Developer behind plans to build 215 homes in Seagate Road, Long Sutton, has been told to pay more than £1million community contributions
A property developer has been told it must honour more than £1 million in community contributions.
Loosegate Developments received outline planning permission to build approximately 215 dwellings on land at Seagate Road and Wisbech Road in Long Sutton in 2019.
This was subject to a legal agreement which included 25% of dwellings being affordable units plus contributions to healthcare, education and travel.
These planning obligations - called section 106 agreements, which aim to ensure new developments don’t put unnecessary pressures on communities due to a rising number of potential residents - were set to have totalled £1,172,767.
South Holland District Council received an application from Loosegate to remove these requirements due to the ‘financial viability of the development’.
However, the authority refused the request, demanding more than £1 million of the contributions still be paid following an external review.
“The outcome of the independent viability assessment is that, with a reasonable uplift in the sales value, the scheme can viably support a significant level of developer contributions, namely 25% affordable housing and £1,005,000 worth of financial contributions,” SHDC’s planning amendment form stated.
“It is therefore not considered that the removal of all developer contributions relating to this site is justified.”
SHDC’s findings added: “This is £167,767 less than the full total sum of £1,172,767 and only a minor difference when considering the developer is seeking to remove all contributions.
“The independent valuer advises that the key differences between the applicant’s viability appraisal and their assessment are: average plot construction costs, contingency, debit interest, credit interest.”
Long Sutton Parish Council and the NHS both objected to Loosegate’s application.
A consultation from the parish council said it would ‘strongly object to this amendment’.
“The council again request that SHDC look at adopting the Community Infrastructure Levy in order that developers pay CIL before commencing a development and the parish council and their parishioners receive funds directly to invest in their parish and be recompensed for the disruption caused by the large developments being approved to the detriment of the local population,” it added.
“The council respectfully ask for the application to be refused and that SHDC look again at the CIL policy as it states in the Local Plan.”
A response from the NHS suggested the development would - if each house averaged 2.4 residents - result in an additional 516 patients for GP surgeries.
Their comment stated: “Whilst we acknowledge the planning process approval of the housing, consideration needs to be made to ensure that patients have access to NHS Primary Care facilities.
“The viability claim and any associated removal of any section 106 funds will shift the burden of any required increase to the National Health service.
“The developer’s contributions and supporting regulations are designed to help mitigate the impact of development.”