Dubbo Regional Council has unanimously decided to dispose of the former museum property at the corner of Warne and Percy Street, Wellington.
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Council's CEO Murray Wood, said council would work with the Wellington Historical Society to move out of the property.
"There is no time limit, we aren't kicking them out, we will work together to help them move some of their bigger items," he said.
Wellington Historical Society have been located at the Oxley Museum for since 1967. The Oxley museum building is owned by Council, however the site has been determined unsafe for an experience open to the public due to aged infrastructure that has not been maintained over an extended period.
In a report by the Director Culture and Economy, Natasha Comber it stated that the Wellington Historical Society had recently signed a licence for the Old Wellington Police Station (OWPS) which ends in June 2023.
"The Society do not have substantial funds, nor does the OWPS have capacity to store the whole collection - specifically outdoor displays," the report said.
"In signing this licence the Society have indicated concerns regarding long term solution, the length of licence term and whether the OWPS will be suitable for the long term operations of the museum and storage of the extensive collection."
The temporary exhibition being created for the OWPS is estimated to display under two percent of the entire private collection.
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"The collection is not being stored currently within recommended NSW Museum Standards. Council has no strategic plans or commitment to exploring or undertaking development of a new museum facility in Wellington, or further capital investment in the OWPS," the report said.
"Council staff are seeking direction or decision on the level of financial support Council are comfortable with providing for the ongoing storage, display and provision of services to a privately owned collection operating as the Wellington Museum by the Wellington Historical Society."
Deputy mayor Richard Ivey said the Wellington Historical Society had a "worthwhile collection" that deserved protected.
"These items need to be housed, looked after and preserved, but it's expensive and we have the constraints of finance, buildings, staff and resources, so it all needs to be worked through, and this is a good basis to do that and establish a working group," he said.
At the May, 12 council meeting councillors agreed to participate in a workshop to define the strategic intent of the Old Wellington Police Station building.
The workshop will also provide discussion around the level of ongoing support to be offered to the Wellington Historical Society, support of a Wellington exhibition, and longer term displays or storage options for the collection held by the Wellington Historical Society.
Following the Council workshop, further discussions will be undertaken with the Wellington Historical Society regarding long-term options for their consideration, and agreement of next steps that can be undertaken to establish an agreeable long-term solution for their collection.
Councillor Joshua Black said that the historical societies are important in small rural towns.
"We want to support the historical society and do that in a financially responsible way because they give so much back to the town," he said.
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