Tuned In!, which opened in 2011, cost £5m to construct and was paid for by the European Regional Development Fund scheme to provide arts and media facilities for 13- to 19-year-olds in the area.
But it has been under-utilised and has been partially used as office accommodation, as well as being used as a Covid-19 testing centre and a hub for runners.
Noah said Tuned In! had not been properly open for two years and a weekly music group which used the site now had to attend a smaller venue in Skelton, making it less accessible for many people.
A £2m investment from the government’s Levelling Up fund has paid for a redesign of a studio theatre, a new box office, a bar and café, and a new creative spaces at the venue.
A council spokeswoman said the redevelopment was expected to be completed soon and the authority was looking for an operator to run the site.
“While that process is ongoing, we have been clear that Tuned In! will continue to be an inclusive creative space, with a focus on arts activity and a performing arts element as part of the overall offer,” she said.
“The council continues to invest in youth provision across the borough, including dedicated youth centres, community engagement and recent capital improvements.”
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