Newcastle Theatre Company has received a $190,000 "lifeline" from the state government, three months after going public with its financial woes.
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The Lambton community theatre was one of 248 groups across the state to receive a share of the $24.7 million My Community Project program after a public vote.
President Claire Williams said the money would pay for significant improvements at the theatre, which occupies two adjoining buildings in De Vitre Street.
"I'm so amazed and delighted. It will allow us to do a major refurbishment," she said. "Our facades are very old and shabby, need major maintenance. Our laneway is a dump, and it could be a vibrant community space.
"That's our disabled access to the theatre as well.
"And the best thing of all is air-conditioning. People expire from heat in there in summer and freeze in winter, including the actors."
The theatre raised $40,000 and took out a second mortgage this year to pay for a $100,000 fire safety upgrade.
It had been on month-by-month extensions from Newcastle council to meet safety regulations since failing a fire audit late last year.
The new grant cannot be used to pay off the debt, and Ms Williams said the theatre would continue fundraising.
The other successful grant applicant in the Wallsend electorate was the New Vine Baptist Church at Maryland, which received $70,000 for a new public playground.
In the Newcastle electorate, St Joseph's primary school at The Junction received $143,000 for a multi-purpose, all-weather artificial turf area.
Project Eve, which aims to establish a safe space for older homeless women in Mayfield, received $62,000; UnWaste, which aims to teach people to extend the life of clothing, won $31,000; and Pachamama House at Hamilton received $45,000 to convert a disused courtyard into a community space.
Port Stephens' Koala Hospital received $200,000.
Other grants went to a Toronto community kitchen, a nature space at Coal Point Public School, showers and a laundry for the homeless and disadvantaged in Charlestown, resurfacing Nesbitt Park, and an outdoor space at Kahibah Public School.
In the Swansea electorate, a playground in Budgewoi and upgrades to Camp Breakaway's bathrooms in San Remo received the thumbs-up from voters.
In Maitland, a plastic recycling workshop in Chisholm, a community play space at Metford and an outdoor event space at Maitland Public School will receive My Community funding.
In Cessnock, Miller Park in East Branxton will receive an upgrade and Cessnock's CBD will have a new play space.
Dungog's James Theatre, playground equipment in Gloucester and a water playground in Scone won funds in the Upper Hunter electorate.
CORRECTION: An earlier version of this story said The Junction Public School had received $143,000.
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