Business and community leaders fear the new multimillion-pound Inverness Campus could kill-off the heart of the Highland capital.
They believe it will drain trade from the city centre and are worried about the potential impact of development agency HIE’s decision to relocate to the out-of-town site.
But local councillors hailed the creation of the complex at Beechwood as potentially “life-changing” for young people in the north and insisted it would attract more of them to Inverness.
The row broke out as members of the local authority were asked to grant funding for a new education facility at the campus.
The Highland Science Skills Academy – costing £763,000 – will be based in a building jointly funded by the University of the Highlands and Islands and Highlands and Islands Enterprise (HIE).
It is aimed at providing science, technology, engineering, maths and digital media education.
HIE, which is developing the whole campus, is currently based in the BT telephone exchange in Church Street after decamping from its former base near the Inverness Retail Park.
But its long-term plan is to move to a new building at the campus, which it will share with UHI and the skills academy.
Independent councillor Margaret Davidson, who represents the Aird and Loch Ness ward, said she was “deeply unhappy” at the prospect of HIE moving to an “out of town” site.
She said: “There is so much going on at the campus, and some to the detriment of the city centre of Inverness, without a doubt.
“HIE is in the old BT building and it has revived the area.
“Yet they are going to go to a new glass palace next to UHI.”
She added: “I would like a more reflective look taken at what is happening at the campus to ensure that the right decision is being made before we march onward.”
After the meeting, she said HIE should stay in city centre.
Mike Smith, manager of Inverness Business Improvement District, said: “It is a major concern for business that HIE is committed to moving back out of the city centre.
“A city is only as good as its footfall and workers create massive footfall.
“It is all about valuing the city centre and experience that it offers, both for residents and for tourists.
“You need to provide services and outlets in the city centre which are accessible for everybody.
“I have talked to HIE staff and know they are happy being back in the city centre.
“We need an influx of office workers to underpin the 12-month economy, then tourism is a bonus to that. I think HIE should lead by example.”
But Highland Council leader Drew Hendry, who also represents Aird and Loch Ness, said: “It is a shame that something so forward-looking and life-changing for young people could be portrayed as bad for the community.
“I believe it is very good for the city.”
The SNP councillor added: “To have a campus where young people can study will not just bring people to Inverness but will allow people across the Highlands to access education opportunities.
“It is not just about the city but the whole of the Highlands.”
An HIE spokesman said: “HIE’s decision to relocate its Inverness and Dingwall staff came about as a direct result of the agency’s success in attracting 500 new jobs, which CapGemini will base in HIE’s former premises at Inverness Retail and Business Park.
“We carried out a thorough analysis of available properties and land, before concluding that an opportunity to co-locate with the University of the Highlands and Islands and others at Inverness Campus presented the best option.
“While we are pleased with our current accommodation as a tenant of BT in Friar’s Lane, we have always been open in stating that this was intended as a transitional arrangement.”
He added that the agency was investing up to £25million to develop the campus as “one of Scotland’s prime business locations, with the potential to generate significant economic benefits for Inverness and the region”.
The co-location of a university and a development agency was unique in the UK, he said, and would create opportunities to share knowledge and skills.
He added: “The presence of HIE and UHI on the campus will also be a factor in attracting future investment and jobs which will benefit the whole city, and the wider area.”