South Queensferry’s Dune Bakery will be on the agenda at a council meeting on Tuesday for the second time in a month.
The bakery run by Lewis Gill opened in South Queensferry last year. Dune has been a success and they made an offer to lease council-owned premises on The Loan in August. Their plan was to create a bigger space for their products and some other activities alongside the bakery on the High Street. An offer to pay £27,000 per year in rent for the property was around £3,500 above the asking price.
Mr Gill then negotiated with the council on the other terms of the lease. The council withdrew from negotiations just a few days before the bakery owner believed he would get the keys to start work in the property. The council said they now required the building to use for archives. This means the cash-strapped council would forego the rent offered – which would have totalled around £600,000 over 20 years in addition to any rates payable.
At this point Mr Gill said he had incurred around £20,000 in fees and his contractors were due to be paid £50,000 as the first part of the contract cost.
No right to speak to the meeting
Speaking to The Edinburgh Reporter on Monday, Mr Gill said he was surprised to have been told that he had no right to address the Finance meeting on Tuesdat. It is open to the Finance Convener, Cllr Mandy Watt, to waive these orders, but she has chosen not to.
Mr Gill said he had proceeded on the basis that his business would be granted a 10 year lease. The council said in a media comment they would meet his costs. He said: “The council have been telling everyone that they wrote to me, but the only contact we’ve had is them asking what our costs were in the beginning. That was the last we heard from them. Basically they have not spoken to us since. There has been nothing formal to say they will pay.”
This happened in the few days towards the end of October, and one of the Almond Liberal Democrat councillors placed an emergency motion before councillors on 30 October about the lease. Following discussion, the matter was referred to the Finance and Resources Committee which meets on Tuesday. The discussion will be conducted in private.
Mr Gill has been told that he will have no right to speak or present a deputation. An officer from Committee Services advised that: “An individual commercial entity will not normally be considered an organisation for the purpose of applying for a deputation.”
In addition the council officers advised that Council will not normally hear any deputations on “items of business which seek decisions on contract awards or property transactions including disposals, acquisitions, and leases”.
At the end of October a council spokesperson said: “We’re grateful to the Dune Bakery for their interest in leasing this space and are sorry we’re not able to take this forward. We’ve written to the business to apologise and explain – and have offered to cover the costs they’ve incurred to date.”
Letter to councillors
Mr Gill said that he had now written to all members of the Committee outlining his version of events instead of making a deputation.
His letter reads as follows:
My name is Lewis Gill, owner of Dune Bakery in South Queensferry. I am writing to provide a clear timeline and context ahead of the committee vote on the 18th regarding the lease of Unit 31, The Loan.
I submitted our proposal for Unit 31 when the council set the August closing date. Our offer was £27,000 per year—£3,500 above the asking price—totalling roughly £600,000 over the 20-year term requested. The offer was accepted.
Heads of Terms were then drafted and agreed by both parties. Following this, both legal teams progressed through the lease, with an agreed date of entry of 27 October. I was preparing to sign on the 23rd/24th and begin works on the 27th, which involved a significant initial investment.
Our plan for the unit—vacant for over a year and increasingly dilapidated—was to transform it into a multifunctional community space combining bakery production, wellness activities, and a small marketplace.
On 23 October I was informed by phone that the council would not be proceeding, as the unit was now required for “archives.” No additional information was provided. A confirming email followed, asking what costs I had incurred.
By that point I had spent £18–20k in fees. My contractors, a small local business, were due £50k for their first stage of work and had reserved three months for the project.
I have since learned that the council had originally planned to use a different building on the same site for archives, but due to internal communication delays that property was leased to another tenant. Unit 31 had been on the market longer, yet our fully progressed lease was halted at the last moment.
Since the cancellation, I have had no direct communication from the council, despite public statements indicating I had been contacted regarding reimbursement of costs. I have not received any such correspondence. I have had to escalate the matter through local councillors, assisted by customers and residents, to receive any response at all.
The community reaction has been extensive. I have received hundreds—if not thousands—of messages from residents, customers, the local police, RNLI staff, councillors, MSPs, council employees, and others expressing enthusiasm for the project and concern about the council’s handling of the situation. Multiple media outlets are now following the story and awaiting an outcome.
