Payments to be clawed back through viability assessments on five-tower project
A five tower scheme in Manchester containing nearly 2,400 homes is free to progress after its developer Renaker agreed a £114m section 106 agreement with the local authority.
The Great Jackson Street scheme, designed by SimpsonHaugh Architects, was approved just over two years ago but has been mired in protracted talks with Manchester city council over the required affordable housing contribution amid concerns over viability.
The original plans, which span two sites, were approved without any affordable housing on-site but the council and developer have now agreed a maximum payment in lieu of £33m for the 71-storey Lighthouse tower and £81m for the second site, which contains four towers.
The larger site, called The Green, consists of two 47-storey towers and two 51-storey towers with the two sites together comprising one of the largest high-rise residential developments ever undertaken in Manchester.
The payment is not required up-front, with the council stating that it accepts that the full sum would make the scheme unviable. Instead, each phase of the development will undergo a viability appraisal when 75% of the homes have been completed to determine an expected margin.
If the appraisal exceeds the permitted developer profit, the council will be entitled to 50% of the surplus with payments across the whole scheme capped at £114m.
The section 106 requires any clawback money to be spent on affordable housing within the boundaries of Manchester with a separate sum to fund environmental improvements in the city.
The project team for the development includes Deloitte, Curtins, WSP, GIA, Godwins, TPM Landscape, Stephen Levrant Heritage Architecture, Element Sustainability, FutureServ and Chris Burnett Associates.
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