The NSW and federal governments have agreed to fill a $10 million funding hole in the Newcastle Art Gallery expansion project.
Deputy Prime Minister Barnaby Joyce will be in Newcastle on Friday to announce a joint funding arrangement which will finally put an end to 17 years of planning, lobbying and political posturing.
The gallery project, which will cost "almost $40 million", is poised to start on Monday and will close the gallery for at least two years.
The new-look building will include an extra 1600 square metres of exhibition space, more storage, a secure loading dock and a cafe.
City of Newcastle has committed $16.2 million to the project, Newcastle Art Gallery Foundation $10 million and the state and federal governments $5 million each, though the council has already spent at least $3.6 million on design contracts.
Mr Joyce also is expected to announce $10 million to upgrade historic Maitland Gaol as a tourism site.
He said the expanded gallery would attract 14,000 more tourists a year to Newcastle, create 150 construction jobs and employ an extra 18 people once reopened.
"It's also about providing opportunities for locals and limiting the need for them to travel to a capital city to experience iconic pieces of Australian and international art," he said.
The council-owned gallery has 7000 artworks valued at $115 million, the largest collection in regional Australia, but exhibits only about two per cent of them a year.
Newcastle councillors voted in February last year to support upping the council's contribution to $16.2 million after a series of failed attempts to secure funding.
Newcastle Art Gallery Foundation has indicated that it will commit $10 million after receiving a bequest of the same amount from the estate of long-time supporter Valerie Ryan.
The foundation also has committed to raising another $2.5 million towards the project.
Councillors agreed in July last year to "seek" a $22.6 million loan from NSW Treasury Corporation to kick-start the project, but lord mayor Nuatali Nelmes said the council contribution would revert to $16.5 million.
"The Newcastle Art Gallery is a major cultural asset for Australia and has a nationally significant collection of art, so I am thrilled by this investment in our iconic attraction," Cr Nelmes said.
"This builds on council's commitment of $16.5 million for an expanded and upgraded gallery which will support increased exhibition and community engagement and offer cultural opportunities.
"This will consolidate the Hunter's reputation as an active and vibrant centre for the arts and culture and deliver a gallery of international standing."
The gallery expansion has been on the cards for 17 years, scrolling through a series of design changes and funding bunfights.
The council pledged $7 million in 2014 when construction work was costed at $21 million.
On that occasion, the city was forced to hand back $7 million in federal funding when the NSW government did not come to the party.
Then council general manager Ken Gouldthorp said it was "among the worst-managed projects I have ever seen in local government''.
Council staff shared a schedule of works with councillors in November which showed building work starting in August and the gallery shutting until mid-2024.
Some of the gallery's works will tour Australia while the building is closed.
The Liberals' candidate for Paterson, Brooke Vitnell, said the Maitland Gaol funding would help the site reach its "untapped potential".
"This will be a unique experience for families from across the Hunter and beyond to learn all about the history of the gaol, the nefarious and infamous held within its walls and even the odd escape attempt," she said.
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