The purchase has been budgeted for the 2007/08 financial year, but the council maintains this will not interfere with immediate plans for the site's redevelopment.

City of Ballarat chief executive officer Richard Hancock said the two-year timeline would give the city greater opportunity to budget for the purchase, which is currently being negotiated with the State

Government.

Mr Hancock said expressions of interest for the project would open after a sale price was reached, which is expected to occur in the next month. The redevelopment is unlikely to start until next year.

"It's pretty exciting, it's a critical part of Ballarat's urban infrastructure, it's a site that really has got a lot of benefit to offer the whole of Ballarat and particularly that Sturt St retail precinct and

I'm pretty keen to get on with it," Mr Hancock said.

The redevelopment is likely to include a mix of government and council offices, medical suites and retail and open space. It may also include student accommodation and a bus interchange.

Mr Hancock said the site would be developed on a lease arrangement, rather than land sales to provide an ongoing revenue stream for the council.

"The expressions of interest process for a site like this could take six months, which is why I'm very keen to complete the negotiations with the State Government about the purchase price as quickly

as possible so that we can get the expressions of interest out into the market place."