Hepburn Shire Council has agreed to scale back its ambitions for the Daylesford Town Hall redevelopment, endorsing a staged delivery model in response to financial constraints and uncertainty around future funding.

At its meeting on 16 December, councillors endorsed the final schematic design for the Daylesford Community Facilities project but resolved that only the next design phase for the front section of the Town Hall and the auditorium would proceed at this stage. The decision followed months of briefings and a site visit, and was carried six votes to one.

The project, which emerged after the sale of the Rex building in 2022, aims to transform the Town Hall precinct into a combined library, customer service centre, performance venue and multipurpose community hub. While the full vision remains on the table, council officers advised that the scale and cost of the complete project make staged delivery the only realistic option.

The endorsed motion commits council to funding a detailed design for what is described as Portion One, covering the front section of the Town Hall and upgrades to the auditorium, at a budget of $270,000 in the 2025–26 capital works program. Future stages would be considered in later budgets.

Council papers estimate that delivering the entire project as designed would cost about $25.4 million, with construction unlikely to begin before 2028. Early funding assumptions anticipate a roughly even split between council, state government and federal government contributions.

By contrast, the total end cost of Portion One alone is estimated at just under $3.8 million. This includes construction, consultant fees, contingencies, furniture, staff costs and escalation. Council officers noted that rectifying and maintaining the ageing front section of the Town Hall over the next decade would cost a similar amount without delivering improved functionality.

The staged approach is intended to address several pressures facing council, including tight finances, competing capital projects and mixed community sentiment about the scale of the proposal. Council’s reserve fund established from the Rex sale opened with $2.1 million and now, because of expenditure on planning and consultants, sits at about $1.8 million, limiting its capacity to underwrite major works without external support.

The first stage would focus on renewing the deteriorating interior of the Town Hall, upgrading accessibility, reinstating functional council and community spaces, and significantly improving the technical capabilities of the auditorium. Officers argued this would enhance the building’s use for performances and events, potentially attract grant funding for audio visual upgrades, and support the long term preservation of a prominent heritage asset.

The full schematic design also includes a new purpose built library and multipurpose building on the site of the former Senior Citizens Centre, connected to the Town Hall by gallery walkways and lifts. These elements, estimated to cost more than $23 million, would form later stages if funding becomes available.

Community engagement earlier this year drew 65 survey submissions, with analysis showing a narrow split between positive and negative responses once non constructive submissions were excluded. Feedback was incorporated into the design, including proposed uses for the upper floor of the Town Hall such as co working, exhibitions, workshops and festival planning space.

Councillors formally acknowledged the work of the Project Advisory Group, which has met 11 times with officers and architects and includes members with expertise in libraries, performing arts, disability access, youth services and community engagement.

The motion to support a staged development was moved by Cr Lesley Hewitt, seconded by Cr Don Henderson and passed by a 6-1 vote with Cr Brian Hood opposing the the motion.

This article is based on a media release from Hepburn Shire Council.