Dundee social enterprise The Circle will move premises, to Dudhope Castle, later this year.
The building will be used to provide affordable, flexible workspaces and event facilities for charities, social enterprises and community groups.
The Circle and Dundee City Council will work with local architectural, heritage and community groups to ensure the A-listed building becomes a valuable community resource, as well as a visitor and tourist attraction.
Local property developers had drawn up plans to turn the castle into a hotel, museum and hospitality academy.
Councillors voted 15-11 in favour of selling or leasing the former military base, which was most recently used as local authority offices until March 2020.
The Circle has been awarded the lease and will offer affordable workspaces, co-working spaces and event facilities.
The social enterprise moved to a four-day working week a year ago and said recently there is no going back.
The social enterprise plans to use the castle’s Scrimgeour Room for public consultations.
It will also feature an exhibition of the history of the building.
The group also aims to work with the community to tell the story of the castle, and its important role in the city’s heritage.
The move to Dudhope Castle will be a significant step in the growth of the social enterprise.
Dudhope Castle to benefit city people
Founder and chief executive Kirsty Thomson hopes the castle will become a valuable community resource.
She said: “This important, historic building which many consider to be Dundee’s castle, will be used to benefit the people of Dundee.”
Ms Thomson also hopes it will help attract investment into the city.
She added: “It will be filled with organisations and individuals offering support to people across the city, including those with additional needs and learning disabilities, experiencing mental health challenges and funeral poverty.
“We also aim to build on our current work, creating employment and volunteering experiences.”
Convener of Dundee City Council’s city development committee Mark Flynn hopes the move will help to breathe new life into one of the city’s most historic buildings.
He said: “Leasing Dudhope Castle to The Circle is a win-win situation all round.
“That will mean that the Dundee public can still feel a sense of pride and engagement with the building.”
Tenants looking forward to castle move
A number of The Circle’s current tenants are planning to move into Dudhope Castle with the team.
These organisations include Cornerstone, Barnardo’s, Uppertunity, and local filmmaker Ian Bustard.
Daniëlle Gaffney du Plooy, of Uppertunity, said: “We’re all very excited for our new home.
“We’re beyond happy and grateful to be part of such an amazing community.
“We couldn’t imagine ever being in a space on our own, without like-minded organisations such as we have at The Circle.
“At Uppertunity, we’re about creating and inspiring positive social change.
“This can only be done by the community and its members working together.”
Sheelagh Scott, of Barnardo’s, said: “We value being part of The Circle community as all partners share our basis and values.
“We are looking forward to an exciting future as tenants in The Circle as we move to the new premises.”