Gordon Irsak, who manages Jam Studios in Campbelltown, came up with the idea of an Australian Academy of Performing Arts a few years ago.

But the site on which he wants to build the $14million academy is a block of public land on the southern end of Blaxland Road that council plans to hold onto.

Last week Mr Irsak said he would seek a ``peppercorn'' lease, which would involve paying less than the market price as the development would provide ``public benefit''.

He said investors had already displayed interest but Mayor Aaron Rule said the council was happy to keep the land vacant for the time being.

``The council has looked closely at this particular land for some time and has since made some deliberate decisions to put this aside and reserve it for future use,'' he said. ``It's a strategic parcel of land that will require very careful consideration we're deliberately not doing anything with the land because of its position.''

Cr Rule said he did not know what the eventual use of the land would be. ``That's anyone's guess,'' he said. ``It could be open space, industrial, housing, technology or learning. Who knows?''

Cr Rule added that peppercorn leases involved a multitude of work before being granted.

``It's an extremely lengthy, drawn-out situation, ultimately involving public consultation, exhibition and a ministerial sign-off. This is not something that's entered into lightly. Normally they have only ever been done for not-for-profit charities or similar.''

Cr Rule suggested Mr Irsak consider establishing the academy at a site already existing, such as a TAFE, school or university.