NEGOTIATIONS are taking place between Newcastle City Council and community groups to continue with three of The Loft's youth programs.
The council closed The Loft three months early in September, made five of its six staff redundant and transferred the sixth to a different department.
The Loft youth venue was one of the casualties of this year's massive budget overhaul, which included reduced pool opening hours and cuts to beach patrols.
The council is reviewing expressions of interest - one for The Loft's large-scale all-ages gigs and events program; and one for smaller hip-hop music and dance programs.
The all-ages gigs volunteers organise about 10 events a year using ArtsNSW grants, attracting about 2000 teenagers across the year.
The program also owns about $27,000 of audio and lighting equipment.
The Loft's weekly beats and rhymes hip-hop music production program has been running since 2002.
Up to 14 teenagers a week have written and recorded their own hip-hop tracks with the support of local producers.
Similarly, The Loft's twice-weekly breakdancing project attracts about 20 young people a week.
It started in 2000 and includes school holiday workshops, breakdancing competitions and coaching.
The hip-hop and breakdancing programs also have about $22,000 worth of equipment.
A Newcastle council spokeswoman said they had received a small number of proposals and were negotiating with interested groups.
If the negotiations are successful, the council will no longer have any involvement in the operation or content of the programs.
"The intention is for the program content and any equipment used to be transferred, at no cost, to the new operator on the proviso that the equipment is still available for community use," she said.
The fate of The Loft programs will be voted on by the elected council in late November.