However, it’s likely they will lose approximately £500,000.
Councillors were this week updated about the ongoing situation with the closure of Moat Brae House and the liquidation of the Peter Pan Trust, which was responsible for the development and operation of the visitor centre and children’s literature centre there.
They heard that the liquidators are currently in discussions with interested parties about buying the historic property, in a process likely to continue until the end of the year.
Meanwhile, security is in place for the empty building in George Street and some of the artefacts have been moved into storage at Dumfries Museum.
And officials are focusing on if they can salvage some of the money that was given to the trust in the last eight years.
Since 2016 the local authority had entered into several funding agreements with the trust as they restored Moat Brae and established it as Scotland’s National Centre for Children’s Literature.
Public monies were also handed over from the National Heritage Lottery, Creative Scotland, Historic Environment Scotland, the Scottish Government Regeneration Capital Grant Fund, Town Centre Capital Fund and the UK Community Renewal Fund.
However, this summer the Peter Pan Moat Brae Trust, which is a private company limited by guarantee without share capital, announced that it was putting itself into voluntary liquidation and winding up its activities and the associated trading arm which operated the visitor centre at Moat Brae House.
They blamed falling visitor numbers, rising costs and a period of losses.
Consequently, the site closed on August 23 after just five years of operation.
In a report for councillors this week, Dumfries and Galloway Council’s head of economy and environment Steve Rogers said: “The grant funders have been meeting as a group to consider respective legal
positions and consider roles in supporting appropriate options which may emerge from the liquidation process for the future of the building which retain the public, cultural and socioeconomic benefits which were associated with the original investments.
“All grant funders have in place a mix of grant clawback provisions and standard securities over the building.
“A claim in respect of the four live clawback agreements which underpinned previous council funding has been submitted to the liquidators.”
However, he noted that although the clawback provisions are in place, “there is a risk that the liquidation process will not realise sufficient funds to enable full repayment to the council and other grant funders.”
