Cash-strapped Dundee City Council has agreed to write off £50,000 in order to demolish the dilapidated Whitfield shopping centre.
City councillors have approved a proposal to tear down the derelict building and make way for a new development.
However, by taking over full ownership of the site the local authority has had to write off the £50,000 it is owed in rent arrears from the centre’s former owners, Douglas Shelf Seven.
The council stands to make £91,000 from selling the site to developers after covering demolition costs.
But not chasing up the company’s £144,000 of debt will mean the council loses out on around £50,000.
Plans to demolish the eyesore area have been welcomed by Whitfield residents.
Johanna Frankenberg, 79, said: “It should definitely be knocked down.
“Since the shops stopped being there it has been an eyesore.
“I’ve lived in Whitfield since 1969 and I’ve seen a lot of regeneration in the area I don’t see why it should stop now when it is really needed.”
Rae Burness, 44, a retired haulier from Whitfield Square, said: “It really needs to be torn down it has been sitting there for ages now doing absolutely nothing.
“And I am sure however much money the council say they’re losing out on, they will be able to make up for it by selling the land on.”
Roberta Blair, 75, a voluntary worker from Murrayfield Gardens, said more shops should be built in the area instead of housing.