Scarborough Council's Futurist Task Group met with chartered surveyors and theatre industry representatives yesterday for talks to begin thrashing out the building's destiny.

The discussion included detailed evidence on the two main proposals, of fully redeveloping the site or maintaining the provision of a theatre within any improvements.

The meeting heard from Mark Rotherby, a chartered surveyor with management and construction consultancy firm Knight Frank, who said any proposal to provide a theatre inside the Futurist would be "commercial suicide".

Mr Rotherby said he was "unequivocal" in his opinion that financing the redevelopment of the Futurist complete with theatre would be "wasting tax payers' money on something which is not needed", and suggested the best alternative would be to include a casino on the site.

He said the whole of the Futurist site, including the Town Hall King Street extension, would be a more attractive proposal to developers and said a cinema, hotel or residential accommodation with car parking and a restaurant would be equally as feasible.

However, Mr Rotherby tempered the claim with the cautious announcement that the market would not be able to sustain such a development until at least 2012.

The meeting also heard from theatre consultants Lynne Burton and Robert Cogo-Fawcett, who said the building's future hinged on the introduction of a refreshed entertainment itinerary.

Mr Cogo-Fawcett said: "Given the limitations and funding that have faced the management of the Futurist Theatre, they have done very well and are worthy of praise.

"However, a programme of broader investment is needed in order to entice people and producers because Scarborough would not be a priority for the Arts Council and it is becoming increasingly difficult to get acts to go on the road.

"There is also a dearth of product in Scarborough, especially for things like stand-up comedy and modern children and family shows, and there needs to be a strong programme throughout the year with a broad and well-balanced appeal to attract audiences.

"There needs to be quantity, but that brings a risk which needs underpinning and there is a need to look at what the market wants and how best to provide that."

However, Mr Cogo-Fawcett said there were significant drawbacks with the configuration of the Futurist and added the theatre was at risk from rival venues in the town.

He said: "Despite having a flytower there is negligible wing space and scene dock for large-scale shows in the Futurist and sets have to be brought in through the auditorium.

"The stage is of a peculiarly small scale in comparison to the number of seats and it is difficult to find the Futurist intimate.