Leader comment: Caltongate

Published on Tuesday 21 June 2011 10:59

The potential revival of the multi-million-pound Caltongate project is another timely boost for the Capital's economy.

Not everyone agrees with the city council's view - endorsed by Scottish Ministers - that the plans will enhance the historic Old Town. But there is no denying the economic kick-start that development work building a five-star hotel, offices and homes would bring to the city.

The previous developers on whose plans the new bid are based claimed they would invest 300 million and create 2000 jobs.

That might now seem overly optimistic as we struggle to shake off the recession, but the significance of the project should not be underestimated.

Of course, we have been here before with Caltongate, but there is a stronger sense of optimism surrounding the latest events.

That is partly down to the track record of investor Ronald Persaud and partly due to a subtle shift in the city's commercial property market.

Last week's revival of the so-called SoCo plans for the Cowgate fire site is just one reason why confidence is slowly starting to return. The 850m redevelopment of the St James Centre may be slightly delayed, but it is also still in the pipeline.

Industry observers believe that we have now passed rock-bottom and prices are beginning to rise gradually.

And, with only one major office development ongoing in the city, at the EICC, there is also a growing feeling that there will soon be unmet demand from business.

Clearly, the economic recovery is still fragile, and there are many events which could yet dash these hopes.

All we can do is watch with guarded optimism for the first bricks to be laid - and keep our fingers crossed.

On with the show

One guaranteed money- spinner for the Capital is the Royal Highland Show which gets under way at Ingliston tomorrow.

Around 175,000 people are expected to converge on the showground over four days, generating an estimated 70m for the Scottish economy.

But the self-proclaimed "greatest show on earth" is so much more than just a "cash cow" for the city.

It is firmly established as one of Scotland's most popular family days out - and after 189 years it is one of our most enduring institutions.

We can only hope that on this occasion at least the gloomy weather forecasters are wide of the mark.