In August 2008 plans for the development of the pier's derelict pavilion were made public. The two million pound Lottery-funded scheme was planned to include a 98-seat cinema and theatre, a cafe and gallery, bar and a large multi-purpose area that will retain the Victorian vaulted ceiling. The Vale of Glamorgan council allocated a starter contribution of £800,000 to enable the initial Lottery Fund application to proceed, an application that was declined due to shortage of available funds. In the autumn of 2008 a Penarth Town Centre Task and Finish Group was formed to look for a positive way ahead for the town. In November 2009 the National Lottery Heritage Fund granted a £99,000 interim award to permit further planning to proceed. This eventually led to full funding being made available during 2011 and work on the refurbishment project started in February 2012.
