A PROJECT to convert a Peeblesshire mill into a multi-million pound mountain bike centre has been abandoned.

The decision comes after "significant structural issues" were discovered at Caerlee Mill in Innerleithen.

Partners involved in the creation of the £19m mountain bike innovation centre (MBIC) have reassured the public that the hub will still be built in the town – although a new site has not been confirmed.

Russel Griggs OBE, chair of South of Scotland Enterprise (SOSE), which is delivering the project, said: “Alongside partners, SOSE remains committed to delivering the MBIC in Innerleithen.

“We want to secure a viable future for the Caerlee Mill site.

“We have made every effort to find a solution to the significant issues we encountered but given the advice received it would simply cost too much for us to continue with our original plans.

“We recognise Caerlee Mill site is a hugely important town centre location, which is why we remain dedicated to finding a positive solution for the site.”

It was standing room only when SOSE held a meeting to update the public on Monday in the Memorial Hall.

It would cost around £30m to continue the conversion of Caerlee Mill into the bike centre, according to SOSE.

A new build on the site would cost around half of that, it said.

A SOSE spokesperson said: “While the site has been fully decontaminated and made safe, these issues are much more substantial than the initial surveys indicated, with the technical advice now being that the majority of the historic structure needs to be replaced.

“This work will push the costs of the project significantly above the available budget.”

A member of the public said: “How could you miss such massive mistakes?

“During the purchase of a property, for instance, when we buy our houses, we get a home report, stating any problems."

A SOSE spokesperson said: “There were assumptions made to inform the original business case.

“This has gone beyond the worst assumptions that were made.”

The centre will be funded by a £19m investment from the UK Government as part of the Borderlands Inclusive Growth Deal.

This funding is available, subject to the full business case being completed and approved.

Councillor Euan Jardine, leader of Scottish Borders Council and Borderlands Partnership Board member, said: “The development of the innovation centre and the Caerlee Mill site is important for the community and the feedback received following the public meeting will help shape how we progress.

“All the partners are committed to delivering the project, but it is essential that it is done within budget.

“The development of the MBIC in the Tweed Valley, which is synonymous with mountain biking, will deliver significant benefits for the local economy.”

It is predicted that the hub would contribute £138m to the local economy and create more than 400 jobs in the region over a 10-year period.

The next public event regarding Caerlee Mill will be in approximately six weeks’ time.