However, the Central Otago District Council is waiting until it confirms quotes for repair costs before discussing the offer with the Maniototo Community Board.
Whether those quotes total less or more than the offer will likely affect if the offer is accepted or not.
If not, the council may have to ''put the acid on'' the insurer to come up with a solution.
Central Otago District Council property and facilities manager Mike Kerr said the cost of damage to the building was upwards of $50,000, but he could not say how much the insurance company offer was worth.
A cash settlement had been offered because the building was insured by the council for indemnity value, rather than replacement value, Mr Kerr said.
''That's on the basis that [certain] buildings that we own we would be unlikely to replace with a similar size if they got to the end of their life.''
It was frustrating the process had taken so long, only to result in a cash offer rather than the insurance company repairing the building, he said.
The council had been ''chasing'' the insurer, he said.
''We have to decide if we take the settlement or have conversations with the insurance company.
''It's going to be the community board's call as to the decision taken.''
The catch was, if the community board accepted the offer, instead of the insurance company managing the repairs, the council would have to.
The council wanted the work completed as quickly as possible, he said.
When asked if he was aware of annoyance in the Ranfurly community over delays, he said he was aware it had inconvenienced people.
Some people spoken to in the area had expressed frustrations at delays but the council had not received any formal complaints.
The fire last January was put out before it could reach the main building, but two beauty businesses and an op-shop were forced to find other premises.
A 13-year-old Ranfurly boy was referred to Youth Aid after allegedly starting the fire.
All community groups who were using the building before the fire had moved back in after small repairs.
The only groups which had not returned were two businesses that had found alternative locations.
