Plans for a new £21m arts complex in the heart of Southampton have progressed after the local authority confirmed the signing of the final agreements.

Southampton City Council (SCC) announced that legal terms with Arts Council England and the council's development partner - Grosvenor Developments - have now been agreed. Detailed plans for the CZWG-designed venue are now to be drawn up with a view to being submitted in spring 2011. It is anticipated that work will begin in 2012 before the 'shell' is handed over to SCC in 2013.

The new venue - spread across two "iconic" buildings" – is set to boast around 75,000sq ft (6,968sq m) of performing arts, gallery and film/media studio space. Arts Council England is investing £7.2m in the scheme, which is to be developed on the former Tyrrell and Green building site and will feature at the heart of a Cultural Quarter scheme.

John Hansard Gallery; University of Southampton; and City Eye have already been confirmed as the venue's operators, which is due to launch in early 2015. A performing arts operator is to be sought subject to the completion of a council review. SCC cabinet member for leisure, culture and heritage John Hannides said: "This new arts complex will be at the heart of the city's Cultural Quarter. It will be a place where all the arts can thrive and will draw in tens of thousands of visitors every year.

"It is great news that the final agreements have been put in place to make this aspiration a firm reality."