Larkfleet has been described as ‘honourable’ by the deputy leader of Rutland County Council after volunteering to pay £4.8 million to help finance community provisions around the Oakham North development in Rutland.
Rutland county councillors voted to accept the cash from Larkfleet, in place of £6.68 million originally agreed in a ‘Section 106 agreement’ for the 988-home development between Oakham and Barleythorpe.
A Section 106 agreement obliges developers to pay for infrastructure and community facilities. However, a ‘serious planning error’ means that the original agreement for Oakham North approved in July 2011 can no longer be enforced by Rutland County Council.
The mistake came to light earlier this year when it was realised that a change to the planning condition covering flood risk assessments in November 2011 should have been accompanied by a new Section 106 agreement. However, a mistake by the acting development and control officer at the time means that no new Section 106 agreement was made.
As a result, Larkfleet is not legally obliged to make any financial contributions for the development. However, the company has agreed with the council to hand over £4.8 million.
“The council has acknowledged that a serious administrative error meant that we were not legally obliged to make any payments at all,” said a Larkfleet spokesperson.
“However, we have worked together with the council to resolve the issue and ensure services are delivered in line with the development for the benefit of future residents.”
Council chief executive Helen Briggs told councillors: “While the settlement proposed is less than the anticipated figure, it remains a significant contribution that will allow the council to protect the interests of local residents, taxpayers and specifically the residents of the Oakham North development.”
No-one has lost their job as a result of the error. Mrs Briggs said that planning department staff had undergone training to ensure similar mistake would not be made in future.
Councillor Edward Baines told the meeting it was not a question of disciplining those involved and suggested the whole council should take responsibility for the error.
Deputy leader Councillor Terry King said: “In this case the developers have been honourable in reaching an agreement which enables us to have the opportunity to mitigate for the pressures that this development brings forward.”