The funding boost from the state government’s $500 million Regional Jobs and Infrastructure Fund was announced on Friday. 

Castlemaine State Festival chair Julie Millowick said the festival was delighted to be the beneficiary of the grant. 

“This wonderful asset will house a core group of businesses as well as support the wider cultural community and sector,” she said.

The money will be spent on a Castlemaine Goods Shed Business Case and Design Study. 

The study will investigate and make recommendations on the project’s capacity and requirements, infrastructure design, information technology needs.

Member for Bendigo Maree Edwards welcomed the announcement. 

“Creative activity brings social, cultural and economic benefits to the community, and projects like this help spread the benefits of our creative strengths to all Victorians, wherever they live,” she said. 

Mount Alexander Mayor Christine Henderson said the state festival was one of the municipality’s flagship events. 

“It’s what puts Castlemaine on the map for a lot of people,” she said. 

“It brings a lot of visitors from elsewhere, and in some ways it is a lot like what the Port Fairy Folk Festival has done for Port Fairy.”

She said the goods shed was underutilised and was pleased it would be fitted out.

Treasurer Tim Pallas said there was a strong link between the arts, cultural and creative industries and tourism sector, which could contribute to a high return on investment for local communities.