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The City of Edinburgh PLanning Committee decided to delay a decision on the porposed hostel's initial planning application, in part due to the number of objections received. A large number of objections were submitted by individuals in the area and as a result the CEC Planning Committee decided they would have to make a site visit before making their decision. This decision is due on 28th January.
Subsequent planning applications have been submitted by Art Roch for retrospect permission to knock a door through the Portsburgh Chapel (which forms part of the hostel|) to Patrick Geddes Gardens (also known as West Port Gardens). The application is due to be decided on 4th February.

Scotsman article, Thursday 10 December 2009
HOSTILE REACTION AS HOSTEL TOUTS FOR BUSINESS
Councillors are to visit the site of a backpackers’ hostel set to open its doors in Edinburgh’s Old Town without planning permission. Campaigners have demanded the rejection of the plans to turn a former Salvation Army hostel in the Grassmarket into a hostel after work started several months before councillors had ruled on the development.
The Art Roch hostel is already taking bookings and promoting its bar, even though there is a ban on new licences being issued in the area.
Community leaders have accused the hostel owner of ruining a community garden named after town planner Patrick Geddes by chopping down trees and earmarking it for a beer garden. However, officials have given their approval to the hostel, insisting it will be returning a historic building to its original use - even though it was built as a women’s refuge in 1900.
Response (abridged) from the City of Edinburgh Council, Wednesday 9th December 2009
2 WEST PORT - PROPOSED CONVERSION OF THE FORMER HOSTEL INTO A BACK PACKER'S HOSTEL TO INCORPORATE A CAFÉ (09/02401/FUL)
The application was presented to the Development Management Sub-Committee on 9 December and was continued for a site visit by the members. Whilst the members understood this was not a ‘use’ issue as there is already planning permission in place for an apart-hotel, which is in the same use class as a hostel; they wanted to visit the site to ensure they had considered all aspects of the development.
Planning cannot prevent the Hostel from opening but it would be running without planning consent. However, it is not appropriate to initiate enforcement action whilst there is a live application that has yet to be determined.
There is a public café attached to the Hostel but this is not a licensed café; there is no bar attached. Planning cannot control how the Hostel will be managed and the behaviour of its customers but conditions are recommended on the planning permission to control noise.