Councillors are set to pledge £1.5 million to the troubled Horsecross Arts organisation in Perth, The Courier can reveal.
The funding would go towards the £14.5m redevelopment of Perth Theatre, following the local authority previously bailing out Horsecross after it faced a £500,000 “black hole” for Perth Concert Hall.
The arts body which runs both Perth Theatre and Perth Concert Hall also saw six former board members resign at what was a troubled time for the organisation.
In a report written by the local authority’s head of finance, John Symon, which will come before Perth and Kinross Council’s strategic policy and resources committee on Wednesday, councillors will be asked to support the pledge of £1.5m toward the Perth Theatre project.
The report states: “Whilst still at an early stage, it is acknowledged that there remains potential for additional cost pressures to be identified given the nature of the project (Perth Theatre).
“It is expected that Horsecross will continue to fundraise to meet any potential funding gap. However, in order to allow the project to progress it is proposed that the council commits to underwrite up to £1,500,000 from the composite programme through increased borrowing.”
Last night, Magnus Linklater, who took over as chairman of the Horsecross Arts board in November, told The Courier he was “delighted” and “grateful” for the pledge of £1.5m from the council.
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“I was at the Perth Theatre project meeting so I am aware of the council pledge and delighted at their continued support for the redevelopment of the building,” he said.
“The project is progressing well and the council funding is crucial for the future success of Perth Theatre.”
And the former editor of the Scotsman and the Scottish edition of the Times added: “I am hoping to announce details of the Perth Theatre project shortly.
“I am very excited about the plans for the theatre and feel this funding pledge forms an important outline of the project.”
Mr Linklater, pictured, previously stated the Horsecross Arts board had “got on top” of the financial problems which faced the organisation and emphasised ongoing stability was “crucial.”
The theatre, which opened in 1900, is expected to be closed for two years during the extensive redevelopment. This will see the period features of the B-listed Edwardian auditorium restored.
In addition, a new studio theatre and entrance will be created. During its revamp, the theatre is utilising other venues in Perthshire to host productions.
This latest funding move follows Perth and Kinross Council setting £500,000 aside in their budget in February for the “essential maintenance” of Perth Concert Hall, with an additional £43,000 provided each year for its upkeep.
And the local authority also agreed to provide £31,000 towards the cultural programme of Pitlochry Festival Theatre at that time.
In February, councillors had agreed to a revised capital budget of £43.5 million for the 2013-14 financial year and £51m for 2014-15 period.