A new report has deemed more than half of the AIS' facilities "not fit for purpose" with plans to overhaul the campus set to be fast-tracked to bring it back to life.
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A modernisation of the AIS has been tagged a priority initiative of the federal government in a refreshed infrastructure pipeline worth $64 billion, after being included on an Infrastructure Australia hit list.
Facilities now "not fit for purpose" are a combination of old and decaying 30-year-old buildings, and facilities that are no longer a part of the institute's core-business.
The AIS Arena's doors have been slammed shut with no timeline on when, or if, they will be opened again to leave Canberra without an indoor venue for major sporting events or concerts.
ACT sport minister Yvette Berry has sought answers as to why the Arena was shut and the costs involved in fixing its problems, which could be up to $5 million and spark a territory versus federal debate.
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Among the facilities which have come under scrutiny are the gymnastics hall, volleyball courts, the old athlete's village, and a pool.
The Australian Sports Commission is seeking to revitalise the site amid an uncertain future which has sparked talks the 65-hectare site could be cut in half or the Arena and Canberra Stadium could be sold.
"The ASC continues to work closely with the Australian government to explore all options for AIS high performance facilities into the future, including advancements in infrastructure and technology for a modern AIS," an ASC spokesman said.
"Decisions on the future of the AIS site are ultimately a matter for the Australian government."
The initiative is aimed at redeveloping and modernising facilities, with Infrastructure Australia not involved in decisions about selling.
"We received the proposal from the Australian Sports Commission about the AIS, it's really about the ageing condition of the majority of the facility and it's deemed to not meet modern day requirements," Infrastructure Australia chief executive Romilly Madew said.
"More than 15 of the facilities are over 30 years old and are deemed not fit for purpose. There's a federal government strategy and report known as the Australian Government Sport 2030 strategy, in that it includes leveraging the Institute of Sport site.
"This proposal complements this Federal Government policy. The AIS campus also has benefits for the local community, it's not just used for our elite athletes but also very much open to the Canberra region.
"It's looking at the redevelopment and modernisation of the AIS facilities. This could include improved or new facilities for athletes, coaches, researchers, visitors and tourists."