Agenda item

Report by Head of Place (attached).

The Committee considered a report by the Head of Place (circulated previously).

Councillor Lane declared a Personal Interest as he was a builder and developer.

In response to questions from the Committee, the Head of Place advised that:

• The applicant had submitteda viability study for the site.
• Plymouth City Council (PCC) had provided North Devon Council with an impartial assessment of the financial viability of the site. PCC concluded that a 10% return on a site was appropriate and that the developer could meet most ofthe Section 106 requirements and still have achieved a reasonable 10% margin return.
• The site was now fully completed and no further financial risks would be experienced by the developer.  The final figures for the development of the site were known.
• Whilst there has been no formal challenge made to the validity of the Section 106 agreement, the applicant had provided North Devon Council with letters from their Solicitor stating that in their opinion it was not enforceable and so they did not intend to comply with it.
• Anecdotal evidence suggested that the housing market was currently booming and house prices had increased due to demand in the North Devon area.
• It was unlikely that the new increased house prices had been included in the applicant’s viability study.

In response to questions, the Lead Planning Officer (North) advised the Committee that the Council had pursued financial contributions through the section 106 agreement in July 2019. As of 19 February 2020, five dwellings were occupied and therefore some financial payment should havebeen made by that point.  On 18 March 2020 the Council received a letter from the developer’s solicitor advising that they did not believe the developer would have neededto meet the legal obligations. On 21 May 2020, Acorn had advised that they believedtheir legal position was correct but requested that the section 106 be revisited on the grounds of viability.  The Council then sought a viability assessment from PCC.

Councillor Wilkinson addressed the Committee as Ward Member.

The Committee were addressed by Stuart Bryant (former owner of the site), Mike Reeves (resident of West Down), Carole King (West Down School), John Stainer (West Down Parish Hall and Community Recreational Field) and Sue Ayers (West Down Parish Council).

The Committee were advised of the following in response to the information that the applicant had placed the five affordable properties (which were part of the Section 106 agreement) on to the open market:

•      North Devon Council’s solicitor had written to the Applicant (for the attention of their Legal representative).  The letter had been acknowledged, although no response had been received. 

•      The Head of Place had written to the Estate Agents who were marketing the properties to advise that the properties were subject to a Section 106 agreement and could not be placed on the open market.

In response to questions, the Lead Planning Officer (North) advised that there had been three enforcement cases opened on this development.  The first was during the early stage in relation to highways and was found by the Enforcement Officer not to be a breach.  The second was in relation to fencing between an existing dwelling fronting Ilfracombe Hill and the development site, which had now been resolved.  The third was still open and subject to investigation and was in relation to the compliance of highways conditions and use of materials.  He confirmed that in relation to the section 106 financial contributions and the funding of local projects, planning applications had already been submitted and the extension to the village hall had already been approved.

With the agreement of the Committee, Mark Thomas (agent) addressed the Committee.