Francis O'Neill says he is "horrified" that one building in particular - the former Grapes Hotel in George Street - is to receive almost three times more than any other building in the £500,000 regeneration project.
Mr O'Neill - who stressed he was voicing a personal opinion - hit out: "I was horrified to be told that £98,000 was identified for the Grapes, and it was 'the priority building' on which the whole CARS scheme hinged. Other equally derilict buildings were to be capped at £35,000.
"I'll tell you what I want to see done with the Grapes. Pulled down and a better walkway for kids to school made, as well as more off-street parking. But I doubt if that will happen."
A Whithorn Community Council member said they originally had no knowledge that the eyesore building was to get special treatment.
Council officials concerned with the CARS scheme were then invited to a recent Whithorn Community Council meeting for a question and answer session.
This they reluctantly agreed to, but only if they had written details in advance of the questions. At the meeting, they were asked why the community council had not been told that the Grapes was a "priority" building in the regeneration scheme.
The community councillors were allegedly told by one official they had "no right or need to know".
Mr O'Neill was appointed to the CARS steering group, set up to monitor the scheme. At a meeting of the group in February he was asked to find out the feelings of the people of the town about the Grapes Hotel.
Mr O'Neill reported back that a lot of Whithorn people felt the Grapes would act as "a giant to soak up the available grants". He is now mystified as to why the steering group is to be disbanded by the council because, according to officials, "the arrangement is not working to the advantage of the CARS scheme".
The steering group included ward members, relevant officers and representatives from the community council and the business association. Their remit was to monitor the progress of the scheme, make recommendations and discuss how difficulties would be addressed.
Mr O'Neill referred to the alleged resignation of prominent business people from the steering group as the catalyst for it being disbanded and said he has grave concerns that the community will now have little say in where the money goes to improve the look of the main street.
A Whithorn Business Association member, Janet Butterworth, yesterday confirmed she has handed in her resignation from the CARS steering group.
Mr O'Neill added: "So Whithorn has lost another vital group. The people of the Whithorn community will say that they are not being informed of what is happening, but I say don't blame the community council - they tried!"
A council spokeswoman confirmed yesterday: "This topic is to be discussed at the Wigtown Area Committee tonight – elected members will be making a decision on future monitoring arrangements for the CARS scheme."
The Wigtown area councillors were last night being asked to agree to keep the Whithorn community up to date with the CARS scheme's progress by way of the Wigtown Area Committee.
In a report, officials added: "The local community will continue to be kept informed and its interests taken account of through public meetings, in advance of reporting to the area committee."
The Whithorn CARS, delivered by the council on the basis of a contract with Historic Scotland, was launched at a public meeting in Whithorn in March 2007.
Up to the end of March this year, 16 offers of grants had been made to the value of £143,119.