Councillors have approved the business plan for an “important” multi-million pound centre to host live events, arts festivals and activates.
The Scala arts centre in Worcester will be established in the former Scala cinema on Angel Street.
The overall scheme is expected to cost £17.9m and Worcester City Council voted to allocate an extra £300,000 to get the venue running and £150,000 a year to help keep it running for the first couple of years after it opens in autumn 2026.
Some councillors said they were “nervous” about the cost of the project.
The business plan was revealed in July and detailed how the space would be used by organisations and members of the public.
Councillor Karen Lewing said: “I am hugely concerned about the construction costs. I hope construction costs nationally are going to start coming down and will benefit us.
“I hope the construction team will be looking for best value at every opportunity,” she said.
Managing director David Blake added: “We’re all sitting here on slightly nervous tenterhooks waiting to see what budget’s going to come in terms of construction costs.
Earlier this week, the city council transfered the Swan Theatre from its ownership to Worcester Theatres, a charity which also runs Huntingdon Hall.
The move is hoped to secure the long term future of the building and will see the organisation pay rent of £1 a year to the council.
Council leader Lynn Denham said: “The Swan Theatre is much more than just a building and is more than just a perceived problem.
“It absolutely has a place in the artistic life, the cultural life of our city,” she said.
Councillor Jabba Riaz said the decision could be seen as the council “washing its hands” of the Swan Theatre – but that was not the case.
“They are a valuable asset to this city. They bring in thousands of visitors across the year and provide a great service.
“Our leadership is about collaboration and Worcester Theatres are a key part of what we want to offer our city,” he said.
