Suggestions money obtained from the redevelopment of a Bournemouth car park had been taken away from investment in the area around the site have been rebutted.
An agreement between BCP Council and a subsidiary of Bournemouth Development Company (BDC) secured a six-figure sum linked to the Durley Road redevelopment.
BDC, a joint venture between the council and Morgan Sindall Group’s Muse Developments, completed work on the West Cliff Mansions scheme in November last year.
The surface car park made way for a block of 44 flats following a drawn-out planning battle, which included BDC successfully appealing a refusal of plans by the council.
As part of the scheme, a section 106 agreement stated the developer must give the local authority £354,000.
Section 106 agreements allow planning authorities to place legally-binding obligations on an applicant as part of planning permission being granted.
Concerns were raised over the use of the money received from the BDC scheme by a resident at a BCP Council meeting on July 11.
Daniel Parkin told councillors he heard allegations the money had not been spent on improvements in the Durley Road area and instead allocated to the council’s general fund.
Cllr Mike Cox, portfolio holder for finance, said: “The section 106 monies were actually paid by Durley Road Development LLP, a subsidiary of Bournemouth Development Company LLP, in relation to the Durley Road car park redevelopment and that totalled £354,000.
“These included highways works for £330,000 and £24,000 in relation to parking changes in the Durley Road area.
“To date, approximately £78,000 has been spent on design fees, surveys and traffic regulation orders linked to requirements of the section 106 agreement.
“The remaining £276,000 is committed to be spent in the Durley Road area as per the agreement but the spending has been delayed due to several factors.”
Cllr Cox said work is expected to start in the coming months.
He added that section 106 contributions are specific to each development and agreed by the planning authority.
The money cannot be released or offset against the general fund reserves, Cllr Cox said.
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