A run-down pavilion at Newstead Recreation Reserve is set to be revitalised as part of a $1.45 million project.
The new pavilion will feature change-rooms, storage areas, a kitchen and a multi-purpose community space that can cater for up to 100 people.
Funding from the state government of $500,000 was confirmed this week.
Minister for Sport and Recreation Hugh Delahunty visited the site and said it was in urgent need of an upgrade.
He said the existing pavilion did not adequately cater for female participation.
Mount Alexander Shire mayor Michael Redden said the contribution from the state government was a significant step to getting the plans complete.
Cr Redden said the local residents deserved praise for convincing the government to get on board and highlighting the benefits a renovated pavilion could provide.
“The funding is due to the fact that it’s not only the sporting groups that will benefit from it but the entire community,” he said. “There will be all sorts of non-sports and recreational uses for the venue.”
The pavilion is currently used as a base for teams that make up Newstead’s football, netball, cricket and tennis clubs.
Mr Delahunty said having a revamped pavilion would only encourage greater community use.
“Sporting facilities are important community assets and provide a social hub, particularly in regional areas,” he said.
Cr Redden said he was hopeful the new pavilion would be built and ready to use early next year.

