Up to $10.5 million will be spent on upgrades, renovations and new facilities at Utoya island, The Local reported.
Anders Behring Breivik was convicted Aug. 24 of terrorism and mass murder in the July 22, 2011, deaths of 77 people, include eight in a bombing at a government building in Oslo.
Eskil Pedersen, leader of the Workers' Youth League (AUF), the youth wing of the Labor Party, said Friday the work was "the best way to honor the victims."
AUF said its 22 July Fund has received about $7 million of the $10.5 million it proposes to spend on the project, which would add a new main building with conference space, meeting rooms, a dining room with kitchen facilities and a bazaar area. Docks, beach and an outdoor stage will also be added.
Soccer and volleyball courts will be upgraded, as will draining and lighting.
Rebuilding of existing buildings is expected to begin in the fall, with the remainder of the work starting next year.
Pedersen acknowledged many survivors of the massacre were against returning to the island.
"We have attempted to take into account as much as possible, but we think it is better that the island is a place that is taken care of and where activities are held other than that the island is laid to waste," he said.
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