Land row brewing over £5m Ellon hotel project
Craft beer maker BrewDog has threatened to abandon plans to build a £5 million hotel complex in a row over the sale of land with Aberdeenshire Council.
BrewDog wants to buy up almost 12 acres of council-owned land next door to its Ellon distillery for the development of a hotel, restaurant and conference facility.
But the company claims the project has stalled as the local authority has refused to sell a parcel of land “at fair market rate”.
In a statement posted on BrewDog’s website, it claimed the council was costing the north east of Scotland of jobs and tourism potential.
It said the land was independently valued at £5,000 per acre but that council officers had instead demanded £300,000 per acre from us.
“We have spoken with the council several times since, but they will not budge,” BrewDog said.
“We want to invest in our local area and create much needed jobs yet the council insist on making it impossible for us to do so.
“Let’s put this into context. We are currently building a brewery in Columbus, Ohio.
“The local authority there not only fast-tracked our application and planning consents, they personally ensured nothing took more than a fortnight to get approved.
“And we paid much less for 52 acres in Columbus, Ohio than our hometown council are charging us for 2.5 acres in Aberdeenshire. And both projects are in areas where job creation is needed.”
Responding to the allegations, Aberdeenshire Council chief executive, Jim Savege, said: “We are a proactive council with a commitment to working with local businesses. We also have a responsibility to ensure best value for public money.
“There are on-going protracted negotiations with BrewDog and this announcement appears to be intended to weaken the council’s position. We’re disappointed that the company has sought to break confidentiality during what we regarded as live and on-going discussions to achieve an agreement which is fair to both parties and which protects the interests of the local taxpayer, as well as creating opportunities for residents.
“At the heart of this issue is that the land BrewDog wants has been already earmarked for the expansion of the local cemetery. We cannot sell land vastly below market value - the figure BrewDog has been asked to meet is what the land is worth right now. Their suggested land value is more representative of agricultural value than a site which has permission for an alternative use.
“Assisting local businesses to expand is a key objective of Aberdeenshire Council. If BrewDog remains committed to taking forward this development, then we remain committed - as always - to do everything that reasonably can be done to help the company achieve its ambition.”