Leith Docks centre of £80m plan for music, hotel and casino

The site of last year’s MTV Europe Music Awards at Britannia Quay has been earmarked by port executives for the 80 million development, which could be built within five years.

Forth Ports, which is behind a 2 billion blueprint for the future of the entire docks area, has confirmed it wants to create the city’s largest permanent indoor venue - capable of hosting concerts by the likes of Franz Ferdinand and Travis - with a capacity of up to 5,000.

If the scheme was approved it would trigger a massive boost for live music in Edinburgh. The current largest regular venue, the Corn Exchange at Chesser, houses just over 3,000 fans.

However, even a 5,000-capacity venue would be only half the size of the SECC in Glasgow.

A hotel with up to 300 rooms and a 150,000sq ft "resort casino" are also being mooted for the land next to the Ocean Terminal shopping centre. It is thought that the concert arena would be mainly seated and capable of being adapted for events such as boxing matches.

Forth Ports revealed this week it was in discussions with "four or five" American companies over the potential redevelopment of the site. The dock operator said it would expect any developer to pay for the creation of such a complex.

Terry Smith, the firm’s property director, said: "The marquee that hosted the MTV Europe Music Awards had a capacity of 7,000 and originally we were looking at creating an indoor venue capable of holding 10,000.

"However, we have to be realistic about trying to fill a venue of that size two or three times a week and now we’re looking at a venue of between 4,000 and 5,000. We’re saying to these companies that we’ve now chosen a site and this is what we’d like to achieve on it. It’s not just a case of putting up a large box. It would have to be designed to the highest architectural standards. I’d be hopeful we’d be able to confirm something at some point next year."

The Corn Exchange has attracted chart-topping bands such as Oasis, Blur, the Proclaimers and Travis since opening as a music venue in 1999. It helped establish T on the Fringe as a major new attraction in the Edinburgh festivals, hosting gigs by Massive Attack and Morrissey among others this year.

Kylie Minogue, Justin Timberlake, Beyonc and Christina Aguilera - all of whom appeared at last year’s MTV awards - have appeared regularly in Glasgow, but have given Edinburgh a miss.

Although acts such as the Rolling Stones, Bob Dylan, Bruce Springsteen, Stevie Wonder and the Eurythmics have all appeared at the 3,000-capacity Playhouse in the past, it is out of use for much of the year when the venue is taken over by musicals or the Edinburgh International Festival.

Dave Corbet, of T on the Fringe promoters DF Concerts,

said: "They’ve obviously done their research correctly as a 5,000-capacity venue in Edinburgh is about right for the city and would be ideal for bands like Franz Ferdinand, Snow Patrol and Travis."

A spokeswoman for Edinburgh and Lothians Tourist Board said: "A top-quality hotel would be a welcome addition to the city, as would an arena that attracted events which otherwise would go elsewhere."