Your post doesn't really say what you've presented to the bank. If the outstanding loan is worth more than the center itself, then I'm curious how the previous owners secured the loan in the first place (bad judgement on the bank's part).
First of all, make sure that you present the bank with a couple of independant appraisals of the property (including machinery and equipment inside), prove to them that your offer is fair and reasonable. If the bank is a large chain, go to a regional office, not just the local branch. If part of your proposal is taking on a loan of your own, then present a business plan showing how you will make the center profitable within 3 years (most small businesses fail in 2 years or less), while making your payments. The business plan should be by month. Heck, try offering the bank free advertising within the center. The center I go to shows ads for the local businesses that sponsor teams in the big $$ leagues.
Also, get the local paper (and college papers!) to run an article on the plight of the center. If it truly was one of the only things to do in town, it will generate interest.
Finally, you need to ask yourself why the center failed in the first place? If this is a two college town with not much else to do in town, then why did it fail? Bad management? Poor pricing? Not enough volume? Crappy employees?Before you jump in with both feet, you should find out. Talk to the previous owners about what happened. You may not necessarily get a straight answer, but it should be able to give you a general idea.
No matter what, be prepared not to turn a profit for a couple of years. As I said earlier, statistics show that most small businesses last less than 2 years, don't go in expecting to turn a profit right away.
Good-luck!
