Business
Planners vote for £150m Park Way project
2nd May 2008
AMBITIOUS plans to transform Park Way into Newbury's shopping heartland are back from the brink after councillors almost unanimously backed the latest financial concessions to the developers.
Councillors on the western area planning committee voted 11 to one to back the £150 million development, after being told that 37 affordable on-site homes could be reinstated if the council pays £900,000 to financial backer Standard Life Investments (SLI) as part of a new deal.
Standard Life Investment's investment director Danny McHugh said financial circumstances had left the company with no alternative but to ask for further concessions from West Berkshire Council including £1.6 million of cuts in developer contributions for roads, schools and parks before agreeing to go ahead.
The scheme will bring 64 new shops and new 187 homes to central Newbury.
Councillor Gordon Lundie (Con, Lambourn) spoke for many when he said he felt he was trapped in a high-risk "game of poker", not knowing if Standard Life would really walk away if its latest offer was rejected.
He said confidential finance figures seen only by members of the committee indicated that any future windfall could leave the council "paying the price by one million pounds, while Standard Life walk away with all the benefit."
Ward member Roger Hunneman (Lib Dem, Victoria) said it was one of the most difficult decisions he had faced.
The council executive looks set to adopt Mr Hunneman's proposal to pay £1 million (reduced on Wednesday to £900,000) of unallocated council money to SLI to reinstate 37 affordable homes axed by the developer in a previous bid to salvage its profit margins in September 2006.
He said: "That is a sizeable benefit for the council, but at the same time somewhat lets Standard Life off the hook."
The deal brokered by officers this week will see Standard Life paid a million pounds to reintroduce the 37 affordable homes, which councillors said was an essential element of the scheme.
Councillor Tony Vickers (Lib Dem, Northcroft) said: "The scheme
is the right scheme, we've got the right developer, we're ready to go. It would be unforgivable to kill off the Park Way scheme and the Vision.
"No change for this town is not an option. I believe the silent majority out there will support us." He said that if Park Way did not go ahead, Swindon, Reading and Basingstoke would be delighted.
Only Downlands councillor George Chandler (Con) refused to give his backing to the scheme, saying the price tag was "robbing the community short" for building homes integral to the scheme.
Mr Chandler said: "I feel this proposal started off good and as time's gone by it is
getting worse and worse and offering less and less to the community of Newbury."
The other 11 councillors, both Liberal Democrats and Conservatives, said the town could not afford to lose the development, despite misgivings over SLI's demands.
Ultimately, they concluded that the opportunity to transform the town centre could not be vetoed after a history of missed opportunities.
The planning committee was unable to bind the council executive to paying the £900,000 to SLI in exchange for the reinstatement of the 37 affordable flats, so executive councillors will make this decision on May 15.
Building work is now set to start in August, assuming no further hitches to the developer's plans. It is set to open in autumn 2010.
Councillors on the western area planning committee voted 11 to one to back the £150 million development, after being told that 37 affordable on-site homes could be reinstated if the council pays £900,000 to financial backer Standard Life Investments (SLI) as part of a new deal.
Standard Life Investment's investment director Danny McHugh said financial circumstances had left the company with no alternative but to ask for further concessions from West Berkshire Council including £1.6 million of cuts in developer contributions for roads, schools and parks before agreeing to go ahead.
The scheme will bring 64 new shops and new 187 homes to central Newbury.
Councillor Gordon Lundie (Con, Lambourn) spoke for many when he said he felt he was trapped in a high-risk "game of poker", not knowing if Standard Life would really walk away if its latest offer was rejected.
He said confidential finance figures seen only by members of the committee indicated that any future windfall could leave the council "paying the price by one million pounds, while Standard Life walk away with all the benefit."
Ward member Roger Hunneman (Lib Dem, Victoria) said it was one of the most difficult decisions he had faced.
The council executive looks set to adopt Mr Hunneman's proposal to pay £1 million (reduced on Wednesday to £900,000) of unallocated council money to SLI to reinstate 37 affordable homes axed by the developer in a previous bid to salvage its profit margins in September 2006.
He said: "That is a sizeable benefit for the council, but at the same time somewhat lets Standard Life off the hook."
The deal brokered by officers this week will see Standard Life paid a million pounds to reintroduce the 37 affordable homes, which councillors said was an essential element of the scheme.
Councillor Tony Vickers (Lib Dem, Northcroft) said: "The scheme
is the right scheme, we've got the right developer, we're ready to go. It would be unforgivable to kill off the Park Way scheme and the Vision.
"No change for this town is not an option. I believe the silent majority out there will support us." He said that if Park Way did not go ahead, Swindon, Reading and Basingstoke would be delighted.
Only Downlands councillor George Chandler (Con) refused to give his backing to the scheme, saying the price tag was "robbing the community short" for building homes integral to the scheme.
Mr Chandler said: "I feel this proposal started off good and as time's gone by it is
getting worse and worse and offering less and less to the community of Newbury."
The other 11 councillors, both Liberal Democrats and Conservatives, said the town could not afford to lose the development, despite misgivings over SLI's demands.
Ultimately, they concluded that the opportunity to transform the town centre could not be vetoed after a history of missed opportunities.
The planning committee was unable to bind the council executive to paying the £900,000 to SLI in exchange for the reinstatement of the 37 affordable flats, so executive councillors will make this decision on May 15.
Building work is now set to start in August, assuming no further hitches to the developer's plans. It is set to open in autumn 2010.
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