Otago Regional Council remains committed to finding a new Dunedin base for its operations despite more than $4 million already being sunk into the project.
The council earlier this year pulled out of a bid to buy a central Dunedin car park from the Dunedin City Council for its headquarters after almost half-a-million had been spent on the project.
It followed another ultimately unfruitful bid in the city's industrial area in 2007 which cost close to $4m.
Council chairman Stephen Woodhead said despite the expense so far, the need for a new headquarters remained.
"It's disappointing we've had to spend that money and haven't been able to construct a new office block or move into a new office block so it's dead money - absolutely. But there's still suitable reserve there [for construction of a new headquarters] and we clearly own two sites if we were to move to a new site... that we will be able to sell to assist with the purchase of a new site and building."
While the council had offices in Queenstown and Alexandra, its operations were centred in Dunedin and its current facility in Stafford St was no longer fit for purpose, he said.
"The primary office in Dunedin is where the real need is currently so, yes, we are committed to finding a suitable facility for a modern, efficient office for our staff in Dunedin," Mr Woodhead said when asked if the council was committed to a new headquarters.
Some councillors and ratepayers have criticised the plan, as the council has budgeted more than $20m to build a new HQ.
Since the car park site fell through in July the council had assessed a number of options but they were commercially sensitive and Mr Woodhead would not comment further.
"We've had a comprehensive search... But any work is being handled confidentially so I'm not in a position to make any further comment," Mr Woodhead said when asked if another site had been identified since July.
Going further he said the council had explored its options.
"It is more efficient for local government to own its own buildings rather than lease and that's our preference, but inside that there are still options available."
He hoped to be able to share more details with the public and consult with them during the annual plan process.