The development of a new campus for University of the West of Scotland and Scottish Agricultural College in Ayr took a further step forward this week following revised agreements between South Ayrshire Council and the University as a consequence of the present economic downturn.

South Ayrshire Council's Leadership Panel has agreed to a revision to the original conditions which were attached to the development of the new campus on land to be leased from the Council on a 125 year lease.

Councillor Hugh Hunter, Leader of the Council explained: "Since our decision in January, the global financial market has changed beyond all recognition as every householder and business is well aware of.

"One particular outcome of the changing economic climate has been a significant reduction in the value of residential land and as such there was concern that the development of the new University campus could be in jeopardy.

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"We place the highest priority on making sure that the new University Campus goes ahead as planned and as such, we have worked closely with the University and other partners involved to make sure that this important development remains financially viable."

The new agreement has resulted in a reduction in the number of affordable houses which will now be built on the land of the existing campus as part of the housing development to be developed by the University and its partners.

The Council has also agreed to contribute £750,000 to the development from its future capital programme budget and to share in any capital receipts exceeding £9.25m which are achieved from the sale of the existing campus for the residential development.

Councillor Hunter added: "These are unusual steps which the Council is taking, but unfortunately these are very unusual financial times and by taking these decisions we have secured the financial viability of this hugely important project.

"Education is a key priority for this Council and through establishing a new University campus which is fit for the 21st century, it will bring educational benefits to many and great economic benefits to South Ayrshire in the long term."

Professor Seamus McDaid, Principal and Vice Chancellor of University of the West of Scotland, said: "We welcome the continued support of South Ayrshire Council in bringing forward this exceptional development which will deliver real educational, economic and social benefits for the people of Ayrshire."

(GK/JM)