There was anger today after a major development of more than 250 waterfront flats was approved - with the developer only having to pay a fraction of the agreed financial contributions to the city.
Liverpool Council's planning committee has given the green light for development company Glenbrook Property and Barings Real Estate to build 257 apartments on Kings Parade at Queens Dock.
The development is the second phase of The Keel scheme, which has already seen a 240-flat project built at the waterfront.
The new £40m scheme, plans to build two new eight-storey blocks at Queens Dock, comprising the 257 apartments.
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According to the planning report, a project of this scale should see the developer pay a total of just shy of £767,000 in what are known as Section 106 payments - which are legal agreements that see builders and developers made to contribute cash to the local authority which is then used to mitigate the impact of the development on the local area.
This cash is used to address issues that may be created by the development, such as creating more public space, road improvements, cycling infrastructure or increasing education or health services.
According to the planning report for this development, the developer had suggested that rather than paying the £766,927.50 due in such community contributions, they should in fact pay nothing in this area.
A council viability assessor disagreed with this request, but in the end suggested that a reduced contribution of £149,000 would be 'justifiable' - less than 20% of the original amount due.
During today's planning committee meeting, Stuart McCrone, projects director at Glenbrook, said: "This scheme at the moment is borderline viable.
"There is an agreed (Section 106) contribution and we have spent nine months in discussions with planning officers over this."
He said the company was facing a 'drastic rise' in construction costs, which meant it could not make the full contribution to the city.
The agreement for a hugely reduced fee for community contributions caused concerns with a number of members of the committee.
Lib Dem Councillor Pat Maloney said: "I think Christmas has come early for these developers.
"This is a prestige development on the waterfront and I don't think the city should effectively subsidise this development."
Cllr Maloney proposed a vote that the development could be approved only if the full Section 106 contributions were paid - and this was backed by Green Councillor Anna Key and Liberal member Billy Lake.
But the amendment drew anger from the Labour members of the committee, who accused Cllr Maloney of 'bringing politics into the planning committee' for requesting that the full community contributions be paid.
Cllr Joe Hanson said: "This agreement comes from an independent assessment and I'm concerned that Cllr Maloney is trying to bring politics into this planning process and I think it's deplorable."
Labour's committee chair, Cllr Tony Concepcion agreed, adding: "I agree, they are bringing politics into the committee. I think it's deplorable."
When Cllr Maloney asked if he could respond to the chair's criticisms, Cllr Concepcion said: "No you can't."
But it isn't just opposition councillors who are unhappy with the agreement for the developer to pay a fraction of the due community contributions.
Two Labour councillors for the area of the proposed building both submitted representations to the committee, arguing that a full Section 106 contribution should be paid.
Significantly, one of these was City Council Cabinet Member for Development and Housing, Cllr Sarah Doyle.
The other, Cllr Steve Munby, was furious.
In a statement released to the ECHO he said: "Developers must be laughing all the way to the bank when they deal with Liverpool City Council.
"We’re trying to bridge another big budget gap and here we are waiving substantial sums that our city desperately needs. It’s shocking."
Green committee member Cllr Key agreed.
Speaking after the meeting she said: "It’s unacceptable that the council allows our communities to lose out to developers time after time. That’s not politics - it’s simple justice. Our communities deserve better."
The development was eventually given the green light after Labour chair Cllr Concepcion moved that it be approved with the agreed lower Section 106 amount and was supported by fellow Labour committee members Joe Hanson, Helen Thompson, John Prince, Tom Cardwell, Lila Bennett, Billy Marrat.
The proposal was rejected by opposition councillors Pat Maloney and Billy Lake, with Cllr Anna Key abstaining.
When fully complete, the two-phase site will accommodate 503 homes in a mix of studio, one, two and three-bed apartments and townhouses which all have views of Kings Dock and the River Mersey.
The scheme has been designed by architect firm Brock Carmichael.
Mr McCrone previously said: "“Glenbrook has a long-standing track record of successfully delivering projects in Liverpool and we look forward to continuing this with completing the next phases of development at The Keel.”
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