The council has ordered the owner of the old St John’s orphanage to render the building safe, following a fire on Monday.
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A blaze, which started at about 5.30pm, gutted a former hall at the rear of the historic Mundy St structure.
On Tuesday, police, forensics and council staff inspected the aftermath.
The council would be issuing an emergency order to owner, John Ferrara, to secure any loose building materials, such as roof iron, and safely secure the premises, a spokesman said on Wednesday.
“Council staff and the property owner have been reviewing the development options for the site to enable some progress with management of the damaged buildings,” he said.
The spokesman declined to comment on whether this included demolition.
Mr Ferrara has a DA for residential development at the site but it has been stalled for some time, pending council heritage requirements.
In the interim, vandals have smashed windows and destroyed large sections of the main building. Police said squatters also regularly frequented the premises.
Meantime, Detective Inspector Chad Gillies said police were satisfied the fire was deliberately lit.
They have seized several exhibits for forensic testing and are appealing for information from anyone who saw people at the property or in the vicinity on the day or in previous days. They are urged to contact Crimestoppers on 1800 333 000 or the Goulburn Police Station on 48240 799.