Issue - meetings

Report of the Director of Place and Sustainability to update the Committee on the Council’s Section 106 (s106) policy and guidance, s106 agreements signed and administered between 2005 – 2011 by the Planning, Regeneration and Economy Service and the distribution of the s106 funds received by the Council.

Marc Dorfman, Assistant Director, Planning Regeneration and Economy, presented the report on the Council’s s106 policy and guidance, s106 agreements signed and administered between 2005 -11 and the distribution of the s106 funds received by the Council. Of the approximately £13m received, around £3.7m remained unspent, of which £0.7m related to monitoring activity. Mr Dorfman advised that there were currently two sites of significant concern, Winns Mews and Markfield Road, totalling around £138k, and that the possibility of legal sanction was being explored in these instances. A number of other schemes which were close to their payment deadlines were also being monitored, totalling around £300 – 400k.

The following points were raised in discussion:

• Mr Dorfman would check the length of time the schemes at Winns Mews and Markfield Road had been given for the payment of the s106 monies owed, and would report this back to the Committee.
• It was confirmed that £7.7m was owed in respect of Hale Village, of which the majority was outstanding. Mr Dorfman reported that the renegotiated s106 agreement was close to completion; the signature of this would trigger an immediate payment of £3.2 – 3.5m, with the rest to be triggered at further points during the development. The s106 agreement had been brought back twice to the Planning Sub committee for revision, and it agreed that this was unusual. The revised agreement for Hale Village was scheduled for completion in March 2012, and it was felt unlikely that this date would slip.
• Concern was expressed that the recent decision in respect of Spurs might set a precedent for other large developments, such as Hale Village, and that in agreeing to renegotiate the s106, the Council had appeared compliant in accepting reduced contributions. Mr Dorfman advised that it was a balance; if a hard line were taken and the construction on the site was closed down due to non-payment, then there would be no chance of recovering the monies owed. Where issues arose with a development that had previously been considered appropriate for permission, for example as a result of a decrease in land values, it was reasonable that renegotiation of the s106 be brought to the Planning Sub Committee for consideration. Mr Dorfman advised that the Spurs decision was not a precedent for other schemes.
• Mr Dorfman agreed that he would check the date after which LVE could appeal the s106 obligations in respect of Hale Village, and would report this back to the Committee.
• The Committee asked about education formula; Mr Dorfman advised that this was a detailed formula based on child yield predictions, calculated by a mathematical model which linked in with other boroughs. It was agreed that the formula would be sent to Cllr Schmitz for information.
• Mr Dorfman reported that a legal agreement had been signed in respect of the Wards Corner development, but no money had been paid over as consent had subsequently been overturned and any contribution had therefore not been triggered.
• It was agreed that a  ...  view the full minutes text for item 33