Agenda item

Recommended for Approval.

Mr Green addressed the Committee in support of the application.

The Director of Neighbourhood Services recommended that, subject to the applicant entering into a legal obligation pursuant to Section 106 of the Town and Country Planning Act 1990, in respect of application 3/11/1616/FP, planning permission be granted subject to the conditions now detailed.

The Director referred to the additional representations schedule.  Members were reminded that the applicant had requested that the item be deferred from the 29 February 2012 meeting to allow further review and negotiation regarding the provision of affordable housing.

The Committee was advised that Officers had since been provided with information regarding the costs associated with the remediation of the site.  A figure of £205,000 had now been built into the latest viability assessment on this application.

The Director reminded Members that consultants are engaged on behalf of the Council to provide expert advice.  The Committee was advised however that Officers and Members were permitted to make a judgement regarding the weight that should be given to such advice.

Councillor B Wrangles, as the local ward Member, stated that this site needed to be developed as it had been boarded up for 2 years.  She commented that, although the provision of affordable housing was less than the usual 40%, the scheme was considered to be viable with the reduced affordable housing provision.

Councillor B Wrangles stated that the application, if approved, would fill a gap between houses to the west and commercial development to the east.  She commented that the site needed to be developed and this application would enhance this part of Ware Road.

Councillor G Jones commented on the level of affordable housing.  He also referred to the value of the land and stated that he would be supporting the Officer’s recommendation for approval.

In response to a query from Councillor M Newman, the Director advised that the applicant had indicated a clear concern that, if a return on investment of less that 20% was achieved, then the development would not be viable.  However, Officers considered that the market was more variable and the developer must be prepared to accept the risk of a lower rate of return.

The Director commented on variations in land values in that residential development would very likely increase the value of the site.  A decision of the Committee would therefore be likely to have an impact on value.  Members were advised that there was the potential for this additional value to enable the costs of affordable housing to be met, along with the return of a reasonable profit on development.

The Director advised that it was not unreasonable to expect the applicant to be flexible in respect of the risks relating to a lower investment return and the potential offsetting of affordable housing costs against land values.

In response to a query from Councillor M Alexander regarding policy HSG3 of the East Herts Local Plan Second Review April 2007, the Director confirmed that this policy stated that affordable housing provision should be up to 40%.  The Director stated that this flexible policy approach demonstrated that the Authority’s planning policies were not out of touch with the current financial climate.

After being put to the meeting and a vote taken, the Committee accepted the recommendation of the Director of Neighbourhood Services that, subject to the applicant entering into a legal obligation pursuant to Section 106 of the Town and Country Planning Act 1990, application 3/11/1616/FP be granted subject to the conditions now detailed.

RESOLVED – that, subject to the applicant entering into a legal obligation pursuant to Section 106 of the Town and Country Planning Act 1990, in respect of application 3/11/1616/FP, planning permission be granted subject to the conditions detailed in the report now submitted.