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13th August 2019

Cardiff Council misses out on £17m developer contributions

BY: Nathan Spackman

Cardiff council has received £18million less cash for affordable housing and community facilities than it wanted to from developments across the city over the past five years.

A total of 25 developments in Cardiff – ranging from small housing schemes to major projects – have been given permission over the past five years without paying the full amount of community contributions Cardiff council had originally asked for.

Cardiff council had initially asked for a total of £21.69 million from the developers of these schemes – with the money intended to go towards new affordable housing, parks, schools and community facilities and road improvements.

But the council eventually only signed agreements to get £3.75million from these developments – with some developers paying nothing in contributions.

It means the council has missed out on £17,935,581.14 from the 25 developments after the full amount officers asked for was deemed unviable by the Government’s District Valuer.

Proposed developments such as Cardiff’s new bus station, a 25-storey tower near the railway station and a scheme of 206 flats in Dumballs Road have been given approval despite their community contributions falling millions of pounds short of what the council intially requested.

Many of the 25 developments which have agreed to make reduced payments to the council are on brownfield sites throughout the city – which are often more expensive to buy and build on than greenfield sites.

Cardiff council says the increasing costs of land value, materials, labour costs and the decreasing value of pound sterling will all have an effect on the financial viability of developments.

In the five years up to the end of 2018/19, the council received £21million of  contributions – known as section 106 payments – from developers across the city.

The council spent £16million of that money in those five years, and at March 2019 had £14.5million from developers in its balance waiting to be spent on future projects.

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