It's news to me as well.
However, I can understand how the rumour might have been started.
The Tower Buildings are on the site of the Liverpool Tower which was built in the 13th century.
It later became a gaol.
However, two large buildings have since been built on the site, so the foundations and cellars of those would almost certainly have wiped out any dungeons (if they ever existed).
Below are some facts and dates taken from the "Annals of Liverpool".
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Tower built before 1296.
It is probable that Sir John Stanley either enlarged or entirely rebuilt the Tower in 1406.
The Tower leased by the Corporation from Thomas Clayton in 1737, who had purchased it from the Earl of Derby. Used as the town gaol until 1819, when it was demolished.
The Tower (aka the Gaol) and the adjoining house, bought by the Corporation for £1,535 from Sir Richard Clayton. 10 Nov 1775.
The materials of the Tower, with those of an adjoining house were sold for £200 on 8 December 1819.
Tower pulled down in March 1820.
Tower Buildings, Old Church Yard. First stone laid 4 December 1846. Architect: J A Picton.
Tower Buildings, Old Church Yard. Demolished May 1907.
Tower Buildings, Pier Head. Completed 1908. Architect: W Aubrey Thomas.
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