Affordable housing scrapped from Luton FC's Power Court plan
Luton Town Football Club is committed to its new stadium project for the long-term and not aiming “to make a quick buck”, a meeting heard as councillors approved scrapping affordable housing from the plans.
The borough council’s development management committee was told no public money is funding the Hatters’ new stadium at Power Court and “no attempt is being made to pull a fast one” by removing the affordable housing aspect from the multi-million pound town centre regeneration project.
The club’s property arm 2020 Developments (Luton) Limited made a formal deed of variation request to the local planning authority, over its current legal obligations, to keep the scheme commercially viable.
Principal planning officer David Hall referred to the Section 106 (legal) agreement being completed in September 2022, saying: “The terms required 20 per cent affordable housing to be provided as a condition of the grant of planning permission.
“The applicant’s case is based on a viability statement to support the proposition that the development is unviable. An independent review of this was sought by LBC, which concluded the development would result in a profit deficit.
“A review mechanism is recommended to be included, which will be triggered during the scheme build-out when actual sales, values and costs can be reflected, and there can be a clawback of funds.
“Homes England involvement isn’t guaranteed. It’s acknowledged the results of the independent assessment are disappointing. But there would be many wider benefits associated with the overall regeneration of Power Court.”
Chief operating officer for 2020 Developments Michael Moran explained: “This isn’t something we propose lightly, as Power Court has always been a challenging site.
“As a developer, we’re far removed from a flash in the pan outfit here to make a quick buck. We’re in this for the long haul. What we’re proposing is the only way to deliver the new housing Luton needs, while acting as a pathway to the policy compliant affordable properties we all desire at Power Court.
“With build and infrastructure costs skyrocketing, Homes England has long identified our site as one that needs assistance. The viability gap is huge and quoted as £47m.
“Could the football club contribute more? That was the first question Homes England and its consultants asked us. No public money is funding the stadium. Neither Homes England or the football club would have it any other way.
“We’re at the final business case approval for a significant grant to fund the relevant infrastructure needed for housing. This will help close the viability gap, as does 2020 Developments foregoing more than £10m spent on this land originally.
“This evening will stand as a crossroads for the site. The potential of that central government grant to unlock this housing scheme is a game changer. We’re not simply talking to you today before putting up ‘For Sale’ boards in the next two months and selling off the sites to the best bidder on eBay.”
The committee unanimously agreed to accept the viability position and to vary the highways contributions, along with an alteration to payment triggers, through changes to the Section 106 terms.