The new Regional Performance Centre for Sport (RPCS) planned for Caird park will cost the council hundreds of thousands of pounds per year just to maintain.
Property and maintenance costs for the controversial facility, which has been mired by setbacks, spiraling costs and lengthy planning wrangles, will cost the public £360,000 per year.
Executive director of city development, Mike Galloway, has said in a report these expenses will be met in the council’s revenue budget from 2019 onwards, with the centre not set to open to the public until autumn of that year at the earliest.
The centre is not expected to break-even for the first three years and the council has said they may be required to plug the operational deficit by using £63,500 from the revenue budget to cover the loss.
This is in addition to the £360,000 property and maintenance costs.
The centre had faced a potential annual tax bill of £750,000 following recommendations made to the Scottish Government in the Barclay review but Finance secretary Derek McKay last month announced the RPCS’s “exceptional circumstances” would make the centre exempt.
The projected overall cost of the centre totals almost £32.2 million pounds, including allowances, rocketing from £12.5 million since the initial go-ahead was given in August.
The council blamed the increase on the “increased scope” of the project, as well as a weak pound and “current market conditions”.
In addition, it did not take into account the effects of inflation, according to the same report compiled by Mr Galloway, which attributed to at least a £1.3 million increase.
Sport Scotland, the national body which called for a regional performance centre as far back as 2003, will fund provide £5 million and £3 million will come from the European Regional Development Fund local carbon infrastructure transition programme.
This will be spent, in part, on an “innovative” district heating hub, with integrated renewable and low carbon technologies.
The remaining £24.125 million will be borrowed by the council with interest “contained” within the council’s revenue budgets.
Labour leader Bailie Kevin Keenan said: “The costs for the Regional Performance Centre for Sport continue to grow and we just hope they can deliver this project – which we support – on budget and on time.
“It has taken the same time for the project to start as it has taken the national centre in Edinburgh to be built and opened to the public.
“In the wider context this will have health benefits for the people of Dundee.
“The Scottish government changed their minds about the additional tax for the centre, but it seems the Menzieshill community centre will not be given special exempt status.
“Dundee city residents will be left paying a considerable £300,000 additional tax for this building annually.”
A spokeswoman for Dundee City Council said this was the first opportunity the £360,000 property and maintenance cost has been able to be made public.
She added the cost will be covered in the city development and neighbourhood services’ budgets.
Further to this, Leisure and Culture Dundee will receive the income generated from the centre.
