Cash row puts Hearts expansion plan in doubt

THE £51 million redevelopment of Tynecastle Stadium is facing fresh delays amid a new wrangle over the price of land.

The city council today revealed that it has still not been paid for the land currently occupied by Tynecastle Nursery and High School, which is needed by Hearts if they are to be able to expand the stadium.

While a new high school is set to be completed next year, the council has now put the relocation of the nursery – due to take place this summer – on hold until an agreement is reached on the payment.

The council initially valued the land at 5.9 million early in 2007 but, since then, land values in the city have plummeted by up to 50 per cent, and it is thought that Hearts are now trying to negotiate a better price.

It is understood an agreement will have to be reached before the club get planning consent for their expansion, which was originally planned to start this summer.

In a report on the council's finances, Donald McGougan, director of finance at the city council, said the project to relocate the nursery was "on hold until the receipt required to fund the project has materialised".

A spokesman for the council added: "Negotiations are ongoing and the nursery will remain where it is until further notice."

Sources at Hearts say discussions are taking place with the council on a number of matters regarding the redevelopment. Experts are on hand to advise the club on land values.

A spokesman for the club said: "Discussions are ongoing with Edinburgh City Council and we have good communications with the council regarding our stadium development proposals."

Delays to the planning process and the financial situation at Hearts have led to fears that the scheme, which will see the stadium capacity increase by 12,000, will never get off the ground.

Latest club accounts published in April showed that Hearts currently have debts of 30.48m.

Derek Watson, chairman of the Hearts Supporters' Trust, said: "There is still a reasonable amount of confidence that it will go ahead, but the timescale is still a bit up in the air because of the overall world financial situation, rather than something to do with Hearts.

"The fact that land values have gone down will obviously have an impact. But it will get to a point in the not-too-distant future that Hearts will have to replace the stand because of health and safety and so on. It costs money to keep it going so I'm sure something will happen eventually, but it might take a lot longer than expected."

Tynecastle Nursery had been due to move to a temporary site on Wheatfield Street this summer, while work was to get under way on a permanent replacement at McLeod Street next year.