High Peak Borough Council may have to pay back £71,000 from developers after missing deadline

The council was given money by Seddon Homes as part of a section 106 agreement where developers give money back to the local community.

High Peak MP Robert Largan says Seddon Homes made three separate payments to High Peak Borough Council to the value of £5,000, £31,454.99, and £40,192.49 as part of two Section 106 agreements for developments in Chapel-en-le-Frith.

£5,000 was paid to Derbyshire County Council and the remaining £71,647.48 was intended to improve local parks and play areas. High Peak Borough Council spent just £1,200 on plans to redevelop the Memorial Park, the MP says.

As the remainder of Seddon Homes’ funds were not spent by a date specified in the original agreement, High Peak Borough Council must now return any unspent funds with interest, he says.

He said: “Residents will rightly be furious at the grotesque chaos of High Peak Borough Council being forced to hand over large sums of money to a housing developer due to their own incompetence.

“This is valuable money which should have been used to improve local play areas and parks. Instead, local taxpayers might now be on the hook to make interest payments to developers.”

In 2021 Chapel Parish Council was taken to court by three residents over noise issues in the park.

The court issued a noise abatement order and the parish council had planned to use the section 106 money to rip out the noisy old skate park and replace it with a concrete pump track.

Stewart Young, a member of the parish council, says a letter has been written to Seddon explaining these extenuating circumstances and asking for an extension as meetings have been held with residents, plans drawn up and the new project was due to be put out to tender.

He said: “The money was paid to High Peak Borough Council as that was who the planning application was lodged with but that money belongs to us and should have been paid to us so we are doing all we can to get it.

“The police want the park fixed, the court wants the park fixed and so do Chapel residents.”

Chair of the parish council Mike Chantler added: “We are cautiously optimistic and working with High Peak Borough Council to do all we can to ensure the money is spent on improving the park.”

A spokesperson for High Peak Borough Council said: “Before the pandemic, the funds were committed to a scheme in the local area.

“The parish council is now ready to tender the works for the scheme.

“The borough council is working alongside the parish in order to facilitate the development of quality play and open space provision for the residents of Chapel.

“In the circumstances, we do not understand why the developer should require repayment of the funds which have been paid and we are continuing to support the parish council in delivery of the project for the benefit of their residents.”

Seddon have missed several deadlines asking for a statement on the section 106 money.

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