Otterpool Park Update: £79m spent, Devolution coming and £26m for a waste water treatment works

“The fact we are persuing this [Otterpool Park] must mean we think this is going to have a good return, otherwise we wouldn’t be doing it, so there is some thinking about this is the kind of return we are expecting, or we wouldn’t be doing it.”

This statement by Cllr James Butcher at the Overview & Scrutiny Committee, (28 Jan 2025) Agenda Item 7, did not evoke a definitive response. The reason why no answer could be given to Cllr Butcher is because the financial modeling for Otterpool is a dynamic one. Add something to the model and things change, and as yet, all the important issues haven’t been nailed down sufficiently to be able to give a definitive answer to Cllr Butcher’s statement. 

To give a simple example, if perchance the Waste Water Treatment Works (WWTW of Harringe Lane, Sellindge) is funded via Homes England, then the break even point for the project comes forward, and the overall profit increases, as this is money not spent by Otterpool Park. This is why the Council will sign up to the Collaboration agreement with Homes England, as they have the means to access money which our Council does not. The WWTW must be built prior to the development starting.

Moving on, Otterpool Park, the land on which 8,500 homes are intended to be built, has spent £79m of the £119m agreed, so far.

Of the £79m spent so far, £44m has been spent on land acquisition, planning and other costs. As of the 31st Oct 2021, Otterpool Park had spent  £51m. So, within the last three years and three months, another £28m has bent spent.

There are significant implications for Otterpool project created by the devolution path Kent is now set on. Cllr Jim Martin cannot say with certainty any profit from the project will come back to our district, but he has written a letter to Matthew Pennycock MP – Minister for Housing and Planning and is awaiting a reply. One must remember FHDC will not exist after May 2027.

At present Otterpool Park LLP is trying to drive down the amount of s106 money which will needed to be paid very soon after the project begins. Otterpool Park know what the land is worth and the commercial land as well. And most of the land owners  have agreed with new land options, but three have yet to sign up to the new land options.

A report regarding the solar park on Council land; which will provide much of the electricity for Otterpool will go before the Council’s Cabinet ,on or around the 10 February. 

As Cllr Jim Martin made clear Otterpool Park is running out of road, if perchance they don’t nail down further funding for the project. We would add the residents of the district do have a right to know what the return on the project will be, just as Cllr Butcher asked, but received no response. Let’s not forget, former Leader of FHDC Cllr David Monk did tell us the project would make about £220m – £240m profit. Is the project under the new leader Cllr Jim Martin going to make more or less? Surely the residents have a right to know, after all it is they and potential residents of a new unitary authority who’ll be paying of the debt incurred by the project.

As always we’ll leave  you to think about that. 

The Shepway Vox Team

Dissent is NOT a Crime