Council voted unanimously in favour of purchasing The Rex last week, a dramatic deviation from its plans to build the Hub solely at Daylesford Town Hall.

Due to the additional large-scale purchase, council has been forced to revise its 2016-17 budget. It will now borrow $2.995 million more than the amount predicted at June 30 this year.

However, it is predicted that the dual-building development at both The Rex and the Daylesford Town Hall will deliver operational savings costs of $457,800 per year. Council plans to lease out space within The Rex, providing it with an extra income.

Council staff have held several community consultation sessions over the past few weeks, and have reported overwhelming support for the acquisition.

Chief executive officer Aaron van Egmond said the long-suffering Rex arcade had been seen as a “white elephant”, but would now be turned into a valuable asset.

Councillor Don Henderson praised the decision to purchase The Rex, stating the planned developments at the town hall had been a “monstrosity” that would have damaged the building’s integrity.

Councillor Bill McClenaghan also supported the proposal, but said the decision to acquire the arcade should have happened sooner.

“I too was against the Hub at the town hall, which overshadowed the swimming pool and destroyed a lot of heritage,” he said.

“It’s an opportunity I wish we could have considered earlier because the price was cheaper.”

Birch ward councillor Kate Redwood supported the proposal to alter the budget for the $6.345 million acquisition, although said the timing was problematic given council elections were coming up in October.

“It’s not usual to vote on something of this magnitude during an election period,” she said.