IT has been a controversial development from the outset and in the end the voting was close, but Edinburgh will get its new £45 million city-centre concert hall after planning permission was granted yesterday.

Councillors on the development management sub-committee voted six to four in favour of the building of the Impact Centre, which will be renamed the Dunard Centre and supported by the Royal Bank of Scotland when it opens.

With a 1000-seat auditorium, a 200-seat studio, recording facilities and conference spaces, the centre – the first new such hall in Edinburgh in 100 years – will become the home of the Scottish Chamber Orchestra and host Edinburgh Festival performances.

There were objections from Nuveen Estates, the developers of the Edinburgh St James project alongside the new hall’s site behind Dundas House.

Its representative, Mike Prentice, said: “I’m disappointed and our investors are somewhat angry that the city is supporting proposals that fail to meet planning policy.

“The concert hall is too big for the site. The concert hall could and should go elsewhere.”

Council leader Adam McVey said: “The city region deal has given us the first opportunity for more than 100 years to create a new concert hall in Edinburgh. It’s a hugely exciting time and now that the designs have planning permission, the project can move forward.

“The creation of the Dunard Centre will provide an excellent new venue and home for the Scottish Chamber Orchestra and is another exciting development on St Andrew Square.

“None of it would be possible without our ambitious city deal or the generosity of philanthropists like Carol Grigor [of the Dunard Fund]. Together, we’re opening up an exciting new chapter in Edinburgh’s already thriving cultural scene to help more of our residents to take part in and enjoy the arts.”

The decision came on the day a new group called Citizen was launched to protest against, among other things, the over-development of Edinburgh. A network of communities and campaigns, Citizen said it is “working to re-imagine the city as a sustainable place for people to live in, one of social justice and equality, not just a space for consumption and profit”.

Member Sean Bradley, from the Old Town Development Trust, said: “It’s time for a radical rethink of the city’s economy led by its citizens”.

Citizen says that through its manifesto for the city it will promote community-led development to defend Edinburgh against unwelcome development, privatisation and over-tourism.

Megan Bishop, from Living Rent, said: “We aim to stand in solidarity with one another and push for our common ideals of what Edinburgh should be, a place for people rather than profit.”