How two new developments will generate an additional £250,000

MORE than £250,000 is set to be brought in to council coffers from deals that will be struck on two new developments.

A planning application for the first phase of the redevelopment of the former Fountain Brewery site has now been lodged with planners. Site owner Lloyds Banking Group plans to sell a small section on the west side of the site it owns to Cityheart Limited, which wants to build student flats for Napier University, as well as a commercial units, a public park and a library.

The council owns a small patch of land that used to be a tenement block on the site, and it has agreed to sell it to Lloyds for 150,000.

TopShop owner Arcadia is also to pay the council 105,000 for "air rights" behind its Princes Street store. It wants to create a hotel on the upper floors of its Princes Street and Meuse Lane buildings but a new link between the buildings will be created - meaning the council is able to demand a fee for the air rights.

A deal is also to be struck with Morrison Street Goods Yard developer Tiger. The council originally sold the site in 2005 for 41.5m but clauses on the deal meant that the council would receive a share of any "super profit" made from the development.

Tiger has lodged its new plans for shops, offices and a hotel on the Haymarket site but wants to carry out the development with another company in a joint venture. In order to get extra investment from the company, it has requested that it buys the council's profit share agreement in order to allow development to progress, although an estimated price is not known.

Cllr Tom Buchanan said: "All of the indications that they have given us suggest that, if the restrictions are removed, they can move forward and develop the site."