An arts centre which opened only four years ago at a cost of £72 million is to close in November.
Sandwell council said it could no longer fund The Public in West Bromwich which received £31.8 million from Arts Council England towards the project.
In 2011 a report by a government committee said the centre which includes a 250-seat theatre was a “gross waste of public money”.
Now the council is looking at whether The Public can be turned into a sixth-form college.
Leader of the authority Councillor Darren Cooper said: “As it stands, the council is funding this building to the tune of about £30,000 a week. That’s nearly £1.6 million a year.
“That money is taxpayers’ money. In the face of cuts, this can’t carry on.
“I know the building means a lot to many people, not just those who work there but also the people who enjoy the arts activities, the gigs, the café and the exhibitions.
“I appreciate the lengths people have gone to with their petition and their campaign to keep The Public open.
“But it remains the case that the way The Public is run at the moment isn’t sustainable.
“Currently, there is no entrance fee, so the number of people coming through the door doesn’t necessarily mean more money in the till.”
Councillor Cooper added that if if the building were taken on by Sandwell college, it might include some arts provision.
He added, “We rescued The Public after the project went into administration some years ago, setting up Sandwell Arts Trust to make sure the building was finished and to run activities there.
“The Arts Trust has done a great job and has contributed to the regeneration of West Bromwich.
"It's not been an easy decision to make. But the fact of the matter is the council can't continue to subsidise The Public.”