If no state agency project emerges for St. Finan’s, the site could be put up for public sale.
This information was revealed in response to a motion put forward by Cllr. Marie Moloney at today's Killarney Municipal district meeting.
Cllr. Moloney asked Kerry County Council to reconsider its position and make an application to the Department for funding to make the building suitable for affordable and social housing.
She said while she understands the project would be costly, the land would be invaluable for providing necessary housing.
Cllr. John O’Donoghue asked if the council received the results of the feasibility study carried out by the Land Development Agency on St. Finan’s.
The council said the results of this process are still awaited.
It noted that currently the HSE owns this property, which consists of a protected structure and surrounding lands.
The council said a portion of the site has been reserved for the provision of a new facility and construction works have started.
It also reported the HSE have decided the property will not be subdivided further, and will be sold as one lot.
The former mental health hospital closed in 2012.
Cllr. Moloney’s motion was seconded by Cathaoirleach of Killarney MD, Brendan Cronin.