West Norfolk Council is to discuss proposals for the future management of the theatre and Lynn's historic Guildhall Theatre following a review of the borough's cultural and sports services.

There were fears both venues would shut and the council last month announced it would no longer programme shows for either venue after September.

It also introduced the idea of making the Lynn theatre, at the Arts Centre, a "hall for hire" only and setting up a trust to run its sports and leisure facilities in a bid to cut costs.

Now a report to the cabinet, due to meet on Tuesday, has revealed a number of private businesses have already expressed interest in taking on the management and running of the Hunstanton theatre, including one company interested in a medium to long-term lease or freehold purchase of the venue.

The preferred option is to prepare a tender with a view to securing a private sector leasehold arrangement for 15 to 20 years, with conditions providing for live entertainment during the peak summer
weeks and allowing community groups regular access, the report said.

But the options of using the theatre to house Hunstanton's Tourist Information Centre (TIC) or selling it outright have also been investigated.

The borough council is locked into a 25-year lease arrangement with the town council to operate the TIC from the town hall, at a cost of £7,236 each year.

In order to move the centre, the town council would have to agree to terminate the lease and the report warns there is not enough space at the theatre to accommodate it "without severely compromising the operation of the Princess Theatre bar and the TIC".

Another option would be to extend the theatre's front-of-house area, but detailed plans have not been drawn up because of the recommendation to move the tender process forward, the cabinet will hear.

The report said the sale of the theatr would provide a lump sum, but even if conditions were attached, the council would no longer have any effective control over the facility and if the business failed, it could be left empty or be sold on for other purposes.

An independent valuation of the theatre has been commissioned, nonetheless.

It has been decided the town's traditional pantomime will be moved to Lynn Corn Exchange with effect from Christmas this year, the report said.

The council is also recommended to agree in principle to setting up a trust to run all its sports, leisure and entertainment venues in the future.

A super-sized "full trust" – bringing together all of the council's sports and leisure venues, including Lynn Corn Exchange, Arts Centre and galleries – is emerging as the favoured option, rather than creating a "gallery trust" which separated galleries and arts education,
the report said.

A full trust would save more money and ensure it was a "major player" in the local leisure scene, it stated. The gallery trust would have artistic independence and a clearer purpose, but it would put the galleries out of sync with other organisations and have a low
turnover, the report said.

The cabinet is also recommended to adopt the proposed "hall for hire" option for the Guildhall, meaning it would leave it to other organisations to programme and promote events there – saving it an
estimated £68,000 a year – but continue to manage the venue.