THE State Government has announced a further $3 million in funding for the redevelopment of the Hepburn Spa Mineral Springs Bathhouse.
The contribution from the State Government will now reach $7.5 million, including the $3 million announced last week from the Regional Infrastructure Development Fund.
Acting Minister for State and Regional Development and Tourism Minister John Pandazopoulos said last Thursday the redevelopment would now cost $9.4 million - $2.2 million more than the $7.2 million estimate in 2004.
He said it would provide a high-quality mineral spa experience and ensure continuing community access to the facilities.
"The redevelopment will spearhead growth in the tourism industry and provide a major boost for the local economy, ensuring that the new complex becomes an international mineral spa attraction for many years to come," he
said.
"The redevelopment of the bathhouse will ensure the region has the right infrastructure to remain a major tourist destination."
Independent MP Dianne Hadden said the development has gone over budget, costing an excess of $9 million.
She said a small shire like Hepburn could not afford to borrow another $3 million.
"Hepburn Shire ratepayers should not be asked to be obligated to fund something like $3 million, which is way out of their league," she said.
Major Projects Victoria will oversee the project's completion subject to Hepburn Shire Council's endorsement.
Member for Ballarat East Geoff Howard said the Victorian Government would work closely with Hepburn Shire.
"This project is significant for the region, a fact the Bracks Government has acknowledged by its support for the redevelopment," he said.
"The current bathhouse operator will continue to manage the facility until construction starts late in 2006, ensuring continuing employment for staff."
Hepburn Shire Council chief executive officer Victor Szwed said the community would welcome the additional funding and the news that the redevelopment would begin this year.
"We are delighted that we can now look forward to the redevelopment which, once complete, will see a long-term lease in place through on open tendering process," he said.
The redevelopment includes a major refurbishment and extension in keeping with the heritage aspect of the building, including the original Edwardian bathhouse.
Mayor Heather Mutimer said the completion of the project through the State Government and council partnership would ensure all involved worked together to see the project to fruition.
The much anticipated $9.4 million project has received widespread support with funding also coming from: Victorian Mineral Water Committee ($300,000); Sustain-ability Victoria ($50,000); Hepburn Shire Council ($1.2 million in
rent from the facility to support a loan for this amount); and the Federal Government ($500,000).
The resort's current lease expires in October. The redevelopment is expected to take about 12 months.
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