CITY leaders are putting five plots of council land up for sale in a bid to raise £10 million to help pay for the city's tram line.
The land flanks the Newhaven to airport route and will mainly be sold for housing as council chiefs look to make up the city's £45m contribution to the tram scheme.
Among the plots earmarked to be sold off is waste ground at Broomhouse Drive and
Bankhead Drive, a former lorry park off Constitution Street, an old bus garage off Leith Walk and land around Balgreen Primary School.
It is not thought that any of the sales will prove controversial, though some councillors have raised concerns about selling off land when the market is weak. The plots will be sold through the council's arms-length development company EDI, which will apply for planning permission for the sites with a view to getting a better price than the council could itself.
Councillor Phil Wheeler, the city's transport leader, said: "These five sites were identified because they are in prime positions next to the tram route, which should increase their value.
"The council has a duty to the public to get the best deal and working with the EDI Group will ensure that the maximum financial potential is realised."
Conclusion of contracts for the trams last month saw the overall price tag for line 1A jump from £498m to £512m, with a further £3.2m penalty to be paid to contractors if the council does not commit to line 1B in the next ten months.
However, the latest price increases still leave the project within the overall £545m available for the scheme.
Councillor Nick Elliot-Cannon, the SNP's finance spokesman, said his party was still uncomfortable with selling off council land to pay for the trams, although he added that council chiefs are doing the right thing in terms of trying to maximise the amount it will raise.
He said: "We are where we are and I guess we just have to get on with it.
"It is not a great time to be selling right now with the slowdown of the property market but these are viable sites and they will still attract a good price."
The deal proposed by council chiefs will see EDI given the option to buy the plots of land or help sell them on the open market, assuming the plots are granted planning permission.
Cameron Stott, director of property experts Jones Lang LaSalle, said: "It is good to see that EDI is being utilised in this manner."
He added: "This approach will maximise the value of the site by giving EDI the opportunity to develop and crystallise the land value, and any potential profit, by obtaining planning consent.
"Despite the slowing market, there will be interest from developers in this land, particularly given the sites' proximity to the tram line."
The proposals will be discussed by the council's finance committee tomorrow.
