City's giant rent hike spells end for nursery

Ronald Thomson is fighting to save the Child's Play Nursery in Morningside following a council decision to terminate his lease.

The local authority wanted to raise his rent from 3000 a year to 32,000 to reflect the true market value of the property.

Mr Thomson took the council to the Court of Session to try to overturn the decision.

Lord Bracadale threw out his case but told council bosses that they would have to pursue eviction proceedings to force Mr Thomson out.

Solicitors for Mr Thomson are now appealing the decision and the judge has allowed children to continue attending the nursery until an outcome is reached.

The council's conduct has been attacked by opposition politicians, with the rent demands branded "absolutely ridiculous".

Mr Thomson purchased the building on Falcon Road from the Hearts Morningside Social Club in 1996 for 21,000.

The dilapidated property had only eight years left to run on the lease before it reverted back to council ownership.

Mr Thomson claims that he spent 260,000 on refurbishments to bring the nursery up to standard. As a result, he urged the council to accept 6000 a year rent as a compromise after they demanded that the rent be raised to 32,000.

But council planners argued that the Early Years Nursery in Palmerston Place and the Royal Mile Nursery in Lyons Close currently lease premises at full commercial rent.

In a report to the council's executive, director of city development Andrew Holmes said: "Any proposal by the council to lease at less than the open market rent would leave the council open to criticism from not only the two nurseries mentioned above but would also create a precedent for future council transactions."

But Mr Thomson has received the backing of Lib Dem MSP Mike Pringle, who was the councillor for North Morningside when he took over the nursery. Mr Pringle provided a signed affidavit to the court to support Mr Thomson's claims that there was an informal agreement to extend the lease without a rent increase.

He said: "I was at a meeting between Mr Thomson and a council official who said that the council would look favourably at extending the lease due to the extensive refurbishments that were planned.

"It's a bit unreasonable of the council to make a demand for 32,000 after those improvements were made.

"It seems no agreement was ever signed so the council are legally in the right, but surely they could take a more reasoned view and seek a compromise?"

Tom Ponton, convener of the young people's scrutiny panel and Lib Dem social work spokesman, said: "It's absolutely ridiculous that the council is trying to hike their rent. There is a real need in that area for child care."

But Tory education spokesman Michael Dixon backed the council's decision. He said: "The council have a duty to protect the interests of the taxpayers.

"If the council is going to rent out a property it must do so at commercial rates."

Mr Thomson, speaking through his solicitors DLA Piper, said he had no comment while court proceedings were still active.

A council spokeswoman also said it could not comment while the legal case was ongoing.