The currently empty and unused site is to be converted into a thriving multi-use building, hosting a variety of activities and groups.
And it will include a Dark Skies Visitor Centre to capitalise on the nearby Galloway Dark Sky Park.
Funding for the overall project is coming from the Holywood Trust, Big Lottery, LEADER, The South of Scotland Economic Partnership, the Regional Capital Grant Fund, the Kirkcudbright Common Good Fund and from the Heritage Lottery funded Galloway Glens Scheme.
Lesley Garbutt, chair of the Kirkcudbright Development Trust, said: “This is the beginning of the next phase of our redevelopment of a much loved building. It has been a long haul, but I am sure that everyone will be delighted with the results when we open the doors next year.”