The Labour Group on Scarborough Council has voiced its opposition to the proposals to move the Town Hall.
Group leader Eric Broadbent said: “We do not believe that moving the council’s administration out of the Town Hall into Prospect House, a property more than three miles away would be in the best interests of the borough and especially not in the best interests of the town of Scarborough.
“The council has secured what amounts to an advance of £3 million to facilitate its early purchase of Prospect House in a complex deal into which the council would itself inject a further £1.8 and so provide the Joint Venture with a net working capital of £1.8 million.
“It has not been explained, however, what the costs of redevelopment are, nor what the value of the remainder of the site beyond the Town Hall is. Without these details, nor any indication of whether a high quality development which includes a major tourist attraction will be built in a timely fashion, we believe that the present economic circumstances create a significant risk that no development will take place which is satisfactory for such an important site.
“Scarborough could be left with its own equivalent of a ‘Bradford Hole’ which would be much more serious for a town which relies on its attraction to tourists for so much of its economy.
“Set against this we would see the town centre losing 300 well paid permanent jobs and the implications of that.”
Deputy leader Cllr Colin Challen added: “We acknowledge that a small saving could be made – representing perhaps one third of one per cent of the council’s budget - but this does not outweigh the loss of such an important function in the heart of Scarborough.”