Council consider offer from current owner of the former Station Hotel, Ayr

Council today considered an offer from Mr Ung, the current owner of the former Station Hotel, to allow transfer of the building to another party to allow development.

The terms of the offer are confidential, but it was substantially lower than the sum of £1,111,171.34 the Council has spent to date on scaffolding and other work to stop the building presenting a danger to the public and allowing the operation of the railway.

In addition, the offer does not address the monthly ongoing scaffolding costs of £59,500 required to maintain the integrity of the building and therefore, the safety of the public until such times as the building is redeveloped.

The representative for the prospective buyer has advised they would not expect any past or future liabilities to pass to them, and this would include any costs associated with scaffolding or any safeguarding. Instead they have indicated that they require the property ostensibly debt free and "building ready to renovate".

The Council is currently meeting its statutory duties to keep the public safe and does not have any requirement for the land or building for a development. Neither does the Council have any associated funding that would be associated with such development that would entitle it to make a case for the Compulsory Purchase of the building.

The community groups that have expressed an interest to develop the building can exercise the community statutory right to buy by applying for an order to do so from the Scottish Ministers if they are unable to reach agreement with the owner. Before doing so they would need to be able to evidence the funding for this purchase. The Council has no right of ownership and is therefore unable to assist this process.

The Engineers have estimated the current costs to resolve the structural issues with the building to be approximately 10 million pounds.

Published 28 April 2021