Plans to build a world-leading new concert and conference venue in Aberdeen have been given a huge boost after winning £10million of backing from Scottish Enterprise.
The Press and Journal can reveal that the agency will make its biggest ever one-off investment in the north-east to support the scheme.
The body claimed last night that the new facility – which will be built at the site of the Rowett Institute at Dyce – would push Aberdeen into the top five cities for conferences in the world.
The cash injection was hailed as a major “vote of confidence” in the plans last night.
The new venue would offer four times the amount of conference space as the current Aberdeen Exhibition and Conference Centre (AECC) at Bridge of Don, and double the seated capacity for concerts to 10,000.
As well as concert and conference facilities, there are plans to build two new hotels, an energy centre and a plant to generate gas from household waste.
Scottish Enterprise revealed its investment just four days after city council finance convener Willie Young claimed the body should be scrapped as it had never invested a “fiver” in the region.
Last night, the Labour councillor said the agency’s backing should be three times higher than £10million, claiming Aberdeen remained the “poor relation”.
Deputy First Minister John Swinney welcomed the investment in the north-east.
“As the energy capital of Europe and a global centre for expertise in technology, the Scottish Government is keen to promote Aberdeen as a focus for international investment and events,” he said.
“This new investment in the AECC will provide world-class facilities that will serve Aberdeen city and shire, and Scotland, for years to come.”
The centre’s backers say it could help attract an additional 4.5 million visitors to Scotland over the next 10 years, pumping £113million into the economy.
Lena Wilson, Scottish Enterprise chief executive, said: “Scottish Enterprise is committed to innovative partnerships throughout Scotland to deliver maximum value for the local and national economy.
“The new AECC is a great example of a project where we can add value not just by providing funding but by using our experience and networks across the country to get better impact for the north-east.”
Work to develop the proposed AECC complex will be carried out by Henry Boot Developments and is expected to start next summer, with completion pencilled-in for the end of 2018.
The local authority currently subsidises the existing venue at Bridge of Don to the tune of about £1.55million a year, but council officials believe that sum could be cut to as little as £100,000 when it is moved to Dyce.
It would enter into a 35-year “strip lease” deal but would be entitled to purchase the AECC development for just £1 at the end of that period.
A council spokesman said last night that the rest of the funding involved mainly private sector investment, which was currently being identified.
The headline capital costs of the development have already ballooned from original estimates of £185million to £333million, although the bill for the venue itself would be worth about £207million, and the council’s exposure is thought to be a maximum of £54.1million over 35 years.
Income streams include car parking and the development’s two hotels, with a combined 350 rooms, while the energy centre will power the entire site.
Council leader Jenny Laing said: “We want to make sure we build on Aberdeen’s reputation as one of the most dynamic places in Europe to do business and ensure we combine this with the capability to continue to host the most prestigious business conferences as well as attracting leisure events to the north-east.
“This funding is a welcome indication of the confidence Scottish Enterprise has in Aberdeen as a growth generator not just for the north-east of Scotland but for the UK as a whole.”
James Bream, research and policy director at Aberdeen and Grampian Chamber of Commerce, said: “Scottish Enterprise’s investment is a welcome vote of confidence.
“The new exhibition and conference centre is a major infrastructure project for the region which will help support our economy in the years to come.”