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Leased to the Derwentside Council for Voluntary Service on a peppercorn rent, the former nursing home was set to become the group's new base with meeting rooms set up for community groups.
Earlier this year publicly-funded body the Derwentside Council for Voluntary Services (DCVS) was rocked when its trusted chief executive Janice Docherty was sacked amid allegations of bullying.
Durham county councillor Janice Docherty has been dismissed as chief executive of Derwentside Council for Voluntary Services amid allegations of bullying.
The merger proposals are backed by Derwentside Homes, Durham County Council, County Durham NHS, Derwentside Council for Voluntary Services and regional development agency One North East.
Now council chiefs are hoping to turn it into offices for Derwentside Council for Voluntary Services and the Volunteer Bureau.