The development of a new £13m contemporary arts centre in the Union Terrace Gardens in Aberdeen, Scotland, has been jeopardised after new plans were submitted for a wider redevelopment of the site.

The centre, a partnership between Aberdeen City Council and Peacock Visual Arts, was expected to bring key arts organisations together under one roof including the council's arts development team and arts education team and City Moves - Aberdeen's contemporary dance agency. Although plans for the centre were approved last year, development has been put on hold until at least December 2009 so that Scottish Enterprise can investigate a larger redevelopment scheme for the site.

The larger scheme, proposed by billionaire Sir Ian Wood, would include a piazza, underground retail units and parking beneath the main civic space, but it's uncertain how the arts centre would be integrated. According to a spokesperson for Peacock Visual Arts, three options are currently being assessed in a feasibility study - the results of which will be revealed later this month, followed by a final decision in December. Two of the options "obliterate" the original plans for arts centre and focuses on the wider redevelopment scheme.

The arts centre, designed by London-based architect Brisac Gonzalez, would host exhibition by international artists and run community outreach and education projects. It will house galleries, printmaking facilities, dance studios, a café and space for music and film screenings. When operational, the facility is expected to generate £5m annually to the local economy Both the University of Aberdeen and Robert Gordon University are involved in the art centre project, which has been funded by the Scottish Arts Council (£4m), Aberdeen City Council (£3m) and Scottish Enterprise (£2m). The rest of the funding will be sourced through a capital fundraising appeal.