A £6 million housing and retail development in Dundee city centre is under threat from an alternative scheme to build a huge new student accommodation block instead.
Proposals to create 43 flats, shops and a restaurant on the site currently occupied by the Shell garage on West Marketgait were approved by Dundee City Council in July.
But it is believed the scheme has so far failed to attract a developer to bring it to fruition, and that the site owner is considering alternative uses for the land.
Property consultancy firm Montagu Evans has now submitted a proposal of application notice to Dundee City Council, on behalf of Crosslane Student Development.
The Manchester-based company has signalled its intention to seek permission to demolish all existing buildings and erect “purpose-built student accommodation with ancillary development, associated landscaping, access and infrastructure”.
Crosslane previously operated the Tay Mills student accommodation on the other side of the road to the Shell garage.
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Craig Wallace, of Montagu Evans, said: “For some time my client has been looking for an opportunity in Dundee, and was approached about looking at this site.
“They know and understand the market and are firmly of the view there is a need for high quality student accommodation in Dundee.”
The original £6m housing and retail scheme was designed by Carnoustie-based architects Brunton Design.
The seven storey building would comprise 39 two bedroom flats on floors one to five and some of six, with penthouse apartments making up the rest of the top two levels.
The ground floor level would feature shops and restaurants.
Mr Wallace said Crosslane’s development would be “on a similar scale” to the building already approved by the council.
But Allan Mudie, from Brunton Design, said his company’s scheme could still go ahead if councillors reject Crosslane’s plans.
He said: “Having gone through the whole planning process, I think the scheme would still be the preferred option if the student accommodation didn’t go through.”
Crosslane will hold a public consultation at the Hampton by Hilton hotel on March 18, from 3pm-7pm.