Bromley council Blue Circle compensation talks

2010 AFP

Bromley council is in legal talks with a housing developer after it emerged it may miss out on £500,000 due to the economic downturn.

Asprey Homes agreed to give the council up to £750,000 in return for building around 780 homes on the former site of the Blue Circle sports ground in Crown Lane, Bromley.

The money was to cover the extra demand that the development would put on local schools.

But a clause in the contract stated that amount would only be given if the housing index was at a certain level to allow a good profit for Asprey and that has not been reached.

It offered Bromley council a payment of £200,000 instead but the council decided at a private meeting last Tuesday evening to ask for more.

It has now deferred its decision for a date yet to be set while negotiations continue.

Chairman of Development Control Committee Alexa Michael said: “This is a complex situation and we are looking to discuss this in detail with the developer. The council’s costs of providing education facilities for the children who will inevitably live in this development are fixed.”

Councillors said they already expected demand on resources to increase as people move to Bromley from inner London because of reductions in housing benefit payments.

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