LONDON-Land Securities and Standard Life Assurance have lost the latest round of their ongoing legal bid to block the euro 1.5-billion ($1.9-billion) regeneration of Ravenscraig. The consortium behind the proposed development includes Wilson Bowden, Corus, Scottish Enterprise Lanarkshire and US-based Mills Corp. They propose one million sf of retail; two million feet of office, industrial and storage; and 3,500 homes on 1,151 acres.

But LandSec and Standard Life applied to the courts to overturn a Scottish executive decision to re-designate the former steelworks site a town center, arguing that such a ruling would pave the way for the massive development proposed. The statement of claim that originally launched the legal proceedings argued that development on the scale of a town centre would "impact adversely" on their existing retail investments in Hamilton and East Kilbride. During court proceedings, their legal advisors highlighted how similar proposals for town center redesignations in England had been rejected by the courts precisely because of concerns about their impact on neighboring centers.

But Scotland's highest court, the Court of Session, held that the designation of Ravenscraig as a town center in the local structure plan did not contravene national planning policy guidelines and was "not perverse or irrational."

"It is clear that a structure plan looks to the future," Lord Ian Candlish Kirkwood said. "It provides a long-term vision, looking forward at least 10 years, as part of an overview of the area's development requirements. I can see no valid reason, when there is a firm proposal for a new town centre at Ravenscraig within the time-scale set out in the structure plan and the regeneration is regarded as a national priority, why steps should not be taken at this stage to safeguard the town centre for the future by its inclusion."

But LandSec and Standard Life argue that this ruling sets "a dangerous precedent" for future planning decisions. A joint statement said: "While we have always supported the regeneration of the Ravenscraig site, this was on the condition that it was on a scale which did not adversely affect existing retail developments in the surrounding area.

"The decision of many companies to invest in town centers has been made on the clear understanding that planning policy, at a national as well as local level, was designed to protect existing town centers," the ruling continues. "We believe that an alteration to the structure plan in this case is an abuse of the system and sets a dangerous precedent. This decision is not, in our opinion, in the best long term interests of the people of Lanarkshire."

Wilson Bowden, the homebuilder and property developer that plans to build 3,500 homes on the site, welcomed the decision. "We are already in detailed discussions with retail operators whose expertise would bring huge benefits to the site and to the surrounding areas of Motherwell and to north Lanarkshire as a whole," chief executive Ian Robertson said.

The other parties will now review the ruling and decide whether or not to take further legal action. Civil cases heard by the Court of Session can go to the House of Lords on appeal.