Full council has backed plans to pursue East Devon District Council's office relocation to two council-owned sites in Honiton and Exmouth.
Detailed plans will now be drawn up by council officers before any recommendations are presented to cabinet and full council in 2015.
The council will now also enter into further negotiations with preferred bidders for the sale of Knowle before selecting a developer. Again, a decision to sell Knowle will be brought to a future cabinet meeting.
Council leader Councillor Paul Diviani said: "Relocation remains a priority and a means to face the future and deliver the best for our residents.
"Now that we have the support of full council we can work towards removing ourselves from a costly, uncertain and increasingly unpractical future at Knowle.
"The reasons behind our office relocation are well-established. Remaining at Knowle keeps us tied to old and inefficient buildings and fails to make the best use of this valuable council-owned asset. We simply don't have the money to repair or refurbish Knowle.
"Relocation is our only option. Refurbishment would cost the taxpayer £15.9 million – and quite simply we don't have that kind of money. Money used from the sale of Knowle, together with some prudential borrowing, will pay for the relocation."
New build at Honiton and refurbishment of Exmouth Town Hall will be funded by capital receipts and prudential borrowing, the council has said. Over a 20-year period the authority expects the spend to at least pay for itself, with savings accruing after then.
Councillor Diviani added: "A majority of councillors agree a combined Honiton and Exmouth office base offers a sensible approach involving new or modernised offices in two locations. A smaller headquarters and an accessible presence around the district has been the council's aim throughout this process.
"This and future governments will continue to expect local government to enter into new ways of working including cross-border partnerships and shared space.
"An accessible, modern headquarters designed around the way we work will help us to succeed. In a world of potentially merging or reducing scale of local government an HQ or multi-hub function offers a responsive option."
Full council agreed that no final decision will be taken on relocation until there has been a thorough examination of the figures underpinning the project by the council's audit and governance committee, overview and scrutiny committee, internal audit and external auditors.
An amendment to cabinet minutes to put the office relocation on hold until some time after the local and national elections in May 2015 was lost in a recorded vote 39 to 7.
If Honiton and Exmouth Town Hall become the new council offices, it is likely the council will relocate in 2017.
