The leader of Dundee City Council has reassured people living in the Menzieshill area that their new community facilities will go ahead.
John Alexander said there was no question that the facilities wouldn’t be built and that work on the development was “imminent.”
It was feared that a huge tax bill on Dundee’s new regional sports centre in Caird Park could have serious consequences for other community facilities around the city, including the proposed facilities at Menzieshill.
Mr Alexander’s assurances over Menzieshill were backed up by SNP councillor for the area, Alan Ross.
Mr Ross said: “The budget for this has already been earmarked. I understand there have been fears locally that it might not happen but it will go ahead.”
Labour councillor Michael Marra had earlier warned the charge could have a catastrophic impact on the proposed Menzieshill Community Centre.
Mr Marra said: “I have been speaking with officials to find out whether the possible tax bill would affect the new Menzieshill community facilities.
“It is my understanding that any new build will incur these tax costs.
“This is putting the planned investment in Menzieshill at risk. We are looking at an annual bill of hundreds of thousands of pounds.
“That would blow apart any budget for a facility like the one planned for Menzieshill.
“Councillors are yet to see a business plan but this tax bill would have a huge impact on whether the project would be viable or not.
“The word has been that the facility will transfer into the hands of Leisure and Culture Dundee.
That may mean the doubling of hall rentals for many groups. But if it also risks a huge tax bill then councillors must be told before the scheme is approved.”
Meantime the Scottish Government has refused to rule out hitting Dundee City Council with an £800,000 bill for the planned Caird Park Regional Performance Centre, under plans to impose business rates on new facilities run by “arm’s-length external organisations”.
Mr Alexander said: “We are assessing the situation.
“Our focus is on ensuring the best outcome for Dundonians.” .
Labour MSP Jenny Marra said: “I will keep challenging the First Minister and Derek Mackay to make sure that the sports centre is delivered for Dundee without the sports tax on top.”