Borders council facing court bill after losing appeal over £1m deal for hotel site in Galashiels

Council bosses are facing a sizeable legal bill over a bungled bid to scrap a £1m property deal in Galashiels.
The Burgh Yard in Galashiels.The Burgh Yard in Galashiels.
The Burgh Yard in Galashiels.

Scottish Borders Council sold the Burgh Yard in Galashiels to Stirling firm Ramoyle Developments for just over £1m in March 2017 on condition that it put in a planning application for a hotel, restaurant, shops and flats within six months.

Disenchantment over the lack of progress made by the developer on those plans led the council to pull out of the deal, but it was ruled to be in the wrong at the Court of Session in January last year and that finding against it has now been upheld on appeal.

Hide Ad
Hide Ad

The council’s grounds for cancelling the sale were that although a planning application was submitted online two days ahead of the November 23 deadline, the £2,800 fee for it was reportedly not paid until December 1.

That prompted council officers to fax documents to the company rescinding the missives of the sale a minute after the cut-off time.

The local authority was ruled to be in the wrong by Lord Ericht, alias Andrew Stewart, after Ramoyle Developments took the matter to the outer house of the Court of Session, but it appealed to the inner house of the court in the hope of having that decision overturned, only to get the thumbs-down once again.

Rejecting the council’s appeal, Lord Malcolm, alias Colin Campbell, said: “Until the requisite fee is paid, a planning authority is under no obligation to process an application, but this does not mean that a planning application cannot be lodged or submitted before the fee is paid.

Hide Ad
Hide Ad

“It is recognised that not everything needs to be achieved at the same time.

“The lodging of the application was acknowledged on November 22 by an officer of the council.

“There had been extensive pre-application discussions of the development, involving, amongst other things, a detailed planning brief.

“Once submitted, the application was swiftly granted.

“An application is dealt with separately from all that must accompany it, including the fee.”

Hide Ad
Hide Ad

That finding by Lord Malcolm – together with Lord Carloway, Colin Sutherland, and Lord Philip Brodie – means the council will now have to settle a damages claim and foot the bill for the barristers employed by both sides at both Court of Session hearings.

It does leave it free to try to find a new buyer for the 1.7-acre site east of Abbotsford Court, formerly home to a garage, however.

A council spokesperson said: “Scottish Borders Council is disappointed that it was unsuccessful in this part of the legal action initially raised by Ramoyle Developments.

“There may be further steps in the court process to take place.

Hide Ad
Hide Ad

“However, the council is keen to emphasise that it is now entirely free to remarket the Burgh Yard site.

“It is currently taking steps to progress that and to ensure the site is redeveloped for the benefit of Galashiels.”