Perth and Kinross Council commits to end leases and buy Kinnoull Street Car Park and Pullar House

Pullar House, Kinnoull Street, Perth
-Credit: (Image: Richard Wilkins)


Perth and Kinross Council has agreed to buy Kinoull Street Car Park and commit £10 million to buy its offices at Pullar House in Perth which it spends £3.2 million a year leasing.

The purchases are being progressed under the terms of the Public Finance Initiative (PFI) Project Agreements as lease agreements for both facilities are drawing to a close.

The decision was made at a meeting of all councillors on Wednesday, September 4.

Councillors were recommended to grant approval to buy both the council offices at Pullar House and Kinnoull Street Multi-Storey Car Park at market value.

The proposal tabled was for Pullar House to operate as a "one-stop public sector hub" which councillors were told would both generate rent income and increase footfall to the city centre with 200 more people working in the building.

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The multi-storey car park purchase will be funded through the council's car park trading account

A number of partners - such as the Health and Social Care Partnership, Perth and Kinross Countryside Trust, Social Security Scotland and VisitScotland - are currently co-located within the building. Councillors were told there is also interest from the Scottish Government in moving into the building.

NHS Tayside Vaccination Services relocated to Pullar House on a short-term lease in July and the paper put before councillors stated that should the council purchase the building "NHS Tayside have indicated their expectation to extend this commitment on a cost sharing basis, subject to government direction of travel and continued centralisation approach".

The council's strategic lead for Property Services Stephen Crawford said: "At least 200 more staff would be working on a daily basis at Pullar House."

The council later clarified this would be 200 additional staff from partner agencies in addition to around 260 workers - from both the council and partners - who currently occupy the building each day.

The PFI Project Agreement is due to come to an end in September 2025. Council officers have now been tasked with negotiating and agreeing lease terms with partners for accommodation within Pullar House "on an open-book, cost sharing basis" as part of its Working Smarter Project.

Moving the recommendations for approval, council leader Grant Laing thanked officers "for their hard work to create feasible and affordable options".

The SNP leader said: "This hub will not only house our council offices but also include the NHS and other local government partners. We have already seen the success of this model with the vaccination centre moving in, demonstrating how well such a shared space can work.

"It will ensure this large city centre property is kept in use, retaining a visible and accessible presence for the public looking to the council for services.

"Working alongside other public sector partners will also create opportunities for more working together – whether that’s seeing crossovers that will benefit the public such as offering support on benefit entitlement targeted alongside visitors to vaccination clinics, or helping close the gaps between different organisations that will be working much closer together to ensure that everyone who needs support receives it.

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"In addition, my motion is to also purchase the neighbouring Kinnoull Street Multi-Storey Car Park. This will be funded through the car park trading account, ensuring no additional financial burden on our general fund budget. And by buying the Kinnoull Street multi-storey and bringing the operating arrangements into line with the other council-owned car parks we’ll be providing a more reliable and user-friendly parking experience for residents and visitors alike. And I'm sure that this will increase greatly the usage of this car park."

The proposals were seconded by deputy SNP leader Eric Drysdale who said it was "crucial for the economic vitality of our city centre".

Cllr Drysdale said: "Bringing together public organisations we have a unique opportunity not only to bring in rent but to increase footfall to the city centre."

The Perth City Centre councillor said he "regularly received grumbles about the running of the Kinnoull Street Car Park" and welcomed the council taking control of the building.