The NSW government offered the land, vested as public recreation reserve, but the council considered the costs likely to outweigh any benefits.

Mayor Abb McAlister said a similar situation had arisen recently in Murrumbateman, when developers didn't want a block of land and offered it to council to maintain.

General manager Phil McMurray said council had the opportunity to lease the land, at the corner of Gundagai and Jugiong Roads, which could create an additional income stream.

Cr Nicholson asked whether costings had been established as to fencing, saying she didn't want council to take on a "white elephant" which could end up "costing us an absolute bomb".

Deputy mayor Dennis Palmer said the site had been under-utilised for nearly two decades.

"At the moment the fences are falling down and there's weeds everywhere," he said.

Cr Sheahan said he thought it was just another example of State government cost shifting.

"The fence is virtually non-existent and if you were going to lease it for grazing it's the land owner's responsibility to put the fence up. If you did lease it to somebody and they put the fence up at council's expense you would not be getting revenue for quite some time."

The council has received funding to spray the block for weeds. and Crown lands has indicated it has people interested in leasing it.

The proposal to accept the offer was lost, and a motion was passed to inform Crown lands accordingly.