Hopes for a centre for visual and media arts in Colchester have been set back.

Optica, the name for the proposed £4.5 million centre, has not been chosen to apply for funding from the Arts Council's lottery programme.

It was one of about 300 organisations nationwide intending to bid for £269 million earmarked by the programme.

But only 46 of these have been encouraged to apply for the cash.

The centre was the brainchild of three Colchester organisations - Signals Media Arts, Firstsite and Colchester Council.

But members of the consortium are not too downhearted.

Keith Nicholson, council head of leisure services, was disappointed that Colchester did not get the green light to apply for funding.

He said options were being discussed with Eastern Arts Board and would be considered by the council in the autumn.

"This will obviously be a new era in this project and this will naturally bring new challenges and opportunities."

The centre would have included a media centre and gallery space to attract exhibitions from Britain's leading contemporary artists.

It was expected to become a major attraction in the region and would also have increased the amount of work carried out with community groups.

Rosy Greenlees, Eastern Arts Board's acting chief executive, said: "We were saddened to learn that only four of the 46 organisations earmarked by the Arts Council are based in the East of England.

"To date the Arts Council's capital programme has brought £29 million to the region with some 170 projects receiving funding."

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