South Queensferry may appear busy, but much of the footfall consists of short-stay weekend and summer visitors. Local businesses have struggled, with at least four closures in the past year. Some businesses initially expressed concern about competition, but have since credited us with increasing footfall on the high street. Roadworks beginning on the high street—expected to last 18 months—will further strain local trade. These works are funded by new parking charges under the bridge, adding another barrier for visitors. My intention with this new venture is to give people more reasons to visit and stay longer in the area, supporting the wider local economy.
I live in South Queensferry and moved here to build this business. In just 15 months, we have invested in the community, contributed to local charities and schools, and organised fundraising events. We are creating jobs, improving a council asset, contributing rent and rates, and helping increase visitor spend and retention.
I am very disappointed that I will not be able to attend or give a deputation even privately before it is closed off to the public. The community is paying close attention to the committee’s decision. I am committed to making positive, long-term contributions to the area, and I hope the committee will take the community’s interests into account and vote in our favour.
I would very much appreciate a response.
What happened to the offer to lease the building to Dune Bakery?
The council appeared to make a u-turn in late October on negotiations to lease the premises on The Loan in the Ferry to Dune Bakery. The business then launched a campaign against the move on social media saying they had consequent losses of anything up to £70,000.
Cllr Lewis Younie said at the full council meeting on 30 October that as soon as he became aware of the matter he was “deeply confused”.
He said: “It seemed that we as a council had not quite acted as we should have. It seemed that a decision had been made counter to the needs of the community and in a manner which reduced confidence that we are a responsible, considerate partner. Those needs in Queensferry are stark. It is a place which needs more services, more places to gather and more businesses given the opportunity to thrive.
“The proposal which has been stymied would have, I believe, served those needs clearly and directly. Dune has been a fantastic addition to an already amazing High Street and I am disheartened that an attempt by them to further grow has been blocked. And it was done with very little notice.”
Delegated decision
Council leases are dealt with by decision delegated to council officers. They officers decide on who to lease council premises to, and on what terms. Usually these terms are ratified by the council at the Finance and Resources Committee – often on the nod.
But Cllr Younie said that although he did not question the principle and policy of officers making decisions under delegated authority, he claimed this decision was “politically contentious”. He thought it right to put the decision before the Finance and Resources Committee to dig into the detail and “get the full facts for the community and for the business”.
Fellow Liberal Democrat councillor Louise Young seconded the emergency motion and said: “This is at the heart of how we as a council treat our small businesses and local communities. Queensferry is a wonderful place to live and to visit, and the arrival of Dune last year was a really welcome and popular addition to the High Street.
“When they entered into this discussion on new premises, they did so in good faith and proceeded with committing time and money to developing this new venture.
“At the last minute, with only days left to go before works were due to start, they were told the new lease was not progressing. This is not how we should be treating small businesses. We should be that trusted partner helping local businesses to establish themselves and indeed, to thrive in our communities.
“We also need to listen to what those local residents are looking for, and we mean hundreds of people who have been in touch about this. So this is why it has become something that should be looked at by councillors. We should be not only supporting, but embracing, our local businesses, investing in our communities and bringing these kind of services to our neighbourhoods. Pulling arrangements at the last minute, leaving businesses in the lurch puts us in a terrible light, and it’s simply not how we should be doing business. This is the right thing to do. Let’s pause here and take it to Finance and Resources.”
Conservative opposition
Cllr Phil Doggart (Conservative) opposed this motion saying he thought the council should take no action. He was formally seconded by Council Leader Jane Meagher and said this has become a community issue and it is not a political one.
He said: “It’s not a politically contentious decision which would be a reason for turning overturning delegated authority. It has become a community issue after the decision has been taken – that is not a politically contentious issue. Officers have delegated authority and it is up to them to use it. However if they had granted the application ad then overturn it at the last minute something has gone very badly wrong, and officers need to take a look at themselves. It is not a good example of overturning delegated authority and I move no action.”
There was a vote and the Conservatives were defeated by 46 votes to 9.
Now the matter will be discussed at the council committee on Tuesday – but in private.
The papers for that meeting and a link to the council webcast is here. It is likely that the decision on the lease will be announced by the Convener after discussion behind closed doors.
