Plans to redevelop old hospital ‘blocked’ by £3 million liability

Strathmartine: Potential developer will also have to pay NHS Tayside

A £3 million bill is blocking plans to redevelop the former Strathmartine Hospital, The Courier can reveal.

The site, owned by Heathfield Ltd, is for sale with a pending application for planning permission to develop it into flats.

However, permission cannot be granted until a developer pays a contribution, estimated at around £3 million, to Angus Council toward education and affordable housing.

Once planning permission is granted an undisclosed sum would need to be paid to NHS Tayside as part of an agreement made when the health board sold the hospital in 2005.

Robert Evans, of Muir Smith Evans who acts as agents for Heathfield Ltd, said: “We are still in discussions with senior officials at Angus Council and the Scottish Government with regards to trying to agree the terms and the contribution required.

“Until the figures are agreed the planning permission would not be issued. It’s looking like it will be something in the region of £3 million, which is a lot of money.”

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It will be difficult to find someone to buy a site that does not yet have planning permission. In addition, they would have to pay all this money before they can even start developing it.

KAREN MCCAULEY

Developers will have to pay around £3m to Angus Council as a contribution towards education and affordable homes. Picture: Kris Miller.