Edinburgh council faces legal challenge over aparthotel plans for Water Street amid claims it will 'kill off' businesses

Businesses at the Shore said the proposed aparthotel would be ‘disastrous’ for them.

Edinburgh council could face a legal challenge over controversial plans for an aparthotel at the Shore, which are set to be green-lighted.

Neighbouring businesses have said that if plans to convert the Warehouse on Water Street get the go-ahead it will be ‘disastrous’ for them and the resulting noise and disruption could kill off their businesses. But plans for the hotel look set to be approved, sparking fury among companies at Broad Wynd with one claiming councillors were ‘misled’ about the nature of their work and impact the hotel would have.

Under proposals by Turley, the four-storey warehouse built in the 1950s would be converted into a 45-bedroom aparthotel, with a one-storey extension added to the historic building. TV production company Freakworks – which works with Netflix, Amazon and the BBC – and other businesses based in the adjoining building have called on the council to reject the bid to convert it into a ‘not needed’ aparthotel.

Hamish Allison, CEO and Creative Director of Freakworks

Owners of the company have accused planning officers of giving information to councillors that was ‘incorrect and misleading in material respects’. It’s claimed that councillors were told they were a storage facility – not a working studio – and that this ‘unduly prejudiced’ the consideration of the plans. Lawyers for Freakworks wrote to the council following a committee meeting requesting another meeting for a fair hearing. But the council snubbed the request.

Director Hamish Alison said they are now considering applying for a judicial review. He told the Evening News: ”We feel angry that our businesses have not been treated fairly. The meeting with the council about this application was an absolute sham. Councillors watching online complained to the chair. I was there, but you can see from the online video that there was lots of errors and misdirection.

“At first we were not even mentioned as a neighbour, even although we’re the closest. After questioning from a councillor, it was implied that we were a storage facility based in the building in question and that the issue was we would be relocated. That’s one of many examples, all untrue. Collectively our lawyers have evidenced that the planning officer’s advice was incorrect and misleading. The decision to grant planning permission following the conclusion of the necessary legal agreement would be unlawful if the errors are left uncorrected.

“There are enough of us between all the businesses and residents concerned, that we are looking into making an application for judicial review to the Court of Session. This aparthotel will ultimately mean the loss of three creative businesses that have all been trading here for nearly 30 years. All we want is for the committee to have a hearing and the chance to put our case forward fairly.”

Canongate Studios and a photography business based in the adjoining building have opposed the plans which also received 33 objections from local residents. Only two supporting comments were made during consultation.

Richard Mountney, a photographer based at the Broad Wynd studios, said: “The council has just ran roughshod over us and ignored our objections. This area just doesn’t merit what will essentially be an Airbnb block of 45 rooms with no hotel amenities. We were never asked about it, only Lamb’s house. Our businesses have been here for decades. We just feel so let down by the council. It feels like it was a done deal from the start.

"This part of Leith is a quiet conservation area and does not merit a hotel with a vastly increased foot-flow of extra people. Due to the excessive noise disturbances of construction during the development, my business will no longer be able to offer its services to my clients. The noise disturbances of hotel guests and service vehicles after the development is completed will interfere with my business and disturb local residents. The nature of 45 hotel rooms worth of guests every night will add an unmanageable burden on the local traffic and already restricted parking.”

As part of the agreement the developers would be required to pay £113,000 contributions towards Edinburgh Trams. Council chiefs said they plan to release the decision upon completion of the legal agreement, expected by the end of this week.

Deidre Brock MP said: “I am disappointed that the attempts by Freakworks to have the decision to grant planning permission for an aparthotel at Water Street reconsidered have been rebuffed by the council. It was noticeable from the committee meeting that granted permission earlier this year that there was a lack of understanding regarding the potential impact of this decision on neighbouring businesses. That is not only regrettable but could be devastating to the creative businesses adjacent to the site.”

A council spokesperson said: “We consider that the proper process was followed in this case. All of the representations we received including objections were published before members of the development management sub-committee determined this application.”

Turley has been approached for comment.