Community groups and volunteers are not yet able to take on the Oasis to run it as a leisure facility.

A bid by Swindon Co-operative Party to have the closed building in North Star declared an asset of community value has been turned down by Swindon Borough Council.

Had it been agreed, it would not have prevented the redevelopment of the site if owner Seven Capital or the council decided to do something else with it – but it would have provided a stay of execution for six months to see whether a community group was able to take it on.

The Oasis closed in November after former operator GLL declared it no longer viable. The council says it is working with Seven Capital – which holds a 99-year lease – to resolve its future

The decision by council solicitor Tim Chick says the community asset application doesn’t meet the technical standards of a bid required by law.

He wrote to the Co-operative Party to say: “The outcome of the consideration is that the application does not satisfy the statutory requirements of being brought by a voluntary or community organisation with the relevant local connection so as to make it an eligible nomination.

"The council cannot be satisfied, on the evidence accompanying the application, that there has been compliance with the key requirement of local connection and application of surpluses.”

Mr Chick cites the minutes of meeting included as part of the bid, but says they are from a meeting held after the bid was initiated.

He wrote: “There is no evidence that the local membership actually agreed and supported the decision to make the application, ie there is no indication local members were driving this application and the executive responded.

“What does appear from the papers is that the local executive were engaged in an exercise pursuit of a national campaign for a national organisation."

While industrial and provident societies are counted as community organisations able to bid for community value status for buildings, Mr Chick said what was submitted was not local enough.

He wrote: “The evidence presented of registration refers to the Cooperative Party based in London and not the Midcounties Swindon Cooperative Party as stated in the application.”

He finished his letter by saying time was made available to address these points but no further documentation was sent in.

He said there is no appeal against the decision, but that doesn’t prevent the Co-operative Party, or any other eligible group, from making a new request to have the Oasis declared a asset of community value.

Dave Griffiths is the chairman of the Swindon Co-operative Party, which is closely aligned with Labour.

He said: “There are so many points that are of questionable decision, that this seems to be a political decision.

"It seems that Swindon Borough Council doesn't want the Oasis listed as a community asset, as it may cause inconvenience going forward. If the council or Seven Capital wanted to dispose of it at some time, they would have to wait for six months while the public is consulted.”

A council spokesman said: “Any nomination to add a building or plot of land to the council’s asset of community value register is always very carefully considered, as it was in this particular case.

“It is important to note, however, that this decision does not stop the Oasis being listed as an asset of community value in the future.

"The issue is that the applicant is ineligible to make the nomination and we have clearly set out a number of reasons why the strict criteria has not been met.”