If they vote to proceed, a development application will be lodged for determination by the NSW Government's Southern Regional Planning Panel.

Councillors will need to consider additional costs for the project.

"Councillors have been briefed on, and will need to consider, additional funding sources for the project," the council said in the agenda.

They will be asked to vote on an arts centre with less seating than originally envisaged - down from 500 to 350 seats.

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