The Council met to discuss the future of the Aberdeen Art Centre, ultimately resolving to re-open negotiations for a long lease with Castlegate Arts Ltd and to provide financial support for essential electrical upgrades. This decision aims to secure the long-term future of the building and support the arts organisation's development.

Future of Aberdeen Art Centre

The Council resolved to allow the current lease for the Aberdeen Art Centre to continue on tacit relocation beyond its expiry in January 2027. This decision follows a previous resolution by the Finance and Resources Committee in July 2025 to offer Castlegate Arts Ltd a new lease on current FRI terms, which has not yet been agreed upon. Castlegate Arts Ltd has indicated they are unable to enter into a new lease under these conditions, and their occupation has continued on a year-to-year basis.

The Council has now instructed the Chief Officer - Corporate Landlord to re-open negotiations for a long lease, with terms acceptable to both parties. Key considerations for the new lease include a term of at least 30 years, an option for tenant purchase, and the Council working collaboratively with Castlegate Arts Ltd to identify a long-term funding and development model. This would enable the organisation to apply for major capital grants for the upgrade and repair of the building. Additionally, the Council will provide comfort that the building will be kept wind and watertight, subject to uneconomic repair conditions, and will waive any right to historic dilapidations requirements as part of the new lease agreement. A report on the outcome of these discussions, along with a costed business case, is to be presented to the budget process for 2027/28.

Furthermore, the Council acknowledged a current electrical upgrade and lifecycle replacement requirement for the building, with a request for up to £50,000. Given the long-term benefit of this replacement, the Chief Officer - Finance has been instructed to provide a grant or contribution of up to £50,000 from contingencies, subject to due diligence checks.

To support Castlegate Arts Ltd's current funding applications, the Chief Officer - Corporate Landlord is to provide a letter of comfort regarding the continued occupation of the building. The Chief Officer - City Development & Regeneration will also offer guidance to help Castlegate Arts Ltd demonstrate compliance with the Council's criteria of Following the Public Pound¹, enabling them to be considered for funding through the Culture Investment Framework at the 2027/28 budget and other Council-administered national government funding pots.