The council wanted the land as a vital link between the Oamaru historic precinct, Oamaru Harbour and King George Park.
The 4.621ha area of land, which has a large concrete block goods shed, was bought for $105,000 as a local purpose reserve.
Various ideas have been floated for the land, including an amphitheatre, campervan park, extension to King George Park and to use part for a new road to Oamaru Harbour.
The council's property manager, Dugald McIntyre, said negotiations between the council and then New Zealand Railways started in 1990 when the goods yard was transferred north to the railway station site.
The council wanted to buy the land for a local reserve and use it as part of the harbour-side redevelopment project.
However, because of negotiations with Ngai Tahu, gazetting the site as a reserve and other technical details, it was some time before the council got ownership.
The land also has a rail track, used by Oamaru Steam and Rail for its trains which run to the Red Sheds at Oamaru Harbour.
The council now owns the railway track.
