Harvest Launceston is set to add a drive-in cinema and shipping container stage to further utilise the car park space at Cimitiere Street.
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Both projects were green-lit for about $10,000 in funding from the Great Regional City Challenge last week.
Harvest Market committee member Caroline Williamson said the group was thrilled to be earmarked for funding.
"It's a great way of activating a dead space ... the market activates it for four hours a week so why not activate it in different ways at different times in a week," she said.
Ms Williamson said the market hosted a Mona Foma shipping container stage twice in 2019 to much success.
"That was really terrific to have that community stage where we had some really cool acts down at the market and the idea with the community stage is that we could get local theatre, dance or school groups as well as buskers and visiting musicians," she said.
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Ms Williamson said Harvest would collaborate with the University of Tasmania in designing the stage.
Audio from the films played at the drive-in would be accessible via a car's radio.
The movie nights would also be accompanied by food vans.
The drive-in movie nights would be once a month on Saturday nights. Ms Williamson said the cinema area is planned for the Cimitiere Street end of the car park.
"Because we're situated in a car park, we could have it operate as a drive-in during winter ... in the summer you could bring a bean bag and it could be more out in the open sky," she said.
"One of the problems in Launceston is that we're weather-dependent for events and that can cut a lot of things out in winter.
"We're pretty thrilled, I know when BOFA's on if we had a big outdoor theatre that would be a really cool location for them to do things."
Although additional funding is still needed for the projects to come to fruition, Ms Williamson said she hoped to have them ready by the end of 2020.
"The outdoor cinema is definitely doable in the next three or six months to have it up and going," she said.
"It would be good to have it running when summer comes around."