The derelict Drummond Arms Hotel in Crieff looks set to be demolished, ending years of wrangling about its fate.
Perth and Kinross councillors will be asked to take ownership of the town centre eyesore next week.
It comes after a Dangerous Buildings Notice was served on the property at the end of October.
The community group which had been working to find a new purpose for the former hotel is now offering to transfer it to the council for free.
Drummond Arms Regeneration Limited (DARL) says it has exhausted all funding options.
That has left the group unable to meet the requirements of the Dangerous Buildings Notice – or to continue to operate beyond March 2025.
And it dashes hopes, raised as recently as last year, that it could re-open as a £5m boutique hotel.
Perth and Kinross Council leader Grant Laing says the future looks bleak for the Crieff landmark.
“The condition of the building means that the only viable option left is demolition,” he said.
“While it is not the news local residents will have hoped for, it is the most practical solution to mitigate the risks posed by the deteriorating structure.”
Latest twist in troubled times for Drummond Arms and Crieff
The transfer will be considered by Perth and Kinross Council’s finance and resources committee when it meets next Wednesday.
The 19th Century Drummond Arms Hotel is one of Crieff’s most prominent buildings, sitting in the centre of the High Street across from James Square.
Bonnie Prince Charlie famously held his last council of war before Culloden on the site.
The Royal Bank of Scotland occupied part of the B-listed building after it closed as a hotel.
But it fell increasingly into disrepair amid legal battles over its upkeep.
And it was already dilapidated when Crieff Community Trust took ownership in October 2019.
DARL, a subsidiary of the trust, has since spent more than £1m on preserving the property and exploring future options.
However, recent structural surveys have revealed significant deterioration.
And the final straw was last month’s Dangerous Buildings Notice, requiring the roof structure, chimneys and high street-facing dormer windows to be made safe.
‘Sad day’ for Crieff residents, but possibly a new dawn
Mr Laing said acquiring, and then bulldozing, the Drummond Arms would allow the council to protect public safety and bring the saga to an end.
“This is a decision of last resort,” he said.
“The community group had great ambitions for the building, but unfortunately have not been able to deliver on these.
“There’s a real risk that if DARL goes into liquidation still owning the building that the ensuring legal procedures would leave the future of the site in question for many, many more years.”
Perth and Kinross Council says a report will be brought to a future committee about development options for the site after demolition.
These could include affordable housing.
Councillor Stewart Donaldson is convener of the finance and resources committee and a local ward member.
He said: “It is sad news that we have come to this.
“However, given the current state of the building there is no alternative to tackle this now dangerous building.
“I, like many Crieff residents, am disappointed that this is the end of the story for the Drummond Arms.
But I hope that a new future for the site can bring positive benefits to the local community.”
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