TATTOO chiefs are facing a race against time to protect the future of the flagship event by finding cash for a new £15 million grandstand on the Castle Esplanade.
A report published today reveals that council chiefs are considering putting up £3m for the project, which involves new grandstands that can be erected and dismantled much quicker than at present.
The current ageing structures, which have been used for every Tattoo since 1975, take up to 12 weeks to install every summer.
City development chief Andrew Holmes warned that "failure to replace the grandstands now will jeopardise the future sustainability of this event within the next five years".
The warning originated from a feasability study by Tattoo chiefs, which began last year.
To ensure the new facilities are in place for summer 2010, funding must be secured by this May. On top of the council's possible contribution, tattoo chiefs have pledged £5m from their own money and hope to attract private investment of up to £5m, with the Scottish Government supplying the remainder.
If the scheme gets the go-ahead, the modern seating will have around one-third more leg room, as well as better facilities for disabled people and VIP guests.
By taking just three to four weeks to install, the new 8600-seater grandstand would also free up the Castle Esplanade over the summer months, and create the opportunity to use the seating for other events all-year round.
Mr Holmes said: "Edinburgh Military Tattoo is one of Edinburgh's and Scotland's iconic events, drawing in international audiences, providing global media coverage, profiling Scottish culture and heritage, and bringing significant economic benefit to Edinburgh and Scotland.
"The existing grandstands are now nearing the end of their life and, to avoid wasteful expenditure in extending their operation, now is the time to commit to their replacement. The investment of £15m in the infrastructure will create grandstands of a higher quality, creating a world-class customer experience and less disruption and a greater flexibility."
Tattoo chiefs have drawn up a business plan for the project, which sets out the case for Scottish Government support, through Scottish Enterprise. The Tattoo, which is run with the backing of the city council and Historic Scotland, spends most of its takings on the event, but there is usually surplus cash left over for charity.
The council's contribution could involve it taking ownership of part of the grandstand.
The report will be discussed next week, and city leader Jenny Dawe said any decision to put up the cash will be debated within the Lib Dem/SNP coalition ahead of next month's budget.
But she said the Government's decision to add previously ring-fenced money to the council's overall financial deal means cash is available for this kind of capital project. "The grandstand does need replaced and the administration understands the needs for investing in it," she said.
"And if the Tattoo does well, then so does the local economy."
The Tattoo is now in its 58th year and generates around £31m annually for the Scottish economy.
Tattoo chief executive and producer, Major General Euan Loudon, said: "For the past year we've been working closely with the city council and Scottish Enterprise on the feasibility and delivery of the Castle Esplanade grandstand project for 2010.
"We now await the outcome of the council's deliberations."
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