Councillors have questioned the finances of the Glasshouses Mill developer after it missed two payments to North Yorkshire Council worth thousands of pounds.
Glasshouses 123 Ltd, a subsidiary of Newby Homes, had hoped to win approval at Skipton and Ripon’s planning committee yesterday for the second phase of its 50-home scheme.
But councillors put the brakes on the proposals and deferred a decision until a future meeting.
They asked for more details from the developer about how it would ensure the payments to the council are honoured before more homes are built.
Councillors heard that the developer was obligated to pay £250,000 towards local schools, open spaces and village halls through a section 106 legal agreement.
However, the first two instalments to the council have not been paid.
The first phase for 30 homes at the former Nidderdale mill, which overlooks the River Nidd, began in 2016 and is now almost complete.
But councillors heard how a string of events has meant the developer has struggled to turn a profit so far.
A planning agent speaking on behalf of the applicant, said the mill conversion had been a “conservation success story” but financially it has been “extremely challenging”.
They said:
“Since 2016, we’ve had Brexit, Covid, Ukraine and serious instability. These were black swan events for the construction industry and there’s been a shortage of materials and a rise in costs.”
Council planning officer Andy Hough told councillors that three different viability assessments, which had all been independently verified, concluded that the scheme would only become profitable in phase 2 due to these unexpected issues.
The developer asked to increase the number of homes in the second phase from 10 to 18, which officers had accepted in principle.
These homes would be built in a warehouse and stables which are currently derelict as well as a new build block.
The council said it would add a new agreement with the developer that would take into account its financial needs and the outstanding section 106 money that was required.
Mr Hough said:
“We’ve taken a pragmatic view to kick-start development, it has stalled. We are where we are.”
Glasshouses Mill was a corn and flax mill and employed more than 400 workers in its heyday.
In 1899 the building was converted to hemp spinning and rope making and it is believed the mill made rope for the RMS Titanic.
Residents living in the already converted mill have been unhappy that certain elements of the approved phase 1 scheme were not completed as planned.
Objectors raised issues including unsatisfactory fencing by the Nidd, gravel in the car park and inadequate lighting.
They demanded that the council not approve phase 2 until these works are rectified.
One objector told councillors that residents enjoy living in the converted mill and added they appreciate the “challenges of delivering such a unique development whilst making a commercial return”.
But he warned that if the works are left unresolved they could have “significant consequences” for homeowners in the future.
Local councillor Andrew Murday (Liberal Democrat, Nidderdale) addressed councillors to say that the scheme could be left unfinished if phase 2 is not approved.
He said:
“There is lots of contention but it’s a very important scheme for Glasshouses. It’s an iconic listed building and if phase 2 is not continued it would be disastrous. “
However, councillors on the committee appeared uneasy about the missed section 106 payments and wanted assurances that the money would be paid to the council before any more building work began.
Cllr Robert Heseltine (Conservative and Independents Group, Skipton East & South) said:
“They are either dragging their feet on paying or have made severe financial miscalculations. The extra units are to plug a financial hole somewhere.”
Similarly, Cllr Barbara Brodigan said there were “so many ifs and buts” regarding the proposals. She added: “I want some cast-iron guarantees that the money will be there for 106.”
Cllr Andy Brown (Green Party, Aire Valley) added:
“We can’t be taken for a ride. We need to see more clarity. This committee has understandable cynicism. We want this development to happen, but what’s been delivered so far with the agreements doesn’t give confidence.”
Councillors voted to defer the application pending another financial appraisal as well as an energy and sustainability statement.
It could come back before the committee at the next meeting which is on September 30.
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