The council has not held a meeting at the current town hall since mold was found in January.
Phillipsburg's mayor and attorney are clear to begin negotiations to move town hall downtown, at least temporarily.
Council granted the authority in a unanimous vote Tuesday night during a special meeting held at Phillipsburg Elementary School.
The council has not held a meeting at the current town hall, 675 Corliss Ave., since potentially hazardous mold was found there in January. Town officials have been anxious to get employees out of the building as soon as possible.
"We want to see action ... right away," Council President Todd Tersigni said.
Mayor Stephen Ellis said he hopes to have a draft agreement in place by June 20 and move higher-risk employees soon afterward into a temporary location at 73 Mercer St. That is the rear of a South Main Street-facing office building that leaders hope could be a permanent location for town offices.
Ellis has previously said the pair of office buildings totaling 14,000 square feet -- Dental Health Associates' offices are currently in the front -- would be "beautiful" for town use.
The property's assessment this year values it at a little over $1 million, according to county tax records. It is owned by a real estate company in Bernardsville, N.J.
A few options have been discussed as a long-term solution to the town hall situation. Among them: If the building can be remediated (estimated to cost $1.7 million), if a new municipal complex should be built at the former armory property on Heckman Street or if the offices should be relocated downtown on South Main Street -- where town hall was before moving to its current location in the 1970s.
The Phillipsburg Downtown Association has been vocal in its desire for town hall to return to South Main, saying it would benefit the entire town for that area to be revitalized.
Steve Novak may be reached at snovak@lehighvalleylive.com. Follow him on Twitter @type2supernovak and Facebook. Find lehighvalleylive.com on Facebook.