It is understood Perth and Kinross councillors have this week voted for a developer to have the former council offices at 1-5 High Street, Perth for £1.
Despite opposition the vote on the historic building’s future went ahead on Wednesday - in private.
Perth and Kinross Council has confirmed the building will be developed into a four-star hotel with £1.9 million of taxpayers’ money being used to support the development.
Following the private meeting a spokesperson for PKC confirmed a motion - supported by 26 Conservative, Lib Dem and SNP councillors - agreed PKC enter into a lease agreement with Henley Homes with the option for the developer to buy the building once the work is completed.
There were nine Independent, Labour, SNP and Conservative councillors who voted against.
Prior to the meeting - at a public session - there were calls for the discussion to be delayed until after the election and when that was outvoted for it to be done in public.
Both were outvoted and the vote on a substantial public asset was held in private.
A PKC spokesperson said: “Councillors agreed to enter into a development lease with the Henley Homes Group to transform the former council offices at 1-5 High Street into a four star boutique hotel.
“The building is surplus to the council’s requirements for office space and will require significant investment by Henley Homes to develop the hotel and additional grant funding up to £1.9 million, permissible under grant aid, will support the additional cost of restoring this Category B listed building.
“This will secure the future of this historic property and provide a major boost to the economy, as well as creating new jobs.”
Councillors had called for PKC to stop leasing Pullar House at a reported cost of £2.5 million a year and bring back 1-5 High Street into use as offices.
Following the private meeting Independent councillor Colin Stewart said the decision “simply doesn’t add up”.
He said: “While we are all supportive of more employment opportunities in Perth and Kinross, we now have a proposal on the table for a redevelopment of the Station Hotel that does not require £1.9 million of taxpayers’ money. We are also paying £2.5 million a year to rent office space at Pullar House while planning to sell off these offices for just £1.”
Independent councillor Xander McDade had called for the decision to be delayed.
At the public session of Wednesday’s meeting he said: “In my view it is inappropriate to be deciding on matters of policy and spending a week before an election and two weeks after voting has already started by post.
“This is in effect a lame duck council with a minimum of over a quarter of members who will not be here in office in over a week’s time - potentially more of us.
“I feel it is important this major decision be deferred as the outcome of this decision could impact the local government election.”
SNP councillor Grant Laing seconded and said: “It’s unfortunate this is the first chance we’ve had in a few years for officers to bring this. I don’t feel days before the polls we should be discussing this. There’s public money involved in this.”
Conservative council leader Murray Lyle pushed to press ahead with the private paper and said: “It is an important part of our economic wellbeing strategy and this is the opportunity to discuss the paper.”
This was seconded by deputy leader John Duff.
The request to defer was outvoted by 20 Conservative and Lib Dem votes to 17 SNP, Labour, Independent votes and outgoing Conservative councillor Callum Purves.
Independent councillor Colin Stewart then called for the vote to be held in public. This was seconded by Labour councillor Alasdair Bailey.
PKC’s head of Legal and Governance Services said the report contained “highly commercially sensitive information” and it would be “inappropriate” for it to be shared publicly.
A total of 21 Conservative, Lib Dem and SNP councillors voted for it to be discussed in private, 10 SNP councillors abstained and five - Labour, three Independents and Cllr Purves (Conservative) - voted for it to be in public.
