Councillors have unanimously agreed a £2.4 million managed site for Gypsy/Travellers at Perth's Food and Drink Park.
Perth and Kinross Council (PKC) expects the transient site to have "minimal impact on the existing users and future sites" due to it being right on the edge of the business park.
While the council has a legal duty to support the Gypsy/Traveller lifestyle it is understood managing the site will allow PKC more power to move people on faster.
The recommended option put before PKC's Housing and Social Wellbeing Committee on January 25 was the £1.8 million option to accommodate six caravans. However councillors were told the average number of caravans at the North Muirton site was eight.
Liberal Democrat councillor Peter Barrett tabled an amendment - seconded by Bailie Chris Ahern - to approve a site which will accommodate 10 caravans and provide four showers, three toilets as well as an accessible toilet and shower. In addition there will be a small building with a kitchen and electric sockets, an office, water supply, an electrical charging point for each pitch and bins.
Perth City Centre councillor Peter Barrett said proceeding with the additional investment now was justified.
He said: "You can guarantee that if these facilities are to be added at a later date then they will cost more, and given that it has taken this council 15 years to get to this point it is incumbent upon us to do it right."
There has been reported conflict between Travellers and the business community at Perth Food and Drink Park. The proposal to create a transient site at this historical Gypsy/Traveller site was seen as the best solution.
The report put before councillors said: "In general, it was accepted that a transient site in this location would be an improvement for all concerned. Businesses acknowledged that, in the absence of such a site, it was highly likely that unauthorised encampments would continue. Therefore, a managed site, sympathetically landscaped, provided with appropriate amenities would be more desirable."
The total cost includes £450,000 to create an access road.
Bailie Ahern asked what would happen if there were more than 10 caravans.
The local resident and elected member for Perth City Centre said: "This is going to be a popular site once the Travelling community realises it's there.
"If we have an overspill of caravans they're going to go back to using the initial road [beside] the buildings of which Perth and Kinross Council has to pick up the costs of putting in the bins, tidying up, the toilets, etc. as well as the problems it affects the local community."
The Conservative councillor asked: "If we agree this site and we do get an overspill are we going to get an enhanced immediate action in getting rid of them - bearing in mind we've spent all this money on putting it in place - or will we have to go through the same rigmarole as we have at the moment where it's at least four weeks to get rid of someone?"
PKC's principal officer of Environmental Health Kirsty Steven told the committee the average number of caravans at the site was eight.
She added: "It's not often we have more than 10."
Bailie Ahern suggested the number of Travellers visiting the site was "almost certainly going to increase" once the travelling community learns about the facilities available.
He added: "There are two or three separate Travelling communities. What we have seen at the Food and Drink Park is two separate encampments because they don't want to all be together. We're going to have to come across that situation depending on who's resident in the facilities we're trying to build."
PKC's head of Environment and Consumer Services Mark Butterworth said: "They're all valid comments and risks in terms of moving forward but the current situation is unsustainable."
Executive director of Communities Barbara Renton told the committee managing the site would give the council more weight.
She said: "My understanding is having that site gives us greater power and leverage legally which would enable us with greater powers to move people on more quickly."
Conservative Almond and Earn councillor Frank Smith asked if Travellers would pay council tax.
He said: "Because this is going to cost an awful lot of money and how are you going to collect the money?"
Mr Butterworth said: "The cost will fall largely on the council. We will look for additional funding sources including the Scottish Government."
Senior housing manager Elaine Ritchie revealed PKC could explore introducing a small charge.
She said: "Kirsty and I have been working with Aberdeen City Council and they have got various transient sites and they do levy a small charge to some of their residents so it's something we could explore but they are exempt from council tax."
Convener Tom McEwan said PKC had "an obligation to the Travelling community" and added: "As a council we will always meet our obligations and our responsibilities in these things."
