TAXPAYERS could face a £750,000 bill to modify Derby's £3m Friar Gate Studios after complaints about its soundproofing.

The high-profile office block, designed as Derby's creative hub, opened three years ago. But Derby City Council has received some complaints that soundproofing needs to be increased.

Alterations to the three-storey building could land the city council with a huge bill.

Councillor Mike Carr, cabinet member for direct and internal services, said some firms in the building had complained they could hear people speaking in adjoining offices.

He said: "Sound proofing and interior work does need to be done because we need to reduce the noise transmission.

"We think it is going to cost around £750,000 to deal with but we need to look into that more first.

"The building was created with a sort of warehouse feel with exposed pipework and that sort of thing but we need to see if that is not providing the right sound-proofing."

Friar Gate Studios was commissioned by the city council and paid for using council and regional development money.

It opened with a great fanfare in November 2006 by former Dragon's Den television star Simon Woodroffe.

But the council has struggled to fill it because of problems with a lack of parking in the area and the credit crunch – and now noise is also a cause for complaint.

Only about 60% of the units are occupied. The city council said that had peaked at 80% before the credit crunch.

The building was designed to provide space for 40 creative companies, boosting that industry in the city.

Hall Grey Architects, which designed the building, said it created it to the specifications of the city council.

David Hall, of the Derby firm, said that the council had set out to create something for start-up, art-based businesses who would pay a peppercorn rent for three years before being established enough to move to other premises.

But he said the authority had changed its plans, marketing the units at a higher rent and attracting different types of companies, including those working in sound engineering and digital media.

Mr Hall said: "We designed it to the specifications given us and it was ideal for the type of businesses it was originally aimed at."

The authority has already paid £558,000 towards creating the building as well as providing the land for it. The remainder of the money came from the East Midlands Development Agency, Derby and Derbyshire Economic Partnership and Derbyshire Enterprise Agency.

Mr Carr said the exact amount for the work and how it would be paid for had not yet been confirmed.

"We will look into everything before we spend the cash," he said.

Businesses based there include architects, web designers and media companies.

Those companies contacted by the Derby Telegraph did not want to comment on the sound-proofing issue.

However, one employee, who did not wished to be named, said: "You can hear noise from the corridors and things like that."

Council officers confirmed the authority had received some complaints from tenants and is looking into them and how it may pay for the work.

A council spokeswoman said: "Since last autumn, there has been a number of business tenants who either closed down or chose to move out. Such fluctuations have occurred at other business centres in the city over the same period of time.

"In response the council is considering how it might help to position Friar Gate Studios for a recovery in the economic climate.

"As it is only two-and-a-half years old, the centre is in an excellent position to attract new investment and help local businesses to develop and grow but it will need support to do so.

"Further investment is a possibility with a view to recouping this in future years but no decision has yet been made."