The £45 million V&A Museum project has been officially recommended for approval by councillors.
The Victoria and Albert museum, designed by Japanese architect Kengo Kuma, will be the centrepiece of the £1 billion waterfront regeneration.
The council is the applicant for the project on which work is hoped to start next spring, with a scheduled completion date of 2014 and opening the following year.
In a report to Monday’s meeting of the development management committee, city development director Mike Galloway says Victoria and Albert at Dundee will be an important centre for Scotland.
He said there are no reasons to justify refusal of planning permission, recommending the project be approved subject to conditions on the infilling of Craig Harbour, landscaping, construction timings and drainage.
In his report, Mr Galloway says the Victoria and Albert at Dundee project will provide dedicated exhibition space and a range of activities.
”A feasibility study commissioned by Dundee University, Scottish Enterprise and the Victoria and Albert estimates the potential impact is for 500,000 visits annually,” he said.
”This includes the use of the bar, restaurant and conference space as well as the galleries.
”The economic impact is expected to be considerable and such a project would have a transformational effect on the perception of Dundee nationally and internationally.”
Mr Galloway added: ”By itself, the Victoria and Albert at Dundee will not transform Dundee. However, it has the potential to bring transformation on an even larger scale.”
Early figures suggest the project could bring in 900 new jobs, £5.4 million extra output a year (£4.7 million in Dundee) and £2 million extra income a year to the Scottish economy (more than £1.4 million in Dundee).
The proposals are part of the Dundee Waterfront Development Masterplan.
This includes the redevelopment of the railway station, demolition of the Olympia Leisure Centre and Tayside House and the reshaping of the current traffic road layout.
The Victoria and Albert project was first put forward in 2007 by Dundee University to develop an outpost museum for London’s Victoria and Albert Museum.
The idea is that it will display exhibitions from the Victoria and Albert and also showcase Scottish and Dundonian craft and design heritage, plus contemporary talent.
The conditions for a site for the project included a riverfront location between Discovery Point and the Tay Road Bridge.
This is to maximise visibility both from approaches to the city and within the city centre and make access easy for visitors and customers.
Victoria and Albert at Dundee is part of a 30-year regeneration project with economic and social benefits, Mr Galloway said.
He said the new attraction could combine the attributes of a visitor centre with those of a cultural asset, as well as helping to regenerate Dundee.
The Scottish Government has pledged its support to the project for its potential national significance.