The art league would use the building at 7341 Monterey St. and 10 adjacent vacant properties at no cost in exchange for maintaining the property and making improvements to the area.

"I think it will be a really big thing for Gilroy," said Sylvia Myrvold, president of the Theater Angels Art League.

The arts center, which could open by Jan. 1, would include workshops, small exhibits, staged readings and book signings. The art league also hopes to turn land behind the building into an outdoor theater, which could be open by late spring, and an educational demonstration garden for urban gardening.

The city purchased the building and the surrounding land for a cultural arts center. However, money for that multimillion dollar project would have to come from the city's public facilities impact fund, which is in debt right now, City Administrator Tom Haglund said.

Haglund believed that the art league's plans could lead to improvements in the interim period.

"I think it will really spruce up the area in downtown ... and will beautify some property that otherwise will just be vacant land," he said.

The Theater Angels Art League and the Gilroy Arts Alliance are talking about merging together as a single arts group and would likely manage the center together.

Theater Angels Art League started more than 30 years ago to support the Gilroy Community Theatre, which has since evolved into the Morgan Hill-based South Valley Civic Theatre.

Today, the league supports visual arts and arts education programs such as the Arts Alive program in Gilroy elementary schools and art classes at Mount Madonna Continuation School along with the South Valley Symphony and South Valley Civic Theatre, among other groups.

Maria De Leon, recreation manager for the City of Gilroy's community services department, said the arts league will maintain the facility, which is difficult for the city to do anyway.

"We're excited about it, and the arts community is, too," she said.

People can read more about Theater Angels Art League's plans for the facility on its Web site, www.theaterangels.org.