The Central Police Station compound is set to become a contemporary visual arts centre to show off collections owned by the city's residents.
A person working on the project said the Jockey Club, which is responsible for the plan, would hand over management of the site to a third party, such as a non-governmental organisation. The club had previously considered managing the declared monument through a company formed under its charities trust.
The shift towards visual arts means an auditorium and a black-box theatre for the performing arts in the club's original proposal would be scaled down or dropped.
The person said many local artists and collectors lacked proper space to store or showcase their pieces. The compound on Hollywood Road was well situated to serve the purpose, given its proximity to the art galleries in SoHo.
Some space, such as the courtyards, would provide for small and medium-sized performances to add vibrancy to the venue.
The visual arts centre could include a range of forms including photography, installations, digital art, multimedia works in addition to painting and sculpture, another person familiar with the proposal said.