Newcastle councillors will consider a Memorandum of Understanding between the City of Newcastle and the Newcastle Art Gallery Foundation, which reflects the organisations' shared commitment to the gallery's expansion and future.
Newcastle Lord Mayor Nuatali Nelmes said the MOU, to be considered on Tuesday, was another milestone on the road towards the $35.6 million expansion of the gallery.
"Since being established in 1977, the Newcastle Art Gallery Foundation has played a valuable role in supporting the gallery and the growth of its collection, having contributed to the acquisition of more than 335 art works," Cr Nelmes said.
"Its members are passionate about the future of the gallery and are dedicated to increasing access to the 7,000 works it holds."
The proposed expansion will provide an additional 1,600 square meters of exhibition space including dedicated areas for the gallery's collection on the lower level, while the upper level will cater for a variety of travelling exhibitions, including international shows.
City of Newcastle has committed a further to $12.6 million towards the project, while the foundation has pledged $10 million.
The MOU also includes a commitment by the foundation to raise an additional $2.5 million through fundraising towards the gallery's expansion.
The foundation's board unanimously endorsed the revised MOU at a meeting last week.
Cr Nelmes said she hoped this would be followed by a similar show of support from councillors.
The MOU recognises the historical and cultural importance of the gallery as custodian of the most valuable art collection in regional Australia, which presents a comprehensive overview of Australian art from colonial times to the present day. It is worth about $115 million.
It also acknowledges the work undertaken by council and the foundation to preserve and promote the gallery and reaffirms the foundation's commitment to support and protect it for the enjoyment of future generations.
Newcastle Art Gallery Foundation Chair Suzie Galwey said the MOU would underpin efforts to support the gallery's expansion.
"The foundation is proud to contribute $10 million to the gallery expansion, made possible through generous contributions from the community and supporters over many years," she said.
"The MOU between the City of Newcastle and the foundation also provides certainty and assurance to future donors before committing contributions to the project.
The MOU outlines how the major funding partners will work together, as well as the foundation's aspiration to raise an additional $2.5 million.
"By aligning this target with the city's commitment, the foundation is in a strong position to approach existing and new donors to secure the remaining funds needed to complete the expanded gallery.
The council is awaiting a determination from the Federal Government on an application for $10 million in funding towards the project from the Recovering Regions program, which would allow the expansion to immediately commence.
