Warrnambool's Rafferty's Tavern will add a new alfresco dining area and expand its bar and children's play centre, with works to begin in February.
General manager Mark McIlroy said it was exciting to get the $1 million project off the ground and building would begin once the peak summer season was over.
"The public bar will double in size and the existing outdoor area will quadruple. It'll be another 300 square metres outside and the gaming area will increase in size as well," he said.
Local tradespeople will conduct the works which will be completed in stages. The tavern will remain open throughout and he's hopeful it'll be finished in time for the May Racing Carnival.
Work was scheduled to begin in September but was delayed due to the pandemic. The extension comes as the city records its biggest pipeline of commercial building investment in a decade.
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"There's new toilets, a new gaming room and the bar will open up to this big outside seven and-a-half metre-high alfresco area which has retractable glass, that's all acoustically treated," Mr McIlroy said.
"We're just trying to create a nice outdoor area that's fully covered, but has the ability to open up in sunny days and then close over at night-time.
"It's full of trees and it's like an outdoor oasis really. It's something different that Warrnambool doesn't have."
He said the acoustically-designed atrium would be fully soundproof to address past noise issues. "We're spending a lot of money to do the right thing by our neighbours who put up with a lot of raucous last year," Mr McIlroy said.
"There's an expansion to the kids playroom. It will be bigger again and it goes out further into the laneway.
"We've got some exciting stuff coming for the kids, and for older kids as well, so it should be pretty exciting. It's something Warrnambool hasn't got in a play area."
Mr McIlroy said the extension wouldn't increase the venue's current capacity of 700 patrons but it would give them more room to move within the tavern.
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