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Walsall Council owed £250,000 from developers

Walsall Council is owed nearly a quarter of a million pounds in Section 106 money from developers, a new report has revealed.

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The council is waiting to receive some £233,786 from a number of developments dating back as far as April 2015.

Section 106 agreements are when authorities force developers to fund public art, parks or other community benefits.

In Walsall, this money has been earmarked for a variety of open spaces including for parking at King George V Playing Fields in Bloxwich.

Walsall Council has said it will be able to collect the money it is owed when developments have been completed or when houses have been occupied.

But Councillor Paul Bott, an independent councillor in the Darlaston South ward, thinks 106 agreements should be triggered after the first house on a development is completed.

He added: "It is no good the money being sat in developers' bank accounts when it could be with the council putting it towards improving communities.

"If people were in rent arrears to this extent we would take them to court.

"Developers keep putting these plans forward but expect the council to fund things like school places. They need to pay their way."

Of the £233,786 owed to the council, £120,000 is owed by Wolverhampton University as part of the agreement reached over the new car park and Broadway access.

The £120,000 will be spent on a new sports pitch or improving the existing pitches.

Other developments that owe money include £14,366 from the demolition of Pleck Working Men's Club to be spent on 'upgrading and maintenance of open space' near the development.

Steve Pretty, the head of Planning, Engineering and Transportation at Walsall Council, has explained how Section 106 agreements work.

He said: "In order to reduce the impact of a new development and to make sure it does not place additional pressure on existing infrastructure such as roads, health or other council services, planning officers may seek contributions from the developer. These are secured through a 'Section 106' legal agreement or 'S.106 unilateral undertaking'.

"Usually developer contributions agreed this way are for highways, transport improvements and travel initiatives, community or recreation facilities, education, health or affordable housing.

"The projected income via s106 contributions for planning approvals granted for developments in the financial year 2015/2016 is £307,244, of which £73,458 has been collected.

"The Council will be able to collect the rest of the projected contributions only when the remaining developments have been built, or in some cases, housing has been occupied."

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