Dundee City Council could be set to cash in by moving environment staff out of its Clepington Road HQ.
Environment convener Craig Melville says money will be saved by relocating more than 100 staff to offices in City Square.
A tendering report for £1m works to the east wing of City Square to accommodate the staff is set to go before the city development committee this evening.
Mr Melville says it kills off plans for a new £3m environment HQ, which had been proposed for land next to the closed Marchbanks recycling centre.
He said: “There is a spend, but it’s a lot lower than what it would cost to build a new headquarters.
“We are utilising existing space already owned by the council. This has come about because we’ve had staff move from Tayside House and City Square into Dundee House. It is a gradual thing.
“City Square was deemed big enough to house environment staff and I think it shows we are looking after public money.
“Clepington Road is not exactly environmentally friendly and it’s not really fit for purpose.
“The savings also come in the rates. I don’t have exact figures, but we are no longer paying rates on these different buildings everybody is under one building.”
The old base could be put to other council uses or potentially sold off.
However, Labour’s environment spokesman Richard McCready said: “It’s £1m and then possibly more work. It’s something I would want clarity on.
“They’re determined to get out of the building on Clepington Road. Also, I’m sure there’s money in the capital budget to build new headquarters at Marchbanks in future years.
“I think it’s still likely that the intention is that there’s a new headquarters built at Marchbanks.
“I’m disappointed the report doesn’t set out rationale for why they’re moving to City Square, and what the benefits and what the disadvantages are of moving there.”
Mr Melville added: “There are no plans to build at Marchbanks. You can be sceptical, but we’ve looked at it. This generates savings compared to what the plan was going to be.
“Ken Guild, the council leader, instructed a review on the decision to close Marchbanks. It was a financially led decision and a report will come back on what the future holds for that site.”