Council received an expression of interest for the property three years ago, followed by a formal expression of interest in September 2016.

The sale hinged on planning approval for using and developing the site buildings.

The planning application resulted in a Victorian Civil and Administrative Tribunal hearing, with council notified in October this year the planning permit was unsuccessful.

Council will readvertise the property for sale next month.

Hindmarsh mayor Ron Ismay said the property now had rates arrears of more $63,000.

“ We’ve had a few people interested in doing things with it, but that hasn't eventuated for whatever reason,” he said.

“We're owed rates and just want to get it off our books.”

In her report to council, acting corporate and community services director Monica Revell said council would need to obtain a new property valuation for the site, which it expects will be less than the rates owed.

“The majority of rates arrears as well as costs are therefore likely to remain unpaid,” she said.

“Further rates will be raised each year against the property – under section 158 of the Local Government Act – with the likelihood that these rates will be written off each year against the rate income.”

Council will advertise the sale in newspapers in the area, with expressions of interest closing on February 16.

The former Dimboola Shire issued a permit for the abattoir’s construction in the mid-1980s.

Ni Ni Abattoirs opened in 1986.

Five years later, owners announced a $1-million upgrade.

In the meantime, crippling increases in meat inspection and abattoir costs sent many abattoirs out of business.

In 1993, Ni Ni Abattoirs became Dimboola District Abattoir after it sold to an Altona-based company.

The company announced plans to employ 100 people to slaughter sheep and emus.

But the venture failed when the federal government demanded the new owner pay Australian Quarantine Inspection Services costs it claimed the former owner owed.

The abattoir closed in 1993.