Meadowbank Stadium plans on hold

Some of the land was to be sold off for housing development

The redevelopment of Edinburgh's Meadowbank stadium is to be suspended until city land values recover, council officials have revealed.

The two-year-project had been due to start in 2011.

Councillors agreed in March to sell off one third of the land at the stadium to help pay for a new arena on the site.

At that time the land had an estimated value of £17m to contribute to the £25m project but current estimates suggest the value has dropped to £5m.

Gordon Mackenzie, Edinburgh City Council finance leader, said: "Edinburgh is feeling the effects of the credit crunch and we are adjusting our plans accordingly.

"The decision to postpone the Meadowbank project is difficult from a sporting perspective but financially it looks inevitable. We have experienced a significant drop in land values and the numbers simply don't stack up at this time."

"When the finances of the council are stronger we will look to move the project forward again."

Credit crunch

Deirdre Brock, Edinburgh City Council sports leader, said: "Whilst we wait for economic conditions to improve we need to be sure that athletes have access to training facilities in the build up to the Olympic and Commonwealth Games.

"To do this we will aim to put maintenance funding in place to make sure Meadowbank is fit for use in the meantime but beyond that we will press ahead with a new facility. It is very clear to us that the Meadowbank, in its current form, is coming to the end of its life and it isn't meeting modern sporting standards."

The council recently published its first autumn budget statement which set out the current financial position in consideration of the credit crunch.

It pointed out that until recently the council had expected to raise £43m from the sale of land and properties to pay for new capital projects.

However, because of the impact of falling land values, current estimates point to a shortfall of £20m.

Recommendations to postpone the Meadowbank project will be considered at the meeting of the full council on 20 November.