The Country Universities Centre on Kooyoo Street was only officially opened on Friday, but the committee are already thinking of closing the site down.
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Western Riverina Country Universities Centre chairman John Dal Broi, who is also the city's mayor, said the site was quickly becoming too small and could reach full capacity in eight or nine months.
He estimated the site had a maximum capacity of around 70 to 80 students, and there have already been 33 enrolments since the unofficial opening in July.
Cr Dal Broi said the board was thinking of relocating the Country Universities Centre into the new Griffith Community Centre in order to keep up with the growing cohort.
The original applicants for the Country Universities Centre project Imran Syed and Matiulah Shirzad have long been critical of the Kooyoo Street site for being too small, likening it to "an internet cafe".
Councillor Dal Broi admitted they may have "had a point" in hindsight.
"We were a bit worried it may be small, but we never knew that. So it's happened, and that's that," Cr Dal Broi said.
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However Cr Dal Broi stood by the decision to choose the Kooyoo Street site over the former TV studio on Remembrance Drive.
"There was a security problem out there; here we've got the library, restaurants, police, so students would feel safe," Cr Dal Broi said.
Deputy Premier John Barilaro also defended the choice of site, adding that he didn't rule out the idea of moving to a bigger site if it continues to get such high enrolments.
"I'm comfortable they've got it right; it's a great location," Mr Barilaro said.
"My view is you should always keep a central location like this one, and you can open up a second campus in Griffith if that's what the future holds."
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He also hit back at reporting by The Guardian which said Mr Barilaro greenlit funding for the Country University Centre despite a 2016 cost-benefit analysis claiming it was "unlikely" to return a benefit.
"If you want to look at everything in regional-rural NSW through the lens of a business case you'd shut down regional-rural NSW," Mr Barilaro said.
"[Country Universities Centre] has proven it's a success story and it's worth the $16 million investment by the NSW Government; there's a thousand students across regional and rural NSW who now have access to post-secondary education."
Abby Molloy was one of the first students to enrol at the Griffith Countries Universities Centre, and she's currently studying a bachelor of human services.
"The opportunity to start university without the cost of relocating, without the cost of committing to a course and not being sure that's what you want to do - it's just incomprehensible for our community," she said.
"It's an opportunity I wish I had a few years ago, but it hasn't stopped me from obtaining it now."
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