Mayor Bryan Cadogan confirmed the $468,500 injection from the Tourism Infrastructure Fund (TIF) towards building destination toilets in Milton and Balclutha.
But original plans for the Balclutha site, in Elizabeth Plaza, have now been dumped for 58 Clyde St.
Mr Cadogan confirmed yesterday it had put an unconditional offer on the central site following a council meeting last week.
"This is a game-changer and if it wasn't for the Government and for this money we wouldn't be able to go ahead.
"This is such a tonic — for so long we have watched services leave the town and now we are bringing them back.
"This money was critical and there is only so much a ratepayer to do."
The building had been vacant for at least two years and he hoped the facilities would act as a drawcard for visitors.
The council has budgeted additional funding to complete both projects, as signalled in council’s long-term plan.
Mr Cadogan confirmed work would start early next year.
