Work began last week on the renovation of the Uralla Visitor Information Centre.
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The upgrade will deliver significant benefits for the local community the Member for New England Barnaby Joyce said.
The $500,000 project includes internal and external renovations, installation of a pergola and landscaping works.
"Not only will this project support local jobs and drive new wealth into the local economy by drawing on local suppliers and trades during construction, it will result in a facility the Uralla community and its many visitors can enjoy for generations to come," Mr Joyce said.
"It's all part of our plan to grow the New England, now and into the future."
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Uralla Shire Mayor, Cr Michael Pearce said the improvement project would increase visitor traffic by boosting the Uralla VIC's presence on Uralla's Bridge Street and provide additional services to the Uralla Shire tourism industry.
"The VIC improvement project will boost our visitor services to the Uralla Shire by providing an attractive centre and increased services for visitors to the Shire," Mayor Pearce said.
"Council has put in a lot of planning on this project and has worked with the community to fine-tune the project scope to deliver a great outcome for the Uralla Shire community, and we are pleased to see the project come to fruition.
"We'd also like to take this opportunity to thank the State and Federal Governments for their continued support and advocating the needs of the Uralla Shire."
The Uralla Visitor Information Centre (VIC) improvement project is jointly funded by both NSW State Government and Australian Federal Government funding streams, with a commitment from the NSW State Government's Drought Stimulus Package of $400,000 and funding of $100,000 provided by the Federal Government's Drought Communities Extension Programme.
Mr Marshall said the redevelopment would increase the centre's visibility to traffic.
"Uralla is the first town travelers from the south arrive in after climbing the Moonbi Range, and as such really is the 'Southern Gateway to the New England," Mr Marshall said.
"The Uralla visitors centre plays an important role in promoting sites and activities across the entire New England, however due to its current configuration there is limited space for local produce and tourism displays.
"That will be rectified with the removal of a number of walls to create a more open and inviting space for visitors and staff.
"To provide a relaxing place to stop and have a cuppa, a garden area will also be built at the building's rear, in the existing grassed area, in front of the library.
"The garden will have a small waterfall and native ground covers, shrubs and small trees planted throughout, with plans to include a 'bush tucker' area with interpretive signage providing information on traditional food sources utilised by the local Aboriginal community.
"Benches will be constructed from old bridge timbers stored in the council depot and the existing disabled carpark is upgraded to comply with the standard.
"This is an exciting development, which I think will greatly increase the number of people stopping into the visitor centre and choosing to stay and make the most of Uralla's hospitality.
The VIC improvement project is estimated to be completed by April 2021.