Developer defaults on £30k debt

Slackcote Hall near Delph.

A DEVELOPER got away with not paying £30,000 to improve the pavements at a mill conversion in Saddleworth.

It was revealed last night that the council never received the money — despite the legal agreement being made in 2007.

Now it is only likely to get half the amount promised after the developers, Aldenhulme Properties, went bust.

The planning committee was told that the payment — known as a section 106 agreement — was a condition of granting planning permission to convert Slackcote Mill, Delph, into 14 apartments.

It was supposed to be paid in three £10,000 instalments when the first, eighth and 14th apartments were sold, but this never happened and the pavement improvements in Slackcote Lane were never carried out.

The company ceased trading in 2013 and the liquidators took over the freehold, which is estimated to be worth £30,000. But a prospective buyer pulled out because they would be liable for the £30,000 due to the council.

Councillors agreed last night to allow the liquidators to sell the freehold and split the proceeds with the council, rather than demand the full amount.

When it eventually receives the money, the council will have to decide what improvement work it can afford and whether to put extra money towards this.

Councillor John Hudson said the council should have been more aggressive in pursing the payments when they were due, and feared that council taxpayers would be left to pick up the bill.

Councillor Rod Blyth added: “Why after the first eight apartments were built did we not pursue that £10,000? Why did we let them carry on building?”

Councillor Steven Bashforth said that residents were left without facilities when developers reneged on payments.