The incredibly contentious and controversial redevelopment of Chapel Street continues apace, with news that another £7.6million subsidy has been thrown at more 'luxury' flats and townhouses.
The English Cities Fund, or ECf, a partnership between Legal and General, Muse Developments and Homes England, with cheerleading from Salford City Council, has had millions of pounds in public subsidies but hasn't yet built one affordable home – check Carpino Place and Timekeeper Square where properties have cost upwards of almost £300,000.
The latest development is being branded Atelier Homes, promising "167 luxury 1, 2 and 3 bedroom apartments and 11 luxury 3 bedroom townhouses..." with "Chapel Street's bohemian community and independent amenities on your door step to the bustling Manchester city centre just a 10-minute walk away".
Salford Council is set to approve £1,176,819 from the Government's Housing Infrastructure Fund (Marginal Viability Fund) for infrastructure works...
...'remediation, mitigation, services diversions and disconnections including sewer diversions, public realm works, the building over and around and securing of a BT Shaft Head and upgrading incoming electrical supplies...'
This money has already been announced by the Government and was subject to a Salford Star article last year (see here). However, the report to rubber stamp the funds which is going before councillors on 12th August, also contains details of £6,437,848 "cross-subsidy from the Development Trust Account (DTA)", which was approved by Salford Council, in secret, on 27th June, with the amount kept from the public.
The secretive Development Trust Account (DTA) is a fund of money which was created by Salford Council and the ECf instead of Section 106 payments for all development along Chapel Street and New Bailey, and is operated "through a steering group comprising the City Council and the applicant"...ie ECf itself.*
The DTA basically takes money from profit-making sites to 'cross subsidise' what it calls 'non-viable' sites. In other words, to boost the profits of the developers. After the cross subsidisation, the Council has stated, the fund pays for public realm and, lastly, affordable housing. However, not a penny has been put forward for affordable housing, as far as the Salford Star knows.
With public money flying towards the ECF's unaffordable 'luxury housing', not only has there been no affordable housing, but existing businesses are being cleared in the process, with the Shalimar convenience store, which has served the community for 35 years, receiving a 'notice to quit' by September...
"Obviously they don't want it next to their posh apartments" says Mo, who owns the shop and has vowed to fight the eviction (see here).
Salford City Council states that it all fits with its policy of 'Salford 2025: A Modern Global City'...
* For a huge article on the DTA see previous Salford Star electronic print copy - click here
* See also previous Salford Star article - Not A Penny For The Community From Chapel Street developments - click here
Next week the Salford Star will look at the affect on culture of all the Chapel Street development, following the closure of the Caustic Coastal gallery on Oldfield Road
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