Keigar Homes also wanted to reduce the number of affordable homes
Councillors have rejected a developer’s attempt to reduce its local infrastructure contributions by £1.6m and not build 34 affordable homes. Keigar Homes sought to modify its S106 agreement linked to the building of 317 homes on land off Canberra View, Barton-upon-Humber.
In 2022, it agreed with the council to pay £3.1m S106 cash and build 50 affordable homes. The £3.1m was divided between nine different elements, with £2.4m for primary and secondary education the largest ticket item, and £216,000 towards leisure facilities.
But Keigar subsequently applied to remove most of the S106 terms, including all affordable homes required and to end up paying overall £327,000. A compromise was later reached with council officers to still build 16 affordable homes and pay £1,477,156 in S106 cash. Councillors have unanimously refused this.
“Because of viability reasons, we seek to modify the S106 agreement,” stated Keigar Homes’ Gary Whall at North Lincolnshire Council ‘s planning committee meeting. He said due process had been followed, with them submitting a viability report in January, by Devvia Property Consultancy. The council subsequently commissioned its own independent viability report, by Carter Jonas.
The Carter Jonas report agreed the originally expected S106 contribution was too much. But it felt the developer could build 32 affordable homes and pay £1,477,156 in S106 infrastructure contributions.
“After eight or nine months of backwards and forwards, we’ve come to an agreement on a viability report,” said Mr Whall. The council and Keigar Homes negotiated to the 16 affordable homes and near £1.5m S106 cash contribution.
“This viability has not been rushed,” Mr Whall said, but was “carefully considered”. The affordable homes would be a mixture of two or three bedrooms for renting, set permanently at 20 per cent below market rate.
The near £1.5m S106 cash includes a much-reduced educational contribution, of just over £850,000. Mr Whall noted Baysgarth School extended over the summer holidays and increased its capacity from 900 pupils to 1,200.
“North Lincolnshire education department are now considering if they need to ask for contributions for Baysgarth Secondary,” he said. He confirmed the developer is transferring an acre of land to enable Barton Cemetery’s expansion.
It had also previously donated “a substantial amount of money” towards Baysgarth’s electric vehicle test track plans. Mr Whall emphasised only one specific element would be entirely removed from the S106 agreement, just over £17,000 towards public transport.
‘We need the infrastructure that goes with these developments’
Cllr Chris Patterson (Barton Ward) immediately proposed refusal of modifying the S106 agreement. This was on the grounds of the education, transport and affordable housing issues, still current with the size of Barton, she said.
“This is getting to be a little bit more common than I’d like, this ducking out of S106, and to me, it means S106 just isn’t working,” said Cllr John Davison (Bottesford Ward) . He felt Keigar had “gone too far” in their modification ask. “I would like the council officers and Keigar to go and have another look, rather than just go straight through to appeal.”
He added of the general S106 situation with developers: “We’re being held to ransom as far as I’m concerned as a committee. We need the infrastructure that goes with these developments.”
“I totally agree with what’s been said,” said Cllr Mick Grant (Ashby Lakeside). “We have gone from 50 affordable houses down to 16. We have got a deficit of 34 houses that they’ll still build and sell, I’m sure.”
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