Centacare New England North West lodged a $2.1 million application to redevelop the iconic Marius Street building almost a year ago.

The building was still for sale at the time, but Tamworth Regional Council records show the plans were conditionally approved late last year.

Centacare confirmed to the Leader the company had decided not to go ahead with buying the Services Club property.

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"Centacare NENW has decided not to progress the purchase at this stage," chief executive officer Fegus Fitzsimons said in a statement on Thursday.

The original DA indicated Centacare planned to expand its business by making additions and changes to the building to convert it into office spaces.

Centacare declined to comment on whether it was still planning on expanding at another Tamworth location.

The Servies Club chief executive officer Kristian Brooks told the Leader the Marius Street site was "definitely" still up for sale, but might not be for much longer.

Centacare's DA plans had been in the works since December 2019, when Centacare held a pre-DA meeting with the council.

The Leader reported on the buffet restaurant in the building closing down earlier this year after COVID-19, and it has now been replaced by a new eatery.

Santa Cruz's Kitchen has moved in upstairs and is now open.

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