Otterpool Park Update: Council release map and cashflow model for Phase 1 of project
Otterpool Park, the controversial development where Folkestone & Hythe District Council, via its company, Otterpool Park LLP, wish to build up to 10,000 homes, across a 757 hectare site, over 30 years, will turn its first profit of £1.5m, or 1% in 2030/31, according to the council’s business plan.
Otterpool Park is a £2.7bn pound project over 30 years. In today’s money that’s close to £3bn factoring in inflation. And according to the Leader of the Council, the Council haven’t spent a penny on it yet, except they have, £60m and rising.
In 2030/31 it is expected to turn a profit of 1% profit on a £152.8 million of land receipt income, according to the estimates used by the Council’s advisers. To be exact, the sum they anticipate to make, according to their best estimates – £1,507,683 in 2030/31.
A copy of the information released (14 pages) can be found at the bottom of this blog post and is downloadable for the sake of transparency and openess. It is redacted as the council believe some of the information is commercially confidential.
Of course, no construction project makes money from day one. But the council via Cllr Monk has made it clear, Otterpool will make the council rich, beyond the dreams of avarice, but that’s not going to happen until after 2030/31. As the project is expected to run for 30 years, so until 2050, it is only those aged between 0 and 65 who are likely to see any potential financial benefit from the Otterpool development.
That said, given inflation, and interest rates are currently rising, and there are supply chain issues, and labour shortages in the construction industry, we expect the estimated figures come with a hint of optimism bias. Just remember, the costs for Princes Parade have risen from £29m to £45.3m and that’s before the project has started.
The financial modeling applies to phase one only, as is shown in the map below. Each of the numbers in the map represent a plot for development and will be built out across 6 sub phases. In each of the plots approximate number of houses, flats, retail, leisure and community floorspace, plus employment floorspace are also set out. As has been made clear from the beginning, Phase 1 will take place around Westenhanger Castle and the station. This will allow both the master developer, Otterpool Park LLP, who’s sole shareholder is the council, to maximize the financial uplift of the price of the land when it sold to developers, and for developers to maximise profits on house, flats and retail and employment space, when sold.
Not the council “rich, beyond the dreams of avarice”, but Councillors.
The downloadable document has been heavily redacted or in layman’s terms … Monk doesn’t want you the public to see who’s getting the brown envelopes
Why do they think they can build a ghastly development like this in an AONB area, which 98% of local people objected to and still have Monk as leader of the council….why dont they listen to who they are meant to represent and who pays their wages and why dont local people have a say on what they spend our money on !!!!! All of our greenspace and wildlife destroyed to make them rich 🙁
The development is not in an AONB. It may impact on an AONB but agin is NOT in one.
This was signed sealed and delivered ages ago, always in the back door no matter the meetings attended by residents same as Martello lakes wouldn’t live in either developments.
This is a very high risk venture and looking at the calibre of the Councillors involved I would touch it with a 40 foot bargepole. You can look at Croydon and ‘Slough councils for examples of what can go wrong.