Ararat Rural City Council’s June report said several meetings had recently been held with Regional Development Victoria and the company to discuss their plans.

Melbourne Polytechnic currently has a vineyard, winery and research centre at the site.

Council chief executive Andrew Evans said there were a number of complex issues that had to be discussed ahead of any sale or lease of the historic site.

“At the end of the day, Aradale is a state government-owned asset,” he said.

“We have been saying for some time that it needs to have a purpose in life.

“It has been in the hands of Melbourne Polytechnic for some time but they don’t do a lot out there.

“They did run grape-growing and wine-making courses out there for a period of time.”

Friends of J Ward work in partnership with Melbourne Polytechnic to run tours at Aradale.

Council’s report said discussions were ongoing and could take some time to progress because of the complex laws regarding the land’s sale.

Mr Evans said a lot of money needed to be spent at Aradale to restore the ageing buildings and make them usable.

“We have been talking with the state government about Aradale for quite some time,” he said.

“A group of people got interested in it but there are a range of issues that have to be finalised.

“There are rules with what you can and can’t do on Crown land, it is on a lease arrangement with Melbourne Polytechnic which also has to be resolved by the state.

“We do have some level of hope that this might turn into something.

“We are open to any avenue to turn the facility into something useful.”

The site has been considered for other projects in the past.

Mr Evans said the idea of a five-star resort and casino had once been floated.

He said council just wanted to see the buildings given a purpose and used more often.

“It needs to be there and will be there because it has heritage overlays,” he said.

​Friends of J Ward were contacted but would not comment on the talks.