Developers set to derail trams with cash claims

Published on Friday 5 November 2010 18:12

THE cost of the embattled tram project could soar by millions of pounds as developers fight for more cash to give up land for the line.

A landmark appeal case has been lodged by one of Scotland's biggest house builders, which wants more for land it was forced to sell to the city council.

The land investments arm of Cala has lodged the appeal with the Scottish Government over the council's reclassification of a site at Ocean Drive as industrial land before using compulsory purchase powers to seize it.

Cala claims that the land should have been designated as more valuable residential land, which would have earned the firm a much bigger fee.

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The Evening News has learned that six other developers are lining up similar appeals, which could all end in separate legal showdowns at the Lands Tribunal for Scotland - an independent civil court that deals with disputes about land or property.

Property experts say the disputes could lead to the original compulsory purchase order price rising by more than four times - which could potentially add millions of pounds onto the council's costs.

Deputy council leader Steve Cardownie said: "It would be a great concern if there are going to be more costs added because of this.

"Given the state of council finances at the moment, the last thing that we need is any additional financial burden on the public purse. This couldn't come at a worse time."

The city council and tram firm TIE had to force through of controversial compulsory purchase orders along the route of the tram line for developments including tram stops.

Cala's case at Ocean Drive is the furthest advanced and a decision is expected imminently from the Scottish Government's directorate for planning and environmental appeals.

After that, the case will be taken to the Lands Tribunal, based in Edinburgh.

A Cala spokesman said: "Cala regards the land use should reflect its potential as a residential site given that the land is positioned between two existing residential sites."

Similar cases include a site at 22 Haymarket Yards, which was owned by BAM Properties, and sites in the Gyle area and separate parts of the A8, including at Edinburgh Airport.

A council spokesman said: "We have submitted a statement to the chief reporter in respect of the appeal and are awaiting a response."