A Foyle MLA says Ebrington Square in Derry is the property of the people, and its management needs to be transferred from the Executive Office to Derry City and Strabane District Council.
Last month, it emerged that payments of almost £300,000 were made in three cases where legal action was being threatened over issues concerning the use of the facility for events.
In a letter to Foyle MLA Sinead McLaughlin, a senior Executive Office official confirmed a total of £280,000 was paid out in three settlements.
The payments were made to a local hotel, a festival organiser and a funfair.
Now, Ms McLaughlin says these recent events have shown that the Executive Office is not able to properly manage this important asset, emphasising that Ebrington Square belongs to the people of Derry.
She says a plan should be put in place for the transfer of the square, with the operational management of the facility transferred to the Council in the short term.
Ms McLaughlin says the focus needs to be on ensuring the tourism potential of the square is realising, and there is a vibrant events offering in the Square next year.