Councillors at their meeting on Tuesday night unanimously gave in-principle approval to purchase the former TAFE Illawarra campus in Bourke St.

Its ceramics room is pegged to house the performing arts centre, alongside the building’s main tenant, the Goulburn Regional Conservatorium.

But the deal is not home and hosed yet. Council still has to negotiate a purchase price with TAFE and secure $2 million in grant funding.

The purchase hangs on the success of a $1m federal government grant and a ‘due diligence’ assessment.

A report, including a valuation, will be brought back to councillors for a final decision.

It’s a step in the right direction for Conservatorium director Paul Scott Williams.

“I’m pleased with the council decision and pleased there’s a general positive consensus that it’s time,” he said.

“It really is needed. There’s a huge underbelly of arts activity in Goulburn...but the facilities to cater for it are lacking. We’re all scrambling around doing the best with what we have but it won’t be good enough in the future.”

The Conservatorium will remain a tenant under its 49-year lease.

The building’s transformation into a 300-seat performing arts centre is estimated to cost $4m.

TAFE is offering the structure for $760,000 but general manager Warwick Bennett is haggling for a lower price given repair costs to the 1900 structure.

Council proposes to use $2m from its own allocation, including $750,000 accrued in the Lilac Time Hall sale reserve and/or a loan. But a further $2m from grants is needed.

Half of this could come from the federal government’s National Stronger Regions Fund.

Councillors on Tuesday had to provide direction on the purchase before the application could be lodged.

Applications close today.

The other $1m could come from a yet to be sourced state government grant.

“This additional funding, in particular the loan requirements, will require Council to review its four-year budget prediction to ensure it remains financially sustainable,” Mr Bennett reported to the meeting.

In addition, he expected up to $200,000 in annual maintenance fees.

Two residential blocks of land at the rear could be subdivided to offset the purchase price. Councillors were generally receptive.

“It’s a very much needed facility in the community,” Cr Robin Saville said.

“In workshops there was discussion about the building’s heritage (and potential repairs) so I’m very much in favour of the due diligence,” Deputy Mayor Bob Kirk said while he was privy to drawings and how expenditure was worked out, he did not know how widely the arts community had been consulted on specific needs.

“I guess they would have an opportunity for input?” he asked.

Mr Bennett replied that while workshops with stakeholders had been held, they had not drilled down to that level.

“But we will consult further and have an honest conversation about that,” he said.

Cr Sam Rowland questioned whether Council had a policy on asset rationalisation or acquisition. Under former general manager Chris Berry, the organisation was focused on the former. Mr Bennett said there was no policy, only that Council undertook due diligence and valuations on purchases.

After the meeting, Mayor Geoff Kettle said Goulburn had lacked an adequate venue since the Lilac Time Hall’s sale.

“I’ve been a strong proponent of getting a new one, along with the Conservatorium and other groups, and now we have this opportunity I think we should grab it with both hands,” he said.

But if Council didn’t secure the National Stronger Regions grant, it could be “back to square one.”

He believed the venue could host orchestra and dramatic performances, just as the Hall had, small theatre and ballet productions, the annual eisteddfod and much more.

It would not compete with the Lieder Theatre, which had its own upgrade plans.

Cr Kettle said there was no reason why a performing arts working party couldn’t be established.

“There has been consultation under the previous council as this has been under discussion for many years,” he said.

“Now there’s an opportunity to do it and I congratulate the council on the decision.”