ONE of Scotland's leading theatres is to be taken over by St Andrews University.
However, the nation's main arts funder, Creative Scotland, said it will be seeking talks to ensure that the Byre Theatre in St Andrews remains a "public arts facility".
A meeting of the executive committee of Fife Council, which owns the building, agreed that St Andrews University should be the preferred bidder to lease and run the Byre Theatre.
The university has proposed a lengthy lease on the building, which would be used by the university during the day for teaching and in the evenings and weekends as an "arts centre for students and community-led music and drama".
In its plan for the theatre, touring companies would also be encouraged to visit, while art films, mini film festivals and live broadcasts from the National Theatre and Royal Opera would form part of the public programme.
The theatre closed in early 2013 after running into severe financial problems, a move that shocked many in Scotland's arts world. Actors union Equity has questioned the St Andrews University bid as more than £4 million in lottery money has been spent on the building.
A spokesman for Creative Scotland said: "We look forward to this and hearing about the proposed programme for the Byre. It has an important role to play in Scotland's theatre infrastructure as both a presenting and producing theatre."
Keith Winter, the executive director of environment, enterprise and communities at Fife Council, said: "Officers will now work with the university to agree the specific terms of the lease.
"This will be brought back to the committee for agreement at the earliest opportunity."
A spokeswoman for the University of St Andrews said: "We are delighted that our proposed rescue package for the Byre Theatre has the support of Fife Council.
"We look forward to developing a detailed agreement together with them, Creative Scotland, theatre users and the local community."
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