I think that I would abandon the Arts Hub and sell off the Peoples Market building to developers or reconfigure it as an extension of Market Street Car Park (and add a Shop Mobility site).
Prior to doing that I would negotiate an agreement with the owners of the Henblas Street shopping development to open a state of the art Market within either the British Home Stores or the T J Hughes property (providing VVP money could be procured). When I say Market, I actually mean something far different from the stereotypical image of one and could be developed on a modern template with the type of Craft and Arts (for the marketplace) features so common in the US and Europe.
If the former action was revenue generating and the latter cost neutral this would be a good way of making savings. Given that the Arts Hub (as proposed) is going to make a huge loss over several years (if not for ever) it makes sense to explore more exciting developments…that might actually stack up. Using the BHS store would allow Queens Square to come into play and if the Council and the MP/AMs could get the Rates of any proposal written off this could be a viable site. Llanelli are already doing something similar