Theatre Collingwood may soon have a new home.

Darrin Smith, chair of the Theatre Collingwood Board, said the group has a plan to construct a theatre on the site of the former Tremont Hotel.

This comes after Collingwood council voted Monday to approve a memorandum of understanding with the theatre group to build a facility on the site.

The town would lease the property to Theatre Collingwood for about $2 per year for 20 years and  exempt the theatre group from municipal taxation. The town would not fund any portion of the construction of the theatre under the plan.

The document says the group would have to retain two outer walls of the Tremont building and pay cash-in-lieu of parking of about $180,000.

The organization also has three years to start construction or the agreement would lapse.

Smith says the theatre would have a capacity of about 300 seats, which he feels is "the right size for this community."

Smith said while the plans a preliminary, the goal is to have a theatre that includes balcony seating.

"Everybody will be closer to the stage," he said.

Smith said they also plan to have another performance venue, which will seat about 100 and will feature a flat floor as opposed to an elevated stage. He said the facility would be ideal for groups bringing in guest speakers, student performances or for rehearsal space.

He said the venue will also have an improved lobby, more dressing room facilities and offices for Theatre Collingwood staff.

"It's going to bring our operations under one roof," he said.

He said the group will be meeting in the coming months to develop its fundraising strategy. He wouldn't say what the price tag will be or when they expect to start construction.

"We would like to see it built sooner than the three years," he said.

Smith said a new venue would not only allow Theatre Collingwood to expand its season but would also be available for other groups such as the Collingwood Music Festival.

The memorandum of agreement was approved by an 8-1 vote.

"I am strongly in favour of this," said Counc. Ian Chadwick. "I like the pairing of the library and the cultural centre."

Counc. Dave Labelle said didn't agree with the location of the theatre but voted in favour.

The only naysayer was Counc. Mike Edwards. He says the property is too valuable to be donated and the tax revenue it could generate could help pay for the $9.3-million library. He said he likes the idea of a theatre, but not on the proposed site.

"I would rather see the property sold and bring in tax revenue," he said. "It's a valuable piece of downtown property."