A former pub in the heart of Cobar will be transformed into a community hub which will revitalise the area, thanks to Federal funding.

Cobar is one of four communities who will share $21 million under a newly released list of recipients for a Precincts and Partnership grant from the Federal Government.

Along with Bathurst, Cessnock, and Mudgee, Cobar will receive funding of almost $3.5 million to create new and revitalise its CBD.

The funding is set to deliver the design and planning works for the council’s 'grand precinct', getting it up to construction and tender-ready status.

The Grand Hotel Cobar ready to be upgraded with new funding - Image Western Plains App.

The project will see the redesigning of the Grand Hotel into a cultural-commercial hub, upgrading the library, restoring the town hall for multi-purpose use, adding senior housing and improving streetscapes.

Cobar Mayor Jarrod Marsden said the project will be very worthwhile for the community.

Cobar Shire Council Mayor Jarrod Marsden - Image Western Plains App.

“We are really pleased to obtain this funding and a pat on the back to our council staff for putting in a really good grant proposal. The government obviously saw the benefit of investing money out here,” said Cr Marsden.

“We purchased the Grand Hotel as we identified it as somewhere we could do something special in the main street, tying in with the library across the street and the Town Hall just around the corner.

“The Grand Hotel has been a part of Cobar’s history for as long as I can remember, and the big beer can is an iconic attraction for tourists. It closed its doors as a hotel several years ago and has sat empty ever since.

“The upstairs area is quite big and has some older style accommodation. We believe there is some real value in refurbishing that area into modern accommodation."

It's expected contractors will need to be on-site for three months to complete the project.

“In terms of the Town Hall, we will need some community consultation to see what people would like done with the hall. The most likely outcome will be that it will become an art gallery. Being a heritage building we need to be very careful with what we do to maintain its structure.

Cobar Town Hall part of the Precinct to be upgraded - Image Western Plains App.

“The funding will allow us to perform a bankable engineering study to get the project to shovel ready standard, something we look forward to for our community.

“We’ve advocated for a long time that regional funding should be just that regional, even though it tends to include Newcastle and Wollongong, which I think is a bit unfair as they generally take up a little bit of money, but we have pushed for a while that regional should be truly regional and we are finally starting to see that in real life, which is awesome,” Cr Marsden said.

A Cobar resident welcomed the news. “The Grand Hotel is literally the centre of town and is looking a bit unloved now. It will be grand to see it all shiny and new again, along with the library and town hall,” she said.

Cobar Shire Library - Image courtesy Cobar Shire Council

Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King, said government is listening to communities across regional NSW and is boosting local economies by strengthening community infrastructure.

Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King - Image Australian Labor Party

“Precincts like this not only give the community a space to gather and visitors a space to enjoy, but they transform towns by boosting local economies and shaping the everyday lives of locals.

“The regional Precincts and Partnerships program is about revitalising underutilised spaces to enhance regional cities and towns – working collaboratively across government, community and with the private sector," Ms King said.