Ennis Urban Council may have to subsidise a new Irish Music Centre in the town, if the Clare centre fails to raise an additional £2 million needed.
Documents released under the 1997 Freedom of Information Act reveal that the council has entered a legal agreement with the Department of Arts, Heritage, Gaeltacht and the Islands "to cover any unforeseen additional expenditure".
Since that agreement, which was entered into to secure £1.5 million from the Department in May 1999, the costs for the centre have spiralled from £4.5 million to £6.5 million, and its promoters have applied to the Department to secure the shortfall of £2 million.
A decision in relation to the application is expected in months. If the application is unsuccessful, the council, already experiencing financial strain due to the escalating costs of the town's refuse service, will be forced to meet the shortfall.
The centre was scheduled to open in May, but this has been put back to the autumn.
The centre is seeking to establish Ennis as the traditional music capital of Ireland.
