THE controversial £300 million Caltongate development today cleared its final hurdle after Scottish Ministers gave the green light.
The Government has ignored pleas from campaigners and MSPs to hold a public inquiry, despite warnings that the project could cost Edinburgh its World Heritage status.
The news ends several months of uncertainty over the plans, which involves the
biggest development of the Old Town since the 12th century.
Ministers came to the same conclusion in June this year, but a major administrative blunder effectively annulled that decision. Council officials were forced to write back to all 350 objectors, asking them to present any new evidence to another meeting of the planning committee.
But in August, councillors once again approved the scheme – and the plans were sent back to the Government.
Critics said the investigation launched by Unesco into the future of the World Heritage status awarded to Edinburgh's Old and New Towns in 1995 should make Ministers think again about the project.
However, a Scottish Government spokesman said: "We have today returned the Caltongate application to the city council for determination."
The final decision rested with Ministers because of the level of opposition and the fact that the council has a financial interest because it owns the archways in Market Street.
Today's decision is a major blow for the hundreds of campaigners and heritage groups from around the world who objected to the scheme, which was the most contentious proposals to come before councillors in years.
The plans include a new five-star hotel, conference centre, and scores of shops, offices and homes.
It also involves the demolition of two C-listed buildings – the Sailors' Ark and the former Canongate Venture school. As soon as legal agreements between the council and developers Mountgrange are signed, work can begin.
City leader Jenny Dawe said: "The Caltongate development will play a huge part in securing the economic, social and cultural life of the city centre and I am pleased that we can now take this matter forward."
The full article contains 343 words and appears in Edinburgh Evening News newspaper.