THE former Tyrrell and Green site in the heart of Southampton could be left to lie empty for another ten years, the Daily Echo can reveal today.

It comes as the flagship arts complex planned for the Above Bar site is on the brink of collapse.

It is understood Arts Council England is close to withdrawing a £5.7m grant vital to the future of the Southampton New Arts Complex.

Opening in 2014, it was set to feature up to eight cafes and restaurants, 20 luxury apartments and a new home for four of the city’s major arts organisations.

It was to be crown jewel of a new Cultural Quarter for the city.

News of the setback comes just days after Southampton’s proposed Titanic museum received a lottery grant.

Southampton City Council has already spent £1.2m of public cash to tear down the derelict department store and another £4.6m on a revamped Guildhall Square.

But the vision could be in tatters if Arts Council England follows the advice of its “artistic assessor”, who has recommended the bid for funding is rejected.

Daily Echo: Click below to see a video of today's headlines in sixty seconds

That would spell the end of a 10-year dream and be a financial and cultural disaster for Southampton, according to the city’s civic and art leaders.

“We are worried that they are going to say no, but we have heard nothing officially yet,” Cllr Royston Smith, the deputy leader of Southampton City Council said.

“It would damage irreparably and for all time the concept of the arts complex. We have put in an enormous amount of effort into this and it would be unthinkable that it would now not happen on the 11th hour.”

Southampton Itchen MP John Denham said: “I have made representations to the Arts Council to say just how important the arts complex is. Lets hope and do everything we can to not lose it at this stage.”

Fellow Labour MP Alan Whitehead added: “I gather there is a recommendation from an assessor that the funding be discontinued.

“It would be a wretched thing to do given the benefits that would come from this.”

Arts Council England last night confirmed it had “significant concerns”

about the project, which was taken over by property developer Grosvenor after the original developer, City Lofts, went bust.

It’s understood the main issue is over a plan to locate the bulk of the arts element above commercial outlets, rather than on the ground floor.

Sally Abbott, director of the organisation’s South East region, said she would be presenting her recommendations about investment to the council’s management committee today.

“Our recommendations do highlight significant concerns about the project and Southampton City Council are aware of those but it would not be appropriate to discuss them publicly at this stage,”

Ms Abbott said.

“We are committed to supporting Southampton to develop its arts provision and cultural offer.

Southampton is a priority area for us which means we are committed to focusing resources there.”

David Goodall, the Liberal- Democrat parliament for Southampton Itchen, said the city’s reputation in the art world had been damaged by the city council’s controversial proposal to sell some of its art collection.

However, Cllr Smith rejected any suggestion that the now abandoned art sale had jeopardised the funding bid. He also revealed it would take years for alternative proposal for the Tyrrell & Green site to be drawn up.

“I’ve been told it could take up to five years for land value to recover.

What we are not going to do is play hard and fast with public money and just sell this site off for a few bob,” he said.

The arts complex, which would create 140 jobs, was set to house new exhibition and performance space for the John Hansard Gallery, Nuffield Theatre, Art Asia and City Eye.

Plans for an arts centre began in 2000 when Tyrrell and Green relocated to WestQuay shopping centre as John Lewis Southampton.

Stephen Foster, curator of the John Hansard Gallery, said: “It would be a disaster for cultural development in the city. This is a once in a lifetime opportunity for Southampton.”

Susan Beckett, administrative director at City Eye, said: “If this is taken away I can’t describe what a setback it would be for us.

We will not have another opportunity like this.”

Arts Council England will announce its decision at a national board meeting on May 13.