A NEW £2.5 million community centre incorporating a theatre or cinema could be built in Nelson within two years.

But Pendle Council still has to decide whether to add it to the grounds of the Liberata offices, which are being built at the former Grand Cinema site in Cross street, or to convert St Mary's Church.

And council bosses need to move fast, because a £750,000 government grant could be lost if it is not spent within 14 months.

Details of the scheme were unveiled yesterday and Liberal Democrat councillors said it was an "exciting" project which would replace the dilapidated Silverman Hall, and the Civic Theatre, which closed two years ago.

They will discuss the two proposals, using money from the Whitefield regeneration scheme, when the executive meets on Thursday, and are set to make the final decision by the end of February.

They hope the whole project will be finished by spring 2009.

Coun Tony Greaves said: "Both options are being looked at very seriously but a decision has to be made fairly quickly in terms of getting the funding.

"This is part of a series of Liberal Democrat initiatives to bring new life into Nelson, and a new theatre-type facility will play a very important part in turning Nelson once again into a successful town.

"I know some people would prefer to see a community centre in the middle of Whitefield, but if we did that it would have to be a much lesser facility than we can make by joining both the community centre and the theatre."

He added that even if the former church, which was visited by Prince Charles in November 2005, was not chosen for the new centre, it would be brought into use in another way, to stop it being left unoccupied any longer, while more office spaces could be added to the former market and cinema site.

The Civic Theatre is set to become the new home of the Salvation Army, when its building at Cross Street is bulldozed, while Silverman Hall will be sold off.