In February, Kaitangata resident Steve Parlane appealed to the Clutha District Council to stay the demolition of the 64-year-old Kaitangata War Memorial Hall, and offer it for sale instead.
Mr Parlane said he wished to buy the hall to use as a classic car museum.
During annual plan hearings earlier this month, Kaitangata and District Promotions secretary Joyce Beck reminded the council of its earlier pledge to remove the hall, due to its failure to meet civic earthquake standards.
She said the group was concerned the building — which was in a "derelict" state — should be used for memorial purposes only, or not at all.
Instead, the group wished to install a memorial garden on the site.
"The site’s purpose is to honour our fallen soldiers. It shouldn’t be used for anything else, we feel."
Council service delivery group manager Jules Witt said the matter was tabled for discussion at the council’s next meeting, when a final decision would be made.