Halifax council has given Neptune Theatre until mid-October to come up with a management plan for the Khyber building on Barrington Street, part of an effort to save the site as an arts hub.

Municipal officials have been recommending the city sell the building, which needs more than $4 million in renovations to bring it up to code.

But arts enthusiasts want to resurrect the site as a space for artists. The building had been the home of the Khyber Arts Society for 17 years, until last April when the city moved the group to a new spot on Cornwallis Street.

A proposal approved by council Tuesday will give nearby Neptune Theatre the chance to devise a plan to save the building.

It is the second reprieve council has handed the Khyber in seven months. In September, council voted to remove the building from a list of city surplus properties.