Refurbishing the old Beechworth goods shed into a space that can be used by commercial businesses will cost $130,000 more than first anticipated.
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Councillors at this week's Indigo meeting voted unanimously to approve the extra money be allocated to the project.
A sum of $460,000 had originally been budgeted for development of the Beechworth Railway Station, including half from the council and half from a Victorian government grant.
After architectural and other costs, the estimated $370,000 was not enough to get the job done due to issues with the roof structure, flooring sewerage, and windows and doors. The tender has now been awarded to Rutherglen-based company Ultra Project Services.
Works will repair issues with the old building and have it classified to allow the wholesale of goods or retail services.
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The council described it as a "solid foundation for future refurbishment works supported by grants or private investment", saying without spending the extra money, the use of the building would be limited.
Councillors decided against spending an extra $290,000, which would have added insulated walls, an exterior accessible ramp and loading dock, and fitted the building out to individual retail requirements.
Cr Larry Goldsworthy said he hoped the goods shed development could help to make use of facility and create jobs.
"It's more expensive than we thought it would be - we do need to go ahead with this, we want to have a functioning railway goods shed," he said.
"I appreciate the council's not made of money, but $130,000 coming from priority building renewal works will be well spent here and hopefully we get a good product at the end of it."
Cr James Trenery described it as "a smart spend of that money".
"When something increases in price I'm usually the first one to object, but I think the end result of this is we get a much better product," he said.