Wealthy landowners behind plans for a new village in Aberdeenshire have been accused of reneging on a deal to plough £8million into upgrading roads in the area.
The Duke of Fife – the Queen’s cousin – and Alexander Shepherd, who own the Chapelton of Elsick site near Newtonhill, have applied to reduce their contribution to just £287,000.
Their bid to radically alter the terms of the planning agreement with Aberdeenshire Council, which was signed in October 2013, has caused alarm among councillors and planners.
Work at the 4,000-property site is well under way, with the keys to the first home set to be handed over today.
The impact of the cut has been described as “extremely damaging” by civic chiefs amid claims the planning application would not have been supported on such terms.
Councillor Ramsay Milne, vice-chairman of the Aberdeen City and Shire Strategic Development Planning Authority (SDPA), said: “The development of over 4,000 homes south of Aberdeen will have a significant impact on the transport network in both the city and Aberdeenshire, vastly in excess of the proposed mitigation now being put forward by the developer.”
The move comes after the Scottish Government demanded changes to the way developers contribute to transport improvements in the north-east.
In March last year, the SDPA was told funds could only pay for improvements to a particular development, and could not be used to support a wider upgrade.
The £8million agreed in the Chapelton of Elsick deal was to have helped fund a number of projects to support housing growth in the north east, including the Aberdeen West Peripheral Route and the Third Don Crossing.
Lawyers for Lord Fife and Mr Shepherd have argued that its revised offer of £287,000 should only cover improvements to the A90 between the site and the Bridge of Dee and on the A956.
There are concerns that the challenge to the section 75 agreement – which sets out developer contributions – could be repeated by others.
Lord Southesk, director of Elsick Development Company and son of the Duke of Fife, said: “I can confirm Elsick Development Company has applied to Aberdeenshire Council for a change to one of the conditions of our outline planning approval for 4,045 homes at Chapelton, a new community in Aberdeenshire.
“This is because the condition imposed, to contribute to a regional transport levy not related directly to our development, has since been found non-compliant with the Scottish Government’s national policy.
“Elsick Development Company is committed to investing in the infrastructure required to support our community and those living around us. To date we have invested over £1million in a new roundabout at Newtonhill and will soon be spending hundreds of thousands of pounds to improve the A90 at Portlethen.
“This summer we will be opening a Park and Choose facility served by a community bus service to provide residents with a sustainable alternative to using their car. In the longer term we have earmarked a further £12million for a new grade-separated junction on the A90 to be constructed in support of the next phase of Chapelton.”