A developer has said plans for more than 250 new city homes may be "in jeopardy" after a council contribution charge was increased by £2 million literally on the toss of a coin.

Regeneration specialist Artisan Real Estate raised concerns after Edinburgh councillors were tied on a vote over developer contribution costs of £1m and a new proposal of £3m, and the decision was made on the toss of the coin in the council chambers.

Artisan and REInvest Asset Management SA earlier unveiled detailed plans to redevelop the former Deutsche Bank House at 525 Ferry Road in the Scottish capital.

READ MORE: Plans for over 250 homes at former city bank site revealed

The office and data-processing centre was formerly the Scottish base for State Street Bank until the building was vacated in 2018.

The developer lodged a planning application with the City of Edinburgh Council to transform the vacant site, rebranded as 525 Park View, into a new residential neighbourhood providing 256 sustainable homes, 25% of which will be for affordable housing.

However, while the council backed the proposals, a change in Section 75 contributions for education has thrown the project into question.

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David Westwater, Scottish regional director for Artisan Real Estate, was reported as saying in Scottish Construction Now: "While we welcome the ‘minded to grant’ decision by councillors for our transformational development at 525 Ferry Road, we now need to consider carefully our next steps following the resolution to increase the Section 75 education contribution significantly over and above that recommended by the council’s planning officers.

"A threefold increase in Section 75 education contribution to £3m would challenge the viability of any development – especially at a time when the residential market is still struggling to come to terms with the impact of higher interest rates on mortgages and developers are facing increased build and construction finance costs."

READ MORE: Developer axes Edinburgh homes after SNP, Greens rents curb

He added: "This decision could delay or put in jeopardy the delivery of this much needed housing in Edinburgh which we had hoped would significantly address the city’s well publicised 'housing emergency'."

Asked about the decision-making move, Jamie Macrae, of committee services, said: "Standing Order 24.5 allows for the lord provost or the convener to use the casting vote, if they decline to use the casting vote then the decision is by lot."