Leicester City Council (LCC) has agreed an initial payment of £100,000 to help support the city's Phoenix Square Film and Digital Media Centre, which is facing a funding shortfall.
In July, the board of the Leicester Arts Centre Trust (LACT) - operator of the venue - was told that it was facing an end-of-year deficit projected to be around £257,000.
However, the council has now agreed to step in and support the venue, with a further £150,000 to be paid in instalments if LACT can present a "viable and sustainable business plan" for the the complex.
LCC cabinet member for culture and leisure Rob Wann said: "Cabinet approved an initial payment of £100,000 to Leicester Arts Centre Trust Ltd and that a further £150,000 be paid in instalments subject to the presentation of a viable and sustainable business plan for the ongoing governance, management and operation of Phoenix Square Film and Digital Media Centre."
"Members require the business plan to be presented and endorsed by cabinet and reported via the council's scrutiny arrangements on a regular basis."
The cabinet also resolved to explore measures to increase footfall to the city's Cultural Quarter, the location of Phoenix Square Film and Digital Media Centre.
