Work to develop Europe's largest community arts project in the Black Country has been halted after the scheme was placed into administration.

More than 80 jobs at Sand-well's controversial The Public arts centre are at risk after administrators were called in following mounting cash problems.

The building's costs have spiralled past the projected £40 million to £54 million. Officials confirmed that administrators were called in after crisis talks last week.

The decision was taken after findings from Arts Council of England-appointed auditors revealed the project was heading for more cash problems.

The project's chief executive, Sylvia King, said the trustees had no alternative but to call in administrators.

"In order to protect our staff, our creditors and the vision of The Public, we have put into court notice of intention to appoint administrators," said Ms King.

"We believe this route is the best way of preserving and making real the vision and the promise that we have made to the people of Sandwell."

The three main stakeholders - The Arts Council of England, Advantage West Midlands and Sandwell Council - bailed out of the project last year after the costs rocketed.

The Public involves 81 staff at the scheme organising arts projects and activities run in schools and at other venues.

The building was meant to provide West Bromwich with a venue for theatre, music, dance and creative technology. Designed by architect Will Alsop, it was to house events space, restaurants and cafes, galleries, a family learning space and office suites for emerging creative businesses.

It was originally intended to be open in the autumn, before the announcement that work was being halted.

Coun Bob Badham, Sandwell's Council's cabinet member for regeneration, said the local authority remained committed to the project.

The Overend Street building has courted controversy after building costs rose and it was painted bright pink.

Plans for The Public, initially called the c/PLEX centre, have been mooted for 15 years. Construction began in 2003 as part of the £500 million regeneration of West Bromwich.

A regeneration framework, which was launched a year later, featured proposals to promote West Bromwich as a prominent commercial, sports and leisure hub based around Junction 1 of the M5.

The framework is part of a masterplan aimed at bringing iconic buildings, waterfront living and a high-tech business park to parts of the Black Country where unemployment and poverty consistently top the national average.

Only Merseyside suffers higher deprivation indices for unemployment, education, housing and health.

The transformation of rundown parts of West Bromwich, Smethwick and Wednesbury is being developed by RegenCo - a partnership of Sandwell Borough Council, English Partnerships and Advantage West Midland.

The £1 billion regeneration project will take 15 years to achieve and create more than 20,000 jobs, the regeneration company said when it launched the masterplan. ..SUPL: