Portfolio holder Kelsie Learney has decided the scheme for the three-bedroom property in Tower Street is no longer viable and has decided the house should be sold.
The £80,000 has come from the housing revenue account (HRA) which solely comprises income paid by the authority's 5,000 tenants.
Cllr Learney's decision day meeting heard that spiralling building costs have undermined efforts to 'retrofit' it, make the building eco-friendly, and convert it into two flats.
Former councillor Ian Tait has previously highlighted the problems with the building. He told the meeting on Monday: "I wholeheartedly support the sale but it is important to point out that I have been in contact with the council officers over the last two years asking what was happening with the property and why wasn’t it being considered for sale. In fact, I even contacted the Leader of the Council (in who’s ward the property is situated) last May pointing out my concerns as the house had been broken into. The property was subsequently boarded up."
He also pointed out that the council planned to remove the chimney without proper consultation with the owner of the adjoining property and also scaffolding has been erected on at least three separate occasions but without any work being undertaken, adding "and in fact it was only last month when scaffolding was erected but yet in a couple days it was removed, again without any work having been done. Perhaps it was left hand and right hand.
"Why did the city council go to the expense of applying for planning permission to convert the property into two separate dwellings when this report even questions why the property is in the HRA stock?
READ MORE HERE: Former councillor questions why house is standing empty
"This is council tenants money being wasted not general council tax money. Tenants have been let down. Officers have not protected their interests. It is an example of very poor practice."
Cllr Caroline Horrill, leader of the Conservative group, said the council has been too ambitious in making the house to 'Passivhaus' standard, the greenest possible.
"We have lost the opportunity for two council homes. This is tenants' money and we may have thought too deeply about this property," adding the council should learn lessons.
Cllr Learney responded: "We have reached the point where there is no longer a viable business case. We have to consider the length of time it has taken and look to take difficult decisions rather faster in the future."
Strategic director Richard Botham said: "There is learning from any project and we need to learn from the time this has taken."
The meeting heard that £40,000 has been spent on professional fees with £40,000 'void costs' including lost rental income. The house has been empty for around three years.
The city council still owns similar period properties in Eastgate Street, Canon Street and Colebrook Street although several have been sold.
In a statement released this afternoon, the council said: “The headline and comments made by a councillor in the meeting are not correct. The Council has not spent £80,000 on this property as stated in the article. The decision to sell the property means that the £40,000 void works will not be completed.
“Plans to fully retrofit the property to a well-insulated green energy home have unfortunately proved too expensive following the recent increase in building prices. The council could have generated £20,000 rent through the period that the property has been empty, but would have needed to invest more than £40,000 to bring the property back to a basic lettable standard. Tenants have asked us to do our best to avoid selling council properties which is why we were looking to redevelop the site. By selling, the council will generate sufficient funds to build two to three brand new properties to meet local housing need as well as cover the £40,000 in feasibility and other costs."
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