Sutherland Shire Council has failed in another attempt to find an acceptable use for the community space in South Village, Kirrawee.
The 1500 square metre internal area, on the north-western corner of the centre, facing the park, was allocated to the council under a voluntary planning agreement when the development on the former brick site was approved.
After three proposals were rejected last year, the council again invited expressions of interest for an organisation to fund and operate a multipurpose community hub.
In a confidential session at the June council meeting, new submissions were declined as they "did not comply with the established criteria".
Council officers were asked to provide a report by October this year, further investigating and recommending a preferred funding model to achieve the activation and utilisation of the site by council consistent with a needs analysis, prepared previously by a consulting firm.
An amendment by Liberal councillors, seeking to extend the expressions of interest for a further 14 days and invite all applicants to make a further addendum submission, failed.
Mayor Steve Simpson used his casting vote to side with Labor councillors and reject the amendment.
The saga began before the development was completed two years ago. The council initially considered leasing the area for shops and using the rent for community purposes elsewhere.