AN offer of $950,000 has been made for the Coffs Harbour Museum.

It is one of four Coffs Harbour City Council properties up for sale to help fund the Cultural and Civic Space estimated to cost $76.5m.

Other properties up for sale are the Castle Street Administration Building, Rigby House and buildings in Rose Ave.

The sales hit a snag when an initial expression of interest marketing campaign failed to generate much interest. There were offers made on only three of the buildings and they were all below market value.

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But now the offer on the museum, located at 215 Harbour Drive, which is within 5 per cent of a recent independent valuation, has put those plans back on track.

A report to be considered by Councillors at this week's meeting recommends accepting the offer.

As part of the sale Council will continue to occupy the building and will enter into a three-year lease with an initial rent of $60,500 per annum.

It's on the corner of Harbour Drive and North Street a short distance to the east of the Coffs Harbour CBD.

The property was purchased by Council in October 2010 and has operated as a museum ever since. It is listed as an item of significant Local Heritage.

A new museum will be established within the Cultural and Civic Space.

This week Councillors will also be considering a development application for the demolition of buildings on 23 - 31 Gordon Street to make way for the project.

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Work is anticipated to start as soon as possible following tender acceptance and will take approximately eight weeks.