After an approach from a prospective tenant wanting to base a business in the building, the council has sought feedback from the public about its options. The 117-year-old building is behind the National Bank building in Tarbert St, next to the public car park between Tarbert and Thompson Sts.
The commercially zoned property is not registered or classified with the New Zealand Historic Places Trust (NZHPT) but is listed as a "heritage building" in the Central Otago District Plan.
Council property officer Brian Taylor said the 300sq m building had 50cm thick stone walls and macrocarpa flooring.
Because the old stables were built before 1900, the trust would have an interest in any proposed repair or redevelopment, he said.
The front part of the property was occupied by the bank.
Subdividing the property so the land with the old stables could be sold would cost at least $40,000 and Mr Taylor said the high initial cost and relatively low rental on completion would provide an "uneconomic return to ratepayers".
"Council recognises the building has historical merit and that it is part of Alexandra's heritage. However, while it has the option of retaining the stables as a static display, it is also supportive of the proposal for sympathetic redevelopment to a functional commercial entity, subject to the heritage values being fully protected," he said.
He declined to give any details on the potential tenant or the possible use for the building.
"We are seeking feedback from the public on this, and other people might be out there with good proposals to use it for something else."
The vacant building had last been used a storage facility and that was its original purpose, he said. In its early days it had been used by an undertaker to store coffins and was later used for stables.
It was difficult to place a value on the building, but it would require significant improvements to upgrade it to the standard required under the Building Act, Mr Taylor said.
The council has listed several options for input, including redeveloping the building, selling it, or considering concept plans for the use of the property.
Submissions close on August 24.
