Glasgow City Council is set to finalise an extra £2m investment in the revamp of the Citizens Theatre, after the Scottish Government committed £8m.
Citizens Theatre Ltd, which leases the council-owned building, is expected to move back into the theatre later this month, although it still requires around £3.5m to complete the project.
Council officials say the risk of providing additional money has now been “extinguished” and recommend the £2m contribution is signed off.
Due to the pandemic, inflation and issues with the build, the total cost has risen from an initial estimate of around £20m in 2019 to be in the region of £40m.
It is hoped the restoration will “secure the future” of the theatre and play a key part in regeneration of the Gorbals. Councillors will be asked to approve paying out the funds when they meet on Thursday.
Providing the cash was initially agreed in June but was subject to two conditions being met. These were a ‘cost to completion’ agreement between Kier Construction and Citizens Theatre Ltd, which has a 99-year lease to occupy the building, and that a full funding package is in place.
Since then, the Scottish Government has set aside £8m in its budget to support the project, which “closed the funding gap substantially but not completely”, according to council officials.
In a report to councillors, they add: “Although there remains a funding gap, given that cost to completion has now been agreed, and practical completion of the project has been achieved, the risk which the additional conditions… were designed to mitigate against have now been extinguished.
“It is therefore recommended that the additional agreed funding of £2m should now be disbursed.”
Officials say the “responsibility for filling the remaining funding gap rests with the Citizens Theatre Ltd with no liability attaching to the council”. They will continue “to assist them in their efforts to fill the remaining funding gap and make good on the commercial agreement that has been established with the contractor”.
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The report adds progress is being made on attracting the extra funding by Citizens Theatre Ltd, who are set to move into the building on January 20.
It continues: “The redevelopment and restoration of this Category ‘B’ listed building will be the first comprehensive renovation in the building’s 140 year history.
“The renovation will secure the future of an ageing and vulnerable building as an essential theatrical, creative, and cultural hub for both the city and local communities, generating new levels of civic pride and excitement, and playing a leading role in the regeneration of the Gorbals.”
After the Scottish Government funding was announced in December, the theatre said about £37m had been raised and another £3.5m was needed.
Glasgow City Council had already committed £6m to the project while the Scottish Government’s investment has now risen to £14m.
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