East Hampshire District Council has put forward the Festival Hall car park in Petersfield as potential building land.
If it is accepted as a development site, it could affect the proposed £13 million-plus refurbishment of the Festival Hall, owned by Petersfield Town Council.
In a report, town council halls chairman Cllr JC Chrissy said: “The district council has informed us it is reviewing its plans for the Festival Hall car park and that some of their considerations might have an impact on any future redevelopment of the Festival and Town Hall building.”
The car park is also used by those visiting the open air pool, and by market traders to park their vans.
The district council owns the car park, the old doctors surgery freehold, and the Petersfield Men’s Shed land.
It nominated the area as potential building land after South Downs National Park Authority appealed for sites to be volunteered for development.
After confirming month the whole car park had been put forward, East Hampshire District Council (EHDC) added in a statement: “This is a key town centre location and it is important we work with our public sector partners and the local community to explore all options.
“There are a number of opportunities we are keen to explore with partners for the whole site.
“EHDC recently met with key partners to start those discussions, but it’s early days yet and at this stage there are no firm plans.
“Going forward public engagement will be really important to guide the work.”
The council has been plain it wants to redevelop the car park area, likely with ‘affordable’ housing.
The national park will decide if it is suitable or not to be built on.
If it is agreed it can be developed, it will go on an SDNPA list of potential development sites.
District and town council representatives are to meet on January 23 to discuss the issue.