Rescue package to turn Mr Smith's into youth club under threat

The Guardian broke the story in September that the council has agreed to spend £3million in helping to convert the former nightclub.

It would then be run by Warrington Youth Club and charity Onside and followed a campaign by members of the public to save the iconic building after it was earmarked for demolition in July.

But less than10 days before council bosses are due to discuss the move, the Guardian has been told the council's executive board are split on the issue.

A number of senior Labour councillors are believed to be wary of borrowing the £3million needed to restore the former nightclub to use.

The money would be repaid at around £240,000 a year for the next 25 years.

A source said: "The board is split 50/50.

"Many people are saying it is a lot of money to spend on such a scheme."

However it comes in the same year as the council spent more than £1million on a new bowls pavilion at Bank Park and £3million on a new stand at the Victoria Park arena.

A senior source said: "In Wigan (where there is another youth club run by Onside) the local authority has to pay the running costs.

"This is not the case here.

"If this does not happen, there is a real chance that the owners could just start demolition work and then the building would be last.

"This is a perfect site for the youth club, there would not be a chance to find anything as suitable elsewhere."

There is talk that Labour leaders in favour of the spend could force the issue at a group meeting before the executive get together on December 15, in order to get wider support.

If the move went ahead, the building would offer sport, dance and arts facilities as well as advice and support for youngsters from across Warrington.

Onside manages similar projects across the north west and would work with Warrington Youth Club to get private funding to help it function.

Drinks giant Vimto has already agreed to pump money in,