PLANS for a £12.5m sports centre may have to be scaled down after National Lottery bosses snubbed the project.
Sport England has refused to give £2.7m towards the new complex at Catterick Garrison, North Yorkshire.
But despite the shortfall, project bosses say the centre, for use by civilians and Army staff, will still be built.
The Ministry of Defence has already pledged £7.35m towards the centre, with a further £950,000 coming from Richmondshire District Council and the county council.
Richard Dunn, deputy leader of Richmondshire Council, said he was confident more money could be found.
"We can still deliver an £11m sports centre for the people of Richmondshire.
"The project will go ahead, but it will be a little bit smaller. We've managed to make sure the sports centre will operate just like any other and provide facilities for the whole community.
"The only difference will be that one of the two swimming pools will be reserved for Army personnel," he said.
Other facilities at the complex will include a six-court sports hall, three squash courts, a health and fitness studio, climbing wall and an aerobics/martial arts studio.
The building will also included a library, crche and licensed bar.
In Richmond, building work is to start in the autumn on a multi-purpose sports hall.
Richmondshire Council has already agreed to pay £150,000 towards the £550,000 overall cost of the new facility, which will be available to the public through a dual-use agreement.
The council has also agreed to give the same amount towards a new sports hall at The Wensleydale School, in Leyburn.
The school is planning to submit a bid for further funding to Sport England.
Sports facilities will be discussed at a meeting of Richmondshire Council's community committee on Tuesday.
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