Horsham's Riverfront Activation project has received a $500,000 grant from the state government, bringing the total project budget to $3 million.
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The project - the first sub-precinct of the City to River Masterplan to be implemented - would focus on making the area Horsham riverfront more inviting and improving its links with the centre of the city.
Deputy Prime Minister Michael McCormack last year visited Horsham to announce a $1.65 million contribution from the federal government and Horsham Rural City Council will invest $850,000 from its own budget.
Horsham chief executive Sunil Bhalla said the priority along the riverfront "includes the area between the rowing clubrooms in the west to the east side of the Wimmera Bridge".
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"Concepts for this space will be drawn from public input provided through the initial engagement held in 2019, as well as consultation with groups located in and adjacent to the space," he said.
Mr Bhalla said the Community Reference Group would help turn those ideas into detailed plans that would be put out for public comment later this year.
"The CRG will ensure concepts and costs are 'road tested' with stakeholders and the public, and that the final design reflects a development that our community will be satisfied with and excited to see delivered," he said.
"Many ideas were put forward through the first phase engagement for the City to River Master plan on how to enhance and improve the riverfront.
"There is now an opportunity available through federal and state government funding to develop this valuable public space so that it can work even better for our community."
The City to River masterplan is a 20-year vision for Horsham designed to guide council in seeking state and federal funding for projects in the region.
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The amended plan suggests changes to Horsham CBD including enlarging and rotating City Oval, and adding netball courts; a riverfront cafe; a tourism site at Maydale Reserve; new civic and government buildings on the city block occupied by Horsham courthouse, police and the civic centre.
The draft plan was on public exhibition last year and received 740 submissions.
Minister for Regional Development Jaclyn Symes announced the state funding this week along with 34 other projects across Victoria delivered through the Regional Infrastructure Fund.
"Regional Victoria is critical to supporting our state's recovery from the impacts of coronavirus and we're backing projects in our regions that will drive jobs and community growth," Ms Symes said.
"While we can't enjoy our halls and parks and other community facilities right now, it's important that we continue investing in them and create jobs."