A half-acre site at the rear of Settle's Victoria Hall could be developed as a centre for creative industries.

David Smurthwaite, head of economic and community development at Craven District Council, presented a report on the proposal to members of the community services committee, in which he recommended that the land should be used for workshop and office space.

The proposal is to develop eight ground floor workshop or craft units and 10 first floor offices.

The plans also include an exhibition area which could be used by tenants of the workshops to display their finished products, or as a multi-use seminar/ workshop space which could double up as a cinema.

Recent studies, including one carried out by Chrysalis Arts, which has an office in Gargrave, have shown a demand for small- scale office space catering for start-up businesses.

However, councillors expressed some concerns that the people carrying out the research did not have a realistic view of what was possible or practical.

Coun Donny Whaites said he was worried the scheme could turn into a white elephant.

"It would be better being made into a car park for the users of the Victoria Centre," he told the meeting.

Coun Helen Firth, who represents Craven District Council on the board of trustees for the Victoria Hall, said they would like to be involved in any discussions on the future use of the land.

"The first design that came to us for an extension to the Victoria Centre was pretty gross," she added.

Mr Smurthwaite said whatever happened at the site, it would have to work in harmony with the existing community use of Victoria Hall.

"There is funding of £900,000 for this project, but there is still a lot of work to be done," he said.

"We need to give a recommendation to North Yorkshire County Council by the end of March to say we are interested in this scheme."

Coun Richard Welch said he was concerned that there were a lot of developments going on in the neighbouring areas that might impact on the viability of any more offices.

"This is the Victoria Centre and if any extra buildings are put there, they should be for community use," he added.

Coun Roger Nicholson said he was in favour of the development, but he felt it might get complicated if the units were then going to be offered at below market rents.

"If we are thinking about then creating an exhibition space where people can sell on products, then that has to be paid for and that will then go onto the costs of the office units," he added.

Councillors agreed to establish a working group to carry out a detailed appraisal of the scheme, which will then be presented to the council's performance and resources committee.