A report on proposals for a major retail development in Moray is to go before the council, it has been announced.

Councillors will be asked to recommend how the plans at Bogton Road, submitted by Redco Milne, should progress.

The company already has planning permission for a supermarket, a filling station and three non-food retail units for the site.

However, at next week's council meeting, councillors will be told that due to changes in the property market, the Aberdeen-based company now has plans for an 80-bedroom hotel, a foodstore, a drive-through and eight retail units.

It is understood the current cost of the development is £20m.

While Redco Milne owns part of the proposed site, the majority of land is held on the Forres Common Good Account.

The report to the policy and resources committee follows advice from consultants appointed to examine the Redco Milne proposals and outlines two options in the event of members agreeing to the disposal of the Common Good land.

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While the 'traditional approach' would see the council dispose of the land to the developer for a capital sum, the 'income strip approach' would see the council receiving a capital sum as well as ongoing rental income from the development.

The 'traditional approach' would result in £1.5m of income to the Common Good Fund, while the 'income strip approach' would generate £4.1m plus £242,000 per year.

Both approaches would create 469 jobs.

However, the 'strip approach' would carry a much higher degree of financial risk.

The third approach would be for the council to advise the developer that it does not wish to proceed with the disposal of the Common Good land.

Forres Mechanics FC would have to relocate their Mosset Park ground if the development goes ahead.

The report states: "The costs will effectively be met from the Common Good's share of the proceeds from the transaction and for an enhanced facility, as preferred by the football club, are estimated at £3.5million."

If the retail development is to proceed, the report says that it is very difficult to gauge accurately the likely date for completion, with the 'traditional approach' likely to take a minimum of 18 months, and the 'income strip approach' 30 months.

To read the report, click here.

(LM)