Developer wins £2.7m in station site dispute
THE county's fire authority and Nottingham City Council have agreed a £2.7 million payout to a private developer after a dispute over the £6m sale of Dunkirk fire station.
The council and Nottinghamshire and City of Nottingham Fire Authority took legal action against Gladman Commercial Properties for refusing to complete the purchase of the station for £4.2m, as well as adjoining land for £1.8m, in 2007.
In turn, the developers accused the council and fire authority of making a "fraudulent misrepresentation" through their selling agents, and the case ended up in the High Court, London.
The fire authority has now reached an out of court settlement with Gladman.
Now that legal proceedings have concluded, the authority will launch an independent inquiry into circumstances relating to the attempted sale.
Fire authority chairman Councillor Darrell Pulk said: "I have grave concerns about the situation we have found ourselves in and I'm sure local taxpayers will share my concerns at this news.
"Despite the money spent on trying to sell the site, it was clear that it would be more financially prudent to settle our dispute out of court.
"A huge amount of time and money has been spent and I am determined to get to the bottom of what happened through this inquiry."
Gladman Developments Ltd had planned to use the site for student accommodation.
A spokesperson for the company said: "Nottingham City Council and Notts Fire Authority have paid £2.7 million to Gladman in damages and costs in an out-of-court settlement reached between the parties to halt the High Court trial in which Gladman had alleged fraudulent misrepresentation against the two authorities."
The council said: "The council has worked with the fire authority to reach a settlement in order to avoid potentially significant legal costs. The developer has stated it wishes to make clear it accepts that no member or councillor of either the fire authority or the council played any part in the misrepresentations it had alleged in the High Court claim."
8 Comments
by Supersonic72
Thursday, October 20 2011, 10:14PM
“So, who are these 'selling' agents they talk about? Should they not be the ones pursued for the losses the authorities have incurred?”
by mof_gedling
Thursday, October 20 2011, 3:37PM
“i thought we had developers queuing up to buy property in nottingham,maybe all the talk at the time of cannes ,yacht,council extravagance was just that, all talk, quietly wonders who the head of the "independent" enquiry will be ?, councillor chapman ?”
by wortho48
Thursday, October 20 2011, 1:33PM
“It's only tax payers money let us screw the tax payer until we have got back what we have paid out . Please when is the government going to step in and sort out what is going on within Nottingham City Council because there is something very unhealthy going on within the Glass and Plastic of that building known as Loxley house .”
by Dave_Nottm
Thursday, October 20 2011, 12:56PM
“They'll just jack the WPL up a bit more to cover it.”
by keyone
Thursday, October 20 2011, 11:23AM
“It will be interesting to hear Collins or Chapmans comment on this misuse of tax payers money again, how can they get away with this.
It is time some outside source took a look at the way the City Council spend taxpayers money.”
by mof_gedling
Thursday, October 20 2011, 10:59AM
“if the council had nothing to hide then why did they settle out of court ?, i fear that part of the deal will involve the developers keeping tight lipped, 2.7 million is a significant amount of taxpayers money,no wonder the rates doubled,money to burn”
by Smith1980
Thursday, October 20 2011, 10:35AM
“"The council said: "The council has worked with the fire authority to reach a settlement in order to avoid potentially significant legal costs. The developer has stated it wishes to make clear it accepts that no member or councillor of either the fire authority or the council played any part in the misrepresentations it had alleged in the High Court claim."
Well the developer have not made that clear have they - unless of course they have in a more comprehensive statement elsewhere. It has Nottingham City Council written all over it. Scandalous waste of tax payers money - will any be held to account? I won't hold my breath or have a bet.”
by harrystotle1
Thursday, October 20 2011, 9:47AM
“It's only taxpayer's money. Plenty more where that came from.”