As reported by The Argus, the council has submitted an application to the federal government's National Stronger Regions Fund for $2 million.

“The application had been lodged for the Kempsey Cinema project with an amount of $2 million being sought to match council’s commitment of $2 million,” council’s Economic Sustainability manager Susannah Smith said.

The National Stronger Regions Fund initiative gives grants of between $20,000 and $10 million, however, grant funding must be matched by the council in cash on at least a dollar for dollar basis.

The council is proposing to build the cinema complex with money in part from the council’s Community Assets Reserve fund. 

This is money that has been put aside over years, it is not from rate rises.

It considers there is also a sound case for contributing public funding by raising money within the community to reach the $2 million dollars required.

About $5 million is required to build and fit out the cinema.

A commercial entity will contribute more money for the specialty and projection fit-out.

Council also believes a cinema will provide council with long-term rental income which will offset the initial outlay costs.

“Grant applications will be judged against a range of criteria, including the extent to which the project contributes to economic growth, supports or addresses disadvantage in a region, increases investment and builds partnerships, and shows viability and sustainability,” Ms Smith said.

“Council has a very strong case against all of these criteria; however, we are also realistic that this is a highly competitive funding pool, so we will continue to investigate alternative options of public and commercial support.”

Council believes a four-screen commercial cinema complex would bring numerous economic benefits to the Macleay, including:

• Growing jobs. This project will generate up to 21 jobs during construction, plus an additional 21 long-term jobs.

• Increasing Kempsey’s economic diversity. 

Cinema operations form part of the Motion Picture and Sound Recording sector, which belongs to the Information Media and Telecommunications industry. This industry forms just 1.2 per cent of total revenues and 0.5 per cent of jobs in the Macleay, compared to 4 per cent and 2.4 per cent respectively for NSW overall. 

• Growing economic output. From the project’s invested $4.650 million, total resulting growth in output would rise by up to $8.290 million.

• Growing wages and salaries. The project’s invested $4.650 million will generate increased total wages and salaries of up to $1.635 million.

• Boosting Kempsey’s value-added growth. Estimated value-added from a $4.650 million investment will generate up to $3.155 million.

• Further growth in tourism. 

The Macleay has experienced steady growth in its visitor economy over the past 10 years. 

A cinema will increase domestic day and overnight visitor expenditure.

A cinema will also address a lack of tourism product in the Macleay.

• Building a skilled workforce. The presence of a cinema will encourage more skilled professionals and investors to live and work in the Macleay.

• Investing in a catalyst asset which has the capacity to stimulate economic growth and improve social cohesion. 

The Kempsey CBD has a strong demonstrated need for a ‘catalyst’ business capable of stimulating and increasing the retail trade window, influencing consumer behavior patterns and supporting council’s goal of providing a safe and socially cohesive community.