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Perth City Square / City Hall

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Perth & Kinross Council aims to find an appropriate and financially viable solution in relation to City Hall, which will bring vibrancy to the city centre, either in the re-use of the Hall or an alternative use of the site.

This process has been protracted, which reflects the challenges inherent in finding an alternative use for the building.

2005

The Hall became vacant and a consultation and tender process took place.

2006

A plan for a mixed use retail development was given the go-ahead by the Council.

2009

The development failed due to the inability of the developer to secure funding, as the property market had changed and there was no longer a market for such a facility.

2010

An independent economic assessment by Locum and Colliers of the current and foreseeable economic climate confirmed the demolition of City Hall and the creation of a civic square as the most beneficial option for the local economy.

A survey of public opinion attracted 2,502 responses. The results showed that 57% of the public, 69% of businesses and 58% of market and event organisers support the creation of a public space following full or partial demolition of City Hall.

2011

The Council gave planning consent for the Square.

2012

Due to its listed building status, a consent to demolish the City Hall was required by Historic Scotland, which was turned down.

The Council decided to remarket the building, following Historic Scotland's decision that more evidence was required to demonstrate that there was no viable use for it.

2013

After a 15 month period, only one bid was received. This was from Perth City Market Trust and was independently assessed by Commercial Property experts, Jones Laing Lasalle, and found to be "lacking in detail in relation to proposed commercial terms, business case and funding arrangements", raising: "significant concerns regarding the ability of PCMT to deliver the project."

In these circumstances, it would have been highly irresponsible for the Council to accept this bid.

2014

Planning and listed building applications have been received relating to proposals for a hotel on the site of Perth City Hall. The Council's Development Management Committee approved these in May.

On Wednesday 25 June 2014 a meeting of full Council approved a report recommending that the long-term lease of Perth City Hall is re-marketed for a further six month period.  This time will give developers the opportunity to prove the financial viability and long-term economic impact of their proposals.

2015

As a result of the re-marketing five proposals were received for the redevelopment of Perth City Hall. These proposals were evaluated by independent commercial property expert, Jones Lang Lasalle, who concluded that three of the bids were non-compliant with the specific guidelines outlined as part of the marketing process.

The remaining two bids were brought forward for consideration and at a meeting in October 2016 Councillors agreed to select Perth Market Place Ltd (PMP) as the preferred bidder, and set 4 pre-conditions which must be met before the lease terms could be brought back to Council for agreement. On 24 February 2016 Councillors were informed that the bidder had not fully met these pre-conditions and were asked to make a decision on the next steps. Following discussion Councillors agreed to suspend negotiations with PMP and instructed the Depute Chief Executive (Sustainability, Strategic & Entrepreneurial Development) to explore all options available to Council in respect of our use of this site and to bring forward a report to the next Council meeting in May. A statement explaining this decision has been issued.

Frequently asked questions

Q: What were the 4 pre-conditions set for the Perth Market Place bid?

The pre-conditions were:

  • Confirmation from Geraud UK (the operators identified by Perth Market Place) of their commitment to enter into a sub-lease from Perth Market Place Ltd
  • Confirmation of the process for the establishment of the proposed new entity for operating the market on a day to day basis
  • The provision of suitable Letters of Intent from shareholders to establish levels of shareholder support for investment in the project
  • A planning consent and building warrant timetable for works to the building and completion

Some of the key information required in these pre-conditions, particularly clarification and confirmation as to the funding arrangements for the proposed use of the building, were not provided within the three month timescale requested by Councillors.

Q: How can I object to the demolition of Perth City Hall?

There is not currently a live application to demolish Perth City Hall.

Q: How can I support the demolition of Perth City Hall?

There is not currently a live application to demolish Perth City Hall.

Q: If demolishing the Hall and creating a square would cost £3.3 million, why not give this money to support an organisation that would reuse the building?

