Jondaryan Woolshed, owned and managed by council since 2002, is now handing over day-to-day operations to council as well.
The decision was made at a Toowoomba Regional Council meeting on July 20.
TRC finance and business strategy committee chair Geoff McDonald said the request was made by the Jondaryan Woolshed board.
"Council has been working closely with the Jondaryan Woolshed board for quite some time now and it's been clear that we all have a shared vision to preserve this much-loved facility," Mr McDonald said.
"To ensure this happens, the board proposed to step down from all operational functions and instead act as a strategic advisory group."
Mr McDonald said the board believed council was better placed to manage the day-to-day activities such as financial operations, staffing, maintenance and managing functions.
He said council and the board would consult with existing staff and work together to ensure appropriate decisions were made.
"Council values each and every staff member and volunteer of the wool shed and would like to thank them for their work and contribution to date," he said.
"We will support them throughout this change to ensure it's as smooth as possible."
Mr McDonald said it was the best possible outcome for the wool shed, its staff and volunteers and the board while council undertook a building and safety assessment.
"There is a general agreement the existing business model may no longer be the best fit for this facility and as such, we will need to speak with the local community and potential business partners, to look at what could be a better fit."
Read more:Jondaryan's vision renewed
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