Councillors will be asked to waive millions of pounds of potential income to ensure Perth Concert Hall and Perth Theatre remain central to the local economy.
The importance of the venues in drawing in visitors and hosting events means that the council should look at the bigger picture, it will be argued.
A new 30-year lease has been drawn up for the buildings which would involve a nominal £1 rent per annum being paid by Horsecross Arts Limited, who run both venues.
Local government legislation requires councils to make best use of public resources and councillors will have to be convinced that the lease is justified.
A report to go before the strategic policy and resources committee on Wednesday outlines the considerable potential market rent valuations of the buildings £187,000 per annum for the concert hall and £70,000 for the theatre.
Council officers who have looked at the issue will argue that the peppercorn rent is justified as the buildings are central to the council’s aims of economic regeneration and development by strengthening tourism markets and supporting business visitors.
Both venues are also judged to be “central to the regeneration of the Mill Street area and the social well-being of residents”.
The joint report by depute chief executives John Fyffe and Jim Valentine recommends that the lease should be approved as the best option.
“Perth Concert Hall attracts 116,000 attendances per year,” notes their report. “The hall has been a local asset and source of civic pride for over 10 years.”
The listed theatre, which is under-going a multi-million-pound refurbishment, regularly attracted 100,000 attendances a year, a figure which could rise to 157,500 when it reopens.
Dating from 1901, the report says it is “one of the oldest theatres housing one of the oldest repertory theatre companies in Scotland”.
The council has in recent years allocated tens of thousands of pounds to maintain the buildings and under the new lease they would continue to have full maintenance and repairing responsibilities.