Luxury flat development in doubt after row over cash
DEVELOPERS REFUSE TO PAY £20K CHARGES
THE future of a luxury city centre housing plan is in doubt amid a row over the developer’s refusal to commit £20,000 to improve the surrounding area.
The Adderstone Group wants to build an eight-storey apartment block on a derelict plot of land in Hanover Square, near to Central Station, and the proposal was expected to get the green light yesterday morning.
However, councillors narrowly voted to postpone their decision on whether to allow the project to go ahead - a decision which has been labelled “absurd” and has reignited a long-running dispute between Adderstone and the local authority.
Newcastle City Council’s planning committee heard Adderstone was refusing to pay a fee which the local authority would usually require a developer to make towards improving existing open space within the vicinity of the building, arguing that the £20,000 payment would make their scheme financially unviable.
While that argument had satisfied civic centre planning officers, councillors were not convinced.
Coun Marion Talbot, vice chair of the committee, said she was “extremely disappointed” in the firm, while Coun Marion Williams called on Adderstone to “put their hands a little deeper in their pockets” for the city-centre plans.
A previous plan to develop the site for 25 flats, which was approved in 2013, fell apart due to viability concerns.
Kath Lawless, the council’s assistant director of planning, responded the developer had told her they were “absolutely adamant” their new project could not go ahead with any cash contribution to the council.
She said: “When we weigh up the benefit of developing the site, which has been derelict for a long time, on balance it is our view the benefits outweigh the harm.”
The development would comprise 10 new flats, each of which will have access to a balcony or terrace, but Adderstone CEO Ian Baggett said afterwards the plans could now fall through.
He said: “We had already provided an appraisal which the council accepted demonstrated the development was not viable. The only reason we were proposing to see it through was we already own the site, we had a purchaser lined up for the penthouse and we have lads we want to keep in work.
“Even the council’s own CIL charging schedule confirms residential development in the city centre is not viable. “Unfortunately, this is another absurd planning decision. There have been no unsubsidised, speculative apartment developments in Newcastle city centre complete within the last decade. Taxing unprofitable developments simply repels investment. Other competing regional cities have hit the skies.
“We have now lost our purchaser as a result of the continued delays so this becomes another aborted development and mothballed site in the city centre.
“My colleagues and I seem to spend our working lives trying to persuade Newcastle City Council to allow us to make good stuff happen. Unfortunately, our efforts Adderstone CEO Ian Baggett increasingly need to be focussed elsewhere.”
The outcome follows Adderstone’s failure to win support for a 124 Quayside apartment scheme and proposals to redevelop the former Greggs site in Gosforth.
Councillors were evenly split 7-7 on a vote to defer the planning application, with chair Coun Hazel Stephenson casting the deciding vote in favour of the delay.
The deferral was approved on four grounds - to seek further explanation of why the project might be unviable, to see designs of how the building will look at night and to get more information on proposed green roofs as well as safety measures being installed to stop cars driving down the Tuthill Stairs.
A council spokesperson said: “The planning committee had a thorough debate on this application and voted to defer the application to seek clarification on a number of matters relating to design, landscaping, public realm and viability.
“It is hoped we can work with the applicant to provide the information necessary and the matter will then be re-presented to committee for consideration as soon as the information is available.
“It is standard practice for the planning authority to require developers to make a contribution as part of the planning application. In this case the developer, due to viability constraints, has indicatedt they are unable to meet the policy requirement for contributions to off-site open space enhancements.
“The council is committed to seeing our city develop and flourish but we also want to ensure the quality of the development is right. In this case we are seeking further assurances to ensure the development fits into this important area of the city.”
Unfortunately, this is another absurd planning decision