Bradford Council has agreed to become a member of a new limited company to develop a £14million Peace Centre project and appoint one director to its board.
The proposed centre would include a hotel and conference suite, as well as leisure facilities.
It would be funded partly by the private sector and is also seeking money from Europe.
The Council's contribution would be the land on the site of the Alexandra Hotel, where the development would be built.
But Coun Margaret Eaton (Con, Bingley Rural) said: "I am concerned about the Rawson Market scheme and funding and don't want to commit to anything else while we have got that hanging over us."
Councillor John Cole (Lib-Dem, Baildon) said he was concerned that the commercial side of the proposed development would restrict the real message of the museum.
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