THE final part of the controversial Caltongate scheme is set to get the go-ahead after developers agreed to preserve Royal Mile tenements for affordable housing use.

Most of the £300 million Old Town project was approved earlier this month, but contentious proposals to demolish all but the facade of some Canongate tenements were put on hold by city councillors.

The council's head of planning, Alan Henderson, has now signalled his support for the revised application, while campaigners also said they were pleased with the changes. Councillors will debate the plans next week.

Developer Mountgrange has proposed retaining the "majority" of the front and rear elevations of the MacRae tenements previously earmarked for demolition. The upper floors, chimney stacks and internal partitions of the building at 221-223 Canongate would also be preserved, with housing on three floors.

Following requests from councillors, including former Lord Provost Lesley Hinds, the developer has proposed retaining five affordable housing units in the tenement. A total of 50 affordable homes would be created.

Mr Henderson said: "The revised proposal, incorporating the retention of the tenement, will ensure greater reference is made to the historic development of the area. The use of an arched pend on Canongate is a direct reference to the numerous examples of pends in the Old Town.

"It is entirely appropriate to introduce a generous pend in this location, given the importance of the new route from Canongate, through the public square to Waverley and Regent Road.

"The reduced height and the introduction of traditional detailing and natural stone create a pend which sits comfortably within the wider frontage of Canongate tenements, and is appropriate to the historical context."

The plans for a new five-star hotel and conference centre, plus scores of shops, offices and homes, won the backing of the majority of councillors at a planning committee at the start of February.

But the scheme involves the demolition of two C-listed buildings – the Sailors' Ark and the former Canongate Venture school – and attracted hundreds of objections from around the world.

Due to the level of opposition, the plans will still need to go to Scottish ministers for final approval, and protesters are also hoping to force a public inquiry. Bill Cowan, spokesman for the Old Town Association, said this was still the aim, primarily because of the way the council had handled the application.

But he added: "The (MacRae tenement plans) were one of the sorest points.

"We wanted the pend reduced in height and edged in stone – and we wanted to keep residential accommodation. I'm very pleased with the changes."

Nick Berry, director of Mountgrange, said: "We listened carefully to the councillors' concerns at the meeting on February 6, and have tried to address the points they made."

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