Speaking at Monday evening’s agm, chairman Doug Henderson said he had “good news” that the club had managed to put together a project to utilise the space.
As revealed in last week’s Falkirk Herald, the gym will be used by players, fans and the public, while there will also be meeting rooms and a cafe/bar area.
Mr Henderson said the initiative involved joint working with the football club and Falkirk Foundation with the majority of the cash coming from the land tax credit schemes.
He said: “This allows companies to reduce tax liabilities by investing in community facilities and we will be using this structure to bring about the development of the first floor.”
The chairman said it was hoped the facilities would be up and running by the start of next season.
Addressing the turnout of around 60 shareholders, Mr Henderson added: “When a club wants to move forward, it needs to change and give the customers what they want. If it doesn’t it will die.
“With the strength in our team I believe we can be serious challengers for promotion.”
The directors came under fire from some shareholders for not presenting a more detailed picture of the club’s finances.
The accounts showed the club made a loss last season of £129,186, largely put down to not having as good a cup run as the 2014/15 season.
But some said the accounts were “worrying” and “disappointing” for the lack of detail.
Mr Henderson replied saying much of the information was commercially sensitive.
Asked about a lack of summer concert in 2016, he said this had been because they had not been able to get the right act at the right time.
He also agreed with one shareholder who asked if they should not be trying to attract new directors having lost the services of Ronnie Bateman, Douglas McIntyre and Colin Liddell.