Council chiefs have been urged to step in and save plans for a contemporary arts centre in Aberdeen’s Union Terrace Gardens.
The city council’s opposition Labour group has said more than £4million of public funding could be lost because of continuing uncertainty over the future of the historic gardens.
Peacock Visual Arts wants to redevelop the gardens and build an arts centre on the site.
The group has already secured planning permission and raised £9.5million towards the scheme, including £4.3million from the Scottish Arts Council.
The group’s proposals have been under threat since Wood Group chairman Sir Ian Wood pledged £50million towards an alternative scheme for the site, which will involve raising Union Terrace Gardens and the Denburn Valley to street level to create a civic square.
The £140million plans will go out to public consultation during November and December – but Peacock Visual Arts have only until December to take up the offer of funding from the Scottish Arts Council.
Labour group leader Councillor Barney Crockett said: “It is simply essential that additional time is gained to ensure that the Peacock plans are not sacrificed.
“The city council must intervene with possible funding to keep their commitment to ensure all the possibilities are fairly treated in consultation.”
Peacock campaign director Elly Rothnie said: “Peacock Visual Arts was awarded £4.3million in March 2008 from the Scottish Arts Council and this was the largest capital grant ever to be awarded to the north-east.
“Like all lottery capital grants, this money is time-limited and specific to our project in Union Terrace Gardens.
“Peacock's development was designed to follow the natural contours of the gardens and retain the green space.
“As Sir Ian's vision involves filling in the gardens in their entirety, there is no place for Peacock's original scheme in his plan.
“In spite of this, the Scottish Arts Council agreed with the city council to ring-fence Peacock's money for 12 months to allow the viability of Sir Ian's vision to be investigated.
“This deadline is now fast approaching and the danger is if the Peacock scheme is sacrificed whilst Sir Ian's is still being evaluated, the people of Aberdeen could end up with nothing.”
The Labour group is worried the delay could wreck Aberdeen’s bid to be European City of Culture 2013.
Councillor Willie Young, group secretary, said: “It is high time the SNP and Lib Dems nailed their flags to the mast to ensure that the money obtained by Peacock from the Scottish Arts Council is not lost to other Scottish cities by their bungled efforts to ensure public consultation over Union Terrace Gardens.
“If Peacock lose the funding and Sir Ian Wood and the council can’t come up with the rest of the money then we can be left with nothing.
“This will have a huge effect on our bid for City of Culture.”
Aberdeen City Council deputy leader Kevin Stewart said: “Council officers have kept in touch with all of the funders during the course of this process.”