Agenda item

To consider overage due in respect of a site in Blackborough Road, Reigate.

Councillor T. Schofield, Executive Member for Finance, introduced a report recommending the settlement of an outstanding overage matter between the Council and Raven Housing Trust.

The Executive Member for Finance explained the Council had sold the former Blackborough Road Depot site at auction to Goldcrest Homes, a private housing developer, in 2006. It was noted that the site was sold with outline planning permission and was subject to overage provisions relating to intensification of development. Councillor Schofield went on to explain that Goldcrest Homes subsequently obtained planning permission for an alternative scheme and, in 2009, marketed the site with the benefit of new planning permission. The site was acquired by Raven Housing Trust.

In response to questions, it was highlighted that:

-       The site was subject to some relatively onerous overage obligations which related to intensification of development based on the original planning permission.

-       The strict application of these overage provisions resulted in a payment that was disproportionate to the additional development that was comprised in Raven’s scheme. Furthermore, the provisions did not envisage that the site would be delivered for affordable housing. 

The Executive was informed that as a result the overage obligations had been reviewed. It was noted that the revised settlement was still commercial but was also proportionate and reasonable, recognising that Raven Housing Trust was a key partner for the Council in the delivery of affordable housing.

During the discussion a variety of matters were considered and it was noted that full details of the overage provisions, the calculations and proposed settlement had been set out in the exempt Part 2 report of the agenda.

Clerk’s note – At this point in the meeting agenda item 5 (Overage Due in Respect of Site in Blackborough Road, Reigate) was adjourned so that the exempt information, agenda item 11 (Exempt Business) and 12 (Overage Due in Respect of Site in Blackborough Road, Reigate – Exempt), could be considered ahead of making a decision.

Clerk’s note – The minutes of the meeting reflect the order of business listed on the published agenda, not the order taken during the meeting.

During the exempt discussion, a number of issues were considered, including questions about the Council’s partnership working relationship with Raven Housing Trust. In response, the Leader of the Council highlighted the importance of partnership working and confirmed he would be meeting with representatives from Raven Housing Trust to establish how more affordable housing would be delivered across the borough. It was suggested that the Leader of the Council should write to all Members, with an update, once this meeting had taken place.

On conclusion of agenda item 12 the Executive returned to agenda item 5 and;

RESOLVED that the Director of Finance and Organisation be authorised to agree settlement of the Blackborough Road overage matter with Raven Housing Trust on the basis of the revised calculation set out in the exempt report contained in Part 2 of the Executive’s agenda.

Reason for decision: The original overage provisions relating to Blackborough Road were relatively unusual and their strict application resulted in an onerous overage obligation. The proposed settlement, which adopts the principles of the original provisions and reflects the value of the additional accommodation in the completed development, is both commercial and equitable. The settlement also assists in maintaining the Council’s working relationship with Raven Housing Trust.

Alternative options: To reject the recommendation and require payment based on the strict application of the original overage provisions.