The Gensler Plan - "was not considered viable to take forward” (Council report http://cpol.edinburgh.gov.uk/getdoc_ext.asp?DocID=79244) and the bus depot site was sold to the development company Mountgrange Plc in 2004.

In October 2005 Mountgrange unveiled a preliminary master plan for the area designed by Allan Murray (see this 3rd October Scotsman article).

On 17th November 2005, Edinburgh Council agreed to sell their land on the south side of East Market Street to Mountgrange subject to conditions. This land includes the Canongate Venture and the arches under Jeffrey Street. Mountgrange will initially pay £2.5 million (ex VAT).

On receipt of planning consent, Mountgrange will pay a further £2 million (ex VAT) to the Council. Mountgrange will pay the Council £700,000 (ex VAT) over three years.

The Council will receive 20% of any profit arising from the development of the entire masterplan site, including the former New Street Bus Depot site (Report - Waverley Valley Redevelopment: Premises at East Market Street/Cranston Street City of Edinburgh Council)

On the 21^st December 2005 Edinburgh City Council’s Development Committee voted to support the demolition of the New Street Bus depot in the Canongate. The following day, developers Mountgrange closed the car park and evicted of all the businesses and users including the Sunday Market, artists, musicians and other creatives from ‘Out of the Blue’ and ‘The Gasworks’ studios.

No applications for the redevelopment nor for the proposed ‘interim design solution’ of a surface car park and land art project, have been submitted, yet demolition works have started. Permission to demolish was granted on the 21^st February 2006. Mountgrange have however submitted a 'masterplan' for the redevelopment of the wider area.
On March 9^th 2006, the Council’s Planning Committee agreed the plans and the background reports for an 8 week consultation period, despite pleas from the local community to extend the consultation beyond the community council elections in early May and to allow consideration of alternative regeneration proposals.

The masterplan has NOT been submitted as a planning application but if it is agreed at committee following consultation, it will result in a significant change to current planning policy for the area, which will in turn guide decisions on future planning applications.

The masterplan still includes the demolition of tenement flats on the Royal Mile (to provide a new road),and of Listed Buildings on New Street and East Market Street. It provides outline proposals for a large scale redevelopment covering not only the bus depot site but also the land, buildings and arches along East Market Street/Cranston Street.

The Council have confirmed that the East Market Street/Cranston Street site does include Common Good Land (the former vegetable market building directly opposite the new Council Headquarters) but they are currently negotiating an offer from Mountgrange of £4.5m for this land which includes an additional 20% of future (unknown) profits from the development, despite the land being valued at £5m in 2002 and never being put on the market.