Desperate developers threatened to abandon redevelopment of the demolished site of a former Dyce school – unless councillors endorsed their backup plan which could shift affordable homes into neighbouring Bucksburn.
Barratt Homes has now gained backing for a new contingency plan for its Cordyce School proposals, otherwise threatening to “walk away” because of financial pressures.
Aberdeen received £4 million less than expected from the Scottish Government to fund housebuilding for housing associations.
The new deal will firstly give them an extra 12 months to find funding to build the affordable homes for Grampian Housing Association.
These plans were approved last August, with 22 of the 91 homes proposed for the levelled school site expected to be affordable.
But the troubles have now emerged almost a year on.
Cordyce School redevelopment: What could happen without new deal?
If no more money can be found to help Grampian Housing Association and Barratt cover the cost, the housebuilder wants homes already built in Bucksburn to be counted towards the Cordyce total instead.
Councillors on the city planning committee were expected to rubberstamp a briefing on the troubled housing scheme.
But chief officer David Dunne was hastily summoned to take questions on a patchy phone line from a heads of planning summit in the Borders.
Why do developers want to move the housing?
Aberdeen City Council was expecting around £16 million this year to help build affordable housing.
But, the actual sum awarded was around £4m less, presenting developers with a “significant challenge”.
Mr Dunne added: “In order to start the scheme, the developer needs some security.
“It is very clear the most financially viable option here is for the affordable housing to be delivered on-site.
“So that is what the developer is seeking to do, it’s in their own interests as well as (Grampian Housing Association’s).”
What are the rules on affordable housing?
At Riverside Quarter, Barratt built 30 affordable homes.
Developers usually have to ensure 25% of a housing development is affordable as part of gaining planning permission.
But these 30 are not connected to any other development, so could be used to offset selling the Cordyce units as private homes.
What could happen to Cordyce School redevelopment?
Additionally, Mr Dunne made it clear that refusing the off-site housing would put the entire school site redevelopment at risk.
He explained: “The developers have been clear if that off-site option is not available to them, financially they can’t sign up to the scheme.
“The lack of profit from the site wouldn’t make it viable for their board and they would walk away.”
Was everyone happy with plea?
However, Labour councillor Sandra Macdonald wanted Barratt to press ahead with building the affordable housing at the Cordyce site.
And she pushed for the developer’s off-site backup to be refused.
She stated that there is a “real need” for affordable housing in the city and wanted them to stick to the council’s policy.
“We need to demand that we get more funding from the Scottish Government to deliver on projects like these,” she said.
“We have a good track record here in Aberdeen of delivering good quality social housing.
“I want to see that continue and ensure that happens by not setting a precedent.”
The Labour member added: “We need to put our foot down now and say no.
“We need the money to come forward so that this development can go ahead as was agreed in the first place.”
Her calls were defeated by seven votes to two and the flexibility hoped to ensure the former Cordyce School site can be redeveloped was allowed.
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