Galway Bay fm newsroom - The County Council is establishing a new committee to debate the future of council-owned lands in a prime location at Sandy Road.
The city authority has previously been urged to consider social housing as part of a proposed masterplan for the local authority site in the east of the city.
However, the County Council will now discuss whether the planned new county library and cultural hub could be located there, after the Black Box site was all but ruled out.
The 11 acres of council owned property at Sandy Road currently houses a Council yard and a number of industrial units.
A large section of the land is owned by the County Council, with an adjoining parcel of land owned by the city authority.
Following a proposal by Athenry/Oranmore area councillor Malachy Noone, the County Council has agreed to set up a committee to discuss the future of the site.
The group will consist of seven councillors - two from Fine Gael, two from Fianna Fáil, and three representatives from the other political groupings.
Councillor Noone says given that the Black Box site at Dyke Road has been all but ruled out as a potential site for a new county library, the Sandy Road site should be considered.
He says the council is currently sitting back while millions of euro in potential revenue is being lost, and the land needs to be developed as soon as possible.
The make-up of the new committee is set to be decided within the coming days.