The iconic picture theatre turns 101 this month but was left off the list for management reasons rather than a lack of merit.

Heritage Minister Robyn Parker determined that listing may materially reduce economic opportunities for the facility and lead to a loss or decline in volunteer support that was considered essential for its continuing use.

Dungog Shire Council lodged the application facing considerable maintenance costs. 

Cr Glenn Wall said many people were disappointed with the result.

“We see it as a missed opportunity but it is something we can go back and revisit,” he said.“We seem to forget it’s a legacy our future generations will inherit.”

The building’s history traces back to 1912 when the Dungog Electric Lighting Company set up an open air theatre seating 1000.

It was extensively renovated in the 1930s when it received the Spanish mission-style facade.

Rejection from the list was discussed at Tuesday night’s council meeting.

Council general manager Craig Deasey lodged the application with the Office of Environment and Heritage on September 3.

“While there were some apprehensive people, there is still an enormous maintenance schedule, and capital works projects, that will exist at the facility well beyond the current generation,” he said.

“With a state heritage listing there is a contestable pool of funds made available annually by the state government.”

Council undertook significant work on the theatre last year. 

The facade was repainted based on extensive research the Friends of James Theatre carried out.

Structural timbers in the roof cavity were replaced when an engineer confirmed cracking and termite damage.