The Regent Theatre is of state heritage significance, the National Trust of Australia has said in a submission to Mid-Western Regional Council.
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The Trust has voiced its objection to development application before council to turn it into an 84-room hotel.
In a detailed letter which explores the history of the theatre and also mentions other examples of theatres that have been restored and preserved, the Trust said it was opposed to the demolition of any part of the Regent.
The Regent was listed on the National Trust Register in September 1993 after an extensive inspection of the theatre and consultation with the then-owners.
"It would be extraordinary if Mudgee, which depends so much on tourism, were to lose such a significant historic theatre when so many other towns in NSW have kept their theatres,"
the letter, signed by the Trust's director of advocacy Graham Quint.
Mudgee historian John Broadley recently revealed on the Revive the Regent Theatre facebook page that noted cinema architect George Newton Kenworthy had designed the Regent.
The Regent is one of just two of Mr Kenworthy's cinemas still in existence, which would make it of state heritage significance.
The Trust also listed 24 examples of theatres that were "landmark buildings" and "tourism icons" for their communities.
"The common heritage thread which applies to all the theatres listed is that they continue to be a much loved community entertainment facility and a vital drawcard for tourism," Mr Quint said.
"That unbroken 82-year history would be broken with the demolition proposed for the future.
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