Aberdeen City Council is to give a multi-million pound loan for the redevelopment of the city’s Music Hall to cover a funding shortfall by Aberdeen Performing Arts (APA).
The council will act as a guarantor for the £2.2million still needed to complete the £6.3million project.
APA has raised about £3.25million from various partners since the redevelopment was approved last year.
This included £1.5million funding from Creative Scotland, £1million from Aberdeen City Council and £1.25million from APA’s own restoration fund – money contributed by the general public through ticket sales.
The project will involve creating a new studio space, restoring and renovating the auditorium, improving artistic accommodation, creating a new box office and making the 155-year-old building more environmentally friendly.
It is hoped work will be completed by May next year.
However, a report placed before the council’s finance, policy and resources committee this week revealed the costs of the project have “increased significantly” and a loan has been given by the council while APA continues to raise funds for the remaining sum.
Opposition SNP members on the committee queried the spend but were supportive of the redevelopment.
Finance convener Willie Young last night said the report had been “misleading”.
He said: “The costs have not increased substantially.
“The council will act as a guarantor to the remaining funds so the development can start while APA continue to fund-raise.”
SNP councillor Graham Dickson, who also sits on the committee, said the group were “totally behind” the redevelopment but asked “hard questions” about the costs.
He said: “Unlike the art gallery where the council have essentially agreed a £10 million loan with no guarantees, the Music Hall money is simply there so the work can get started.
“We are supportive of the music hall redevelopment and hope to see it go ahead.”
Last night an APA spokeswoman said: “The work can’t start until all the money is in place so that’s where the guarantee from the council came from.”