Thursday 02 September 2010
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Hotel development could dodge £250,000 in tram fees

Developer claims discount is essential to its ability to deliver Leith project

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Edinburgh Council has postponed its decision on whether to discount the levy of the planned Shrub Place development.

The proposed 121-bedroom aparthotel in the Leith Walk area received attention last week after it was revealed the developer may receive a £250,000 discount on its contribution to the tram construction.

A council spokesperson said that there was no decision as talks are “being continued to allow for further information to be gathered”.

The council’s scheme obliges developers building along the tram route whose projects are set to benefit from the infrastructure improvements to contribute towards the tram system construction.

The bills for large developments can reach up to six figures; commercial developments are expected to pay more than residential projects.

It is believed the developer was unable to meet the full £917,947 council planners expected.

As well as considering the type of development when calculating the level of contribution required, the council also assesses its size and the walking distance from the tram route.

A council document details that the money is then used for the construction of the tram system, particularly road and pavement surfacing in order to  facilitate movement between new developments and tram stops.

The council has said that reductions in contributions will only be considered in extraordinary circumstances.

Head of Planning, John Bury, has already said the developer’s proposal of paying the discounted rate is “considered acceptable”.

Developers will have to wait at least another two weeks to learn whether the discount is given the go ahead.

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