The Don Dale Pavilion at the Sportsground will be demolished to make way for a new multi-function facility.
With construction expected to start in October, the new building will be designed to better suit the unique Katherine environment with the addition of wide open spaces and a raised floor.
Announced last night at the Katherine Town Council monthly meeting, the architect group in charge of the design, Hames Sharley, told the 24 attendees the original building "was not worth saving".
But some residents and key user groups are concerned the money could be spent better elsewhere.
Speaking after the meeting, one sporting group member, who wished to remain anonymous, said: "I am definitely excited about the idea."
"But I am worried all of the money will be spent on this one building and there will be nothing left to fix the oval, surrounding roads and the fences."
"There is a lot of work to do at the Sportsground."
The upgrade plans come almost a year after the NT Government announced $6.4 million to improve Katherine's sporting and entertainment facilities.
And Katherine MLA Sandra Nelson promised $250,000 to transform the pavilion into a community centre as part of her 2016 election campaign.
According to Katherine Town Council's recently released municipal plan, the building is expected to cost $2,760,000.
Senior architect for Hames Sharley, Adam Prentice, said there was an extensive community consultation process with key user groups and lots of number crunching prior to his concept design.
"Early on we established the building was not worth saving, there were issues with its height above the ground leading to dampness around the building," he said.
He said there were also issues with access to the building, the layout, security and safety issues, especially with so many young people using the facility.
"People wanted better seating, a connection between the two ovals and shelter from the sun and rain," he said.
"We wanted to create a multi-function space, but the building had to be durable and low maintenance, the NT is a harsh environment."
The new building will include a large space in the middle, raised off the ground by 1.2m to mitigate flooding, with offices and storage on one end and change rooms on the other, both on the ground.
Mr Prentice said the open kitchen and function area will service each oval, but for security will be able to be closed off with large metal doors.
"When it opens up and is fully functional there will be a lightness. We have created a beautiful function room that can be used for a variety of functions," the architect said.
The concept plan is open for comment until June 12.
To have your say, emailed Katherine Town Council at firstname.lastname@example.org
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