Dubbo Regional Council is looking into moving the library and selling the land to promote growth in the CBD.
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Councillor Kevin Parker raised the idea at the June ordinary council meeting on Monday night.
He's called on council to investigate the possibility of moving the Macquarie Regional Library to the former Dubbo City Bowling Club site on Wingewarra Street, including a cost-benefit analysis.
If the library is relocated, the money from selling the site - which Cr Parker said would be "quite good" - would go towards the development of a purpose-built facility.
Cr Parker said he believed the current location of the library was "suitable for a retail site" and the "future growth for the CBD".
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"The library doesn't need to be located in a retail area any longer," the councillor said.
If the library is relocated to the Wingewarra site, Cr Parker said there would be good parking, the possibility for a great outdoor space to be developed and it would be located to the Western Plains Cultural Centre.
Before a decision is made, the public will be invited to share feedback on the proposal.
Councillor Greg Mohr said before "too much effort" was poured into moving the facility, he wanted to gauge the public's view.
"If there's that much backlash then we can go forward and just say it's not going to happen and if there's not that much backlash we can look at moving it elsewhere," Cr Mohr said.
He said a significant amount of work and money had already gone into the library facility.
But councillor John Ryan said it was a "very strategic site".
"Council looks at things with a much longer term view than individual people," Cr Ryan said.
"Council has to look at this site in the context that the CBD may be vastly different in the next 10 to 20 or 30 years than what it is now."
A report on the feasibility of moving the library will be presented to the September meeting.
The idea will soon be on public submission. Feedback will be open for 28 days.
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