Councillors fear a legal challenge could leave Fife Council out of pocket after a developer made a failed bid to avoid a transport contribution.
Royal London, the developer behind plans to expand Halbeath Retail Park, applied to have a £700,000 contribution toward roads improvements waived but this was thrown out by West Planning Committee on the recommendation of council officials.
There are now fears Royal London, which has permission for shops and food outlets on land north of the retail park, could appeal the decision.
Conservative councillor Dave Dempsey said: “The nagging fear, in all of these sorts of things, is if this ends up in court somehow.
“While there are some very nice lawyers, there are some not very nice lawyers who could make buckets of money out of it.”
The council is seeking the payment as a contribution to transport improvements including a new northern link road and upgrading the junction of Halbeath Road and Whitefield Road.
According to the local authority, the development would have a cumulative impact on the roads network in Dunfermline.
Councillor Ian Ferguson, of the SNP, said: “If there’s a requirement for infrastructure, then Fife Council is going to have to pay that £700,000 instead.
“Is that in the capital budget, for something that is clearly driven by increased footfall and increased car movements in the area?”
Royal London has argued that a proposed supermarket unit, which relates to the planning obligation, is exempt because it falls below the threshold floorspace area of 27,000 square feet.
But the council maintains it is lawful to apply the obligation on the basis of the development’s total floorspace.
Royal London believes it has a case against the council following Elsick Development Company’s legal victory over Aberdeen City and Shire Strategic Development Planning Authority.
The Aberdeenshire authority initially asked Elsick Development Company to make a £7.5 million contribution to its strategic transport fund in relation to plans to build 4,000 houses and community facilities at Elsick, near Stonehaven.
This was reduced to £287,000 after the company made a successful appeal to the Court of Session.
In April 2016, the Supreme Court found the transport contributions to be unlawful because they did not sufficiently relate to the development as required by national policy.
However, despite this Fife Council is confident Royal London would have a weak case for challenging the £700,000 payments, describing its own methodology as “sound and lawful.”
