From 1992, City of Adelaide was owned by the Scottish Maritime Museum.
After slipping the clipper in 1993, the museum began a programme of work to preserve and restore the historic ship.

In May 1999 Scotland regained its own parliament.
A side effect of this was that previous UK funding sources for the Scottish Maritime Museum dried up.
This then had a snowball effect on the Scottish Maritime Museum.
An application for funding for the Museum's other major project, under the UK Heritage Lottery Fund, was rejected.
Due to the eroded revenue position, the local municipality reduced its funding, and other grant-aiding organisations adopted a similar position.

Following the restructuring of local government in Scotland the Scottish Maritime Museum, as an independent charitable trust, appealed to the Scottish Executive for support.
The Executive commissioned a report through the Scottish Museums Council that recommended the sale of City of Adelaide.
The Museum began to receive government support but it was conditional on no government funds being spent on the vessel.
In 1999 all work on City of Adelaide stopped and the shipwrights were moved to other projects.

The Scottish Maritime Museum had agreed a contract with the owner of the slipway on which City of Adelaide was stored, specifying a peppercorn rent of £1 a year.
However the contract included a penalty clause requiring payment of £50,000 per year should the owner require the museum to vacate the slipway.
SMM were given notice to quit in April 1999, and rental began to accrue.
Faced with these potential demands, and unable to find a buyer for the vessel, in May 2000 the trustees of the Scottish Maritime Museum applied to North Ayrshire Council for listed building consent to deconstruct City of Adelaide.
The Council received over 100 objections, including representations from nine significant maritime heritage organisations around the world.
Members of the UK and Scottish Parliaments objected, as well as the Australian Foreign Minister Alexander Downer and Australian ex-Senator and diplomat Robert Hill.
The Council refused demolition in February 2001.
From 1992, City of Adelaide was owned by the Scottish Maritime Museum. After slipping the clipper in 1993, the museum began a programme of work to preserve and restore the historic ship.
In May 1999 Scotland regained its own parliament. A side effect of this was that previous UK funding sources for the Scottish Maritime Museum dried up. This then had a snowball effect on the Scottish Maritime Museum. An application for funding for the Museum's other major project, under the UK Heritage Lottery Fund, was rejected. Due to the eroded revenue position, the local municipality reduced its funding, and other grant-aiding organisations adopted a similar position.
Following the restructuring of local government in Scotland the Scottish Maritime Museum, as an independent charitable trust, appealed to the Scottish Executive for support. The Executive commissioned a report through the Scottish Museums Council that recommended the sale of City of Adelaide. The Museum began to receive government support but it was conditional on no government funds being spent on the vessel. In 1999 all work on City of Adelaide stopped and the shipwrights were moved to other projects.
The Scottish Maritime Museum had agreed a contract with the owner of the slipway on which City of Adelaide was stored, specifying a peppercorn rent of £1 a year. However the contract included a penalty clause requiring payment of £50,000 per year should the owner require the museum to vacate the slipway. SMM were given notice to quit in April 1999, and rental began to accrue. Faced with these potential demands, and unable to find a buyer for the vessel, in May 2000 the trustees of the Scottish Maritime Museum applied to North Ayrshire Council for listed building consent to deconstruct City of Adelaide. The Council received over 100 objections, including representations from nine significant maritime heritage organisations around the world. Members of the UK and Scottish Parliaments objected, as well as the Australian Foreign Minister Alexander Downer and Australian ex-Senator and diplomat Robert Hill. The Council refused demolition in February 2001.
City of Adelaide (1864)