Councils in war of words over Melton land sale

It centres on Melton Borough Council’s decision last month to sell a stretch of road off Lake Terrace to act as an acess to a new development of 90 new low cost homes.

But Leicestershire County Council also owns part of the land there which the development would need to use and the authority says it was not consulted by the borough council and the first time it became aware of it was in a report about the council meeting in the Melton Times.

County council leader Nick Rushton accused the borough council of acting incompetently over the issue at a cabinet meeting and his council feel the land was sold below the market value.

Borough leader, Councillor Joe Orson, responded by saying the deal would have ‘signiifcant wider benefits’ for Melton above the land sale and that the county council’s officers were aware of the developer’s interest in the land as long ago as nearly two years.

The councils have clashed a number of times in recent years - we reported last year how a disagreement between them led to doubts over whether funding could be accepted towards the southern link to the approved Melton Mowbray Distributor Road and County Hall has all been unhappy with the masterplans the borough has put forward for housing and other developments in the south of the town.

On the latest Lake Terrace issue, a spokesperson for the county council said: “The fact of the matter is you don’t try to sell someone else’s land without telling them.

“It can end in embarrassment or worse in court.

“For the borough council to be advised to do that and for the cabinet to agree without questioning the sale is extraordinary.

“To do so while undervaluing the land and therefore depriving the public purse of the best price only adds to the concerns.

“It is certainly no basis for partnership working in the interest of the local community.

“We do not understand much of Councillor Orson’s statement but, if the borough council has any evidence that it approached us with a view to them wanting to sell county council land, we would be interested to see it.”

In response Councillor Orson mounted a fierce defence of his council’s actions in the matter.

He said: “Melton Borough Council has negotiated a commercial deal to sell land in its ownership, generating a capital receipt in accordance with the industry standard methodology, and based on a valuation undertaken by our RCIS qualified surveyor.

“The deal has created the potential for significant wider benefits to be secured including 90 affordable homes, a sizeable section 106 contribution towards infrastructure, and a £150k investment into access road improvements.

“The borough council’s commercial interests are also protected should any further development proceed.

“The deal has no direct impact on the county council’s commercial interest and they are free to negotiate directly with the developer themselves.”

GS Developments, in partnership with Nottingham Community Housing Association (NCHA), has planning permission for 48 affordable properties and 42 with shared ownership on the site off Lake Terrace.

Building of the first homes there is set to begin next mont ready for the first residents to move in from the summer of 2022.

Councillor Orson added: “The county council’s critique of our deal was based on an approximate figure reported in the media and they did not refer to the wider benefits just referred to.

“Their officers became aware of their land interest in the site back in March 2019 and they have been repeatedly engaged in the planning process over the last two years.

“Given they only considered partial information, we are unclear how the county council could form a reasonable view of our deal, nor do we understand how they could be unaware of their own interest in the site.

“This is ultimately a matter for them.

“I would urge the leadership of the county council to focus on working more effectively with their partners, rather than levelling unjustified criticism at our council, this cabinet and our hard working and dedicated officers who serve this community so well.”