Last October Council decided to acquire the derelict site, on the corner of Miles Street and Grace Street, which was damaged by fire almost three years ago.

The eyesore building in a prominent part of the city has been vacant ever since but now Council wants to transform it into a vibrant and practical community space.

When it made the purchase decision in October Mount Isa City Council said they would demolish the existing structures and request feedback from the community about which of two potential concept designs for an open-space area they preferred.

Mayor Joyce McCulloch said the project was now progressing through design stage.

"What the (council) department is going to do is put out a couple of different concepts which will get pushed out to consultation," Cr McCulloch said.

"It will be the community's design."

The Mayor would not been drawn on what type of options might be presented when the time comes but said the community response from the initial announcement about the proposal had been great.

"The department are going through all that feedback and they are going through it and putting it into concept plans and will be put back for public consultation," she said.

"It's the same thing with (the murals on) the water tank, we didn't design it, we had over 200 responses and the community designed it."

Cr McCulloch did say Council had got a lot of feedback that there were not a lot of nice green areas in the central business district where you could sit down and have lunch

The Harvey Norman site, destroyed by fire in April 2017, is about 2024 square metres in area in total.

"While it has been an eyesore in the Mount Isa CBD for a couple of years, it's a fairly large corner block and there is so much potential for that particular site," Mayor Joyce McCulloch said.

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