A community-run Grade II-listed building in Gloucestershire would have closed in May if the town council had not bought it, it has emerged.
Charity trustees for The Space in Stroud said they were unable to meet the "spiralling costs" of maintaining the building.
Under the deal Stroud Town Council will carry-out emergency repairs then lease the building back to the charity.
The council has allocated £96,000 and £5,000 in fees for the purchase.
A trust spokesman said the deal marked a fresh start for the centre.
"A few months ago we were facing closure. The repairs needed to keep the building running were beyond our means. Now thanks to the town council we are here to stay.
"Previously The Space was just an arts centre for a section of the community.
"We want to make it a centre for the whole community and will be reaching out in as many ways as we can," he added.
The town's mayor Andy Read said he was impressed with the level of public support for the project.
"The Space is a key part of the town's fabric. In many ways it has become Stroud's Village Hall.
"Stroud is well-known for its fabulous sense of community and as a place where so much happens.
"The key to this is the existence of public buildings such as The Space," he said.