A SHOWPIECE arts complex that folded with crippling debts last year will re-open in the spring.

Stockton Arc, which closed last October after running up debts of about £2m, will be run by a non-profit-making company.

The troubled Arc was dogged by dwindling audience numbers, high overheads and spiralling building costs.

Potential members of a new board will present their vision of the Arc's future at a meeting of Stockton Borough Council's cabinet next Thursday.

Their business plan, drawn up by local business, education and legal representatives, will try to avoid the financial free-fall that nearly spelt the end for the Arc last year by encouraging resident groups to attract their own funding.

Alex Cunningham, the council's cabinet member for culture, said: "All the debts are in the past. It will be a new start for arts in Stockton.

"A business plan has been prepared for the future of the venue - a future that will promote learning and high quality arts for Stockton.

"There will be a number of resident groups that will each attract their own funding to pay a contribution towards the cost of the building.

"We must have a firm foundation for it. The Arts Council and local authority will continue to support it.

"The Arc did cost the council a lot of money but it is important we invest in our cultural heritage."

Arc went into liquidation after a rescue plea for £280,000 to the Arts Council was turned down, leading Stockton South MP Dari Taylor to accuse the organisation of leaving the project "high and dry".

However, the Arts Council had bailed the project out a year after it opened, agreeing to pay £1.2m on top of its initial grant of £6.25m.

As the Arc's main creditor - until 86 per cent of the debt was written off to give it a clean slate - the Arts Council did have the power to require the venue to be sold to recover its losses.

Yesterday, a spokeswoman said they still want to see it returned to local arts.

She said: "We are not aware of this business plan. However, we will work closely with the council and hope that what comes of it will be decided by the people who will use it."