The running of the historic Victorian Market in the heart of the Highland capital could be privatised under controversial new plans.
City councillors will be asked this week to agree to put the management of the B-listed Inverness shopping centre out to tender.
A major redesign of the layout could also be on the cards – including opening up the market hall, attracting a big name “anchor tenant” and creating a new mezzanine floor.
The four entrances to the centre would be revamped under the plans – and the market could be re-branded.
But traders have expressed “great concern” about proposals to ask them to pay a new service charge as part of the shake-up of the way the market is run.
North MSP David Stewart said he would be seeking assurances that Highland Council would not lose any control over what he described as the “jewel in the crown” of the Highland capital.
The original Market Arcade was built in 1817, before being rebuilt in 1890 following a fire.
It is the only covered and pedestrianised market in the Highlands.
The local authority currently runs the centre on behalf of the Inverness Common Good Fund, and councillors agreed in June to draw up an action plan to secure its future.
Consultants were hired to assess a proposal to transfer the running of the market to a private sector manager.
Their report, which will be discussed at this week’s Inverness city committee, shows that over the last five years tents in the 37 retail units in the centre paid a total average annual rent of £270,000.
At the same time, the running costs have been estimated at £225,000 – meaning council tax payers receive a surplus of £45,000 each year.
But the figures do not include one-off costs, such as the near-£1million bill to repair the market roof in 2012, which was met from the Common Good Fund.
The report by Graham and Sibbald also points out that the local authority covers the cost of insurance, security and day-to-day repairs – while the year-to-year leases are considered to favour the tenants rather than the council.
The consultants recommend moving to leases and rent rates fixed to between three and five years, as well as recovering insurance costs from tenants and introducing a new service charge, spread over several years.
The changes would be carried out in two phases, with the council co-managing the centre with the private sector agent in the first three years, during which longer leases and a service charge would be brought in, and new “pop up” retail units would be encouraged.
After three years, the focus would switch to creating a “focal point” in the market hall, attracting a well-known retailer as an “anchor tenant” and extending the market’s opening hours.
On Thursday, councillors who sit on the Inverness city committee will be asked to consider the plans and put the management of the market out to tender.
In a report to elected members, Inverness City manager David Haas and head of property partnerships Allan Maguire, say: “Importantly, the study concludes that private sector management is a viable option and that so long as the transformation from council to private sector is phased, there is potential for the market to fulfil its role in the development of a vibrant city centre as envisaged by the City Vision and city centre development brief.”
Market traders were briefed about the plans at a meeting earlier this month.
One business owner said last night: “I think what is concerning is the fact that they are talking about putting in a service charge. I think that is of great concern to traders.”
Mr Stewart, Labour MSP for the Highlands and Islands, said: “As someone who was a district councillor many, many years ago, I’ve always felt that the Victorian Market is the jewel in the crown of Inverness and the wider Highlands.
“It’s a fantastic asset and there are tremendous businesses there.
“I will be writing to the council about this particular issue. Clearly the main issue is to ensure the success of the market in the long term, but I would want to be assured that there is no suggestion of the council losing day-to-day control of the market.”
Mike Smith, manager at city centre business group Inverness BID, said: “First of all, we think the Victorian Market is a really important asset to the city of Inverness and it should be to the forefront in the marketing of Inverness.
“We think that there are opportunities to improve the marketing and the mix and the overall management of the market, and we think this is a good opportunity to explore ways to do that.”
Inverness Central councillor Donnie Kerr said the local authority could enter the bidding process.
“I think the council themselves could make improvements to the way they manage the market. Personally I think we can look at it and see, but my view is that the system we have has worked for a long time.”