The Gore District Council has spent the last few months talking to groups in the township about what to do with the building since the new Mataura Community Centre opened last November.
It is poised to approve the $1 transaction on Tuesday and sell the former town hall to the Mataura Youth Centre Trust which wants a permanent base for its activities.
The idea has already received the backing of the Mataura Community Board and a public meeting has also given its support.
In a report to the council next week, chief executive Steve Parry said three options were available.
The first was to retain the building, but this was not favoured because it was no longer needed as a community hall.
"The building is outmoded and the rear portion particularly, is in a state of disrepair. It presents a high maintenance liability in the future."
The council could also consider selling the property by public tender.
But Mr Parry believes interest from the market would be limited.
Although it has a 2007 rating value of $38,000, he said its market value was probably much less.
"A community hall as dated and in need of modernisation and renovation such as the old Mataura town hall is unlikely to find a large pool of interested purchasers," he said.
The preferred option, Mr Parry said, was to sell it to the trust.
"Given the condition of the building, the limited demand for non-residential property in Mataura and the community benefit occurring from having a permanent base for local youth, this option is favoured."
