The concept of an art gallery being built at the landmark site is dead in the water, according to a report scheduled to be presented at Monday's Warrnambool City Council meeting.

The report, which details the findings of a business case for such a development, ruled the concept not viable. It found a gallery would not attract sufficient patrons to warrant an outlay estimated at an eye-watering $63 million to $73 million.

The projected costs were significantly higher than what had been first mooted - $40m-$50m because the council opted to explore the most complex option of digging a new building into the hill and essentially hiding it, preserving views.

Councillors are being asked to abandon the option and instead look at what could be done to revamp the existing Civic Green site, a worthwhile project.

The last time councillors were asked to vote on this topic a majority controversially decided they wanted a business case on the Cannon Hill idea, rather than adopt an officer's recommendation for a report into the viability of upgrading the current, tired gallery. Some councillors said the city needed to be aspirational.

That sparked a vocal backlash and cries they had ignored residents' views. A 'Save Cannon Hill' campaign was launched and highly visible green 'Hands off Cannon Hill' bumper stickers were quickly distributed.

It's hard to see a majority of councillors ignoring the report and recommendation this time. Should councillors adopt the recommendation, there will be winners on both sides.

Campaigners will claim a victory for the people.

But the council, by deciding to explore the most expensive option of hiding the building, listened to the community.

It could have pushed on with a business case into the development of a building on top of the hill but instead investigated the feasibility of protecting the space and views. That was a significant step that it was prepared to listen and learn from its experience.

We need our leaders to think outside the square so one of the most liveable regional cities in Australia becomes even better. But the concept, timing and public sentiment was not right. Tightening economic conditions and the absence of grants because both state and federal governments have run out of cash also conspired against the idea.

We don't want our leaders to mark time, we want them to be proactive, to consult, take on feedback and act. But in this case, abandoning the Cannon Hill option is the right decision. The people have spoken.

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