A further $300,000 has been earmarked for the Port Fairy Goods Shed, taking the current spend for the project to $700,000.
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The building has laid dormant and fallen into disrepair since the closing of the railway line to Port Fairy in the late 1970s.
Moyne Shire Council has commissioned restoration works on the building, costing $400,000.
The council footed $180,000 of that bill, while the remaining $220,000 came from the Local Roads and Community Infrastructure Fund.
The latest round of funding is for the activation of the shed.
This $300,000 comes from the council budget and is a government grant.
The activation process will begin with a period of consultation with potential user groups about the future uses of the shed.
The shire's director of infrastructure and environment Edith Farrell said any work on the building must be approved by Heritage Victoria.
Consultation will take place in August with activation works to follow.
"Activation may include some short-term pop-up uses for the space as it is as well as making the timber platform easily accessible, interpretive signage, connecting utilities and possibly minor interior works," Ms Farrell said.
"The final activation program will depend on what future uses are determined, what the community feedback tells us, and what is permitted under Heritage Victoria requirements."
