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THE controversial £300 million Caltongate development today received the final go-ahead after Scottish Ministers ruled out a public inquiry.
The news ends months of uncertainty over the plans, which involves the biggest development of the Old Town since the 12th century.
The decision by ministers is a major blow for the hundreds of campaigners and heritage groups from around the world who objected to the scheme, the most contentious proposals to come before councillors in years.
The plans for a new five-star hotel (artist's impression pictured above), conference centre, and scores of shops, offices and homes won the backing of local politicians in February.
The scheme involves the demolition of two C-listed buildings – the Sailors' Ark and the former Canongate Venture school. As soon as legal agreements between the council and developers Mountgrange are signed, work can begin with a view to completing a first phase by 2012.
City leader Jenny Dawe today said: "The Caltongate development will play a huge part in securing the economic, social and cultural life of the city centre and I am pleased that we can now take this matter forward."
Head of planning Alan Henderson added: "We will now conclude legal agreements in relation to the development and will issue planning permission in due course."
The final decision rested with Ministers because of the level of opposition – around 350 individuals and organisations between them lodged more than 1800 objections – and the fact that the council has a financial interest because it owns the archways in Market Street.
At least three MSPs urged the Government to call in the plans for further consideration, but a spokesman said today: "Scottish Ministers do not consider it necessary to take over the decision-making role for the range of applications associated with this development project.
"We have therefore cleared the applications back to the council to determine as they see fit."
The Caltongate plans include a cultural quarter, around 200 homes, bars, restaurants and cafes, as well as a new street linking Princes Street to Holyrood.
Contentious proposals to demolish all but the façade of some Canongate tenements were originally put on hold by councillors, but Mountgrange later agreed to retain the "majority" of the front and rear elevations of the MacRae properties. A total of 50 affordable homes will be created throughout the scheme.
Bill Cowan, a spokesman for the Old Town Association, today attacked the Scottish Government for its decision.
He said: "We are very disappointed. We thought Ministers would show more sense than this. They are supposed to represent us, as is the council, but in both cases political expediency has been put above the needs and desires of people.
"Whatever you think of the merits or otherwise of Caltongate, surely the council's interest in the site deserved inspection?"
The majority of objections to the scheme came from Old Town residents, but prominent groups, such as the Cockburn Association, Edinburgh World Heritage, the International Council on Monuments and Sites and the Architectural Heritage Society of Scotland, also fiercely opposed the plans.
However, some of Scotland's key business and tourism organisations backed the scheme, including Scottish Enterprise and VisitScotland.
A spokeswoman for Mountgrange said: "We are pleased to hear the Scottish Government has upheld the council's decision.
"Our £300m urban regeneration project will deliver up to 2000 new jobs and address one of the final industrial legacies in Edinburgh."
The full article contains 585 words and appears in Edinburgh Evening News newspaper.
