The existing hall, built in 1948, would be demolished and replaced with a new 3000sqm building, which would include office space, meeting rooms, the Clutha District Council offices, an i-Site and a theatre.
There would be a dedicated war memorial space within the building.
With the working title of the Clutha Community Hub, the centre would be built by 2022.
The plans are the work of the Clutha Community Hub Charitable Trust with the support of the Clutha District Council.
The trust was formed to develop a business case for turning the hall into a rejuvenated community hub and to represent the community as a legal entity. It would have ownership, governance and management of the new centre.
Trust chairman Dale Anderson said a new building was the best way to create a high-quality community asset that would give present and future communities more access to the arts, theatre, district culture and local heritage.
It would also honour its foundations as a war memorial hall and pay homage to those involved in the hall's original creation.
The council recently approved the trust's business plan.
Council chief executive Steve Hill said the council was supporting the project in principle to allow the next phase to continue.
More refining of the plan and costs would be done so interested parties could be brought on board and capital funding could be pursued.
Once the cost to ratepayers was clear, it would be subject to consultation with the community, he said.
The two organisations had signed a memorandum of understanding showing an initial commitment from the council as a core tenant.
Mr Anderson said the trust was investigating funding options including a mixture of local council and central government funding and third-party funding sources, such as philanthropic trusts and foundations, corporate sponsorship, public donations and fundraising.
It would be looking at what things inside the existing building it could reuse. An example was panelling in the Sommerville Room that had been sourced from a local farm.
The cost of bringing the existing building up to building code was a quarter of the cost of a new build, but doing just that would not make any difference to how the the hall could be used in the future.
There would be no ability to generate any new revenue, meaning any future costs would directly fall to the community to cover, he said.
"It is vitally important that the facility is financially sustainable long term, to not only keep it affordable for the local community, but to allow it to evolve as the needs of the community do."
The trust would be having geotechnical tests done on the grounds this month. After that, work to finalise the design and costs would be done.
The trust had met groups that presently used the building, had a "forward plan" for all parties involved and would continue to work with the groups during the next phases, Mr Anderson said.
"We have [also] engaged with both the local Balclutha RSA and the regional body and intend to continue working with them going forward, it is important to us the new facility still respects the original purpose put forward in 1948 for the Balclutha War Memorial Hall."
