Manchester council has ruled out an investigation into affordable housing provision within Renaker's city-centre skyscrapers, following a demand from rival developer Weis Group for an independent probe.
The decision comes after Ben Rose, acting on behalf of the Weis Group, wrote to the council calling for an investigation into the viability and affordable housing elements of Renaker's schemes over the past decade. Renaker has built several high-rise towers around Manchester, transforming the skyline and creating thousands of new flats.
Commuted sums dispute
The letter claimed the Weis Group was made to pay more per flat in 'commuted sums' for its own development on Great Jackson Street than Renaker was for its schemes. Commuted sums are fees paid by developers to the council in lieu of certain obligations, such as meeting affordable housing targets.
The letter, addressed to council leader Garry Bridges, chief executive Tom Stannard, Greater Manchester mayor Bev Craig, and other senior elected members and officials, also stated that the council has approved 8,543 homes in eight Renaker schemes and claimed there was 'not one affordable home on site'.
Council response
A council spokesperson confirmed receipt of the letter and said: "We can confirm that we have received a letter from Ben Rose on behalf of the Weis Group. Mr Rose in his email to the council has asked for the letter to be placed on the respective planning files. The council will not be undertaking an investigation into or review of the planning process in regard to the developments he has highlighted."
Ben Rose wrote in his letter: "I write on behalf of my client, The Weis Group, whose company Great Jackson Street Estates Limited owns Plot G, Great Jackson Street, and whose objections to the two applications above sit on the council's planning register."
He claimed: "Across the eight Renaker schemes this council has consented, 8,543 homes, there is not one affordable home on site and £487,000 in commuted sums. That is £57 a home. My client, next door at Plot G, paid £1,000 a flat on a scheme the council's own reviewer found did not stack up. Renaker's filed accounts show it made about £364.7m on the three schemes."
He added: "Will the council commission a truly independent investigation, by someone who has never worked for, or had any relationship with, the council, any other Greater Manchester council or the Combined Authority, into its handling of viability and affordable housing on this developer's schemes since 2016, including the matters at sections B to I above? If not, who has decided that it will not, and why?"
Legal history
This is not the first time the Weis Group has challenged planning decisions involving Renaker. Previous legal challenges were unsuccessful. The company previously brought legal challenges against the Greater Manchester Combined Authority over public loans it approved to Renaker skyscraper developments worth £140m, funded through the Greater Manchester Housing Investment Loans Fund (GMHILF), supporting developments known as Trinity Islands and New Jackson.
The Local Democracy Reporting Service reported in September that the Weis Group had lodged a 'permission to appeal application' to the Supreme Court over the saga, following previous hearings in the Competition Appeal Tribunal and the Court of Appeal. Renaker's head office was approached for comment but has not yet responded.
A GMCA spokesperson said: "As we have said before, this developer lost his case against us at tribunal and has been repeatedly unsuccessful at appeal, with the tribunal chair recognising our 'perfectly rational' process and the robust measures put in place when administering loans. The Housing Investment Loan fund was open to all developers and not a single viable scheme was ever turned down. Every penny loaned from the fund is being fully repaid, delivering billions of pounds worth of development at no cost to the taxpayer. We now have our Good Growth Fund - a new economic model, pioneered here in Greater Manchester. The Fund is about more than bricks and mortar. Through its Good Growth Contract, every project must deliver real social value: ensuring the benefits of growth are felt by people in their pockets, on their high streets and when they go out to work."
