Part 1
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REPORT OF THE STRATEGIC DIRECTOR OF HOUSING AND PLANNING
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TO THE PLANNING AND TRANSPORTATION REGULATORY PANEL
ON 7TH JUNE 2007
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SECTION 106 AGREEMENT
RELATING TO LAND ADJACENT TO TRAFFORD ROAD
AND ORDSALL LANE (SALTRA DEVELOPMENT), ORDSALL
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RECOMMENDATIONS:
1. That the City Solicitor be authorised to complete an agreement under
Section 106A of the Town and Country Planning Act 1990 to allow
funds received pursuant to section 106 of that Act in respect of land
adjacent to Trafford Road and Ordsall Lane (Saltra Development),
Ordsall to be used for the additional purpose of the provision of
improved facilities at Fit City Ordsall.
2. That the common seal of the Council be affixed to such agreement.
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EXECUTIVE SUMMARY: The Panel is asked to approve the use of section
106 funds from the Saltra development for the additional purpose of improving
facilities at Fit City Ordsall and to authorise completion of the necessary
modification agreement under section 106A.
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BACKGROUND DOCUMENTS: Letter dated 19th February 2007 from the
Council to David McLean Homes and reply dated 30th April 2007.
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ASSESSMENT OF RISK: Low
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SOURCE OF FUNDING: Section 106 funds from Saltra development;
Building Maintenance Budget
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LEGAL IMPLICATIONS (Provided by Richard Lester): The existing agreement
requires to be modified by a further agreement authorising use of the funds for
an additional purpose.
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FINANCIAL IMPLICATIONS: (Provided by Peter Butterworth) The majority of
the S106 funding required for this project has already been received and it is
anticipated that the balance will be received in the current financial year. The
risk of cash flow difficulties is low and can be managed through the Ordsall
Infrastructure Account.
COMMUNICATION IMPLICATIONS: Publicity will be appropriate once the
new fitness centre is complete.
VALUE FOR MONEY IMPLICATIONS: N/A
CLIENT IMPLICATIONS: N/A
PROPERTY: This investment fits with the Salford Community Leisure service
property strategy.
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HUMAN RESOURCES: N/A
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CONTACT OFFICER: Barry Whitmarsh, Major Projects Coordinator, Housing
and Planning Directorate. 0161 793 3645
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WARD TO WHICH REPORT RELATES: ORDSALL
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KEY COUNCIL POLICIES: A healthy city. A city that is good to live in.
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DETAILS:
1
BACKGROUND
1.1
At the meeting on 1st July 2004, panel resolved it was minded to grant
planning permission to David McLean Homes Ltd for erection of 4 fourstorey blocks and 2 five-storey blocks comprising 287 apartments,
associated car parking and creation of new vehicular access together
with associated landscaping at Land Bounded By Trafford Road,
Ordsall Lane, Archie Street And Craven Drive Salford 5 (ref:
04/48147/FUL), subject to completion of a legal agreement, and
authorised the Director of Corporate Services to enter into a legal
agreement under Section 106 of the Town and Country Planning Act
1990 (S106).
1.2
The S106 agreement required a commuted sum payment of £241,280
for the provision and maintenance of equipped play space and informal
open space. The monies were to be paid in instalments on completion
of each block. This commuted sum was required in lieu of appropriate
play space and informal open space on site, in accordance with
policies H8, H6 and H11 of the then adopted Unitary Development Plan
(UDP).
1.3
The agreement was completed and planning permission granted in
September 2004.
1.4
Construction of the development, marketed as “Saltra”, is well
advanced. To date, 3 of the 6 blocks have been completed and the
first 3 S106 instalments, totalling £120,655, duly paid. 2 further blocks
are nearing completion and it is anticipated that the S106 instalments
will be received very soon.
1.5
None of the S106 funds have yet been spent.
2
FIT CITY ORDSALL
2.1
Fit City Ordsall is the main indoor recreation facility in this part of
Central Salford and is located next to the Saltra development.
2.2
Salford Community Leisure Ltd, who manage Fit City on behalf of the
council, have developed proposals to open up the ex-bar area, activity
room and corridor as a single large area to accommodate a new fitness
suite. This facility will provide “state of the art” fitness facilities for the
locality. The proposals include the latest and most up to date
equipment on the market, allowing Salford to be at the forefront of
providing facilities that allow usage by a far wider range of the
population than normal. This takes into account the “make up” of the
local population and would allow the facility to target groups such as
the under 14year olds, family fitness sessions, GP referrals and the
over 55’s.
2.3
The total capital cost of the project is estimated as £150,000. £25,000
is available from the Building Maintenance budget, leaving a funding
gap of £125,000.
2.4
The current maintenance budget for leisure facilities is overstretched,
with the majority of the budget allocated to reactive maintenance rather
than planned maintenance. Therefore there is no scope for this funding
on its own to provide large-scale capital developments such as this
proposal. In addition there are no public grant sources that would easily
fund this type of fitness development. Current sports facility funding is
leaning towards “multi sport” provision or facilities that link with 2012.
2.5
It is proposed that the funding gap be met by viring S106 funds from
open space recreational investment. The development by David
McLean has been identified as the appropriate source of funding due to
the proximity of the development, the potential benefits of the
investment to residents of Saltra and the current availability of funds.
3
CALLS ON S106 FUNDS IN ORDSALL
3.1
Planning permission has recently been granted for several new
housing developments in the Ordsall area where the developer is
obliged to make a financial contribution under S106 agreements. The
purposes to which the funding can be applied are specified in each
agreement. However, most payments are required as an alternative to
the provision of on-site open space by the developer and use of the
funds is generally limited to provision or improvement of formal and
informal open space. Use of S106 funds for works to Fit City would
not be in accordance with any agreement and would require agreement
of the developer to enter into a revised agreement.
3.2
Receipt of S106 funds is dependent on the commencement and
completion of individual developments, which can be difficult to predict.
However, it seems likely that funds totalling at least £900,000 will be
available in the Ordsall area over the next two years. Some funds
have already been committed, for example to refurbishment of the
River Irwell walkway and the Ordsall Hall lottery bid. Implementation of
the infrastructure programme associated with the Ordsall Framework
also relies on use of S106 funds.
3.3
It is most likely that using S106 funds for Fit City would reduce, at least
in the short term, funds available to support the planned investment in
Ordsall Park, under the Parks for People programme.
3.4
However, it is considered that viring funds to Fit City would be of equal
and appropriate benefit to the local community and would meet a
current priority. Use of funds for this purpose is also consistent with
policies H8, H6 and H11 of the then adopted UDP and could
legitimately have been included in the original agreement.
4
CONSULTATIONS
4.1
Ward members have been consulted on the proposed virement of
funds and have no objections.
4.2
David McLean Homes (Manchester) Ltd have confirmed that they are
happy for monies (up to £125,000) to be redirected on the
understanding that they incur no costs for the redrafting of the
agreement.
5
CONCLUSIONS
5.1
It is recommended:
1. That the City Solicitor be authorised to complete an agreement
under section 106A of the Town and Country Planning Act 1990 to
allow funds received pursuant to section 106 of that Act in respect
of land adjacent to Trafford Road and Ordsall Lane (Saltra
Development), Ordsall to be used for the additional purpose of the
provision of improved facilities at Fit City Ordsall.
2. That the common seal of the Council be affixed to such agreement.
MALCOLM SYKES
STRATEGIC DIRECTOR OF HOUSING AND PLANNING