KEMPSEY Shire Council's application for federal government funding to help build a cinema complex has been unsuccessful.
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However, efforts by the council to secure a cinema for Kempsey will continue.
The council applied for $2 million of funding in October last year through round one of the federal government’s National Stronger Regions Fund.
Council estimated the total cinema project would cost in the vicinity of $5,000,000 for a commercially viable four-screen cinema, and had committed $2 million to match government funding, with the support of two commercial parties.
In a statement yesterday, the council said it would wait on further feedback from the government before considering its funding options following the announcement.
Council general manager David Rawlings confirmed the Department of Infrastructure and Regional Development advised council of the funding application outcome on Wednesday.
“We were expecting to be advised sometime in May and that has now occurred,” Mr Rawlings said.
“However, the only real feedback we have been provided with so far is that the first round of funding had been heavily subscribed with 405 applications received, requesting approximately $1.21 billion in grant funding.”
Of the 405 applications, just 51 will receive federal funding.
Council said it would be seeking more detailed feedback from the federal government’s assessment panel to provide council with the information it required in relation to pursuing alternative funding options.
Last month federal Member for Cowper Luke Hartsuyker publicly backed the council’s application for a cinema, and in November last year the council commissioned a survey to find out if residents would back the idea of a cinema complex.
The survey found over 80 per cent of the local community believed it was important for Kempsey to have a commercially operated cinema, while 84 per cent supported council’s efforts to attract a cinema, and 52 per cent said they were prepared to make a personal donation to support the funding effort.
Even though the council application was rejected, a second round of funding through the National Stronger Regions Fund opens on May 15.
At this stage the council has not confirmed as to whether they will be reapplying for the cinema project.
“It’s difficult for us to say at this early stage what the next likely step will be, but we will know a lot more after we receive the feedback we are seeking,” Mr Rawlings said.
“Our application provided strong evidence of economic growth and benefits to our local community and economy; however, what we do know is that the number of applications was extremely high and therefore the assessment process was very competitive.”