Demolition has begun on Nyngan's Palais theatre.
The 94-year-old building was closed in March this year after structural failings threatened the public's safety. The Bogan Shire Council then resolved to demolish the site rather than pay the ongoing maintenance costs.
The council's general manager Derek Francis said demolition of the theatre began last week and is expected to take another six to eight weeks.
"Once [demolition] is complete the council will be making it available for interested parties to construct seniors living on," he said.
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"So rental accommodation units similar to the ones that are next door, or the ones that the council are putting up near the old preschool site."
Mr Francis said anyone interested in taking on the project should talk to council.
"We don't necessarily, at this stage, have the funding to do any more construction ourselves, but are interested in talking to people who might be wanting to do that, or by-means or ways of financing that or getting it constructed," he said.
It was resolved at the council earlier this year to refurbish the Town Hall creating a regional cultural centre.
Plans for the new multipurpose facility at the Town Hall included tiered theatre seating to accommodate about 300 people, which could be pushed back to use the lower section as an open area, and would also have space for indoor and outdoor functions rooms.
Mr Francis said that the architect's plans were being costed and then the council would begin grant applications to fund the new renovation.
"There's a significant cost associated with that project, so that's not something that's going to happen in the very short term," he said.