A row over a £732,000 payment has escalated to court after a council was accused of forcing a developer to go bust.
Lincolnsfield (Bushey 4) Ltd, previously known as Heronslea (Bushey 4) Ltd, had argued it was only liable for a £1.1 million Community Infrastructure Levy (CIL) for its 55-home development in Bushey Hall Drive, because it included affordable housing and qualified for housing relief.
However, a commencement notice must be submitted to the local authority before work begins, and in 2019 Hertsmere Borough Council officers noticed buildings were demolished and trenches were dug — but no commencement notice had been received.
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Local authorities are entitled to withdraw relief if they have not been properly notified meaning the business would have to pay another £732,000, which it disputed.
On Wednesday (April 26), a complaint for a liability order for non-payment of a community infrastructure levy was granted to Hertsmere Borough Council by St Albans Magistrates’ Court.
Lincolnsfield (Bushey 4) was also ordered to pay costs of £9,681.83 to Hertsmere Borough Council.
A liability order gives the council additional powers to levy money owed, including "by distress and sale of goods" according to The Community Infrastructure Levy Regulations 2010.
A company spokesperson claimed the row was over “a difference of opinion as to what constituted commencement” and Lincolnsfield (Bushey 4) Ltd and Heronslea Group Ltd director Jason Rishover has said he was shocked by the council's refusal to negotiate.
Lincolnsfield had sought permission to contest the bill at the Court of Appeal but was told its case had “no prospect of success”, in November late 2022 and then in February the Watford Observer was informed that Lincolnsfield (Bushey 4) had entered liquidation due to the payment.
The council said it had no comment beyond noting the court’s decision when approached by the Watford Observer.
Heronslea Group was also approached for comment.
Hertsmere councillor Harvey Cohen, who is responsible for planning, had said he hoped the case “served an example to others” showing Hertsmere "will defend its duty to demand CIL payments through the courts if necessary”, after the appeal bid was rejected.
“We expect all developers working in Hertsmere to meet CIL regulations to the letter,” he added.
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