An understanding appears to have been reached between Porthleven Town Council and prominent businessman Trevor Osborne over the future of the port’s iconic clock tower.

Following an exchange of letters, the two are now “singing from the same hymn sheet” according to mayor Barbara Powell – and are now working jointly towards restoring the Bickford Smith Institute and returning the building to full community use.

On Thursday the town council agreed that refurbishing the institute into a place for “community heritage, art and culture” was the best course of action – although it stressed that the public would still need to be consulted further before any final decision was taken.

Ms Powell said: “It is crucial to seek the further support of the community for the scheme. If Porthleven does not want it, we will not do it.”

However, this direction was seen as fitting the original aims of the institute’s benefactor, William Bickford-Smith, who gifted it for “education, literature and science”, as well as being the most likely way of getting grant funding to cover the much-needed repairs that now need to be made.

It represents a slight change of tack for the working party set up by the council to look at possible uses for the building and how to fund its restoration, which it is estimated will cost around £650,000 to £750,000, with annual running costs of between £25,000 and £45,000.

Previously the group had recommended turning the main section of the institute into a community hall, but converting the former caretakers’ cottage – where the town council currently meets – into a holiday let.

This new direction ties in with a suggestion made by Mr Osborne last month, who wanted to see an arts community created in Porthleven and the building used as a base for the arts.

Ms Powell, who is also chair of the working party, said: “The Bickford-Smith Institute is an iconic building - and more than that it is a powerful symbol of place.

“Our vision should not be small. We should be ambitious in our plans to create something of which the community is proud – and uses regularly.”

It would mean the snooker club, which current rents out the main hall of the institute, would need to be relocated. However, it was revealed in last Thursday’s meeting that Mr Osborne’s Harbour and Dock Company “might have a building they may be able to relocate to”, which was currently under discussion.

Councillors also voted to form a new charity, controlled by the town council, which would then lease the institute from the council in order to raise funds, manage its refurbishment and operate the building.

It was agreed that a bid to should be submitted to the Heritage Lottery Fund and Arts Council’s Great Places scheme, which is looking to give out just 12 grants, of between £500,000 and £1.5 million, nationally – although one is geared towards coastal locations, which it is hoped will boost Porthleven’s chances.

Ms Powell issued a call to arms from the community to now come forward with expertise to help the project, saying: “Up to now the working party really has been information gathering. Phase two is going to be much more dynamic and we need professional input. We will be asking people to come forward to join the working party.”

In particular volunteers with knowledge of fundraising, accounting, surveying, law and PR will be needed, with people asked to contact town clerk Corrie Thompson.

In the next month the working party will be meeting heritage expert Tamsin Daniels from Cornwall Council to look in more detail at setting up a Friends group for the institute.