The halting of work on the city's Lumiere skyscrapers and the collapse of its "Kissing Towers" scheme has triggered speculation about the future of other local projects.

But the city council's deputy leader, Coun Andrew Carter, says Leeds's £50m concert venue dream shows no sign of being shattered.

He revealed that a shortlist of potential arena developers had been drawn up, with an announcement on the successful bidder expected by November. A decision on the location of the 12,500-seater venue should be made around the same time.

Music industry giant SMG – which runs Manchester's MEN Arena – was unveiled as the council's preferred operator in May.

Coun Carter told the YEP: "We're heartened with progress. It's a complicated process, but we're on track.

"This is a major project for Leeds and we don't want any slippage or delay – that has been made clear to the potential developers."

Coun Carter acknowledged that no scheme was bullet-proof but said the arena was well placed to survive the credit crunch as it was not linked to residential or office space markets.

Investors

He also said the current economic storm was likely to pass by 2012, when the arena is scheduled to open.

Private investors are expected to provide £30m with £20m due to come from public sector funds.

Experts say a venue capable of staging concerts by global superstars would be worth as much as £28m a year to the Leeds economy.

Kevin Linfoot put work on the Wellington Street-based Lumiere residential skyscrapers on hold a week ago, and the YEP reported yesterday how long-standing plans for two "Kissing' Towers" off Sovereign Street had fallen victim to the property slump.