Issue - meetings

(i)       note the position in relation to the payment of Developer contributions across the Countesswells Development;

(ii)       instruct the Chief Officer - Capital to progress with the construction of the new primary school in accordance with previous council instructions;

(iii)      instruct the Chief Officer - Finance to amend the Capital Plan to reflect the risk around developer contributions at this development;

(iv)      note that Countesswells Development Limited (CDL) are £3,276,609 behind in Developers obligations whilst all other developers that are liable for making Developer Obligation payments are either up to date with their obligation or have made advanced payments;

(v)      note that payments of s75 obligations are monitored by the Development Obligations Team Leader and that high-level meetings have taken place with CDL and officers for payments to be brought up to date however as at today’s date CDL are the only developer at Countesswells who remain behind on their Developers Obligation payments;

(vi)      agree that CDL are in breach of their Developer Obligations as set out in their agreement with the Council and instruct Chief Officer – Strategic Place Planning to give CDL 30 days notice to bring their Developer Obligations up to date;

(vii)     agree to instruct the Chief Officer - Governance to consider the legal remedies open to the Council,  to ensure CDL bring their developer obligations up to date including whether there are any remedies to stop development on site until payments are brought up to date; and

(viii)    agree that the Chief Officer - Governance following consultation with group leaders, will take necessary action to best protect the Councils' interest to ensure CDL bring their payments up to date in order to safeguard the Council.

With reference to article 14 of the minute of meeting of the Capital Programme Committee of 24 March 2021, the Committee had before it a report by the Director of Resources which provided an update on the current situation regarding the provision of Education within the Countesswells Development, Aberdeen City Council’s legal obligations as set out in the Countesswells section 75 Agreement and the options for this in the future.

The report recommended:-

that the Committee –

(a)      note the position in relation to the payment of Developer contributions across the Countesswells Development;

(b)      instruct the Chief Officer - Capital to progress with the construction of the new primary school in accordance with previous council instructions; and

(c)      instruct the Chief Officer - Finance to amend the Capital Plan to reflect the risk around developer contributions at this development.

The Convener, seconded by the Vice Convener, moved:-

           that the Committee:-

(1)    note the position in relation to the payment of Developer contributions across the Countesswells Development;

(2)    instruct the Chief Officer - Capital to progress with the construction of the new primary school in accordance with previous council instructions;

(3)    instruct the Chief Officer - Finance to amend the Capital Plan to reflect the risk around developer contributions at this development;

(4)    note that Countesswells Development Limited (CDL) are £3,276,609 behind in Developers obligations whilst all other developers that are liable for making Developer Obligation payments are either up to date with their obligation or have made advanced payments;

(5)    note that payments of s75 obligations are monitored by the Development Obligations Team Leader and that high-level meetings have taken place with CDL and officers for payments to be brought up to date however as at today’s date CDL are the only developer at Countesswells who remain behind on their Developers Obligation payments;

(6)    agree that CDL are in breach of their Developer Obligations as set out in their agreement with the Council and instruct Chief Officer – Strategic Place Planning to give CDL 30 days notice to bring their Developer Obligations up to date;

(7)    agree to instruct the Chief Officer - Governance to consider the legal remedies open to the Council,  to ensure CDL bring their developer obligations up to date including whether there are any remedies to stop development on site until payments are brought up to date; and

(8)    agree that the Chief Officer - Governance following consultation with group leaders, will take necessary action to best protect the Councils' interest to ensure CDL bring their payments up to date in order to safeguard the Council.

Councillor Nicoll seconded by Councillor Yuill, moved as an amendment:-

           that the Committee:-

(1)    agree (1) to (7) of the motion referred to above; and

(2)    agree that the Chief Officer – Governance will take necessary action to best protect the Councils' interest to ensure CDL bring their payments up to date in order to safeguard the Council, following the decision of an Urgent Business Committee.

On a division,  ...  view the full minutes text for item 12