At Monday�s meeting, the council voted to revoke its decision made last August to remove the courts, which put the estimated cost of the project at $3,503,000.
They then voted to approve the revised redevelopment plan at an estimated cost of $3,780,000 and requested the additional $277,000 be listed for consideration in the City�s 2017-18 five-year capital works program for the construction of two new courts.
The City will now apply for the Department of Sport and Recreation�s Community Sporting and Recreation Facilities Fund (CSRFF) for $829,100 to help fund the redevelopment.
The City had applied for the grant in 2015-16 but it was unsuccessful.
The decision to keep the courts was in response to a 603-signature petition presented to the City in June.
Lead petitioner John Logan said the council�s decision to remove the courts was based on low usage information gathered when the courts were not open to the public.
He said since the City�s trial of free use of the courts, usage had increased significantly.
�I�m really pleased the council has seen how important the courts were to the community,� he said.
Cr John Chester said Penistone Park was classified as a district park (a park to service the local area and surrounding suburbs usually facilitating sporting activities) and with urban infill and densification, more younger people would be moving into the area.
Cr Brian Corr said the suggestion to use the courts in Warwick was �a bit far away�.
Councillors also endorsed the application for a $173,104 CSRFF grant to upgrade the floodlighting at Admiral Park in Heathridge.
This park is used by the Joondalup Giants Rugby League Club in winter and the Whitfords Senior and Ocean Ridge Junior cricket clubs in the summer.
The $519,000 upgrade would bring the lighting to Australian standards for all codes of football training and competition.
The CSRFF grant pool has been reduced for 2016-17 from $18.5 million in 2015-16 to $6 million.