Throughout the process, we have been open to ideas that can deliver long-term economic benefits to the city but to date, despite considerable efforts, the Council has been unable to identify a re-use solution that delivers this.

The proposal for a city square has a very compelling economic impact and cultural case in its favour. It represents the lowest capital investment but will deliver long-term social and economic benefits and provide a vibrant heart at the centre of the city.

The cost of demolition and building a square is a one-off capital cost. Any costs thereafter, for example for maintenance, would be less than the economic impact generated.

Q: Why does the Council think an open square will attract people in this climate?

There are numerous examples of squares elsewhere in the UK and Northern European cities with similar or colder climates which provide thriving social and economic hubs. The Council used evidence from these to inform its assessment of the benefits of a square. Examples include Copenhagen and Amsterdam. The space created would be used by pavement cafes , events and markets. The Council also consulted businesses, market and event organisers to gather information on how the square could be used.

Q: City Hall is in good condition, why can't it be used for suitable community activities instead of standing unused?

The Hall needs at least £1 million spent on internal services it to make it safe and suitable for public use. It would then have to be fully subsidised by the public which is not a sustainable option when it cannot generate the economic benefits to offset this. Consultation with the public indicated they did not want more money spent on the building.

The Council's cannot justify additional public monies on subsidy for temporary use of the Hall or ongoing maintenance while it remains unused.

Q: Why not wait until economic conditions improve and an alternative use is more likely to be found?

Limited resources means that it is the Council's duty to take responsible decisions about the use of tax-payers' money and cannot justify additional public monies spent on ongoing maintenance while it remains unused. Meanwhile the City Square option offers viable economic benefits now and in the future.

Q: What if the costs of demolition and creating a square end up being more than expected, for example if there is an archaeological find?

The estimate of £3.3 million includes consideration of the likely survey costs. We know that significant archaeological finds are unlikely, as the site was previously disturbed when the building was built.

Q: How long will local businesses suffer disruption during demolition of the Hall and building The Square?

The demolition and build would be between 18 and 24 months and we will make every effort to keep disruption to a minimum, particularly during the tourism season. The site would be protected and hidden by hoardings during demolition and work phased to maintain access to surrounding property. Archaeological surveys would be carried out during the demolition process.

Q: What is the economic case for the new square?

The Council commissioned an appraisal of all potential development options in 2010 and again in 2011. This looked at the potential of both re-use and alternative solutions, including partial demolition full demolition and demolition and redevelopment. The evaluation criteria were set out to establish the costs and benefits of each proposal in financial, socio-economic and environmental, time, risk and quality terms.

Property experts using government approved methods found that, of the re-use options, a cultural led development does have the potential to deliver long-term, net economic and social benefits, albeit with public investment, but that the demolition of the Hall and the creation of a new civic space was the solution which would deliver the best value in economic and social terms.

Details of these previous appraisals and other supporting evidence can be found on the 'additional information' page, along with reports and decision notices.

The Council will submit the evidence obtained from re-marketing the building and current economic, social and environmental impacts in support of a new application for demolition.

Q: Have the public been properly consulted?

The public have been consulted on the future of the City Hall as part of the planning of the city centre since the 1990s and their views were sought on development proposals in 2005. More recently, in 2011, a comprehensive survey of public opinion was conducted which attracted 2502 responses, one of the highest response rates to any public consultation by the Council. The results showed that 57% of the public, 69% of businesses and 58% of market and event organisers support the creation of a public space following full or partial demolition of City Hall.

Q: Why did the Council approve a planning application for the City Hall?

The Council as Planning Authority has a duty to consider planning or listed building applications. A body or individual can make a planning application regardless of whether or not they own or control the land or building to which it relates. If a planning or listed building application for the City Hall are dealt with in the same manner as any other such application, concurrently with the process of applying for consent to demolish the City Hall. Securing planning and listed building consent is however only part of the process. Ultimately development can only proceed if the site or building is acquired and there is a compelling business case and funding to deliver what is proposed.