Cedar Tree Hotel developer's affordable housing contribution halted

Cannock Chase Council gave the green light last year for the former Cedar Tree Hotel on Brereton’s Main Road to be converted into 27 homes.

The consent was subject to a number of conditions including a financial contribution towards providing affordable housing elsewhere in the district – known as a Section 106 agreement.

But in December the council’s planning committee was asked to consider a request to relax the affordable housing funding requirement. They deferred their decision until this month to allow further discussions to take place between council officers and the applicants.

At their Wednesday meeting committee members heard that the applicants were hoteliers, rather than experienced developers, and there had previously been attempts to sell the hotel.

A statement submitted to the council by the applicants said: “The Cedar Tree hotel scheme is unviable due to the following reasons. Historically, planning was achieved back in 2009 but the project has stalled for 10 years due to financial unviability.

“The site is located within a Conservation Area which further increases build costs due to detailing of the properties externally and the 450 year old protected cedar tree located within the site has to be protected during construction and thereafter.

“It is then hampered by property prices that are below national average in Rugeley, the conditions imposed by the local authority by way of an S106 agreement in addition are severely restrictive to the development.

“Completion of the development would enhance and benefit the locality as the site is at present deteriorating as a consequence of fly tipping and anti-social behaviour. The project would also safeguard the future of the listed building and its grounds, the local community would undoubtedly benefit from this site being vastly uplifted with a positive knock on effect to the village.

“With the affordable housing contribution there is an unacceptably low profit of 4.37 per cent, therefore risk, overhead recovery and profit is not providing the minimum level of headroom required by lending institutions willing to fund speculative projects of this size and type. This effectively has resulted in no funding available to even commence with the development and regeneration of this prominent main road site at the heart of Brereton.”

At last month’s meeting the committee was told that a development would be expected to make at least 18 to 20 per cent profit.

Committee member and Brereton councillor Paul Fisher “reluctantly” called for the request to be allowed.

He said: “It’s not in a good state at the moment and we did agree for the development. I think it has been a bit of a planning lesson to them – they’re hoteliers, not developers.

“It’s going to do us out of a lot of money. But if they can’t afford it it will be boarded up and left to rot."

But Councillor Paul Snape said: “I can’t support the motion, we have to be consistent. We have thrown out smaller developments before.

“Developers have to cut their cloth accordingly.”

Seven councillors voted in favour of the request, with five voting against.

Other planning conditions remain however and the applicants will be required to pay £44,124 towards the cost of four primary school places in the district.

By Kerry Ashdown

Local Democracy Reporter