Update Otterpool Park: Financial return is the primary purpose, it’s not ancillary
You can’t have your cake and eat it
” Financial return being the main objective” of Otterpool Park, says the the Capital-Strategy 2024/25 at 5.4 of the document.
It goes onto to state:
3.4: The authority does not borrow to invest for the primary purpose of financial return.
The Council have borrowed money for Otterpool Park from variety of sources, and now it is clear from the Capital Strategy document that the primary purpose is for a financial return.
The Council wish to build 8,500 homes on the site with a strategic partner. It is the financial return which is the primary purpose now and the homes, are ancillary or incidental.
Under the previous administration (Tory led), they were always careful to state the primary purpose of Otterpool Park’s was not to make a financial return, this was ancillary and incidental. This is set out in section 3.2 of the Draft – Otterpool Park Business Plan published in January 2021 which states:
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Although not the primary reason one of the reasons for the Council embarking on the Otterpool Park Project was to generate a commercial return and thereby improve its overall financial position.
Under the Green led administration the primary reason is to make a “financial return”.
So why does this matter?
In Peters v Haringey London Borough Council one of the grounds for debate in the Judicial Review was “that the Council had lacked the ability to enter into the HDV in the form of an LLP.”
Mr Peters argued that the Council, in setting up and becoming a member of the LLP in order to carry out the joint venture, was acting for a commercial purpose and so had acted ultra vires in choosing an LLP instead of a limited company as its corporate vehicle.
Haringey contended that s4 of the Localism Act; which puts limits on [Councils] doing things for a commercial purpose in exercise of its general power, did not apply as it was not acting for a commercial purpose, but was carrying out its regular statutory duties – to ensure homes are built; any commercial purpose which this involved, including any profit generated, was merely ancillary.
Mr Peters lost his Judicial Review because Haringey made it clear to Justice Ousley the primary purpose was to build homes. However, it’s clear the Council’s “main objective”, or rather primary purpose, is a “Financial return“. They are in it to make money, not build homes, they are ancillary.
Furthermore, the Council cannot borrow for yeild, as this has been prohibited for a number of years, as many council’s who did this have found themselves in financial trouble, due to increasing interest rates
On another note, prior to Christmas the Council received news from SE Rail that Westinghanger Station would become a stop on the high-speed route. But that’s not quite the whole picture, SE Rail, Network Rail and Otterpool Park LLP with come up with designs for a new station ,then as we understand these will be put on hold until the cash from the LLP is available to build out the new station and carpark. No new station is likely before 2028/29, if not later.
Finally, Folkestone & Hythe District Council, led by Green Cllr Jim Martin (pictured), is trying to have its cake and eat it. By doing so they may have erred on the wrong side of the law given the evidence set out in the Council’s Capital-Strategy 2024/25 .
But as always we’ll leave you to make your mind up about that.
The Shepway Vox Team
The Velvet Voices of Voxatiousness
With regards to the Westenhanger build, the DfT usually expect the developer to contribute funding towards the work, not just the railway company. Where will the huge car park be sited for all those commuters from around the area who don’t want to drive to Folkestone or Ashford High Speed Stations?
Neil they don’t need a car park because the very clever planners have designed the whole development in such a way that everyone will walk everywhere and there will be no need for cars
And no I don’t believe it either , but Monk and his cronies did
I am not talking about the Otterpool Park residents, I am talking about all the people from local villages, and probably Hythe, who will rather travel from Westenhanger than Folkestone or Ashford.
A further thought. A HS stop gives 2 alternatives: it could mean the local employment, entertainment and shopping facilities are not built as people can just get to London easily, or, if the facilities are built and successful, and the trend against commuting to work continues, then there will not be sufficient revenue generated for the rail company to provide a HS service.
The Council paid far too much for the land the infrastructure costs are way too high. Make a profit? I don’t think so. They will be lucky if they can keep up the borrowing repayments f*****g idiots.