GLD Vacancies

Nottingham University Public Procurement Course

Edinburgh City Council threatened with EU action over “illegal” land sale

The City of Edinburgh Council is facing legal action from the European Commission over the sale of land near the city's famous Royal Mile, The Guardian has reported.

The newspaper reports that the Internal Markets Inspectorate of the European Commission has written to the council to complain that its sale of the former bus depot at Caltongate to the developer Mountgrange for £5m breached EU law because the land was not placed on the open market first.

The same letter, which The Guardian says that it has seen a copy of, says that the commission will start infringement proceedings for breaching regulations on public procurement, as well as breaching equal treatment, non-discrimination and transparency rules. If enforcement action is taken, then under EU protocol, the proceedings are formally taken against the UK government. If an agreement is not reached, then the case would be referred to the European Court of Justice, which has the power to levy a fine.

The original complaint to the European Commission was made two years ago by architectural historian David Black, a founder of the Old Town Association, which has always opposed the plans. He told the Edinburgh Evening News: "I thought there were irregularities that had to be looked at because I did not think it was compliant with European law."

The plans for the site, which include a hotel and office accommodation, have already been criticised   by the United Nations culture agency, Unesco, due to the development's location in the centre of Edinburgh, which is a world heritage city.

Since the sale of the land in 2008, Mountgrange has gone into administration and the land is presently being offered for sale to other developers by HBOS. Planning permission for the development of a 17-storey hotel, offices and shops was granted by the city council in 2008.

In a statement, the City of Edinburgh Council said: "The council has always paid due regard to its legal obligations but recognises the European commission's right to investigate the matter and is currently preparing a response. With the site currently in the hands of administrators we fully expect to enter into a new agreement once a preferred bidder has been announced."