The Kaipara District Council will spend $200,000 turning the old Dargaville Library into a purpose-built cinema.
During annual plan deliberations on Thursday, the council agreed to fund the grant for the Dargaville Cinema Trust project from its forestry fund, rather than taking the money from its reserves contributions fund as previouslysuggested.
Public consultation on the grant had been sought through the annual plan, with 27 submissions and 351 individual letters supporting the proposal and only six submitters opposing the reserve contribution fund being used for the cinema project.
Investigations before the annual plan hearings found the project did not meet legislative requirements for reserves contribution funding.
Dargaville has not had a cinema for more than 20 years and it was agreed the new cinema proposal was receiving strong public support.
The council agreed to switch forestry reserve funding previously allocated to the Kauri Coast Community Pool Trust to the Cinema Trust project.
Since the community pool is eligible for funding from the reserves fund the council decided to make good the pool's balance with a corresponding grant from that fund.
The council further agreed the Cinema Trust would pay a rental for the refitted library building.