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Downturn halts £500m development | Downturn halts £500m development |
(about 2 hours later) | |
The future of a £500m development to transform a 150-acre site in Falkirk and create 5,000 new jobs is in doubt. | The future of a £500m development to transform a 150-acre site in Falkirk and create 5,000 new jobs is in doubt. |
Macdonald Estates and Royal Bank of Scotland have said the Falkirk Gateway development is not feasible in the current economic climate. | Macdonald Estates and Royal Bank of Scotland have said the Falkirk Gateway development is not feasible in the current economic climate. |
Falkirk Council said the plan to build a hotel, commercial hub and office space on the edge of the town would be looked at again in two years. | Falkirk Council said the plan to build a hotel, commercial hub and office space on the edge of the town would be looked at again in two years. |
The local authority insisted it was still committed to the project. | The local authority insisted it was still committed to the project. |
Development of the site at Middlefield was heralded by the council as a "visible symbol" of the regeneration of the Falkirk area. | Development of the site at Middlefield was heralded by the council as a "visible symbol" of the regeneration of the Falkirk area. |
Plans were agreed two years ago to create a new marina serving the Forth and Clyde canal, 500,000 sq ft of business space and a retail park. | Plans were agreed two years ago to create a new marina serving the Forth and Clyde canal, 500,000 sq ft of business space and a retail park. |
If our tenants feel they can delay investment in the current economic climate and reserve their position then they will Niall McLeanMacdonald Estates | |
However, the development has been unable to convince a "big name" retailer to the site and attract others. | However, the development has been unable to convince a "big name" retailer to the site and attract others. |
A spokesman for Falkirk Council said the economic downturn was having a big impact on the developer's investment yields, which had called into question the viability of the plans. | A spokesman for Falkirk Council said the economic downturn was having a big impact on the developer's investment yields, which had called into question the viability of the plans. |
'Feel comfortable' | |
He said: "The developers have already put in a great deal of work into this, including feasibility studies, and planning permission has also been agreed in principal. | He said: "The developers have already put in a great deal of work into this, including feasibility studies, and planning permission has also been agreed in principal. |
"At this point in time we have agreed to an extension of two years. | "At this point in time we have agreed to an extension of two years. |
"We hope after that point that there will be a turnaround in the economy and things will pick up. | "We hope after that point that there will be a turnaround in the economy and things will pick up. |
"All parties in the scheme are committed." | "All parties in the scheme are committed." |
Niall McLean, development manager at Macdonald Estates, said: "There is an understanding that we have put everything in place to ensure that once things pick up, we will be able take the project forward. | |
"There is a large infrastructure requirement for this development of about £15m and we require retailers to make that work. | |
"If our tenants feel they can delay investment in the current economic climate and reserve their position then they will. | |
"But we feel comfortable that will change in the future." |
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