Clackmannanshire Council is to continue with an order to acquire the former Alva Glen Hotel by Compulsory Purchase Order.
In December, the Enterprise and Environment Committee agreed to make a formal offer to the owner. In the event that the offer was declined, it was agreed that compulsory purchase proceedings would commence and the matter reported to the Council.
On Thursday, councillors were told that attempts to buy the property voluntarily had failed, as well as attempts to get the owners to carry out necessary repairs to the property.
The report to Committee advised members that a valuation report from the District Valuer had assessed the property as having a "nominal" value, but that an inflated offer had been made based on the estimated opportunity cost of avoiding the need for compulsory purchase action.
This too failed, so it has now been agreed to obtain the property by a Compulsory Purchase Order.
Council Leader Councillor Gary Womersley said: "It is perhaps not surprising that the offer has been rejected, given that the owners appear to have a very inflated view of the current value of their property. The owners have repeatedly failed to carry out any significant repairs to the property or address its unacceptable condition.
"The former Alva Glen Hotel has become a dangerous structure and there is little to be gained in prolonging unproductive negotiations if the Council is prepared to go down this route.
"Further evidence of the continuing deterioration of the condition of the building is the recent direct action the Council has taken in respect of a dangerous chimney on the property."
The Council's Housing Strategy has identified Alva town centre as one where poor property condition needs to be addressed and it is envisaged that the Clackmannanshire Local Development Plan will promote town centre regeneration by including the provision of affordable and social housing.
The potential redevelopment of the Alva Glen Hotel site for housing use would therefore be in agreement with existing and proposed strategies and policies.
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