Art gallery with 'commanding presence' at Civic Green could cost $52.5m

A three-level gallery with a "commanding presence" spanning from Smith Street to Timor Street is the project team's preferred option for a new centre - a second option would be contained largely to the same footprint of the existing gallery.

The controversial suggestion of moving it to Cannon Hill was ruled out by councillors after public backlash and news it would cost $70 million-plus to build.

The initial business case found the significant cost of the project made Cannon Hill an unviable location and a switch back to focus on its current site would be about $17 million cheaper.

Councillors then decided to revisit a revamp of the current location, voting in June 2023 to spend another $65,000 extending the business case.

The new business case, which will go before the Monday, December 4, 2023, council meeting, found the Civic Green location's numbers stacked up.

It found a new gallery would be a landmark tourist destination which would contribute to Warrnambool's economic growth, boosting visitor numbers and create more jobs.

City councillors have yet to make any decision on which of the two options it prefers, and will vote on Monday to share the report with the public and begin consultation.

Both options include a 32-space underground car park and would expand the size of the current Civic Green.

While the cost in today's dollars was $52.5 million, by the time it actually started in 2026-27 the cost would have risen to an estimated $61.7 million.

The initial feasibility study released in early 2022 estimated a new art gallery would cost $40 million but building costs have soared since then.

The report also flags the need to protect the heritage buildings on the site which would be incorporated into the designs.

The preferred option wraps around the old Regal Cafe building on Timor Street which historians think dates back to the mid-1850s.

Robert Scherell built a saddlery on the site in 1855 and soon after was damaged by a fire.

Whether the building was completely destroyed or just repaired is unclear but either way it is known as one of the city's earliest buildings that over the years has been used by a number of banks and later a cafe, restaurant and by Deakin University.

The walls of the current art gallery along Liebig Street also have heritage protection and were part of the building which was used by a steamship company as a ticket office.