Malmesbury Town Hall Action Group has come up with a radical last-ditch strategy to stop North Wiltshire District Council selling the building.
The district council wants to sell the hall after refusing to fork out the £770,000 needed to renovate it and bring it into line with disability access legislation.
Now the action group says the only way to keep the town hall is to build four residential units in the Cross Hayes car park, and two in the hall's Oxford Room. It would cost around £1.4million to build the units, the sale of which would generate £500,000 to invest in renovations.
The proposals mean parking space for townspeople would be drastically reduced and the community space lost in the Oxford Room.
The news was delivered to councillors at the planning and environment committee on Tuesday night.
Councillor Charles Vernon said: "It has become crystal clear the district council is not prepared to finance the town hall. We are now down to the bare minimum and this is the best of a bad job."
The Action Group, of which Coun Vernon is a member, will present its proposals to the executive committee of the district council on February 3.
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