The Kiama Leisure Centre is expected to reopen in three months after repairs to the building badly damaged by last month's tornado.
The centre was to close this year as part of a $1.5 million upgrade, through a low interest loan to Kiama council from the NSW government's Local Infrastructure Renewal Scheme.
However, insurance will now cover a new roof and repairs to the gymnasium and swimming pool area. The council will still fund planned upgrades to the foyer and amenities blocks inside the building.
"All going to plan the centre will be open again in three months' time bigger and brighter and operating on all cylinders," Kiama Mayor Brian Petschler said.
The centre boasts about 900 members, with more than 1400 children in the centre's swimming classes.
Starting today, a temporary gymnasium will operate at the Jamberoo School of Arts from 5.45am to 8pm Monday to Friday, and Saturday from 7am to midday.
Existing members and casual visitors can use the gymnasium free of charge. However, there are no child-minding facilities available.
Learn-to-swim classes are temporarily operating at Oak Flats and Warilla pools and the hours of the Jamberoo Pool have been extended from 6am to 7pm to cater for lap swimmers.
Fitness classes are running at The Pavilion, Kiama, where a crèche is also available.
Most of the leisure centre's staff have been able to relocate with the various programs, while others are being temporarily redeployed through other areas of the council.
Cr Petschler said despite insurance covering some costs, the storm events of February 24 would leave a hole in the council's budget.
Part of the low-interest loan for the leisure centre will still be used on the upgrade, with discussions taking place with the government over using the remaining funds for other infrastructure projects.
General manager Michael Forsyth said he was extremely proud of council staff and their efforts during what had been a challenging time.