Developer drove hard bargain and saved £1.5m for trams

Published on Friday 29 May 2009 22:24

EDINBURGH City Council was bargained down by the developer of a controversial £200 million building project on the edge of the city's World Heritage Site, it emerged at a major public inquiry yesterday.

The council originally wanted more than 4 million from Tiger Developments as its contribution to the city's tramline before granting planning permission for the project, which includes a controversial 17-storey hotel, at Morrison Street goods yard next to Haymarket station.

Businessman Ken Murray, who presented to the inquiry a 2,000-signature petition against the development, asked Elaine Robertson, a principal planner and council witness: "Have the developers agreed to give money to the council?"

The inquiry was told the developer's tram contribution would be 2.5 million.

Papers lodged with the inquiry show that last May the council said consent should not be issued until the developer entered into a "legal agreement for a sum of 4,137,258 towards the Edinburgh Tram Line".

Mr Murray, chairman and chief executive of Blue Planet Investment Management, then asked: "Is getting the money contingent on (giving] planning permission?"

Ms Robertson confirmed this was so and Mr Murray asked: "Do you feel comfortable with a system where the judge gets a bonus for sending you to jail?"

Ms Robertson said she would not answer questions which called into doubt her and colleagues' integrity.

Contributions from developers are part of planning legislation, but the 4.14 million figure is believed to be one of the highest figures requested.

Plans for the development, backed by the council last June, were later called in by the Scottish Government because the site had been council-owned.

The two-week inquiry enters its second week on Monday.