THE facilities at Woodbine were state-of-the-art 70 years ago, Woodbine Disability Centre chief executive Bernie O'Conner said.
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$1.2 million was awarded under the Building Better Region Funds to construct a new accommodation centre and renovate the Harrop Lodge.
Mr O'Connor said the funding was not possible without the help of local MP, Dr Anne Webster.
"It was quite an honour for a small country town in the Wimmera to have the Deputy Prime Minister Michael McCormack and Anne Webster turn up to say some very kind words and generous words for Woodbine," he said.
"(It was an honour for them) to turn the first sod to ceremoniously to open our new project," he said.
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"This project will provide the best of living conditions for people living with a disability who have been living in less than acceptable conditions for too long."
Mr O'Connor said the upgrades would make a complete difference.
"We're not only building a new house for people living in poor conditions, we will then renovate the house they have come from," he said.
"Modern times, modern building and proper living conditions."
The facility will house five people, and each room will have its bathroom.
"Every single bedroom will have a toilet and shower of its own," Mr O'Connor.
"There will be quite a large visitors room, so parents don't have to plonk on the end of the bed when they visit.
"There will be a large atrium in the middle and a big quiet room where people can go and have a quiet time to themselves."
Mr O'Connor said in the past, the centre, which was once known as a hostel, housed up to 23 people in one house. When he started several years ago, there were 13 people.
"We can house only five and that's all we want," he said.
"It was run as a hostel, we changed the name unfortunately but that's all we could do because we just didn't have the money."
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Mr O'Connor said State Member Emma Kealy and Yarriambiack Shire chief executive helped Mr O'Connor get in touch with the right people and apply for the funds.
"I hope more agencies get the opportunity to upgrade," he said.
"Anne Webster could see what appalling conditions we had.
"Ours was a special case, a very old structure."
Dr Webster said the disability accommodation project would support six jobs during construction and is expected to create another 3.5 ongoing full-time-equivalent jobs when completed.
"The new accommodation will expand the number of patients at the centre but will also provide a safer environment for existing residents of Harrop Lodge," Dr Webster said.
"Harrop Lodge was built in 1954 and is the oldest building at Woodbine. The upgrade will reduce ongoing maintenance costs currently faced at the facility."
"The new facility is a fantastic win for the community and will be hugely beneficial for Woodbine. I was so pleased to support this project and can't wait to see the finished product."
The project is jointly funded, with the Australian Government committing $1.2 million and Woodbine Inc committing $1,312,214.
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