The developer behind the Balgillo Heights housing scheme in Dundee has won its bid to avoid paying a financial contribution towards a new school.
Kirkwood Homes appealed to the Scottish Government seeking permission to end an agreement made with Dundee City Council regarding the Broughty Ferry development.
Known as a Section 75 agreement, it involved Kirkwood making a contribution towards primary school education for residents living in the housing scheme.
The obligation was stipulated by Dundee City Council when they granted planning permission. It meant the firm would have to pay more than £5,000 for each property.
Kirkwood has built around 250 homes at the site and construction has been split into five phases.
An initial payment of £283,136 (52 houses) was paid by Kirkwood and in June last year, the local authority then sought a payment of £1,311,024 for all five phases.
But this sparked an appeal from Kirkwood who subsequently lodged two separate applications to Holyrood seeking to discharge the conditions.
Questions over school capacity
Both applications argued the local authority was wrong in its assertion Forthill Primary School would be over capacity as a result of the Balgillo development.
Figures published last year show that as of September 2023, Forthill Primary was at 75% occupancy.
Dundee City Council data also shows it is anticipated the school roll will reduce over the next five years.
A report on Kirkwood’s appeals further detailed that the local authority accepts the use of a contribution from the appeal site to to upgrade Forthil is “unlikely”.
It was subsequently determined by the Scottish Government officer that the second appeal – relating to phases four and five of the development – should be allowed.
The officer also concluded he was minded to allow the appeal for phases one to three.
But a final decision was deferred for up to 12 weeks to allow the two parties to come to an agreement regarding the money already paid.
Kirkwood welcomes decision
Allan Rae, land director at Kirkwood Homes, said: “We are pleased with the DPEA’s decision to uphold our appeals and remove the planning obligation regarding education contributions.
“The local primary school roll has never been at capacity as a result of our development, and the original request for contributions was inconsistent with Scottish Government planning policy.
“We will work closely with Dundee City Council to finalise outstanding technical matters relating to the appeal and on all aspects of this development going forward.”
A Dundee City Council spokesperson added: “The council has received the reporter’s determination and officers are currently looking at the details.”
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