The ACT government has signalled it will establish a management body for the Kingston Arts Precinct, which was scheduled to start construction early this year but has been caught up in an extended negotiation process.
The goverment has earmarked $1.8 million for design development, stakeholder engagement and the establishment of a management body for the precinct in the 2018-19 Budget review.
Of that funding, $1.14 million is budgeted for 2021-22.
But the government is unable to provide any more detail about the project or the funding, saying negotiations remain commercial in confidence.
"The ACT government is actively working with relevant stakeholders on issues regarding the future operation of the precinct," an ACT government spokeswoman said.
Earlier this month, The Canberra Times reported that the 1948 switch room, built as part of the Kingston Powerhouse's second period of power generation for Canberra, would be demolished as part of plans to build a multi-storey car park on the site.
However, residents groups that have campaigned to save the heritage-listed building have said they have been assured by the Suburban Land Agency, which is managing the development, that the switch room would not be demolished and a different location for the carpark has been found.
The Suburban Land Agency did not respond to questions about the changes to the car park plans.
Demolition of the switch room, which currently provides artist accomodation at the north of the site, was approved in 2014 but must take place before October 2 this year.
The so-called key arts organisations involved in the negotiations – Canberra Glassworks, Megalo, M16 Artspace, Craft ACT, Canberra Contemporary Artspace, PhotoAccess and ArtSound – have signed confidentiality agreements to allow them to see design documents prepared by preferred precinct developer Geocon.
The Canberra Potters' Society pulled out of the talks in July 2017, saying its current Watson premises adequately served the organisation's needs.
Negotiations are expected to conclude in March.