THE costs of ambitious plans for a new version of a flagship arts centre in Margate will not be allowed to exceed £15million, Kent County Council has pledged.

The commitment came as council chiefs unveiled a blueprint for an alternative Turner Centre on the seafront. The new masterplan came just eight weeks after KCC announced it was to pull the plug on its original proposal, which had been for the gallery to be built partly in the sea by the pier.

That decision came after the estimated costs had spiralled to £50million.

Kent County Council said it hoped what it has dubbed "Turner Onshore" would be open to the public in 2009 and that its new plans for the Rendezvous site, close to the pier, had already attracted significant interest from architects.

The gallery’s new designers are expected to be appointed in July.

Around 600 people packed into the Winter Gardens to hear about the scheme on Tuesday night.

KCC and Thanet District Council also announced separate plans for a 200-bed hotel adjacent to the new gallery and to encourage private developers to invest in a multi-million pound restoration of the Winter Gardens in help boost the regeneration of the town.

KCC leader Cllr Paul Carter (Con) said he was determined to ensure local people had a say in the scheme.

"When we get a new design team, one of the first things we will tell them is to have proper consultation with local residents," he said.

He hoped the arts centre would be as stunning as the original scheme.

"We are going to be setting a ceiling on the price and I genuinely believe £15million is the right sum. I do not like to use the word iconic because it can be the kiss of death but it will be a significant building," he said.

It was important the gallery was not seen in isolation but developed alongside other regeneration projects.

"East Kent suffers desperately from a shortage of hotel accommodation and if we can get it right, there are enormous opportunities for Thanet. We must do all we can to increase the momentum for the regeneration of the town."

Thanet North MP Roger Gale hailed the announcement as marking the return of Margate as a key tourist destination.

He said: "What we are seeing here is the launch of Margate Waterfront. I believe that in years to come, it will take pride of place in the tourist attractions of Kent."

Opinion about the merits of the scheme divided public opinion at Tuesday’s meeting. Several speakers questioned whether the gallery was enough to regenerate the town.