Plans to transform Aberdeen’s former BHS store into a 17-storey block of flats have been scrapped.
The soaring tower block was one of the ideas put forward for the site on Union Street, which has lain empty since the department store closed last summer.
But the Press and Journal can today reveal that the local authority refused to back the proposals after a study showed the project “would not be good for the council taxpayer”.
The site’s owners, London-based property investment company Rockspring, said it will now focus on the original plan – a “retail-led development”.
The firm had initially proposed that the expansive building be brought back to life with new shops and retailers, but council chiefs urged them to incorporate residential units to encourage more people to live in the city centre.
At the time, the redevelopment was hailed as a “great opportunity” to better link up the Granite Mile with the historic cobbled lanes of the Merchant Quarter.
The local authority’s finance committee agreed to work with Rockspring to carry out a detailed feasibility study, to determine the suitability of the site for residential use.
The committee resolved to approve a £50,000 contribution towards the cost of the study, which was matched by the developers.
However, it is understood that council chiefs have now withdrawn support for the ambitious project after noting the results of the study showed a residential-focused development at the site would not offer a good deal for the public purse.
Rockspring is now focused on achieving its original vision of the site.
A spokeswoman said: “Without commitment from the council, Rockspring is unwilling to progress plans for a largely residential scheme on the former BHS Site.
“We are now reverting to our initial proposal to regenerate this part of Union Street with a retail-led development.”
A Town House insider said: “When we looked at the results of the study, we saw it wouldn’t have been a good deal for the council taxpayer’s purse.
“They asked us to put in money for this study, and we did, on the basis that if it did work it would be good for the council tax payer in the long run.
“But, as it turned out, it would not be good for the council taxpayer, so right at this minute we’re not proceeding.”
Last year, Aberdeen City Council said the vacant BHS store presented a “great opportunity to fulfil one of the ambitions of the city-centre masterplan”, arguing that making the area more residential would help foster a “vibrant” culture.
The regeneration blueprint also cast doubt on the future of the “increasingly tired” and neglected indoor market, which is home to a number of small businesses.
The “brutalist” design, it argued, was out of keeping with its historic surroundings which could be revitalised by improved access to Union Street.
“The site is a significant development opportunity that should better address and animate the Merchant Quarter and Union Street,” the masterplan concluded.
