The team behind a $28 million Bendigo Art Gallery redevelopment proposal will look to secure an architect and work towards further funding after the bid was endorsed by City of Greater Bendigo councillors on Monday night.

Gallery director Jessica Bridgfoot said she was thrilled the councillors recognised the potential for the gallery.

"We spent 18 months working on the business case, feasability study and master planning," she said.

"This was the next big step - gaining council endorsement and a funding commitment."

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"In terms of the practical next steps, we are about to appoint an architect and have funding from the state government to fast track the design phase. We have $560,000 in grant applications with $280,000 confirmed and are waiting on the second application.

"(Once we) engage the architect, we can go through the detailed design phase and community stakeholder engagement. We know we have council's endorsement, so we will start advocacy and fundraising.

"There is still a lot of work to be done but we are taking really positive steps forward."

Funding for the gallery redevelopment will include no more than $3 million from council, $2.5 million from the Bendigo Art Gallery board, $1.5 million in philanthropic donations and $21 million from state and federal levels of government.

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A PROPOSAL for a $28 million redevelopment of the Bendigo Art Gallery has been endorsed by City of Greater Bendigo councillors.

Councillors voted 8-1 in favour of the proposal with Whipstick councillor Dave Fagg voting against.

The recommendations endorsed by council include a business case that aims to facilitate a redevelopment which will have significant positive regional socioeconomic outcomes and be a gallery for the people.

Council will contributed no more that $3 million to the project over a period of three years. The funding is contingent on securing external funding for the $25 million balance for the project.

Funding would the gallery would include the $3 million from council, $2.5 million from the Bendigo Art Gallery board, $1.5 million in philanthropic donations and $21 million from state and federal levels of government.

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Council officers will also prepare an advocacy and communications plan for the project in line with the Business Case and to ensure community engagement on the project is maximised. Council also expect to get six monthly updates on the project.

The preferred option for the redevelopment put forward to councillors included a new dedicated Dja Dja Wurrung cultural collection Place of Keeping, a dedicated and flexible first floor large-sized blockbuster exhibition space, new learning centre with flexible learning spaces and a dedicated children's/families gallery.

The redevelopment would include six to seven gallery spaces for free and collection-based exhibitions and increase the gallery's footprint by up to 800 square-metres.

A new retail space, forecourt and landscaping on View Street, amenities would be built along with a new or refurbished ground floor café opening onto the Rosalind Park, a new or refurbished office, boardroom spaces and new front desk and cloaking facilities.

Speaking for the motion, councillor Rod Fyffe said the redevelopment of the facility will have significant soical and economical outcomes for Bendigo and its residents.

"This is another exciting development for the gallery and Bendigo itself," he said. "It is certainly one that highlights a point we make in the council plan about being inclusive, creative and welcoming.

"The gallery is constrained by the space it operates in and the redevelopment has been identified by not only council but the gallery board as a priority project to be delivered.

"It allows us to have blockbuster and international exhibitions and for the permanent collection that includes classic Australian art, to be on show.

"All in all this is great project help further consolidate gallery as a leading regional art gallery. If we don't do it, I foresee (the gallery) being stagnant and passed by other towns."

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Councillors Andrea Metcalfe, Julie Sloan, Matthew Evans and Margaret O'Rourke all spoke in favour of the proposed business case.

Cr Fagg said he was not against a redevelopment of the gallery but that he did not support the business case put forward.

"The redevelopment has been a long-standing priority for the city and is a Tier 1 investment," he said. "I do support the redevelopment but am voting against this particular business case.

"The benefits of the gallery for local tourism and for putting Bendigo on the map are undisputed.

"(But) underdone priorities (include) improving local visitation and benefiting the local arts community. These are two serious weaknesses of the gallery and this business case is unclear on how those goals will be achieved apart form having more space."

Cr Fagg said local visitation to the gallery was 15 per cent during major exhibition and 30 per cent for non-ticked times. He also wanted more connection and fostering with the local art scene.

"To me this is a red flag," he said. "The business case assumes the extra space will allow more free programs will correspond with a rise in visitors. It needs to be more of a plan than 'build it and they will come'.

"Business case consultants spoke to the local arts and creative industry advisory group who gave feedback that link t local arts scene were weak. This was confirmed when I spoke to local artists this week. I think a plan is needed when considering this level of funding.

"With these factors in mind I'm not comfortable endorsing this business case as it stands."

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