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Dundee agrees to £8.5m demolition

Dundee City Council is to pay £8.5 million to demolish a hotel and adjoining casino as part of its £1 billion waterfront redevelopment programme.

The project is not expected to be completed until 2031 but it is understood the Hilton Hotel and the adjacent Gala Casino will be demolished sometime next year.

Local politicians hope the initiative, which will also see a branch of the V&A museum come to the city in 2015, could create more than 1000 jobs.

It is understood £7m has been allocated for the hotel site and £1m for the casino. The remainder has been set aside for stamp duty and other taxes.

SNP Councillor Ken Guild, leader of council, said: "Plans for the transformation and regeneration of the central waterfront have been in place for over a decade."

A spokeswoman for Hilton Worldwide yesterday said: "It has been mutually agreed the council will look to take ownership of the property in April 2013."

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Local government

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