MEMBER for Lake Macquarie, Greg Piper, visited St Joseph's Primary School in Kilaben Bay to view the school's community facilities, which they hope to upgrade.
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The Diocese of Maitland-Newcastle Community Centre Development Committee has applied for state government funding to give the facility a makeover.
If successful, the grant from the government's Community Building Partnership program will be used to upgrade the facility to allow it to cater for more than 100 people in both indoor and outdoor settings.
It would be the only one of its kind in the Toronto and Kilaben Bay area.
Mr Piper said the proposal for the site shows vision for a facility that has been under-utilised since it was established in the 1980s.
"I would be surprised if there wasn't a market for conference-style facilities with accommodation in the lower price range as I understand is being proposed, particularly as it would appeal to families and youth organisations," Mr Piper said.
While the group's application will be assessed on its merits against other projects competing for the funds, there may be other funding avenues that can be pursued, he said.
"I'm happy to continue working with the school and diocese to advance the project."
A spokesperson for the Diocese of Maitland-Newcastle said the committee is seeking about $100,000 in funding.