Perth and Kinross Council is set to buy the Kinnoull Street multi-storey car park and its Pullar House offices next door.
Councillors agreed to go ahead with the purchases on Wednesday after being told there was just hours to spare.
Head of Legal Lisa Simpson emailed members ahead of the full Perth and Kinross Council meeting to underline the urgency of the situation.
She told the chamber:Â “We need to serve notice with the landlord today if we are minded to exercise our right to purchase Pullar House and the adjacent car park.
“Legal are ready and prepared to go if that is the decision and will of the chamber.”
Councillors unanimously agreed to the move, after being told the building could house around 460 public sector staff and bring many more people into the city centre.
It was brought to the meeting as part of a package of measures designed to regenerate Perth. These included the proposal to build the new PH2O sports centre on the Thimblerow car park.
If the sale goes through, Pullar House will become a public service hub.
It will cost about £10 million to buy and refit it.
But the council currently spends £3.2m a year renting it under the terms of the Public Private Finance Initiative deal that was agreed when it was built.
Pullar House already in use by Perth public agencies
The shift to hybrid working means Perth and Kinross Council no longer needs as much office space as it did before the pandemic.
However, the intention is to share Pullar House with staff from the NHS and Scottish Government departments, as well as other public agencies which want a presence in Perth.
It is already a vaccination centre for NHS Tayside, seeing around 200 people a day.
VisitScotland staff are also working out of the building.
And council chief executive Thomas Glen revealed the council is in discussions with Police Scotland about moving some of its staff there too.
Council officers say Pullar House could house 260 council employees and another 200 staff from partner agencies.
Parking spaces will be allocated at Kinnoull Street car park for workers.
But members of the public visiting the hub are also likely to use it, as are others who may have been reluctant to use it while it was managed by Smart Parking.
Pullar House and car park purchase ‘vital’ to Perth city centre
A price has yet to be agreed for the car park.
However, councillors agreed to an amendment put forward by council leader Grant Laing that the money should come from the council’s car parking trading account and not the general budget.
He said: “By purchasing the Kinnoull Street multi-storey car park and bringing operating arrangements into line with the other council-owned car parks we will be providing a more reliable and user-friendly parking experience.
“I’m sure this will greatly increase the usage of the car park.”
Councillors told the public service hub could boost footfall for city centre businesses by bringing people in for appointments, in addition to the staff who will be based at Pullar House.
Deputy leader Eric Drysdale said the purchase was “crucial for the economic vitality of the city centre”.
The 25-year lease on the property on Pullar House is due to end on September 10 2025.
Councillors previously voted to mothball the building in March 2023.
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