The council has received positive comments from funding body Regional Development Victoria (RDV) in regards to the grant, according to shire chief executive David Madden.

“Feedback from RDV indicates that stage three of the Port Fairy streetscape project matches the criteria for funding and is a sensible extension to stages one and two,” Mr Madden told Tuesday night’s council meeting.

The focus of stage three is improving the footpath, road, and kerbing in Bank Street, similar to what has been done in Sackville Street.

This phase of the project is expected to cost $810,000, with the council to contribute $260,000 and the remainder to be made up from local community fundraising.

Moyne Shire councillors voted unanimously on Tuesday night to apply for the $500,000 grant and press ahead with stage three.

Cr Mick Wolfe said the streetscape works in Port Fairy had been “a great project”.

“(Former) Cr James Purcell said (the project) would be judged by Sackville Street and how that was done and I think it was a spot-on job – the town is really proud of it,” Cr Wolfe said.

“(If we get this grant), we’re only paying $260,000 for an $800,000 project.”

Cr Ralph Leutton said it had been “an exciting project all the way along”.

“The results (in Port Fairy) would be encouraging for the people of Mortlake,” he said.

The next part of the Mortlake streetscape works is due to start in Dunlop Street soon.

Moyne Shire’s contribution of $260,000 comes from the council’s roads and drainage budget, leading Cr Jim Doukas to question whether any other road and drainage works were being ignored at the expense of a “beautification” project in Port Fairy.

Chief executive David Madden said “nothing on the list will miss out” and it had been properly budgeted for.