Hearts face massive bill for kicking out nursery

Council officials have recommended inserting a clause in its agreement with the Gorgie side that makes the club liable for costs of the move if work on the stadium has not "substantially commenced" by January 2010.

The Evening News understands the bill for the nursery's temporary home in Wheatfield Street will be a "significant" six-figure sum, with interest on top.

As things stand, the complex deal between Hearts and the council will not leave taxpayers out of pocket, but any delays could change all that, forcing officials to make moves to protect the council.

Tynecastle Nursery will leave its current home behind the existing main stand next summer. But work on a permanent replacement in McLeod Street, next to the new Tynecastle High, will not get under way until 2010 at the earliest, so the nursery will be in its temporary home for at least two years. The city council will absorb the cost of the relocation, but the bill will be sent to Hearts if the development drags on and the nursery has to stay any longer.

Work on the 51 million redevelopment of the stadium is scheduled to begin next summer, but the club this week dismissed claims its growing debt had placed a question mark over the project.

Council officials recommended changes to the deal with Hearts because of the "passage of time" in the negotiations and this will be discussed by the council's finance committee next Tuesday.

Councillor Gordon Mackenzie, the city's finance leader, said: "With any project like this, irrespective of wether it is Hearts or a housebuilder, where there is a risk involved, it is prudent for us to put in measures which will protect our interests. It is a complex deal but I am confident progress is being made."

The application for the redevelopment, which includes a new 10,000-seater main stand and other commercial facilities, was submitted in January – a year later than originally expected.

A club spokesman said: "We share the council's view that progress continues to be made in what is undoubtedly a complex series of negotiations.

"However, there can be no doubt that the agreement in place demonstrates Heart of Midlothian's commitment to this project."

Last month Hearts said it would not start work on the redevelopment until summer next year at the earliest. A few days later, it emerged Hearts' debt had reached 36m.

Councillor Ian Perry, the city's Labour finance spokesman, said: "Hearts have given the council assurances they will meet a number of milestones over the coming period. If this doesn't happen and the council incurs additional expense, it is only right that Hearts pick up the bill."

Negotiations over moving whisky from bonds in Wheatfield Street have prolonged the development process. But it is now understood a deal has been reached between the club, the city council and North British Distillers.