The City of Greater Bendigo Council has resolved to award planning permission for the development of a new 1,000-seat theatre on the site of the town's former gaol in Victoria, Australia.

Heritage Victoria has also backed plans for the AU$25.8m (US$27m, EUR21.5m, £17m) scheme, which is the result of a partnership including the local authority and Bendigo Senior Secondary College.

Due for completion in 2014, the Y2 Architects-designed theatre will incorporate an entry to the building through the former Marong Cell Block – the gaol block which housed its original gallows.??

Facilities will include a 1,000-seat, two-tier theatre with a large stage; a fly tower and changing rooms; music, dance and drama studio spaces; and education areas.

Bendigo mayor Alec Sandner said: "This is a visionary project and facility that is strongly backed by all three levels of government."

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