Liberty Theatre owners Touie and Denise Smith say they are "suspicious" but hope the council follows a "proper path" to decide whether the community wants the building.

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"I think the best way forward is to allow the council to do this process and, if they do the right thing, then I think it's good. I hope they ask for community input," Mr Smith said.

Probity advisors O'Connor Marsden and Associates (OCM) were hired by the council in June to review the $500,000 offer to purchase the theatre.

The council's internal auditor had flagged several risks with the proposal, including the councillors' decision to hold a community forum.

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"Such a step risked raising the hopes of some in the community when the practical funding issues had not been dealt with," OCM said in their report.

OCM found no staff bias nor probity risks with the original assessment, but made some suggestions.

One of those included the council reassessing the offer against its Land Acquisition and Disposal and Asset Management policies and legislation.

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The council's acting general manager, Chris Berry, will be the fresh pair of eyes on the offer of purchase and his assessment will be peer-reviewed.

"We can't have the same person do the assessment and recommendation again," Mr Berry said.

Mr Berry said he hoped to put a recommendation to councillors at their September 25 ordinary meeting if he found the offer fitted with the council's policies and legislation.

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The councillors could then decide again to hold a community forum to help make a decision, Mr Berry said.

The Smiths criticised the council's appointment of a probity advisor and use of the term 'unsolicited proposal' during the process.

Mr Smith asked why the recent proposal to the council to purchase Landmark's old building at 1-5 MacDonald Street, Yass wasn't also called an unsolicited proposal.

"No one has ever been put through this probity process," he said. "They should be using it for every offer."

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Mr Berry said the use of the term was correct to highlight the fact the council hadn't asked to purchase the theatre from the Smiths, but appreciated concerns around the term.

He said this was why the council had avoided using the term to describe the MacDonald Street offer, which was declined, and would avoid using the term in future.

The probity advisor has also recommended the council appoints an ombudsman to address complaints not relating to the Liberty Theatre but raised by the Smiths.

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