The profits of the $3 million Peel Street site were set to make up a big part of council's $4.25 million commitment to the $17 million development.

But instead of being sold, the velodrome has been offered up as the future location for a university campus.

However, Tamworth mayor Col Murray said there were "no concerns" council would fail to meet its funding obligations.

"There is absolutely no threat," Cr Murray said.

"There are alternatives. The funds will be provided from some other internal sources.

"Council is a very large business. While $3 million is a big transaction, it's not big in the overall scheme of things."

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Cr Murray said about a decade ago, council implemented a policy that stated the sale of sports assets must go to delivering other sports assets, so the community would enjoy the same or improved level of sporting facilities.

"In the case of the velodrome, the council will find other avenues to replace the sporting value of that asset," Cr Murray said.

"We haven't specific resolved which one. There's yield from the sale of Federation Park and there's quite a bit of money invested in the Sporting Centre of Excellence.

"Council will make up the shortfall from other reserves or funds to ensure that the policy isn't compromised.

"The important thing is we don't deplete the value of sporting assets that have been funded by generations of the past, to be used and enjoyed by future generations."

At a closed council meeting on June 12, 2018, Tamworth councillors agreed to “provide in principle support to the proposed development on Part Lot 73 in DP1107041”. 

A search of land titles reveals the lot to be the old velodrome site.

The University of New England has since confirmed the velodrome will be the location of its Tamworth campus, should it receive funding from the state and federal government.

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