04.09.18
Developer to serve High Court writ to Northumberland council in ongoing £13m legal row
A property developer has issued a writ to the High Court over a legal wrangle with Northumberland County Council for its delay in the progression of a 2,000-home housing project.
Newcastle-based Lugano Group issued the writ after claiming in July that it would be hit with £13m in delayed project bills over the building of a garden village project. The Lugano Group was due to build the Dissington Garden Village to create 2,000 homes north of Ponteland, commissioned by the previous Labour local government in charge of Northumberland CC.
But after the Conservatives took power in last May’s local elections, the Dissington project was put under review — landing the developer with costs totalling over £13,305,000. Lugano’s claims were once again raised last month when the property developer said it was being banned from sharing vital information with council members. Northumberland County Council, however, has denied all allegations and labelled them “inappropriate, untrue, and defamatory.”
The developer has now formally issued the legal proceedings towards Northumberland County Council, council leader Peter Jackson, cabinet member for planning John Riddle, and chief executive Daljit Lally.
Richard Robson, executive chairman of Lugano, said: “Dissington Garden Village is a highly regarded project that will act as a driver of economic growth, a creator of new jobs and a means of delivering much needed affordable homes and infrastructure improvements.
“It previously enjoyed the full support of Northumberland County Council and was progressing in line with the government’s own objective to deliver exemplar garden communities until a few individuals sought to unlawfully disrupt the proper planning processes.
“Our objective remains to continue to work in partnership with Northumberland County Council to deliver Dissington Garden Village in accordance with the decision of their own strategic planning committee.”
A Northumberland County Council spokesperson said the authority is aware of further correspondence from the company and will continue to take legal advice in this regard.
“As previously stated, we believe that the council has acted lawfully and reasonably throughout this process,” they added. “We continue to work with Lugano on their live planning application for Dissington Garden Village.”
Yesterday the council’s overview and scrutiny committee rejected Northumberland Labour Group’s request for a review over a decision to foot the legal costs for Cllr Riddle, CEO Lally, and Cllr Jackson.
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Image credit: Geograph