The Town of Claremont has paid $11 million for the former Claremont Fresh premises on Stirling Highway beating off other potential buyers including Woolworths.
The lot comprises a total of 2389 square metres of land, and includes 54 car parking bays on the site.
Claremont Mayor Jock Barker said that the site offers a significant opportunity for the Town to influence the development of the town centre.
"This is the type of opportunity which seldom arises," he said.
"Decisions about the form and nature of development are normally decided beyond Council's power to influence, other than at the broad planning level.
"Now that the Council has taken the bold step of buying the property it can have a much greater influence on how the town centre continues to develop,' he said.
Town of Claremont CEO Stephen Goode said that the Council has a broad range of options for how the site is developed within its zoning.
"The 54 car parking bays are a significant asset in themselves and present an opportunity to unlock the potential of the Town Hall which is compromised through a lack of parking.
"There are exciting options now which could see the Town Hall restored and used as a real asset for the town centre," he said.
Before the purchase of the land is finalised the CEO is required to prepare and advertise a business plan to satisfy the requirements of the Local Government Act.
There will be a public submission period to allow community comment.
