A mis-reading of the rules means the council is to get less money than expected from a new development.
It has emerged that an error in calculating section 106 funding linked to a care home and housing development will result in almost £62,000 less than originally agreed being allocated for green infrastructure and public open space.
Plans to demolish the former John Morley dried fruit plant at Hightown, Congleton, to build a care home, 53 retirement apartments and 15 houses, were approved by Cheshire East Council’s Southern Planning Committee in April.
It has now emerged that the calculations over the s106 agreement were wrong.
So-called S106 funding – previously called planning gain – is cash that developers must contribute towards infrastructure as part of their conditions when planning applications are approved.
The original s106 agreement for the Morley’s site presented to the committee in April included an incorrect formula for calculating the money due for public open space. The figure was set as £2,250 per bed space in apartments when it should have been £1,125 bed for supported living.
The original amount of s106 funding approved worked out at £124,380 for public open space and £22,000 for green infrastructure.
The revised calculations mean the contributions are £62,191 less, with only £45,762 going to public open space offset by an increase to £38,427 for green infrastructure.
In addition, the contributions based on the wrong formula would not have satisfied the Community Infrastructure Levy regulations, this being a charge levied on developers by local planning authorities based on a fixed rate per square meter of new floor space. The updated figures mean the application is now levy compliant.
Councillors were due to approve the amended s106 terms at a meeting of Cheshire East’s Southern Planning Committee yesterday (Wednesday).
Had the error not been picked up, the development could have put at risk as planning permission would have been void without the relevant s106 obligations in place.
The report pointed out that the Southern Planning Committee was not to reconsider the merits of the application but only approve (or otherwise) the corrected s106 obligation relating to public open space and green infrastructure.
The report said: “The updated terms ensure that the financial ask for s106 contributions is lawful and will go to the respective services to mitigate the impact of the development and pressure on council services.”
The former John Morley site is off Morley Drive, which crosses the Macclesfield canal in the Hightown area of Congleton.
The new development, by the McGoff Group based in Altrincham, includes what has been described as a “new multi-modal link” – a pathway for cyclists and walkers that runs along exiting the Macclesfield Canal towpath to Congleton train station.
Other elements of s106 funding from the development include more than £60,568 towards Congleton’s medical services, £80,573 for recreational open space, almost £53,500 towards secondary education and £20,000 for canal towpath repairs.
