It is estimated the whole project would cost just under £25 million but anticipated savings arising from getting rid of Tayside House, coupled with receipts from the sale of council properties and taking advantage of a new capital funding regime, should mean the level of council tax is unaffected.

Councillor Jill Shimi, leader of the administration, said, “The demolition of Tayside House is a key element of the city’s ambitious vision for the central waterfront development.” Even if the waterfront project had not required demolition of Tayside House, there were serious question marks over its long-term viability.

Based on external consultants’ reports, around £9 million would be needed to upgrade mechanical and electrical services, including provision for meeting the requirements of the Disability Discrimination Act, to extend the building’s useful life by another 25 years. Additionally, the net running costs of Tayside House are £178,000 a year more than the proposed new offices in North Lindsay Street.

In a report due to go before councillors next week, depute chief executive (finance) David Dorward said the council had already purchased a site in North Lindsay Street, which will be the main site for the new offices.

“Given the scale of the proposed development, it is suggested it would be prudent for the city council to also acquire the adjacent premises comprising 26-36 North Lindsay Street,” he added.