Construction work on a £40m arts and leisure destination in Dunstable is expected to begin in January 2005 following the approval of a planning application.

A new arts centre is at the heart of the development, which will include several bars, a terrace of six restaurants and a residential development of 157 flats.

The multi-purpose arts venue will feature a 750-seat auditorium for music, dance and arts peformances.

If seats are retracted in the auditorium it could potentially hold up to 1,000 spectators while the first floor foyer could be used as a banqueting suite hosting up to 200 guests.

David McVicar from South Bedfordshire District Council said: “A huge amount of work has gone into this project and officers at the council, alongside our partners, Complex Development Projects (CDP) and Leisure Connection, have demonstrated a great team effort.”

The council has signed a deal with CDP to construct the centre and plans to lease out the management contract for the site to Leisure Connection.

The council is contributing £8m towards the cost of the development, with a further £250,000 per year earmarked towards the management costs of the venue.

The arts centre extension will wrap around Dunstable’s existing leisure centre, which includes a multi-purpose sports hall for badminton, tennis and skating as well as squash courts, swimming pools, sauna, sun beds, steamrooms and aerobic studios.