A last-minute funding bid by Shoalhaven City Council in partnership with Bundanon has been ruled ineligible.
The $10 million application to the Building Better Regions fund was to help pay for planned $28 million expansion of the Bundanon complex.
It replaced at the 11th hour an application for $4 million for the fitout of the new basketball stadium at Bomaderry.
At the time, Shoalhaven Mayor Amanda Findley said the Bundanon bid had the best chance of succeeding.
However, an email to all councillors from general manager Russ Pigg said the bid was ruled ineligible.
Three other grant applications – the Jervis Bay boat facility, the Shoalhaven River precinct and the Stewart Place redesign – were unsuccessful. Round 2 of the Building Better Regions fund is now open.