![Post office turned DPI office in $8.3m deal Post office turned DPI office in $8.3m deal](/images/transform/v1/crop/frm/silverstone-agfeed/1054007.jpg/r0_0_600_400_w1200_h678_fmax.jpg)
NEW government offices are likely to occupy Warrnambool's historic post office with the state government making an $8.3 million commitment for a new Department of Primary Industries (DPI) centre.
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Discussions between the state government and Warrnambool City Council will take place early in the new year to determine where the new government offices should be located.
The Standard understands the new project has the potential to attract more than 150 public servants to the region once the development is completed.
The funding announcement comes less than a week after Australia Post agreed to an in-principle of the 1876 building, which had operated as Warrnambool's post office for more than a century.
Regional Cities Minister Denis Napthine hailed the funding announcement as a great job generator for the region.
He said a location for the new DPI centre was yet to be determined but added the state government were keen to work with the city council to deliver the new offices within a reduced time frame.
"The old post office site is a unique opportunity for potential development but we're still at the planning stage," the South West Coast MP said.
"Funding is committed to establishing a DPI centre in Warrnambool and (Agriculture) Minister Peter Walsh and I will be discussing what options we have regarding location (of the site) in the new year.
"This is a great initiative where we can have a central government office to assist agriculture, commercial fisheries and create local jobs."
Australia Post announced last week an in-principle sale agreement of the city's historic post office to the city council for $1.3 million.
The city's mail services will be consolidated into Australia Post's retail outlet in Koroit Street in the new year.
Warrnambool City Council chief executive Bruce Anson said the state government commitment would provide more jobs in the construction industry as well as securing extra public servants in the region.
He said a central state government site would also consolidate several administrative sites dotted across the city and region.
“It’s a hellishly exciting project,” Mr Anson told The Standard yesterday.
“For the last couple of years there have been discussions about establishing a state government centre in Warrnambool and now we’ll be going through the process of deciding where the new development will be located and other details.”
Mr Anson said a potential DPI site in the old post office precinct would allow Education Department and Regional Development Australia staff already dispersed across the city to relocate and consolidate government services.
“It would be fair to say that 20 per cent of the inquiries we receive at the city council are state government-related so it does make sense to have the department in a central position,” he said.
“A development of this type would allow for one reception area, shared meeting rooms and so on.”
Dr Napthine said the $8.3 million office project was part of the new state government’s push toward decentralising some government departments.
“We’re in the early days of a new Baillieu Government and we’re already committing to decentralise and create jobs in regional Victoria so I’d expect more of this over the coming years,” he said.