BrewDog has scrapped its £5m plan to build a hotel and distillery at its Ellon brewery after a row with Aberdeenshire Council.
The Scottish brewer and pub operator said that the council was demanding £300,000 per acre for the land, which it had valued by surveyors DM Hall at £5,000 per acre.
The council has hit back that BrewDog had made the announcement with the intention of weakening its position. It also revealed the land had been set aside for the expansion of a cemetary.
BrewDog announced plans in 2015 to build the UK’s first craft-beer themed hotel at its headquarters.
It contrasted Aberdeenshire’s actions with the approach of authorities in Columbus, claiming the Americans fast-tracked its application to build a brewery in Columbus.
The group said: “We cannot afford to build the distillery and hotel in Ellon and will look to do this elsewhere.
“Aberdeenshire council’s main role is to supposedly serve the people of north east Scotland. Yet all they have done here is prevent us from creating 80 new local jobs and providing facilities which the Ellon community desperately need.”
Co-founder James Watt last night claimed he had received a letter from former First Minister Alex Salmond offering to work with BrewDog to keep the jobs in Ellon.
In a statement, the council’s chief executive, Jim Savege, responded: “There are on-going protracted negotiations with BrewDog and this announcement appears to be intended to weaken the council’s position. 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. “
