Fireplace redo
Any ideas on how to update this fireplace. Can the wood be saved by painting or staining the rough cedar? Can the bricks look better? Ideas are appreciated. This is a small but sunny living room. Like neutral colors.

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I think that the brickwork takes up a lot of your usable space in the room - if it was mine I'd want to take out the huge hearth area that runs from wall to wall and just have an area right in front to protect from sparks. This would open up your space and provide more room as well as remove that awkward brick staircase dilema.
I'd love to see that paneling come down from above the mantle and on the wall next to the staircase. I'd install cream colored shelving with cabinets at the bottom to both sides of the fireplace complete with built in lighting tucked into the shelves and perhaps some canister lights up near the ceiling in front of the shelves.
I'd relocate the television to another area where it is closer to eye level - no more neck strain and you'd get to use the mantle for some cool decorative pieces and have a place to hang a painting.
To bring it all together I'd add crown molding and tall baseboards in cream to match the shelves and cabinets.
I think your room has lots of potential.
1) DIY/SNUG BUDGET
Sand & Paint all wood, then symmetrify (my own made-up word, but you get the idea) the shelving flanking the fireplace & add two sets of cabinet doors on either side to provide hidden storage.
If you have more modern leanings, I would paint the brick & wood in a dark slate gray - the back panels of the shelves could be lined with a vibrant wallpaper or painted a delicious light spa blue or spring green.
If you have more traditional tastes, scrub/wirebrush the brick then paint all the wood shelving a soft white.
The TV can be mounted above the fireplace & accompanying equipment can be stored on the shelving, or - better yet- store in one of the cabinets below (which can be set up with frames & speaker fabric instead of a center panel, so the components can "breathe").
2) ROOMIER BUDGET
There's an odd little gap between the adjacent staircase & the fireplace hearth, so given an option, I would tear out the ENTIRE brick facade and wood shelving/paneling.
Then I'd pick a beautiful tile or faux stone (I like Eldorado stone) & lay it floor to ceiling without a mantle shelf, mount the TV & build out simple shelves on either side of the fireplace, flush with the tile/stone treatment.
The base of the fireplace can be treated with tile or stone.
If there is spare wood floor planks, then those can be used to fill in the gaps to the right & left of the fireplace. If not, you can carry the tile/stone to either side for a cohesive treatment.
Good luck!!
hope you like it as much as I did doing it.
See pics from a similar fireplace of before and after. The blog has a "how to". It's great! (I'm not in any way affiliated - I'm in Sydney!) Good Luck!!
http://www.eastcoastcreativeblog.com/2012/11/brass-fireplace-update.html
There were shelves on each side of this and doors on the bottom. My husband said I should have sent a picture of it before I took things apart. The bricks were wire brushed when it was built 34 years ago. We can't remove the glass doors because it would create a lot of heat loss living here in Wisconsin. We also can't add another top on the hearth because it would cover the vents under the glass doors.
Some of you made the suggestion that I would like and that is to remove the large wings of the hearth and resurface with a nice stone going to the ceiling but my husband is not agreeable to that option at this point.
A couple of questions:
Coates Design - what is GFRC?
Does anyone know of a good way to effectively stain/whitewash wood? We took a wood sample to Sherwin-Williams and the whitewash made the wood turn a pink color. Would I dilute a paint color?
Should the wood match my walls? I am considering using a soft yellow beige, Sherwin-Willilams Softer Tan SW 6141.
Thank you Mandy for the link to the white-washing brick. What color would I dilute to paint my brick though? Would I use my wall color on the wood and brick?
Re shelving: What thickness of shelving would look best?
Should they be recessed as in the past or the full depth so they are level with the brick and if they are that deep how do I address the items on such a deep shelving?
Thanks for all your help!
Re the white wash colour... there are hundreds of whites, all with different base tints (pink, green, yellow, blue...). Go to the hardware store and get lots of white sample cards. Then compare against at your soft sage walls. It will become very clear what compliments and what clashes. Do it during the day, and at night. Once you've narrowed down to a couple. Purchase sample pots and test in a couple of spots. Test in a light area, and a shaded area. The mix will also make a difference (lighter 3:1 parts, medium 2:1). Test that too. Good Luck - can't wait to see the finished room.