Perth and Kinross councillors have unanimously agreed to allocate up to £3 million for the full demolition of the historic Drummond Arms Hotel in Crieff in the interests of public safety.
Elected members agreed to a “forensic” review after over £1 million of public money was squandered into the redevelopment of the listed-building, which dates back to 1874.
Council leader Grant Laing said its demolition was “an action of last resort” with local councillor Stewart Donaldson describing the situation as “deeply tragic”.
In 2014 Crieff Community Trust began gathering support for a community Right to Buy the prominent town centre building. In 2019 the trust set up Drummond Arms Regeneration Limited (DARL) and took ownership in a bid to bring the derelict building back to life.
Just over £1 million of grant funding was awarded to the building project including the £90,000 purchase of the ground floor premises previously occupied by the Royal Bank of Scotland. Money was spent on assessments, removing asbestos with more found later in the roof, scaffolding, stripping out and making the building safe.
The majority of funding came from Scottish Government initiatives with £15,000 coming directly from Perth and Kinross Council.
However, without prospect of future funding or a viable use for the building, DARL is facing voluntary liquidation.
The report before councillors stated: “DARL will have exhausted its cash reserves by March 2025 and the directors have therefore decided to voluntarily wind-up the company at that time. They have written to the council seeking help to address the public safety risk by stepping in to acquire the building and mitigate the risk it poses.”
On Wednesday, November 20 PKC’s Finance and Resources Committee was asked to approve the council taking ownership of the building from DARL – at no cost – allocating up to £3 million from PKC’s 2025/26 capital budget to cover demolition costs.
Earlier on Wednesday, PKC’s Scrutiny and Performance Committee unanimously agreed to conduct a review into the matter.
Addressing concerns over how a publicly funded community redevelopment could have escalated into a demolition so quickly, chief executive Thomas Glen told councillors: “I think it’s important that we do this properly.
“What we are keen to do as officers is to ensure that there is a full review of where this project was initiated from, where it was driven from, where the funding has been allocated and how that has been monitored.
“All of that is appropriate but it does feel we are in danger of aiming some assumptions and beginning that review process when the key priority for us, as officers, is to address the public safety matter notwithstanding that comes with a significant potential cost to council.”
Moving the recommendations for approval council leader Grant Laing said it was a “last resort”.
The SNP leader – who is vice-convener of the committee – said: “This is an action of last resort. It can only be justified given the real risk to public safety had the building become ownerless following the voluntary liquidation of Drummond Arms Regeneration Ltd (DARL).
“This hotel was sold for £1.1 million in 2004, sold again for £325,000 in 2008 and finally for £30,000 in 2019 when it was acquired by DARL.
“Over the past 20 years its condition has deteriorated progressively to the point where a dangerous building notice had to be served on October 29 requiring the roof and chimneys to be made safe.”
Seconding the recommendations for approval, convener and Strathearn SNP councillor Stewart Donaldson said: “I think this is a very sad day indeed. For many people in Crieff, they will be very upset at this development but there is, I believe now, no alternative.
“The Drummond Arms is such a key part of the townscape of Crieff and has been for 150 years as it was built back in 1874.
“But it’s more than that, it was part of the social fabric of the town for receptions for weddings and events and celebrations so it is deeply sad, deeply tragic what has happened, to see its decline. But there is the real threat to public safety and that’s got to be first and foremost.”
Referring to the review, he said the council would have to be “quite clinical, quite forensic in what has happened and how it has come to this position” and questioned whether there was a need for legislation to be “tightened up” in order to hold building owners to account.
Bailie Claire McLaren – who used to own a property next door to the Drummond Arms – agreed.
The Liberal Democrat councillor said: “I’ve watched the slow and steady decline of this dominant building in Crieff.
“This decline has really come about through an absentee owner who has managed to carry out no basic maintenance. In fact, you couldn’t even identify at times who the owner was. The rot had started before the community trust became owners of the building and unfortunately it has just carried on.
“I agree with what Cllr Donaldson has suggested that we need tighter legislation coming out of government to deal with people who buy buildings, choose not to insure them, maintain them – even if they are empty. Council budgets cannot take more and more examples of this.”
The Drummond Arms stopped trading as a hotel in 2006.
The Royal Bank of Scotland operated a branch in the ground floor of the building until 2012, when it was added to the Buildings at Risk Register for Scotland.