The cost of restoring Newcastle's iconic former post office building has risen following a government heritage assessment of the building.
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But the man behind the ambitious project, Jerry Schwartz, says he is committed as ever and plans to start construction next year.
Dr Schwartz, who acquired the 1903 building in 2018, was forced to submit an amended development application for the restoration project following an assessment by Heritage NSW.
While he didn't put a revised price on the project, the changes relate to internal layouts that have been made more sympathetic to the building's original features.
"It was effectively a run-down shell when I acquired it and just getting it to a stage where we can commence construction has required a significantly higher level of investment than I anticipated, but I think the community will see major progress made in its restoration next year," Dr Schwartz told the Newcastle Herald.
"The next step is gaining a construction certificate, which will then allow us to start building."
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Dr Schwartz had hoped to have the Aboriginal cultural centre opened in the basement by the end of 2020.
However, the requirement to amend the development application combined with the impact of COVID-19 has pushed this back to next year.
Dr Schwartz, who does not plan to turn an immediate profit from the post office venture, bought the building from the Awabakal Aboriginal Land Council in mid-2018 for $3.5 million.
He laid out his vision for the restored building in a $3.7 million development application lodged with City of Newcastle in March.
In addition to the Aboriginal cultural centre and gallery in the basement, the ground floor will feature wedding retail outlets including dress shops, florists and photographers and the first floor will be a function centre.
A heritage impact statement that accompanied the development application said the interior fit-out would preserve the original features associated with the former post office, particularly the main postal chamber.
The statement notes the building is a "landmark structure" that makes a strong contribution to the aesthetic character, historical value and amenity of the East End.
The building's exterior sandstone is considered to have weathered well and remains a highlight of Newcastle's historic inner-city buildings.
"The building also forms an important group of buildings in association with the former police station and former public works building displaying the work of four colonial and NSW government architects," the report says.
It not considered that the proposed work will affect the building's heritage significance.
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