STEPS to set up an arts and community centre in Otley have moved a major step forward.

Leeds City Council has agreed in principle to leasing the former magistrates courts building to The Courthouse Project at a peppercorn rent.

And it means the way is now clear for applications to be made to the lottery and to other sources.

Rachel Feldberg of The Courthouse Project - formerly Arts for Otley - said: "It is a big step for the Leeds Development Agency, (the property arm of Leeds City Council) they have to weigh up the pros and cons and they certainly went through our business case with a fine tooth comb to make sure it would work."

If everything goes to plan the Courthouse Street buildings, which were last used as a Court in March, 1999, will be turned into an arts and community centre featuring a main hall able to seat 150 people.

It will have a range of uses from theatre and film to music, dance and exhibitions.

There will also be a community caf, a creche and a pottery room and The Citizens Advice Bureau, already occupying rooms in the building, will get enlarged facilities.

Ideas also include the conservation of some of the former police cells - including one specially designed for women prisoners.

Ms Feldberg said they would now be applying for money from the National Lottery and from other organisations.

It is estimated that the conversion of the building will be in the region of £500,000, but project members will be able to use the building as matched funding for any grants.

Money will come from grants - from the Market Towns Initiative, the regional arts lottery and the lottery - but also from fundraising and project members hope some of the work will be carried out by volunteers.

In the meantime, the project needs to know by the end of the summer if it is likely to get money in grants.

"We feel by the end of the summer we'll be in a situation to know whether we will be able to go forward and start planning the building.

"If we're not successful, I don't think we'll give up, but we'll need to rethink," she said.

Ms Feldberg said project members had been encouraged by the great enthusiasm of people.

"We've also had a very positive meeting with Harold Best MP, he is 100 per cent behind the project and will do what he can to help us, we're very pleased to have his support.

"It's been a long haul so far, but we feel extremely buoyed up by the support we've had from local people," she said.

A Leeds City Council spokeswoman confoirmed that the ambitious proposals had moved a major step forward.

She said: "Proposals to create a new arts and resource centre in Otley have moved a step forward now the council's Executive Board has agreed to the principle of a lease at nil consideration to The Courthouse Project Ltd.

"The decision paves the way for bids to be submitted to the Lottery and other funds to convert the former magistrates court and adjacent buildings into a new community facility.

"The facility would be complete with performance area, information technology suite, creche, counselling and meeting rooms, workshop space, retail outlet for local arts and crafts and community caf and bar.

"It is anticipated that decisions on the key funding bids will be known by the late summer."

l Anyone who would like to find out more about The Courthouse Project or who may be able to help out is encouraged to write to Jess Penrose, 10 Shirley Close, Otley or alternatively they should telephone Rachel Feldberg on (01943) 462826.