Agenda item

Knights Farm, Rushden – Overage Agreement

Decision:

RESOLVED

KEY DECISION

That the Executive:

i) Agreed to a further extension to April 2026 of the Planning Longstop date in the Promotion Agreement and consequently an extension to the Deed of Variation on the same terms approved by the Executive in December 2023.

ii) Delegated authority to the Assistant Director of Assets and Environment in consultation with the Executive Member for Highways, Travel & Assets, to approve further extensions to the Promotion Agreement and Deed of Variation, should that be required.

Reasons for Recommendation: The reasons for recommending the extension of the Planning Longstop date in the Promotion Agreement is that it will:

a) Provide a more definite timeframe for Planning to be resolved as April 2025 is now looking unlikely.

b) It will provide the Council with the most certainty that the scheme will be brought forward for housing.

c) The Deed of Variation to the overage provision on the title to the land will continue as long as there is a valid Promotion Agreement. Agreeing to extend the Planning Longstop date is the most cost-effective way to ensure that the Deed of Variation to the overage provision continues and significantly reduces the amount of legal and other professional fees potentially payable by the Council.

d) The decision supports the corporate plan and the Rushden East Sustainable Urban Extension (SUE).

Alternative Options Considered: If the Council does not consent to extend the Planning Longstop Date in the Promotion Agreement, the Deed of Variation to the overage provisions on the Land’s Title will expire after 30^th April 2025 and any subsequent change of use or planning consent would be subject to the original (unvaried) transfer terms as set out in the original overage agreement. This would hypothetically result in a larger capital receipt for the Council; however, the Landowner and Promotor have stated that if they cannot obtain an extension from the Council, they will not pursue the Promotion Agreement and Planning Application and will let it lapse. This would result in the site not being developed and would create issues for the Rushden (SUE) because it sits in the centre of the site, and the Council would not receive a capital receipt.

Minutes:

The Chair invited Cllr Dorothy Maxwell to speak in relation to this item, however, the subject of Cllr Maxwell’s comments did not relate specifically to the subject of the report before members.

The Chair then invited the Executive Member for Highways, Travel and Assets, Cllr Matt Binley to introduce a report that sought authorisation for the variation of the long stop date on the deed of variation for Knights Farm, Rushden, originally approved by Executive on 20^th April 2023 and subsequently extended at Executive on 18^th April 2024.

It was noted that the deed of variation was due to expire at the end of April 2025, however, it was requested that the long stop date be amended to 30^th April 2026, with delegated authority approved to further extend the date should it be required.

An overview of the history of the overage agreement was provided to the meeting as background information to the recommendations.

It was reported that the site formed part of the Rushden East Sustainable Urban Extension, which included houses, offices, schools, a park, community facilities and cemetery land. The request for the extension had arisen due to planning matters; this delay was not due to the landowner, developer or Council, however further negotiations with a statutory consultee were required.

Cllr Binley stated that the deed of variation of the overage provision should result in a significant capital receipt to the Council and were the overage agreement not extended, this would then revert to the original 1998 agreement and the owners had indicated they would not proceed for the disposal of the land. The original agreement was due to expire in 2038 at which time the owners would be free to dispose of the land without having to pay any capital receipt to the Council.