A CONTROVERSIAL arts centre once branded a 'white elephant' celebrates its second birthday today as one of the region's top entertainment venues.

The Arc, in Dovecot Street, Stockton, has fought back from crippling debts and part-time closure to entertain some big showbiz names.

The centre was built with National Lottery cash and support from Stockton council but was four months late and over budget.

The Arts Council paid £1.2m on top of its £6.25 grant and in March last year creditors agreed to write off 86 per cent of the centre's £2m debts.

The Arc's initial failure to attract audiences and make money was blamed on its elaborate plans to bring unusual art to Stockton without taking into account the centre's small staff or the needs of the Teesside audience.

Despite its troubled beginning the Arc went on to qualify for £500,000 from Northern Arts, £78,000 from the Stockton City Challenge regeneration board and lottery funding

Last year boss Frank Wilson was replaced by managing director Bernhard Lanz, from Chemnitz in Germany, and artistic director Michele Plews who set about changing the Arc's image.

Speaking yesterday, Mr Lanz said: "At first, people were confused about what we were doing but now we have got rid of this white elephant image.

"We have got rid of the idea that it is only a venue for young people. We must now try to work to improve on things we have achieved so far.

"Of course, by dealing with more people we have found little hiccups, such as customer care where there is a lot of scope for improvement.

"We mean to present more big names in every area of the arts. We definitely want to continue to make it a venue for everyone.

"There is still lots of work to do."

HIGHS: Pop band Babybird play their only UK gig in 1999 at the Arc followed by another top band, Shed Seven.

Fans of chart-topping band Ash voted Arc their preferred venue in the region for a concert in December last year.

The sell-out Stockton Riverside Festival is based at the Arc.

LOWS: Centre forced to close for two days a week in June 1999 because of high running costs, low audience.

Cinema forced to close in July 1999 for two months due to lack of films and low audiences.

Postpones plans to open late at night in July 1999 due to complaints from residents about noise.

Millennium New Year's Eve party, including free transport, food, DJ and late licence, cancelled after poor ticket sales.