That was the upbeat message from the Hebden Bridge Partnership team planning the future of the town's historic council offices to the news that their ambitious bid for capital funding for the building from a lottery fund had fallen at the last hurdle.

Hebden Bridge Partnership (the umbrella group for community groups locally) has been working closely with Calderdale Council in detailed proposals for the council offices to increase its potential for community and civic use.

The listed building, which has been a landmark in the town since the 1890s, has in recent years become underutilised.

The proposals include opening the former housing offices at the rear as a new function room and public hall for Hebden Bridge.

"It's disappointing that our bid for much needed capital work on the building hasn't been successful, but the planning work which we've done over the past few months will stand us in good stead. We're not taking no for an answer, and will now be taking a serious look at other options for the way ahead," said Andrew Bibby, joint project co-ordinator.

The capital grant bid, to the government's Community Assets programme (managed by Big Lottery Fund), was for around £800,000 and was submitted by Hebden Bridge Partnership and Calderdale Council jointly. Local Calderdale Councillor Janet Battye was the other project co-ordinator.

Mayor of Hebden Royd Coun Nader Fakri said: "We see this as a setback not a defeat. We intend to continue looking for alternative sources of funding and we are determined that this building will remain in public hands and continue to be of benefit for the whole town.

"We are grateful for all the work Andrew and Janet have done to get the scheme this far."

The project, which has attracted support from over seventy Hebden Bridge groups and organisations, has also been enthusiastically supported by two national organisations who are working closely with the project team on other sources of funding.

"We owe it to the town not to give up at this point. We're sure that in the long term we can turn the council offices building into a valuable and vibrant centre for community life," Mr Bibby added.