Landmark development stalled as developer tries to reduce s106 commitment by 95%
The developer of a housing estate on the site of the former MG Rover car factory at Longbridge in Birmingham has been told it cannot start work until it pays more than £500,000 towards its s106 obligations, after the developer attempted to reduce the amount it had to pay from £2m to £100,000.
The developer, Redman Heenan Properties, which is part of St Modwen, plans to build 115 homes on the site of the former car plant. As part of the planning approval, Redman Heenan was asked to contribute £2m towards local infrastructure, a figure that the developer now says it unable to pay due to the effect of the recent recession, asking that the obligation be reduced to £100,000.
According to the Birmingham Post, a meeting of Birmingham City Council's planning committee last week agreed to reduce the amount that the developer has to pay to £507,000, based on an assessment of the current state of the housing market.
Committee chairman Peter Douglas Osborn told the Birmingham Post that the council has to follow the expert assessment of the economic climate and do its best to encourage investment and development.
However, committee member Bob Beauchamp told the Birmingham Post: “It is very annoying and typical of some developers. But officers have gone to a lot of trouble to work out what we can justifiably ask for. But I would ask that in future we try to stop companies talking us down.”
Redman Heenan Properties has yet to confirm whether it will agree to the pay the revised contribution.
Related articles
