A housing developer has been given three months to solve financial problems otherwise plans to build a new Lidl supermarket and 62 homes will be refused planning permission.
Nottingham City Council’s planning committee approved the scheme, on the site of the former Chronos Richardson plastics factory off Belconnen Road, Bestwood estate, during a meeting in December last year.
Applicant Ms Julie White had submitted the homes and supermarket as a comprehensive package on behalf of MyPad and Lidl.
The building of the supermarket on its own would be a departure from the council’s local plan, a document setting out how the development of housing, businesses and roads infrastructure can best benefit the area it is responsible for.
Therefore the delivery of housing at the same time would provide balance and keep it within the authority’s guidance.
However it has since come to light MyPad may not be able to deliver on its promises to provide a financial contribution to the local community where the homes are planned.
With all housing developments, developers typically agree to provide what’s called a Section 106 contribution by planners.
This usually comes in the form of a financial payment to help with affordable housing targets, as well as contributing towards more open space, biodiversity gain, and education, employment and training opportunities.
MyPad had agreed to provide £151,110.69 towards open spaces, £52,546.44 towards biodiversity gain, £338,875 towards education provision as well as £19,128 towards employment opportunities.
It says it can no longer meet its agreed financial contribution “due to commercial reasons”.
At a planning committee meeting on July 19, councillors agreed to give MyPad three months to try and resolve the situation.
Cllr Sam Harris (Lab) said: “Just for clarification, we will grant permission for both to go ahead, under the assumption the Section 106 will be resolved, and therefore the properties that have been so far planned, would be developed?
“And if within the three month period that Section 106 is not resolved, then the whole thing will be pulled back on delegated power?”
Planning officer Martin Hall replied to confirm this is the case.
MyPad is given until October 20, 2023 to conduct further negotiations to see if a resolution can be achieved.
If it fails to come upon a resolution the entire scheme, including the Lidl supermarket, will have permission refused.
Planning documents add: “Whilst the employment and retail benefits are still recognised, the retail development in isolation would see at best a partial regeneration of a brownfield site.
“Regeneration of the remainder of the land for the allocated purpose would be dependent on an application coming forward in the future and can no longer be regarded with sufficient certainty as to carry weight as a material planning consideration.
“It is considered that the retail development in isolation would at best not facilitate regeneration of the remaining land and, at worst, has the potential to be a barrier to it.”