Moray Councillors are to continue discussions over plans to build a retail development on Common Good land in Forres.

It follows an indicative offer from Redco Milne of £6.5m for a 35-year lease of the site at Bogton Road, the local authority said.

The Council will now meet to further discuss the risks and opportunities in relation to the proposal.

In a statement, it added that it would consult with the local community before any final decisions are made.

The £6.5m project would also include £1.5m to relocate Forres Mechanics FC to a new stadium in the area.

Under the current proposal, the Common Good land at Bogton – which represents a majority of the development site – would revert back to the people of Forres at the end of the 35-year lease along with the part of the site currently owned by Redco Milne. The firm, whose plans include a supermarket and retail units, has been pursuing an interest in the site since 2008, but they only placed an indicative value on the site recently.

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In a meeting, the Council's Policy and Resources Committee was told that the Redco Milne proposal would require the council to enter into a lease with the funder of the development which would mean the council renting the development from the funder for the 35-year period. The local authority would receive a share of the annual rental income from the supermarket and retail units but would also carry the risk in the event of units being unoccupied.

Mark Palmer, Corporate Services Director, explained: "In addition to the capital contribution and the reversion of ownership to the Common Good, the developer has made provision also for the council to share in the rental income generated from the development. The developer estimates that this could be around £225,000 per annum.

"However, agreement of the council to this proposal would require a thorough assessment of the risks required."

(JP/IT)