr Thomas said the community centre would be "as good as sold".
"With standard commercial leases, the use would likely be for three years; by that time the new Arts and Aquatic Centre will be operational, and the case for selling will probably be a compelling one for the council," he said.
"So, unless community groups like U3A can negotiate access to the centre in the next few years, we might never get access to it again."