A stunning arts centre will rise from a waterlogged city-centre car park if Bradford dance group Kala Sangam fulfils its dream.

The organisation announced last night it wants to build a £3 million centre of excellence for South Asian arts on the wasteland of Exchange Court, next to the Victoria Hotel.

It would be a centre for performing, training and promoting arts from Pakistan, India, Sri Lanka and Bangladesh. Supporters say it would be the only one of its kind in the UK.

The centre will include a 400-seat auditorium, state-of-the-art dance rehearsal rooms, training facilities and bars. It will encourage talent in the district and attract performers from across the country and overseas.

Bradford's City Hall filled with South Asian music last night as performers from Kala Sangam entertained Council officials, councillors, arts funders and representatives from other organisations who were invited to see the group's vision laid out.

The dance group, currently based at Carlisle Business Centre, hopes the scheme will be a big part of Brad-ford's Capital of Culture bid and will help clinch the title for the district.

"We want a centre of excellence focusing on performance and education, but not forgetting the community aspect which concentrates on health and disability," said Dr Geetha Upadhyaya, artistic director of Kala Sangam.

"We have a commitment to stay here and give our best to Bradford and help regeneration through arts activity."

Kala Sangam has already been pledged £1.5 million from the Arts Council for the project and must now secure match funding from Yorkshire Forward and Bradford Council.

Irena Bauman, of Leeds-based Bauman Lyons Architects said they looked at 29 potential Bradford sites for the centre and ended up with a shortlist of two: Lister Park and Exchange Court.

Mrs Bauman said Exchange Court was favoured because of its central position and the chance to turn it into a beautiful public space.

"The site meets all our aspirations," she said. "There is potential to create a cultural cluster there where a landmark building is required. It would contribute to the city's regeneration and could be an international tourist attraction. There is room for expansion.

"Exchange Court is an amazing space and we are suggesting a fantastic alternative to commercial development.

"It could be self-sustaining, or provide impact at night. It would reflect different cultures and attract touring artists of national and international calibre."

But there are risks, she added, as the condition of the site is unknown. It is hoped construction will begin in April 2003 but Kala Sangam needs cross-party support to realise its dream.

The organisation was founded in 1993 on the principles of bringing people together - kala means art and sangam means meeting point.

Dr Upadhyaya said the arts centre was a major selling-point for the culture bid. "The bid celebrates Bradford's cultural unique quality."

Guests at last night's meeting were given a taste of Kala Sangam's talents with a dance by Jaymini Chauhan and music by internationally renowned Grammy award-winning Sukhvinder Singh Namdhari, Sukhdev Singh and Narendra Mishra.

Bradford poet Joolz Denby recited some of her poem, This Is Where We Live - commissioned for the Capital of Culture bid - accompanied by dance and mime by Dr Upadhyaya.

Joolz said: "This is the type of thing that people would die for in London."