Council chiefs have been praised for their “innovative” finances as the development of Aberdeen’s new exhibition and conference centre took a step forward yesterday.
Council leader Jenny Laing met Nick Harris, director at Henry Boot Ltd, to sign a number of legal agreements at the town house.
Finance chief Willie Young said the new arrangements for the Bucksburn development – which will include a 10,000 seat arena – will save millions of pounds for the city’s taxpayers.
The authority subsidises the current Bridge of Don site to the tune of £1.3million a year.
But the council estimates that it will end up paying as little as £100,000 annually for the overall Rowett development.
Similarly to Marischal Square, the council will lease the site and will have the chance to buy back it back for £1 after 35 years.
Objectors of the city centre scheme have constantly questioned the deal which they believe could leave taxpayers on the hook for any vacant business units.
A green energy centre, 200 bedroom hotel, car parking charges and tenancy rates has lead council officers to predict the £100,000 figure.
Planning permission for the new AECC was granted on December 10.
It will be part of a wider £333million complex on the site of the Rowett Research Institute at Bucksburn and officers have predicted an extra 31,000 business tourists will visit the area when it is completed in late 2018.
All existing buildings at the Rowett Research Institute site, including Strathcona House, will be demolished.
Eben Wilson of Taxpayer Scotland said: “Aberdeen council should be congratulated on these savings which they can ultimately invest in helping the poor and needy in the city.”
And Mr Young warned that the days of councils spending tens of millions on projects were over.
He said: “There is a huge squeeze on public services just now so councils have to look at new ways to deliver these projects while also offering best value.”
Ms Laing said: “This will be an important facility not just for the city, but the whole north-east region, and will attract bigger names in the entertainment world as well as larger conferences and events to Aberdeen.
Mr Harris said: “We look forward to starting the construction of this exciting project in the new year.”