Designs for a new theatre can be viewed on the council's website
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The multi-million pound revamp of a Kent theatre has suffered a setback with potential funding being diverted to the 2012 Olympics in London.
The Marlowe Theatre in Canterbury has been housed in a 1920s cinema building for nearly 25 years.
Canterbury City Council wants to add extra money to its own £9m investment. However, the Arts Council has lost some of its lottery funding to the Olympics.
The city council said it had "fingers crossed" for other funding sources.
"The council has always been hugely positive about this project and we really, really want it to go ahead," said chief executive Colin Carmichael.
'Positive conversations'
But he admitted that not being able to get money from the Arts Council had come as a blow to the Marlowe project.
"We were hoping for a substantial contribution, but it seems some of their cash if not all of it has gone towards the Olympics now.
"There are other places that we're looking, in fact we're having very positive conversations at the moment with Kent County Council (KCC) and the South East England Development Agency (Seeda)."
A statement from the Arts Council said the plans for the Marlowe were exciting, and it was working with the city council and the theatre to ensure the project was a success.
The council said the current theatre building was not up to scratch
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"Although no formal application for funding has been received, the Marlowe did make an informal inquiry about funds for its capital refurbishment.
"Unfortunately, our capital programme closed to new applications in 2003.
"The programme was lottery funded and because our lottery income has halved over the last 10 years we are no longer able to fund large scale capital bids," it said.
Councillors have said £9m would only be enough to bring the Marlowe Theatre's "current facilities up to standard".
Architect Keith Williams' plans are for a completely remodelled 21st Century theatre, with only the fly tower and the shell of the current building remaining.
Mr Carmichael said he believed the start of refurbishment works was still on course for the end of 2008, but funding clarification from KCC and Seeda in the New Year would provide "a bit more certainty about this".
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