Critics of the controversial Marischal Square project have drafted their own damning report into the council’s handling of the deal.
The report alleges the authority broke EU competition law by not making details of the 35-year lease arrangement with Aviva Investors and Muse available to the other three bidders.
The 50-page document, reviewed by legal teams in Aberdeen and Edinburgh, recommends that the council pull out of the scheme and that a full public inquiry be launched.
It reads: “Aberdeen City Council’s decision take on the full financial risk of a large commercial enterprise has proven to be without doubt the most unpopular investment decision taken by the council in modern times.
“The council chose to dismiss the three comparable bids that clearly met the guidance criteria and select the Muse proposal… it appears to contravene EU competition law and is an anathema to government mandated processes.”
“Underwriting Muse’s £107million capital investment could be viewed as providing an unfair commercial advantage to Muse and Aviva.”
The council sold the former St Nicholas House site for £10million and will lease Marischal Square for £5million per year for 35 years when it is completed in 2017. The local authority can then buy it back for £1.
But an Aberdeen City Council spokesman defended the handling of the deal last night.
He said: “We believe this development, along with our wider city centre masterplan, will breathe new life into the heart of the city.
“We stand by the decision-making and democratic processes that were followed in relation to the development and the partnership agreement with Muse Developments and Aviva Investors.
“We also welcomed the recent findings by Audit Scotland, who reported that appropriate processes were followed in reaching key project decisions.”
A spokesman for Muse Developments said it would not comment on specific allegations in the report.
But he added: “Work on Marischal Square remains on schedule for completion in the summer of 2017, with the Morgan Sindall construction team currently working on the development’s foundations, underground car park and lift shafts.
“This element of the programme will continue until the end of the year, and it will be early 2016 before the steelwork, concrete and granite sections begin to emerge from the ground.”