A property developer has been ordered to pay £732,200 after a legal case with "no prospect of success" was dismissed.
Bushey-based Heronslea Ltd had sought permission to contest a bill from Hertsmere Borough Council, relating to its 55-home development off Bushey Hall Drive, at the Court of Appeal.
A review by Lady Justice Thirlwall decided the case had “no prospect of success” on November 21, although the council was only informed before Christmas.
A developer must submit a commencement notice to the local authority before work begins on a development, but in 2019 the council said officers noticed buildings were demolished and trenches were dug, but no commencement notice had been received.
Update: The developer issued a response here
Heronslea had already paid a £1.1 million Community Infrastructure Levy (CIL) to the council in March, but was ordered to pay a further £500,000 towards local infrastructure for breaching the regulations.
It had argued it was only liable for £1.1 million in CIL, because the development included affordable housing and qualified for housing relief. However, local authorities are entitled to withdraw the relief if they have not been properly notified.
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Cllr Dr Harvey Cohen, who is responsible for planning, said: “We expect all developers working in Hertsmere to meet CIL regulations to the letter, and our planning team are always available to help if developers are unclear about the regulations.
“I hope this case serves as an example to others and illustrates that Hertsmere will defend our duty to demand CIL payments through the courts, if necessary.”
Money raised from CIL bills is used to help deliver infrastructure to support development in the area.
At the end of 2020, the Planning Inspectorate ordered Heronslea Ltd to pay just over £1.6 million in CIL. That decision was upheld by Mrs Justice Lang DBE when it was heard at the High Court’s Queen's Bench Division a year later.
The total bill is now approaching £1.9 million, due to late payment interest and surcharges, as well as additional CIL following revised floorspace calculations.
A demand notice for payment of the outstanding CIL of £732,199.92 has now been issued by the council.
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