CITY councillors today sent a message to investors around the world that Edinburgh is open to "modern development" after backing the Caltongate scheme.
But protesters fighting the £300 million plans warned that a "dangerous precedent" had been set, and said the local community was silenced by the promise of money.
The main elements of the biggest development of the Old Town since the 12th century received the go-ahead following a stormy eight-hour meeting at the City Chambers.
The plans for a new five-star hotel, conference centre, plus scores of shops, offices and homes won the backing of the majority of councillors at yesterday's planning committee.
However, contentious proposals to demolish all but the façade of some Royal Mile tenements were put on hold, and developer Mountgrange has been asked to look at ways of preserving the buildings for affordable housing use.
The Caltongate scheme will now go to Scottish ministers for final approval, and protesters are hoping to force a public inquiry.
However, planning leader Councillor Jim Lowrie said he was confident ministers would support the council's decision.
"I'm delighted the main elements have been approved, because it sends the message to investors that Edinburgh is not afraid to have modern developments," he said.
When asked how he felt about the level of opposition to the scheme – with around 350 individual objectors writing to the council – Cllr Lowrie said: "In five years' time they will have got used to it."
The Caltongate scheme involves the demolition of two C- listed buildings – the Sailors' Ark and the former Canongate Venture school.
The proposals had already won the backing of council officials, but a special meeting of the planning committee was held for councillors to have their say.
A number of community and heritage bodies spoke out against the plans, including the Edinburgh World Heritage trust which warned that Caltongate and similar modern developments in the city centre could put the city's World Heritage status at risk.
Catriona Grant, of the Canongate Community Forum, said the protesters felt "gagged" because they "didn't have £300m".
"The councillors' legacy will be to destroy Edinburgh," she said.
Ms Grant appealed for legal help in a bid to force a public inquiry. The Caltongate scheme was split into various planning applications. Four councillors voted against both the proposals for a controversial landmark building by Malcolm Fraser, and an office atrium adjacent to New Street. Three councillors opposed the main hotel application, and two politicians voted against the plans for a mix-use development on the corner of East Market Street and Cranston Street.
Green councillor Steve Burgess said: "I felt much of the application didn't enhance the conservation area, and I'm disappointed more of my colleagues didn't support that view."
But Labour's Eric Milligan said: "As a planning committee, we have to remove ourselves from local or parochial decisions and look after the economic well-being of this city."
Mountgrange spokesman Mark Cummings said councillors had "recognised the benefits" of the scheme.
EMOTIONS RUN HIGH ON DAY THAT COULD CHANGE OLD TOWN FOREVER
IN high spirits, dozens of protesters to the controversial Caltongate scheme mounted an early-morning blockade of the City Chambers with the cry "Save Our Old Town".
As deliberations got under way in the packed room of the council's planning committee, various objectors had their say with the level of applause from the public gallery steadily reaching a crescendo.
Mountgrange chief executive Manish Chande was spotted with his head in his hands.
After lunch the plans for a giant office complex were approved by nine votes to four – followed by shouts of "boo" from the gallery.
Former Lord Provost Eric Milligan was the subject of much heckling after urging councillors to think of the city's "economic well-being".
And when the plans for a five-star hotel were approved, shouts of "shame" echoed around the room.
As the evening drew in, and with one aspect of the scheme left to decide, tired councillors considered postponing a vote.
But the declaration from the SNP's Rob Munn that "we're all adults" prompted them into action. They gave Caltongate the green light just after 7pm.
Outside, tears were flowing as protesters stood defiantly at the Chamber's doors.
