Granton marina developers accuse Edinburgh council of "war of attrition" as they warn of damages claim for 'millions of pounds'

The developers of Granton marina have accused the city council of a "war of attrition" over the project and announced their intention to claim millions of pounds in damages.

The plans include a four-star hotel, 1,800 new homes and 427 fully-serviced marina berths

In a letter to chief executive Andrew Kerr, seen by the Evening News, lawyers acting for Granton Central Developments Ltd (GCDL) said the council's "hostile policy" towards the development made it impossible to proceed with the £500 million scheme.

The letter was sent in June but it is understood no reply was received and, as revealed by this paper yesterday, the company has now served a blight notice on the council, which could force the authority to buy the land involved.

The project to build 1,800 homes, a four-star hotel and 427 full-serviced marina berths has been at the centre of repeated legal clashes between the council and the company.

The council is keen to develop the waterfront as a major new housing area for the city, but the letter from lawyers Turcan Connell said GCDL believed the council was responsible for “an unwarranted war of administrative attrition” against them.

And it claimed: “We have now reached a point where, as a result of the above and CEC’s relentlessly hostile and obstructive approach to GCDL’s masterplan proposals for its own land, CEC has in our opinion made it impossible for GCDL to proceed with its development.”

The letter also detailed the allegation which formed the basis of the blight notice, that a senior official, accompanied by another senior official and a senior councillor – none of whom can be named for legal reasons – had proposed to a London-based investment surveyor at an airport meeting on their way home from an international conference that the council could compulsorily purchase GCDL’s land and form a joint venture with another partner to develop the site.

The letter also accused the council of delays and omissions which had led to losses for the firm “running to millions of pounds”.

It said: "Development has been frustrated and delayed, thwarted by administrative delay and obstruction, holding up and in some cases by stopping the development.”

And the letter concluded: “A detailed claim for the losses which have been caused by these actions will follow.”

The council has eight weeks from October 7 when the blight notice was served in which to respond to it.

Conservative councillors tabled an emergency motion at last week’s council meeting, calling for a report giving the full background and circumstances of any discussions held with third parties in relation to land owned by Granton Central Developments Ltd, an explanation of the council’s policy on development of the entire waterfront site and an explanation of the implications of the blight notice, but their call was rejected.

Charles Price, spokesman for the developers, said they had been “deeply concerned” when they learned in April of the airport conversation between the senior council officer and the investment surveyor. He said they had had enough and wanted the situation resolved. "The matter will be pursued with all vigour.”

The council said it would not be appropriate for it to comment on an ongoing legal case.

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