Aberdeen City Council has moved a step closer to taking control of all land and assets belonging to the north-east’s biggest concert venue.
Plans to restructure the Aberdeen Exhibition and Conference Centre (AECC) were referred to the city council’s finance committee yesterday.
A confidential report had asked councillors to consider a takeover of all but the day-to-day running of the centre to secure its future and drive forward a 30-year plan to develop land at the Bridge of Don site.
The move would help the venue repay its multimillion-pound debt to the council and allow local authority officials to negotiate directly with any developers looking to invest in the area, including projects such as the construction of a four-star hotel.
The AECC is estimated to inject £80million into the local economy every year and is currently operating within its budget, but the council sent a team of auditors into the venue in August after concern was expressed about its handling of the hotel project.
Councillors considered the latest plan to secure its long-term future at a private meeting of the enterprise, planning and infrastructure committee yesterday.
They agreed to refer the recommendations to the council’s finance committee, despite opposition councillors raising concerns about the plans.
After the meeting, the council’s enterprise director, Gordon McIntosh, said: “This is the first step in a process towards securing the long-term future of the AECC and looking at possible development options which could enhance this popular facility.”
A statement from the local authority added: “The council, as owner, is seeking to make best use of the leased land and building assets of the AECC, along with adjacent lands, to ensure these can be used to repay the council's previous investments. Development of these assets by the council will ensure repayment of historical debt and delivery of improvements to the area, such as a hotel.”
Aberdeen City Council has provided loans worth £28million to the centre in the last five years, as well as £8.85million in subsidies since 1998.
Tory councillor Alan Donnelly said: “We are heavily focused on the oil industry in Aberdeen and it’s crucial we have an exhibition centre.”
But Labour councillor Willie Young warned: “We are going to get ourselves into a complicated mess.”