ALPINE Children's Services withdrew its intentions of running childcare and kindergarten services at the Mayday Hills premises in a surprise announcement just hours before Indigo Shire Council’s meeting on Tuesday.

Recently awarded the lease by Indigo Shire Council as the sole provider to take over the Mayday Hills site, existing occupiers Beechworth Community Early Years Learning Centre (BCEYLC) and Beechworth Kindergarten were set to be ousted from Mayday Hills from January next year.

BCEYLC had rallied against council’s decision, showing frustration on a lack of community consultation and transparency in the process.

A picnic gathering drawing more than 100 BCEYLC supporters went ahead before Indigo Shire Council’s meeting Tuesday night, with many of them attending the meeting and spilling from the gallery to the foyer.

BCEYLC Board president Lauren Malins said the group still attended the meeting to show council its strong support for the centre to remain in its current location.

“We hope council takes on our feedback, that the process should be community led and there needs to be community consultation about what the future of early years education in Beechworth looks like,” she said.

Ms Malins said a process also needed to be formed for existing occupants of the building based on feedback from the community.

“If the process is open and transparent, we will always accept the outcome and questions can be answered,” she said

She said current occupants fundraised and built the facility 30 years ago.

“It was always an understanding that these occupants would be there for as long as they wish to remain, or as long as the building stood for the 99-year lease," she said.

“There was no requirement to go out for a public tender because the facility was built by the community for those services.”

At the council meeting mayor Sophie Price read a statement received from Alpine Children's Services from a social media post advising the community.

Cr Price said it was important to advise the community of the news prior to council’s meeting, where a petition was being tabled and forum questions had been expected.

"We are a community not-for-profit service that always seeks to operate in harmony with our families, children, and staff," the Alpine Children's Services statement read.

"We place significant value on being an integral part of our community and working in partnership with families.

"We actively support our staff and treat each one like the valued member of the team that they are.

"However, after much consideration, we feel we cannot do this in Beechworth at the current time.”

Cr Price expressed both sadness and disappointment at the announcement.

She said council has full confidence in the EOI process and outcome and stressed that any decision on what happens next cannot be assumed.

On Wednesday, Indigo Shire Council chief executive officer Trevor Ierino said no immediate decision on what happens next has been made.

“Council will need to meet to determine the future of the Mayday Hills occupancy lease," he said.

He said Council will also need to consult with a range of stakeholders including the Department of Education.

Mr Ierino said staff have notified the existing Mayday Hills kindergarten and childcare tenants and will endeavour to meet with all parties as soon as possible.

BCEYLC Board member Maggie McGowan said any steps in redoing the EOI process needed to follow council policies, especially community consultation.

BCEYLC questions submitted for the council meeting generally about EOI processes at council had been taken on notice and could not be answered on the night due the short time frame from receiving the notice.

Ms Malins said BCEYLC remained committed to continuing early years care and education for the Beechworth community.

“We also believe it’s important to continue to ensure that community-run organisations are supported through fair and transparent decision-making,” she said.