A DEVELOPER'S £750,000 gamble to transform a deconsecrated and empty church in York's city centre into a classy restaurant or caf bar could start to pay off next week.

That was the sum spent by Rushbond to get what was the former York Arts Centre, in Micklegate, off English Heritage's buildings at risk register and transform it into a trendy eating place. This week "the final tweaking" takes place before serious marketing begins.

Chris Jenkins, of York commercial property agents, said he would be considering sale offers or rental terms.

"We have already had interest expressed on both bases."

He said: "The area has really come up lately with the arrival of the Ramada Encore Hotel, the opening of a branch of The Living Room restaurant opposite, and the building, by Bryants, of 145 upmarket homes in Skeldergate."

But he has not yet received details of a reserved price tag for the new restaurant.

Rushbond bought the Grade 2 listed building from the University of York, which for four years had been trying to sell it.

The building, once threatened with demolition through road-widening, was saved in the 1950s by the York Civic Trust, then shortly afterwards became the headquarters of the York Institute of Architectural Study.

It was last used as Britain's first arts centre before closing through lack of cash and structural shortcomings in August, 1999.

The University of York bought the freehold from the York Civic Trust, which maintained an interest, but was forced to put it on the market because of the growing cost of structural repairs. For example, huge "flying shores" had to be fitted to buttress the structure against movement.

Rushbond gained planning consent for a restaurant, bought the ancient church, and immediately got to work with the help of an architect, cost consultant and structural engineer to stabilise the structure, then build new mezzanine floors within the north and south aisles, overhaul the roof and transform the interior.

Ben Middleton, director of Rushbond Retail, said: "An 11th century church offers unique problems and opportunities.

"We've worked very closely with York City Council planning department and English Heritage to secure and preserve and offer a sustainable future use for this wonderful, historic building which is an intrinsic part of York's architectural heritage."

Updated: 12:07 Friday, November 05, 2004