Property developer to pump about £100k less than first thought into Barton education
AROUND £100,000 less could be pumped into Barton after property developer Redrow Homes won permission to alter payments it must make towards education provision in the town.
The developer is due to pay two sums calculated at around £261,000 and £348,000 as part of a planning agreement signed with North Lincolnshire Council in 2005 concerning its 159-home Fox’s Fold project.
But after a drop in house prices on the site since it was purchased by Redrow, the developer asked for the obligation to be modified. The council has now agreed to a new payment structure, which will see the money paid in nine instalments, rather than two.
Rosie Pugh, head teacher at Castledyke Primary School, said it was important the issue had been resolved. She said: “If the companies don’t pay this money, we can be in a situation where there are not enough places for the pupils from the new houses to attend.”
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Payments will now be linked to the House Price Index (HPI), rather than the Retail Price Index (RPI).
Officials in the council’s educational services department calculated the change in index measure could lead to a £100,000 drop in the total to be paid.
A report prepared for the council’s planning committee said: “Redrow Homes has set out that due to the economic situation, there is not sufficient cashflow to make the next two payments in two large amounts.”
The report states the developer had initially calculated sales of houses at the site at 3.3 per month. The actual figure was approximately 1.1 per month, meaning the timescale for completing the project has increased.
The council has negotiated with the developer in a bid to allow building to continue and keep the infrastructure needed for it to stay sustainable.
Redrow Homes has already paid the first of what was initially three instalments of cash, at the occupation of the 30th home on the site.
Councillor Paul Vickers, who represents Barton on North Lincolnshire Council, said: “I can understand the situation but it has got to be the best deal for the people of Barton.
“Education is the key for the next generation to come in.”
A spokesman for Redrow Homes was unavailable for comment.