Queanbeyan cinema not viable without $6m government grant

The application for a cinema complex on Morriset Street was approved in 2018 but construction hasn't started three years on.

United Cinemas also has approval to run a centre in Gungahlin but chief executive Sam Mustaca said there was no timeline for construction to begin yet.

The Queanbeyan site was wholly reliant on a $6 million bushfire economic recovery grant United applied for in January.

The project had earlier stalled due to the "feasibility of the location".

Mr Mustaca said the nine-screen complex designed for 90,000 people couldn't yet be supported by Queanbeyan's population just shy of 60,000.

"We were banking on the future of that area growing over time," Mr Mustaca said.

"I think it will do really well over time, we just need that government push to get it up and going."

The site has remained untouched since demolition work was completed in late 2019.

Member for Monaro John Barilaro leads disaster recovery in NSW and is heading up the Bushfire Local Economic Recovery Fund grant program.

He would not comment on the ongoing process but has previously supported the project. Recipients will be announced in June.

Cinemas were closed for much of 2020. Mr Mustaca said his Sydney northern beaches venues, forced to shut again during the December outbreak were "decimated to a point of no return".

"It's been very hard to come back from that," Mr Mustaca said.

United Cinemas will also operate a Gungahlin cinema, however, Mr Mustaca said there was no timeline for construction at that site and they were working with the developer to "wait and see" how the pandemic played out this year.

Canberra-developer Krnc Group won the tender for the project in 2013.

A development application was lodged in December 2019 but Mr Mustaca said the project was delayed due to coronavirus.

It had been subject to a series of setbacks prior to that with United Cinemas lodging a legal challenge for the project.

In 2016, a development application was approved to be operated by Hoyts Australia, however, United claimed it had a lease agreement to run the complex.

Mr Mustaca said if United received the grant for Queanbeyan, construction would take up to 14 months.

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