The Busselton performing arts and convention centre will be scaled back by the City of Busselton which has so far been unable to secure state government funding for the project.
The city were seeking $9.5 million from the state government's $78 million recovery package to support arts and culture in WA to support the development of the project.
In accordance with a council resolution made on June 24, 2020 the budget and scope has been reduced from $30.3 million to $28.5 million and will not include a creative industries hub at this point in time.
Council will now consider the outcomes of the tendering process and final pricing before determining whether the project will continue.
Depending on the outcomes of the tendering process council could endorse a loan of $15 million over a 20 year term, along with using money from reserve accounts to fund the project.
Any additional external funding secured by the city could also be used to reduce the loan amount.
City of Busselton mayor Grant Henley said they remained committed to the development of a creative industries hub, but acknowledged that this would now need to be undertaken in the future.
"We will, in the meantime, pursue other funding opportunities - potentially through the Federal Government which has shown great interest in and support for the project," he said.
"We are very disappointed so far with the lack of state funding for the project, particularly noting the City of Busselton is the fastest growing regional city in WA and as one of the state's biggest drawcards, has been particularly impacted by COVID-19."
Mr Henley said $76 million of state government funding has been directed into culture and the arts across WA in the past few weeks.
"Not one dollar of that has come to the City of Busselton where we have a shovel ready project that would help stimulate the local economy during construction and, provide spin-off benefits to the tourism, hospitality and accommodation, events and retail sectors," he said.
A Treasury spokesperson said the state government received many requests to provide funding for infrastructure proposals.
"The state government understands the city is exploring funding opportunities," the spokesperson said.
A state government website outlining WA's Recovery Plan excludes the South West despite all other regions having their own detailed recovery plan.
