Delays to the opening of a multi-million-pound Dundee car showroom have cost the company behind the project hundreds of thousands of pounds.
Eastern Western Motor Group is transforming the former Levi’s factory site at Dunsinane Avenue in Dundee into a new “state-of-the-art” Toyota and Lexus outlet.
The £10m project, which has created more than 60 jobs, was ready to open on December 1.
However, it has been hit by weeks of delays, which is costing the company £20,000 a day according to Dundee-born managing director Keith Duncan.
Mr Duncan, who previously praised Dundee City Council for being “pragmatic” in giving permission for the development, which was initially zoned as commercial land, he described the local authority’s building standards department as “anti business”.
What has caused Dundee car showroom delays?
To open, the business needs a temporary occupation certificate and used car licence from Dundee City Council.
It also required the go-ahead to open from the Scottish Fire and Rescue Service (SFRS).
However concerns have been raised over a fireproof ceiling within the building. Mr Duncan also said the fire service is battling a two-month backlog of similar applications.
And with Dundee City Council unwilling to sign off the project without SFRS input, it has means the site now lies empty.
Eastern Western boss hits out at ‘anti business’ move
Mr Duncan said the process had been “very frustrating”.
He said: “We have been building showrooms for decades and we’ve never experienced anything like this in our lives.
“The process with planning was relatively straightforward, but building control has been nightmarish.
“Considering building standards are moving on, everything you build is better than the last. We’ve built this to a standard we’ve never built a dealership before.
“The council has stood behind every minutia to avoid helping us.”
The delay has cost the company around £380,000 to date, with the costs set to continue.
All the workers who had been due to start on December 1 have also been temporarily redeployed around the business.
Mr Duncan added: “It has been referred to the fire brigade, but they’ve apparently got a two-month backlog of these certificates. The council knew that, and it was just an anti-business thing.
“I’ve said to the council we’ve got 65 people working here and it puts those jobs at risk. It’s off the scale. To say we’re frustrated is beyond the pale.”
Mr Duncan, who is from Dundee, explained more about the issue at the centre of the delay.
“There’s a fireproof wall which meets a fireproof roof. Someone’s said ‘what happens if the flames were to lick round and catch the other part that isn’t?’
“After a lot of toing and froing, they weren’t prepared to sign it off. Our project manager is gobsmacked.”
Embarrassment at Dundee car showroom delays
Mr Duncan added the delay has caused reputational damage to Eastern Western. He said it would make the company think twice about significant investments in the future.
He said: “We want to look after our customers.
“Struans lost the Toyota franchise at the end of November and we were meant to take over on December 1.
“But now we’ve got thousands of Toyota customers who can’t access Toyota servicing or work in Dundee.
“I’ve got extra drivers employed to take these customers cars to Perth. We’re happy to do that, but it is hugely aggravating.
“The reputational damage for us is difficult to put a price on. It’s embarrassing.”
Meanwhile, the business has opened a new dealership on Perth’s Dunkeld Road motor mile.
Mr Duncan said that process had gone smoothly and expects that showroom to be “bursting at the seams” with customers impacted by the ongoing Dundee delays.
“Maybe that’s a positive, but it won’t mitigate the losses in Dundee,” he added.
He said the time frame for opening at the former Levi’s factory was “totally open-ended”.
Fire safety ‘taken extremely seriously’
A Dundee City Council spokesperson said: “Building standards officers are currently in contact with the company about their application and the consultation which needs to be concluded with the Scottish Fire and Rescue Service before any temporary occupation certificate can be considered.
“Fire safety is always taken extremely seriously and the input of the SFRS is essential.
“We will continue discuss matters directly with the developers.”
The Scottish Fire and Rescue Service said it is in receipt of the building warrant for the premises, as part of the consultation process. It said a response would be made “in due course”.
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