AN agreement to build a new bridge over the Eddleston water could pave the way for a £40 million housing development in Peebles.

Aberdeen Asset Management want to build houses on parts of Rosetta Caravan Park.

Their initial bid was for 163 properties as well as the conversion of the B-listed Rosetta House and neighbouring stables into apartments.

After strong opposition from local groups as well as other planning consultees the 172-home plans were overtaken by a fresh, less-detailed PPP (Planning permission in principle) application.

Although the developers have overcome some of the original objections with the new application, access to the site remains a sticking point.

And following negotiations with roads bosses at Newtown St Boswells an agreement has been reached where a new road and bridge will be built, linking Rosetta with the A703, Edinburgh Road.

The deal for Aberdeen Asset Management to fund the bridge link would see Scottish Borders Council relax its affordable housing rules on the new development.

Principal planning officer Craig Miller is recommending approval of the PPP application if members of Monday’s committee reach agreement about the new Dalatho bridge. He said: “Should members consider it appropriate to agree a suspensive condition for the Dalatho Street bridge in lieu of the affordable housing quotient, then the application, subject to appropriate conditions and a legal agreement, can be considered to be in compliance with Development Plan Policies.

“The recommendation is that such housing cannot proceed unregulated without the investment in the tourism element and without the necessary bridge crossing at Dalatho Street.” The overall plans for the site would see touring pitches and static caravans moved to the upper Rosetta fields along with 60 new lodges.

New facilities would also be built in the upper fields allowing the lower ground and areas around Rosetta House to be developed for housing.

Both Peebles Community Council and the town’s Civic Society have argued against the bid.

They have raised concerns about the impact on the town’s infrastructure as well as non-compliance with the Local Plan and the compression of holiday facilities being compressed into a corner of the original site.

But Mr Miller responded: “It must also be remembered that for every concern that there may be about congestion of tourism development into the upper fields, there are benefits to wider public view from the revisions to the plans to remove all development, including existing touring caravans, from the main foreground setting of Rosetta House, including toilet blocks.” As well as a 408-signature petition against the development there were 21 objections from neighbours to the original plans and a further 17 letters tabled when the PPP proposals were submitted.

Scottish Borders Housing Association, who own part of the land required for the new bridge link, have stated that tenants in nearby properties at Dalatho must be considered before any full plans are passed.