AN arts centre due to close this summer could be saved if a hotel scheme goes ahead.

Talks are under way into whether Darlington Arts Centre could be used as a hotel, restaurant and “commercial premises for creative industries”.

It would allow the centre, in Vane Terrace, to retain a gallery and performance space for public use.

Darlington Borough Council is considering options, having received bids to buy the site.

Earlier this month, it agreed to close the Arts Centre in July and market the site to save £500,000 to help cut its budget by a fifth.

Darlington for Culture, a group set up to try to take over the centre, said it welcomed anything that could keep the facility open.

Chairman Nick Brewster said: “This sounds very interesting.

We have always advocated a model which preserves the building on the site, but making it work financially, and this would be a good way forward.

“This way, much of the facility will remain for the people of Darlington for arts performance and the arts in general.

“We would certainly look to speak to these potential developers to see how we could help to make this a reality.”

A council spokeswoman said it was not possible to go into detail because of commercial sensitivities.

A statement said a number of bids for the site have been received.

It said: “We have also received a proposal that involves extensive refurbishment of the Arts Centre building on Vane Terrace for a range of uses, including the provision of new commercial premises for creative industries.

“This proposal is in very early stages of development and, as it relies on private funding, there remains a significant degree of fluidity.

“The proposal also explores the provision of gallery and performance spaces, together with hotel and restaurant facilities.”

All of the proposals are subject to appraisals on their credibility and financial sustainability.

The result of a separate bid to the Arts Council for a proposed arts hub in the town will be announced in the coming weeks.

The council’s cabinet will consider its next step at a meeting at 5pm on May 2 in Darlington Town Hall.