Cowdenbeath Area Committee
2 November, 2011
Agenda Item No. 15
Section 75 Agreement update relating to New Farm Fields Lochgelly
Report by: Keith Winter, Head of Enterprise, Planning and Protective Services
Wards Affected: Lochgelly And Cardenden
Purpose
The purpose of this report is to update members of a request by Lomond Homes Limited in
respect of the terms of a Section 75 Legal Agreement in respect of planning applications
for their development at New Farm Fields Lochgelly.
Recommendation(s)
It is recommended that the committee notes this report.
Legal & Risk Implications
There are no direct or indirect legal implications affecting Fife Council as Planning
Authority.
Impact Assessment
An IIA Checklist is not required for the following reason:- the report is for information and
noting only.
Consultation
None
1.0 Detail of request
1.1 The Minute of Agreement, as already amended by the Minute of Variation of
Agreement, requires that Lomond Homes Ltd pay the following:
1.2 Education Provision
As a background to this Section 75 Legal Agreement in relation to education provision, the
developer had to provide a total of £202,000 indexed linked payable in three payments of
(£50,000, £75,000 & £77,000 respectively).
1. Clause 5.1 requires that the payment of the first education contribution of £50,000 is
made within 7 days of the completion of the 25th House in Phase 2b (36 units now
completed).
2. Clause 5.2 requires the payment of the second education contribution £75,000 is
made within 7 days of the completion of the 50th House in Phase 2b.
3. Clause 5.3 requires the payment of the third and final education contribution
£77,000 is made within 7 days of the completion of the 64th House in Phase 2b.
4. Clause 5.4 requires that notwithstanding the other triggers of the Section 75
agreement as they relate to education payments, within 4 years of the date of the
signing of the Section 75 agreement the whole or remaining outstanding amount of
the £202,000 shall be paid.
1.3 Public Realm Contribution
As a background to the Section 75 Legal Agreement in relation to a Public Realm
Contribution, the developer had to provide a total of £98,000 indexed linked payable in a
single payment 7 days after the 64th completion of phase 2b. Clause 7.2 requires the
completion of the Town Park Link Footpath and Cycle route connecting the development
Stage 1 through to Melville Street at the completion of the 64 house.
2.0 Actions to date
2.1 On the 16th April 2011 Fife Council requested the payment of the first payment of
£50,000 for education purposes, advising Lomond Homes that 32 completion certificates
had been issued and that the £50,000 had been payable on the completion of the 25 th
dwellinghouse.
2.2 Between the 4th April and 18th April 2011 representatives of Lomond Homes met with
officers of Fife Council to discuss the variation of the Section 75 legal agreement and
submitted a draft Minute of Variation of Agreement which was passed onto Enterprise,
Planning and Protective Services to evaluate. This request was being considered by
officers, however following confirmation from the Scottish Government such requests
should be done in the form of a formal application process which also affords the applicant
a right of appeal should their request be rejected by the Local Authority, Lomond Homes
withdrew their letter, and intend to submit the formal application.
2.3 The application if reflecting the previously submitted draft Minute of Variation of
Agreement which will seek to re-schedule the payments towards education and public
realm works, delay the backstop date for final payments but bring forward the completion
of the footpath link to Melville Street. Given the consideration of the written request and
assuming the expected receipt of the formal application for the variation of the Section 75,
formal legal pursuance of the first payment of £50,000 has reasonably been delayed.
3.0 Conclusions
3.1 Whilst the trigger of the payment of the first education payment has been reached,
officers were considering the impacts of the draft Minute of Variation of Agreement and
held in abeyance the pursuance of the payment of the first payment until the process had
been concluded. Given the clarity provided by the Scottish Government in respect of the
process for requests to alter legal agreements, a reasonable time to allow the completion
and submission of the of the appropriate application forms has been afforded to Lomond
Homes. The formal request by Lomond Homes to vary the Minute of Agreement will be
the subject of a further report to the Cowdenbeath Area Committee for determination.
Background Papers
Section 75 Legal Agreement
Report Contact
Author Name
Author’s Job Title
Workplace
Telephone
Stuart Wilson
Service Manager
Forth House, Kirkcaldy
08451 551122