The Twyford Hall Inc board has asked Bega Valley Shire Council for financial assistance after a funding shortfall in the construction of the new theatre.
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Grant funding is given out in stages as milestones are reached.
Twyford Hall has received 90 per cent of the $7.4m funding and needs money to meet its liabilities and carry out vital and time sensitive work on connecting electricity to the theatre but the relevant milestone, which was linked to a final occupation certificate, has not been reached.
The board has reached an agreement with the funding body to release $370,000, half of the final unclaimed amount with the final remaining $370,000 available once they are able to occupy the facility. However there are existing liabilities and the board estimates it could take a further $500,000 to $1m to finish the work.
The board is asking council to lend $370,000 which would be used to pay out existing liabilities only. The board has suggested it repay those funds over 10 years from the proceeds of the retail shop rental funds.
However, if Twyford is successful in obtaining funds to complete the theatre, allowing for the draw down of the final committed 5 per cent milestone, they commit to make an immediate repayment.
In a letter to council, Twyford board says the funding shortfall can be attributed to a number of issues.
One of these is the time lag between costing the project and receipt of funding deed which in this case was 18 months.
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The board said there was 10 per cent contingency for overruns included but that was eaten up by inflation before construction even started.
Regulatory changes meant that electricity could not be connected from the pole outside but had to come from the substation in Beach St, which will mean digging up the road.
Variation on the Aboriginal Heritage Impact Protection permit was sought.
The board said that while local Aboriginal groups gave timely approval, it took six months for three bureaucracies to provide the permit which brought construction to a halt.
There was friction between the project managers and construction company with the board saying co-operation between the two prime contractors was not ideal.
Council will discuss the matter at its general meeting on Wednesday, October 20.
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