PERFORMING arts in Chester could be scaled down when the Gateway Theatre is demolished to make way for a massive shopping development, it has emerged.

The theatre is to be knocked down as part of a £185m scheme to redevelop the area around Northgate Street into a bustling centre of commerce and leisure.

Developers London and Amsterdam, which is seeking final approval of its plans, has promised to replace the theatre with an equivalent building, to be erected near the present site.

But Chester City Council last night revealed that consultants hired to determine the future of the city's theatre provision were recommending that the 440-capacity venue be replaced by a building with three smaller auditoriums.

They say the city can no longer sustain a large theatre.

The proposals could see the theatre moving away from hosting large-scale touring shows in favour of smaller community productions.

But performing arts groups fear the proposals could drive more ambitious shows away from the city.

Lee Hassett, of Chester-based Tip-Top Productions, said recent shows by the group had easily filled the existing auditorium.

He said: 'A recent production of Annie sold out, and we could have sold tickets for a lot more than 440 seats in the last eight weeks.

'When you are putting on something more artistically challenging, it might be safer to have a smaller auditorium.

'But we go to Chester because it has a large auditorium. We are about to perform the first pantomime in Chester for 20 years. We would never consider doing that if it only had a smaller auditorium of 120 seats.'

Mr Hassett added: 'Theatr Clwyd didn't want to move in this direction because it believed it would damage the reputation of the theatre, but now it is diversifying a lot more.

'It's all about balance and the right mix of shows, which all support each other.'

A city council spokesman said some visitors to an exhibition of the Northgate plans had expressed concerns that they would not provide a theatre of the size Chester deserved.

He added: 'The scheme is at master plan stage so the interior of the theatre hasn't been designed yet.

'But the floor area of the theatre could provide a large auditorium if it was sensible to do so.

'The professional advice of consultants is that one very large auditorium would not be sensible. It would only be used to capacity rarely and would therefore require major subsidy.

'A better approach is to provide three smaller auditoriums for a whole range of events from communitybased performance to touring theatre. This would mean the theatre would be in constant use.'

A spokesman for London and Amsterdam said one of the three auditoriums could be larger than the other two, but was unable to provide details of the new theatre's capacity.

The Gateway's newly appointed chief executive, Jasmine Hendry, was unavailable for comment.