It has created jobs and a vibrant, much-needed open-air destination in the centre of the Scottish capital.

So the decision by the City of Edinburgh Council to cut short the run of the popular Festival Village atop the Waverley Market shopping mall in Princes Street is disappointing not just for its 400 workers and small business operators, but many in the city centre community.

Council planners said that pop-ups during the city's summer festival programme "can be acceptable for short periods" and councillors agreed to refuse permission to October.    

Festival Village operators worked with local firms to create an al fresco food, drink and live music experience.

The operator said it is “so much more than a beer garden - we collaborate with local brands and products to create a festival atmosphere”.

It includes Smugglers Spirits, Secret Garden Gin, Pizza Geeks, Say Cheese, Butcher Boy and Brothers Poutinerie.

READ MORE: Edinburgh Pizza Geeks, Cask Smugglers' venue unveiled

Extending, not cutting short, the tourism season is precisely the kind of intervention advocated by representative groups such as the Scottish Tourism Alliance.

Planners seemed to wax lyrical: “The roof terrace is an area of public space which comprises a mixture of open plaza, grassed areas and walkways accessible only from Princes Street. The plaza and walkways are finished in silver grey granite.”

The Herald: Supporters argued the site has a low profile against the city backdropSupporters argued the site has a low profile against the city backdrop (Image: Festival Village)

Rather than some kind of beloved public space, it’s a bland grey roof that police said was previously a magnet for anti-social behaviour. Yes, before the Festival Village years it was once one of those no-go areas.

Police Scotland’s architectural liaison officer said in consultation: “In recent years the presence of the pop-up bars have generated a greater footfall in this area and that along with the presence of security staff has greatly reduced the opportunity for anti-social behaviour and the need for police intervention."

READ MORE: Public meeting after market debacle

This is a place, remember, where the nearby Princes Street Gardens are easily trashed.

The rejected proposal to keep the businesses trading at the Waverley site to the end of September, with a further six-week wind-down, received a surge of support of over 100 letters and around dozen in opposition. The Cockburn Association heritage group’s objections included that the site caused congestion.

The Herald: The site from another angleThe site from another angle (Image: Newsquest)

One objector said: “The cafés, bars and food outlets would take business from catering establishments in the Old and New Towns to their detriment.”

A supporter said: “It provides a great space for locals and tourists alike and brings life to Princes St at a time where it is struggling.”

Montagu Evans, on behalf of Keasim Events Limited which is the operator of the Festival Village, said: “The applicant’s aspiration for the site is to provide an active, managed use for the rooftop of Waverley Market, to include family-friendly facilities that support the needs of both locals and visitors, whilst providing economic benefits for the city as a whole.”

Planners said: “For the time period proposed and for the duration the development has been in place to date, the proposal would not preserve the character and appearance of the New and Old Towns Conservation Areas and has an adverse impact on the setting of adjacent listed buildings.

"Previous planning permissions for temporary development established that for short durations of the year, pop-up developments linked to particular calendar events including Christmas and the city's summer festival programme, can be acceptable for short periods of time in a twelve-month calendar year.

"The proposal has already been mostly implemented since 2022 without interruption and it is proposed to be in place for nine out of twelve months in 2023."

The officials added: "The proposal has to date and will until its removal disrupt key vistas to and from listed buildings and the general backdrop of historic assets across the Waverley Valley."

Also this week, business editor Ian McConnell revealed a landmark hotel at a “coveted” Scottish golf course is set for a grand reopening.

Business correspondent Kristy Dorsey reported that Glasgow-headquartered nuclear decommissioning specialist JFN Limited has fallen into administration putting 300 jobs at risk.

Elsewhere, the thriving Clachan Inn located in Dumfries and Galloway has been put for sale, as its owners seek to exit after 10 years in charge, reported deputy business editor Scott Wright.