WEYMOUTH CURTIS Fields developers, Betterment, have lost their plea to cut eighteen affordable homes from the scheme.
The company claimed to do so would reduce their profit to an unreasonably low level – an argument which was accepted by the independent District Valuer.
The company had originally agreed to provide 30per cent ‘affordable’ homes on the site, but came back to Dorset Council arguing that to do so was no longer viable. It said it now had extra, unforeseen, expenses on the site of more than £20million and had also been faced with rising material and labour costs. The reduced affordable homes figures sought is based on a 17.5% profit for the company, mid-way on the ‘normal’ profit range of between 15 and 20%.
The reduction in affordable homes, had it been approved, would have seen a percentage drop from the 30 to 26.24 – equivalent to eighteen homes.
Councillors had previously asked their officers to go back and negotiate – but Betterment declined to do so, arguing that it had already negotiated with the District Valuer, and had changed its original request for no affordable homes on Phases 2 & 4 and no £4.5million financial contribution towards local facilities, including education and recreation.
Several councillors, from all parties, argued that the developers should be made to stick to the 30per cent figure. The company has agreed to maintain its financial contribution.
Wyke & Rodwell Green Party councillor Clare Sutton said that while developers were happy to make extra profit when the market was in their favour, they should also be prepared to take less profit when it was not.
Portland Labour councillor Paul Kimber said that the bottom line was that if the reduction was agreed that would mean 18 local families not able to get on the housing ladder at a time when people were struggling.
Lib Dem David Northam (Upwey & Broadwey) questioned the principle of arguing viability as a scheme progressed: “It is surprising that these, unforeseen, costs have come to light at this late stage,” he told the area planning committee, “I’m disappointed Betterment would not enter into discussions with the council.”
It was left to Preston and Littlemoor Conservative councillor Louie O’Leary to propose rejecting the reduced number of affordable homes: “If Betterment are forced to hold (to the agreement) they’ll still be making a nice profit. I’m not against profit but I am against people not keeping to their word and an agreement,” he said.
The committee voted unanimously to reject the change requested.
Councillors were told that their stance could result in an appeal which might result in legal and other expenses and costs against the authority if it was found to have acted unreasonably.
If the application had been allowed it would have reduced the number of ‘affordable’ homes across the site from 140 to 122, made up of 84 for rent and 38 shared ownership.
The council has a legal contract, known as a Section 106 agreement, with the developers, dating back to 2016, which agreed a minimum of 30per cent affordable homes together with more than £4.5million in financial contributions for recreation, ecology and towards the costs of school provision in the area.
Pic – The Curtis Fields site from the air – pic Western Design Architects Illustration – Curtis Fields masterplan – pic Western Design Architects Illustration - Curtis Fields affordable homes in phases 2 & 4 shown in red and yellow.
Illustration- Break down of Betterment's unforseen extra costs
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