Dundee councillor Craig Melville has urged Scottish Water to take action to safeguard the former Maryfield tram depot in Forfar Road from further deterioration.
The Maryfield ward councillor has also asked the water authority, which owns the building, to work with residents to ensure it “remains in the community for community use.”
A group of enthusiasts who formed the Dundee Museum of Transport group in 2010 are keen to buy the building and transform it into a transport museum and have been negotiating with the water authority.
The group has applied for National Lottery funding and also claims to have the backing of the city council, MSPs, MPs and heritage groups who have now formally classified the tram depot building as “at risk”.
However Mr Melville says the asking price for the category-B listed building is too high and has now written to Scottish Water chief executive Douglas Millican over what he feels has become something of a stand-off.
He wrote: “Members of the community have expressed concerns about the apparent state of disrepair and neglect to the building.
“It is a grade B listed building therefore the general feeling in the community is that something should be done to address this.
“Despite the depot being up for sale I would be extremely grateful if you could update me with regards to what plans Scottish Water have to ensure that the building does not deteriorate further.
“Moreover, I’m sure you are well aware of the group wishing to purchase the depot in order to transform it into a transport museum.
“I’d personally love to see this project come to fruition but feel that the purchase price is perhaps too high for it to become a reality.
“Whilst I appreciate Scottish Water simply cannot dispose of this property to interested parties at a reduced purchase price, it would be extremely encouraging to see a willingness for Scottish Water to work with the group in order to give the project the best chance of success.
“I would like to ask you directly if you would be willing to liaise with the transport museum group and perhaps the Scottish Government, if relevant, in order to explore the idea of keeping this building within the community for community use.
“I personally feel this is an excellent opportunity for Scottish Water to work with the local community to develop what would be an incredible asset for the city.
“The project would create jobs, redevelop and regenerate an area of Dundee and assist in our desire to become more of a tourist destination.”
Jimmy McDonnell, chairman of the Dundee Transport Museum group, confirmed he is involved in discussions with the council and the water board.
However he said he was feeling “very positive” about their latest talks with the council and the water board and also about their lottery funding bid.
“It’s going to be a long game, but it’s looking very positive,” he said.
“We have a feasibility plan, a business plan and an application into the lottery so everything is in place and we have just had a positive meeting, so it’s not looking too bad.”
He added though: “The building is in a very perilous state, the roof is being held up by scaffolding and it really needs a lot of work to return it to good condition.”
A spokesman for Scottish Water said: “We are continuing to work with the Dundee Transport Museum and Dundee Council to explore the possibilities of the proposed museum being sited at the former Stobsmuir Tram Depot. We understand they are exploring various funding opportunities and we awaiting further updates.
“We are reviewing any essential maintenance which is required.”