A Chandos Street house – bought by Bega Valley Shire Council last year for $220,000 to improve traffic in and out of an adjacent public car park – has been demolished.
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But BVSC group manager infrastructure, Wayne Sartori, said no further work would take place on the project until more money became available.
"Council purchased the land for connection to the existing car park," Mr Sartori said.
"The house is now being demolished to allow this to happen in the future when funding becomes available.
"In the meantime the land will remain vacant so it can be used as overflow parking," he said.
The acquisition of 11 Chandos Street was subject to confidential council negotiations before the sale was confirmed in October, 2014.