Developer Slams Gloucester Planning Committee

An opportunity to provide much needed new homes for the elderly and affordable homes for the people of Gloucester has been thwarted by Gloucester City Council‟s Planning Committee on 9 June after they ignored the advice of their Planning Officers. Sheltered Housing Developer Churchill Retirement Living Ltd had resubmitted a planning application at 24 and 26 Denmark Road, Gloucester for 48 sheltered apartments for the elderly but with a reduced contribution towards off site affordable housing of £174,665.

The reduced offer was supported by a viability appraisal and was subject to independent scrutiny by an external consultant appointed by the Council from the Valuation Office, a Government Agency. Despite this Councillors irresponsibly chose to refuse the application.

The developer had previously offered £600,000 when planning permission was granted in 2007 but this was made for reasons of commercial expediency at a time when the housing market was buoyant and house prices were rising and not based on any economic viability exercise, as the Council had originally unrealistically sought £2.6 million. Construction started in January 2008 and continued until house prices started falling last spring and all construction work ceased in July 2008. The Council has already received nearly £40,000 towards off site public open space and £15,000 towards two new bus shelters.

Registered in England No.6260373. Registered Office Churchill Retirement Living Ltd, Millstream House, Parkside, Ringwood, Hampshire, BH24 3SG

“This planning application represented an opportunity to complete this half built development, provide new homes for the elderly and to provide additional affordable housing within Gloucester,” commented Spencer McCarthy, Chairman and Group Managing Director of Churchill Retirement Living. “In these circumstances we are now unwilling to complete the development which has been mothballed since July. The downturn in the economy means the amount we can contribute towards affordable housing must be reduced if the scheme is to be completed sooner. The Councillors seem out of touch with reality and do not appreciate that you cannot „get feathers from a frog’! There are limits to what developers can afford to pay Councils in the current economic crisis. I am appalled by the irresponsible behaviour of the Planning Committee and how out of touch with reality they are.”

In May the Government asked all Councils in the country to ensure that planning complemented the housing stimulus package announced in the Budget and ensure that existing planning permissions were built out and to carefully review previously agreed contributions in light of the ‘credit crunch’.

Churchill Retirement Living will now have no option but to appeal to the Government and this will involve Gloucester City Council in the great expense of defending a case their Officers do not support. Churchill confirmed they will seek costs from the Council at the appeal. It will also mean that jobs for local construction workers will now not be provided and delay the development‟s completion, with the local tax payer having to fund the appeal and pay the costs of Churchill. Spencer McCarthy concluded, “It is a great pity that these Councillors cannot be personally surcharged and made liable for the waste of public money that they frivolously incur with no consequence.”