The private consortium which was planning a major upgrade of Hazlehead Golf Course has decided not to go ahead with its proposals.

The MacKenzie Club Ltd (TMC) has informed Aberdeen City Council that it has opted not to proceed because it has been unable to attract external investors to provide the financial backing for the proposed redevelopment.

TMC has told the council that the global economic downturn has deterred potential investors from financing the proposed hotel and golfing lodge developments, which were essential to make the scheme financially viable.

A report on the matter will be presented to a full meeting of Aberdeen City Council on May 20. The report recommends that councillors instead transfer the Hazlehead course to the planned arm's-length sports trust, Aberdeen Sport.

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City council leader Councillor Kate Dean said: "It is regrettable that The MacKenzie Club has been forced to take this decision after so much hard work on their part and by our own officers, who have put enormous energy into trying to make this ambitious scheme work.

"We always said we would only go ahead with the redevelopment after the closest possible scrutiny by the council and by our external advisors to make sure it offered the best value for the council and a good deal for citizens and local golfers. We gave it every chance to succeed - so long as The MacKenzie Club was able to come up with the financial assurances we needed. Sadly, and through no fault of their own, that proved to be impossible."

Ms Dean said councilors will take stock collectively to decide what is best for Hazlehead. "People can rest assured that this is not the end of our golf development aspirations, although clearly an investment on the scale planned by TMC is no longer possible."

The report to next month's full council meeting outlines alternative proposals from TMC. The consortium has suggested that it be given the go-ahead to take control over the No1 course and close it to allow a three-year upgrade go ahead at its own expense. TMC proposes that a long-term lease is then negotiated.

(GK/JM)