Taupo District Council staffers will move to alternate offices within three months due to fears around the building posing a significant health and safety risk after asbestos was discovered in its main premises.
The asbestos was discovered at the Lake Terrace building by a painter who was on site to give a quote for the cost of painting the old building.
A contractor confirmed the friable asbestos was present at the front of the 1960s building. Friable is one of the worst types as it means it can easily disintegrate and enter the air.
Taupo District Council chief executive Gareth Green said the building posed a risk to staff and visitors and its 125 workers would relocate once the council found suitable premises.
"We have received advice that unless we act the most likely consequence is significant harm."
The council's staff who worked at the building were briefed about the discovery on Friday and the council has given itself three months to find alternative premises. The risk was only significant if the outside of the building was disturbed.
Green said the building needed to evacuated until the asbestos issue was fixed.
A report to council on Thursday outlines six options for addressing the council's long-term accommodation problem including undertaking necessary health and safety work, refurbishing either part or all of the existing building or the council's preferred option - building a new one.