Hume MP Angus Taylor Member for Goulburn Wendy Tuckerman and Mayor Bob Kirk turned the first sod on the project on Tuesday.

Lavington based firm, Zauner Constructions has been appointed to build the $18.95 million work on the site of the current McDermott Centre in Auburn Street. A rear 1930s addition has been demolished to make way for the performance venue.

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The company has established the site and has planned to start footings and groundwork in January, 2020.

"This will be a game changing asset for our region, and is a great example of three levels of government, along with a wonderful community partner in Veolia, working together with a common goal," Mayor Bob Kirk said.

A report to Tuesday night's council meeting stated that in November, power cables had been relocated, archaeology was completed and 90 per cent of the redesign done. In addition, temporary office and toilet facilities were built and sewer infrastructure protected.

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The council has also approved a modified development application which had to be submitted after councillors decided in August to include a fly-tower in the design. This was part of original plans but discussions ensued on whether it could be excluded to save money. However, councillors decided it was necessary to provide more flexibility. It added $450,000 to the cost.

Tuesday's report showed that $2,327,350 has been spent from the overall $20,450,000 budget. The allocation includes fit-out.

Mr Taylor said the project would boost jobs and bring economic benefits to Goulburn during the construction phase and beyond.

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"By supporting 255 jobs in construction in addition to using local businesses and supplies, this project will help bring economic growth to the region for many years to come and will position Goulburn as a recognised destination for the performing arts," he said in a statement.

Mrs Tuckerman also lauded the project's progression.

The council is providing $11.2m in funding, the federal government - $1m and the state goverment - $4.5m through its Regional Cultural Fund. The Veolia Mulwaree Trust has also pledged $2.5m.

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