Fury as lost £200k puts hall on hold

Published on Monday 1 June 2009 09:57

A NEW community hall is set to be mothballed after council officials failed to collect £200,000 to pay for it from a now defunct housebuilder.

City leaders had been locked in an 18-month battle with Applecross for cash towards a revamped Colinton Mains Sports Pavilion.

It was part of a controversial deal to build about 170 homes on the Meggetland playing fields.

But the money was never collected and Applecross fell into the hands of receivers last week.

Other council money is in place to build the rest of the pavilion on Oxgangs Road North but the lack of Applecross money means a new community hall has had to be dropped from the scheme.

The disclosure comes just a week after city leaders admitted they failed to collect about 18,000 in rent over an 18-month period from developer Mountgrange before the collapse of the Caltongate scheme in March.

Opposition politicians today described the failure to collect the cash as scandalous. Council chiefs said the failure to collect the money was a "source of frustration" but said they would pursue the cash with Applecross receiver PricewaterhouseCoopers.

Councillor Jason Rust, the city's Tory economic development spokesman, said: "It is scandalous that this sum was not obtained from the developer. The council are guilty of breathtaking incompetence.

"Their dilatory approach in seeking payment, despite frequent questioning by myself and the community, is appalling. I think heads should roll."

In 2003, Applecross was given part of Meggetland to develop in return for building a new sports complex and new pitches, after nearly a decade of wrangling.

A council spokeswoman said: "The council has opened discussions with the appointed administrators to pursue the recovery of the money owing. It is a source of frustration for the council that this matter, which has been the subject of ongoing contractual negotiations, has yet to be resolved."

A spokeswoman for PricewaterhouseCoopers said no decision had been taken on the money owed to the council.