The $3.6million redevelopment on the Bega Valley Regional Gallery is going out to tender this month.
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Gallery director Iain Dawson said the redevelopment would elevate the 30-year-old facility to contemporary exhibition standards, and significantly expand the exhibition space from 180sqm to 290sqm.
The redeveloped gallery will comprise two exhibition spaces, one workshop space available for hire and a small gallery shop.
"This will allow us to access a wider selection of borrowing institutions, particularly the Art Gallery of NSW, and showcase local exhibition artists," Mr Dawson said.
"It will also allow access to, and provide appropriate storage for, the gallery's growing permanent collection."
Works on the gallery expansion are expected to begin in late 2021, hoping to open by December 2022.
Half of the $3.6m price tag for the project has been secured from the Australian Government's Building Better Regions Fund.
While council has committed to fund the remaining cost of the redevelopment, it is actively engaged with the NSW government to secure additional funding.