Carrick-on-Shannon's 19th-century courthouse, which has lain idle for nearly a decade, is to be transformed into a €7.4 million arts centre.
At one stage in the early 1990s there were plans to demolish the listed building, which is in the centre of town on the banks of the Shannon.
But now it will become the first major arts centre in Co Leitrim, incorporating a 130-seat performance space, a gallery, workshop and educational areas and a cafe.
One court room, complete with its original furniture, will be retained for meetings, recitals and debates and will have seating for up to 90 people.
Leitrim County Council's arts officer, Ms Terre Duffy, said the plans for the arts centre would now definitely go ahead as the council had made a commitment to raise the required funds.
A grant of €3.2 million has already been secured from the Department of Arts, Heritage, Gaeltacht and the Islands, and the council has now decided to make up the shortfall of €4.2 million (£3.5 million).
The council hopes to raise most of the money through grants from different funding agencies such as the International Fund for Ireland and other schemes available to Border counties. Fund-raising, will also be carried out locally and any outstanding amount will be borrowed.
Ms Duffy said the new centre, which should open in 2005, would focus on visual arts and dance.
"We would hope to become a centre of excellence for these areas in the north-west," she said.
Many artists now lived in Leitrim but there was no dedicated gallery space in the county. The centre would give them a place to show their work as well as taking touring exhibitions.
The process of looking for architects has already started, and it is hoped to begin building by May next year and it will continue for 18 months. A model of the plans will be put on display in the town soon.
It is also proposed to build up to seven artists' studios beside the courthouse, and as part of the project a house on the Lough Rynn estate 10 miles away is to be restored and used as an artist's residence. The Old Dispensary, as the house is known, was bought by the council some years ago, and it will be used by the county's "artist-in-residence".