City of Newcastle will borrow funds for gallery extension

City of Newcastle Council will borrow the funds needed for the Newcastle Art Gallery Expansion.

At last night’s Council meeting Councillors endorsed to borrow $22.6 million by way of a low-cost loan over 10 years as he preferred funding pathway for the expansion project.

The funding will be borrowed via a fixed interest rate loan of 0.88 per cent – a Loan Borrowing Report will be separately submitted seeking Council approval to borrow funds from NSW Treasury Corporation (T-Corp), including a capital expenditure review in accordance with Office of Local Government guidelines.

City of Newcastle said they will continue to seek Federal and State grant funding up until the time of borrowing loan funds from T-Corp to ensure all available grant funding options have been exhausted prior to commencing the project.

Council has already approved a development application for the project, which includes upgrading and expanding the Gallery to provide modern facilities such as a new café and retail shop,
multi-purpose and educational program space, improved display and secure international standard loading dock.

An additional 1,600 square meters of exhibition space will include dedicated areas for the Gallery’s collection on the lower level, while the upper level will cater for a variety of travelling exhibitions,
including international shows.

A tender report will be submitted to Council later this year seeking approval to award a construction contract.

Image credit: City of Newcastle