A row has erupted between Aberdeenshire Council and brewery chain BrewDog over the cost of buying land for a £5 million expansion project.

The pub chain is planning to build a new hotel, restaurant and conference centre behind its brewery in Ellon, creating 80 jobs.

However, the company has claimed the project has stalled due to the council refusing to sell the land "at fair market value".

In its blog, BrewDog stated it had the land valued at £5,000 per acre by surveyor DM Hall. However, it was quoted £300,000 per acre by the local authority.

The company said: "After well over a year of banging our heads against a brick wall with Aberdeenshire Council we feel we had no option but to let the public know what is happening.

"We are trying to grow our business and provide more local jobs and they are making this impossible. As a result it will cost Ellon employment, investment and facilities.

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"We want to build a world class hotel, outstanding restaurant, conference centre and bespoke distillery just behind our brewery in Ellon. This project would see us invest £5m into the local area and create over 80 new local jobs.

"However, the project cannot go ahead because the council are refusing to sell us the land at fair market value, indeed, they are insisting on charging over 60 times fair market value for the land we need to make this exciting local project happen."

In response, the council's Chief Executive Jim Savege said the figure BrewDog has been asked to meet is what the land "is worth right now".

"There are on-going protracted negotiations with BrewDog and this announcement appears to be intended to weaken the council's position," he said.

"We're disappointed that the company has sought to break confidentiality during what we regarded as live and on-going discussions to achieve an agreement which is fair to both parties and which protects the interests of the local taxpayer, as well as creating opportunities for residents.

"At the heart of this issue is that the land BrewDog wants has been already earmarked for the expansion of the local cemetery. We cannot sell land vastly below market value - the figure BrewDog has been asked to meet is what the land is worth right now. Their suggested land value is more representative of agricultural value than a site which has permission for an alternative use.

"If BrewDog remains committed to taking forward this development, then we remain committed - as always - to do everything that reasonably can be done to help the company achieve its ambition."

(LM)