TALKS get under way next month on creating a community arts centre on a Southampton site that was earmarked for a lap dancing club.

Community figures have spoken of their relief that Spearmint Rhino's proposals for opening a venue at Chantry Hall, in St Mary Street, fell through.

Now the site, along with neighbouring former garage premises, is set to be converted into a housing development. Council chiefs are hopeful the Grade II listed building, formerly owned by the Church before becoming the nightclub Jolly's, will be used as a community centre.

They will hold talks with developers Kingfisher Housing Association next month to discuss the project.

Spearmint Rhino, which runs lap dancing clubs across the country and bought the site, had already gained a licence and claimed they were prepared to splash out £1m on renovations. Neighbouring residents raised concern at the condition of the derelict site and Spearmint Rhino eventually scrapped its plan. The company is rumoured to be suffering financial dificulties.

Ward councillor John Noon said: "I am very pleased and hopeful that a housing development could go ahead there. I would particularly like to see an emphasis on social housing."

The Rev Ian Johnson, team rector for Southampton city centre parish, said he was supporting the housing plans.

He was among figures who opposed the lapdancing proposals for the area, which has seen millions of pounds poured into it for regeneration.

"I am absolutely delighted that Chantry Hall will now be what we wanted it to become when we first sold it," he said.

"My hope is that there may be a community hall within it."

A city council spokesman said they will meet with Kingfisher next month to discuss the project and a community venue. She added: "We fully support Kingfisher's proposals."