The group behind Sir Ian Wood’s proposed new civic square last night insisted it was confident it could finance the scheme after fresh doubts were cast on the final cost.
Reports at the weekend suggested the proposed development on the site of Union Terrace Gardens could cost the city £150million in loan repayments – more than twice as much as originally forecast – and leave it with 25 years of debts.
But Aberdeen City and Shire Economic Future (Acsef), the body steering Sir Ian’s bid, dismissed the figures claiming the square would be paid for through a rise in business rates stemming from its construction.
The funding fears were raised as councillors prepared to meet on Wednesday to vote on whether to accept the project, which has caused bitter divisions in the city.
Scores of women representing city churches marched in the sunken Victorian gardens to show their opposition to the proposal yesterday, while a heritage expert criticised Aberdeen City Council bosses for showing “unorthodox” bias in favour of the plan.
And after an anonymous city businessman reportedly offered £5million towards the cost of the city square, an Aberdeen pensioner pledged £10,000 – almost half of a £25,000 redundancy payout which she received when she lost her job as a result of council cuts – towards the rival scheme by Peacock Visual Arts.
Peacock’s plan for a contemporary arts centre in the gardens had already secured planning permission and most of its £13million funding when Sir Ian’s plans were announced two years ago. The group has secured a number of extensions to its funding deadlines while the two sides have tried in vain to reach a compromise.
A spokeswoman for Peacock described the donation from Renee-Margaret Slater, of Walker Road, Torry, as “extremely generous”.
The new concerns over the city square costs were raised after the Royal Incorporation of Architects warned the budget could be at least twice the £140million being suggested by Acsef.
The economic development group has said the square would be funded by £50million from the Wood Group chairman’s own fortune, £20million from the private sector and a £70million loan that would be repaid through a pilot “tax increment finance” (Tif) scheme.
But yesterday it was reported that the £70million loan would actually cost the city £150million in repayments, made over 25 years.
The prediction was understood to have arisen from a report by Price WaterhouseCoopers, dated May 6, which considered the likelihood of funding the project through Tif, which permits borrowing against an expected increase in business rates for the area.
A spokeswoman for Acsef, rebutted the claim and said the expected uplift in business rates in the city would comfortably pay back the loan.
She said: “At the moment, all the business rates go to central government, then a percentage is given back to the local authority. Under the new plan, the city council would still get a percentage but it would be raised.”
Sir Ian has said that he will walk away from the project if it cannot be demonstrated that the majority of citizens are in favour of it.
However, a two-month public consultation found 55% of almost 12,000 people who responded were against the city square, although a group of 50 business leaders have given it their backing.
Acsef has now said it is up to Aberdeen City Council to decide if it wants to back the proposal.
Last night, Connie Leith CBE, conservation officer for Ferryhill Heritage Society, criticised a report sent to all councillors last week recommending they approve the plan. She said: “The council said that it would not get involved, but it has done by writing this report.
“To me that seems unorthodox and I really worry about it. I just wonder how democratic the vote is going to be – 55% is enough to elect a government, but it is still not enough for Sir Ian Wood.”
Almost 100 members of the Church of Scotland’s Women’s Guild made their opposition to the proposal known by walking around Union Terrace Gardens yesterday afternoon.
Rhoda Whight, convener of the Presbyterial Council of Aberdeen, said guild members feared the gardens could be gone in a year’s time.
She said: “It is a lovely park and is also a green area in the city, and the thought of all that going is quite depressing. We don’t think that the gardens should be covered up in concrete. They should be preserved as much as possible.”