Leaders defend hotel group’ s £1 offices deal

Outgoing leader Murray Lyle has defended the decision to hand over the former Perth and Kinross Council building to developers as a “great opportunity for Perth”.

And the lead for the regeneration of the city centre says the investment should be applauded.

The building at 1-5 High Street which housed the courtroom and civic offices – as well as the registrar’s now across the road at 2 High Street – will be transformed into a luxury hotel.

In the week before the election, councillors voted to hand the historic building to a developer for £1. The decision – made behind closed doors – sparked outcry in many quarters.

The local authority agreed to enter into a lease agreement with Henley Homes, who will transform the building into a highend boutique hotel for Rogue City Hotels, a partnership between its chief executive Nassar Khalil and Henley Homes.

It owns and operates Dunalastair Hotel Suites in Kinloch Rannoch.

The developer will have the option to buy the Perth building once work is completed.

Councillors agreed to grant £1.9 million to help restore the building to its former glory.

This week both former council leader Murray Lyle and Dawn Cotton Fuge – the lead for city centre regeneration on the Perth leadership forum – defended the decision.

Mr Lyle said: “It’s a great opportunity for Perth.

“The £1.9 million is funded from savings from the annual upkeep of the building.

“The developers will restore the courthouse and old civic lounge.”

He rebuffed the idea to move council employees from Pullar House – reported to cost £2.5m a year – and bring back 1-5 High Street into use as offices.

The former Conservative leader said: “Moving offices to 1-5 High Street would restrict us. There are more opportunities at Pullar House. We might let other public partners come in with us.

“It would cost an estimated £8m to refurbish 1-5 High Street.

“In my view it was an

obvious decision. The building has been lying empty for years.”

Meanwhile Precious Sparkle owner Ms Cotton Fuge, former chairwoman of the Perth Traders Association, has said the hotel development is much-needed.

She said: “For years we have suffered for not having a top-rated hotel because that is what conferences look for for delegates when choosing a location.

“Because this is such a beautiful building and so central it will bring people here and create spend.”

She added: “Inward investment into the success of our city centre should be applauded and I would expect the development will be done sympathetically to this historic building and add to our assets, such as our many excellent restaurants and independent shops as well as being good timing for the opening of the City Hall development.

“If it helps bring more conferences and concerts to Perth (it) can only be a good thing for everyone who lives and works here, especially as we build our way out of Covid.”

Murray Lyle.