"Twice as much for half the money"

EXCLUSIVE by DOUGLAS SHEPHERD

A Borders businessman has told Scottish Borders Council their decision to spend £11 million to purchase the Lowood estate near Melrose for housing is 'a grave mistake' and he could have sold the local authority almost twice as much land for less than half the sum needed to seal the Lowood deal.

Jim Hewit is the owner of an extensive stretch of undeveloped land at Easter Langlee, some 200 metres from Lowood. The council has already faced criticism since it was revealed in December that the 109 acres plus nine properties including a mansion house had been acquired for £9.6 million.

When legal fees, surveyors' costs and land tax are added the total outlay for Borders council taxpayers will be just over £11 million. The figure includes £780,000 to cover interest charges.

Mr Hewit told how he contacted SBC immediately after reading about the overall cost of the Lowood transaction in a local newspaper.

He wrote in an email to Neil Hastie, Estates Manager at the council: "I read with disbelief the front page of the Southern Reporter this morning regards Lowood Estate. The cost to the council eleven million plus?

"The council are well aware I own Easter Langlee, Galashiels. And it is within two hundred metres of Lowood  estate, It is double the size and could be purchased for five million. In the interest of tax and rate payers I think this is a grave mistake."

Mr Hewit explained that his site at Easter Langlee extended to 175 acres, and in his view the land was capable of accommodating a thousand houses.

However, he added that his Easter Langlee site had been 'knocked out' of the council's last Local Plan, and it looked as though it would also be eliminated from the latest Local Plan.

The council's controversial decision to purchase Lowood from the Hamilton family is to facilitate the Tweedbank Masterplan which envisages a mixture of developments close to the Borders Railway terminus, including up to 400 houses.

But two reports from specialists - one of them from SBC's own firm of commissioned consultants - have included warnings that the local housing market is fragile while the proposed density of new homes may have to be increased to appeal to house builders.

The other review of the Masterplan, carried out by a team headed by Jones Lang Lasalle for Middlemede Properties, owners of the Upper Pavilion salmon fishing beat on the River Tweed, concluded the housing element was 'unviable and undeliverable'.

An observer of the Borders housing scene commented: "Seriously depressing but sadly not surprising that a scheme and expenditure of this size is progressed by SBC officials apparently without a development or commercial appraisal. 

"Why is SBC pursuing a unicorn as no commercial developer will dive into a deal with significant affordable housing and physical and educational infrastructure requirements?"

In a reply to Mr Hewit's email, Mr Hastie said: "Thank you for the email which I have forwarded.  I note all that you write and would advise you that either myself or Martin (Joyce) will come back to you with a more detailed response once we have had an opportunity to consider the points you have raised."