HAVING seen a bid to establish a pokies venue quashed, the Castlemaine Station goods shed is set to become the new home of the Castlemaine State Festival.
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A tender process to refurbish the heritage listed shed will finish on March 11 and the project is planned to be completed by the middle of the year.
Member for Bendigo West Maree Edwards visited the site on Tuesday, and said the building will become an "art and cultural hub" for Castlemaine.
"Today's announcement means the longest running regional festival in Victoria has a bright future here in Castlemaine," she said.
In 2010, the Maryborough Highland Society had proposed a venue with 65 pokie machines at the oods shed.
VCAT upheld an appeal from the Mount Alexander Shire Council and the Enough Pokies in Castlemaine community group, agreeing the venue would have a negative impact on the community.
The State Festival had been looking for new premises that are large enough for mixed uses.
The upgrade of the 150-year-old shed will include repointing the brickwork, a new main entrance and stairs and improved accessibility.
The new headquarters will also include performance spaces and offices.