The Land Development Agency spoke on the matter at the Oireachtas Housing Committee yesterday.
The presence of modular homing for international protection applicants is preventing work in Columb Barracks.
The news comes after the Land Development Agency's appearance before the Oireachtas Housing Committee yesterday.
The former military barracks in Mullingar is currently under the LDA's control and has been used to assist in the State's immigration accommodation programme in recent years.
Councillors in Westmeath want the local authority to take control of the site that has gone undeveloped since the barracks was shut down in 2012.
Chair of the Housing Committee, and Longford-Westmeath Fine Gael TD Micheal Carrigy asked the agency when progress on the issue was likely to be made.
Director of Development with the LDA Phelim O'Neill says they can't proceed with their plans as things stand:
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