Midlothian Council had failed to approve Pentland Park Marine Ltd’s application for a hotel, food retail, housing, elderly accommodation and commercial premises on a site which adjoins the junction of the A701 and Pentland Road 

The developers said the New Pentland project could see more than £22 million invested in it, with 145 permanent jobs created and a further 172 required during its construction.

The firm’s argument that the land had been unused for half a century and pointed to the council’s recent approval of an Aldi store on the site failed to sway the Scottish Government reporter.

The reporter’s decision was based on several factors, including sufficient housing land availability in Midlothian, the project’s limited contribution to affordable housing (estimated at 10 units), and concerns about the loss of public space.

Despite acknowledging that the project would make a “small, but valuable contribution to the supply”, the reporter deemed this insufficient to outweigh the concerns raised.

“I have considered the economic benefits of the scheme,“ she stated. “However, I am not persuaded that these benefits are sufficient reason to consent commercial development on an unallocated site.”

The decision marks the end of a two-year struggle to overturn the council’s original ruling. The reporter visited the site and considered objections from local community councils, as well as existing and proposed developments in the surrounding area.

A spokesman for the applicants said: “We believed this was a fantastic opportunity to enhance the local amenities with community-focused plans, so we are naturally disappointed in the decision to reject what we feel was an excellent opportunity for the council.”