Mayor’s disbelief over covenant which puts development at risk

Doncaster Council has already said it will sell the so-called Herten Triangle near the town’s Dome leisure complex to national firm GMI, which has plans for a pub, restaurants and drive-through outlets.

But the authority’s ruling cabinet will be told at a meeting today that a legal document has been signed with burger chain McDonald’s, which has a neighbouring site, restricting any restaurant development.

Council officers claim they have attempted to negotiate with the fast food giant over the covenant, but according to a report, “no positive progress” has been made which could allow it to be removed.

As a last resort, the authority has been forced to call in a top barrister, who has advised the covenant is unlikely to be enforceable as long as the land is “appropriated for planning” to allow the project to continue.

No information about the cost of the legal advice to the taxpayer was available yesterday, but senior officers said they thought it unlikely the scheme would stop.

Peter Dale, the council’s director of regeneration and environment, told the Yorkshire Post yesterday the authority was confident of its position.

“Appropriating the site means that the council is using statutory powers to change the use in order to successfully deliver our vision for the site,” he said.

“The use of these powers is not uncommon and will enable GMI to proceed with the significant development, creating nearly 400 jobs for local people.

“We feel that the restrictive covenant currently affecting the site is anti-competitive and unenforceable.”

Last night the mayor of Doncaster Peter Davies said he hoped the problem had been resolved but described the situation as “unbelievable” and attacked those responsible for signing the covenant in the first place.

The mayor, who leads the cabinet, will hear from officers at today’s meeting about their plans to ensure the covenant does not ruin the plans, which could help him balance the books.

He added: “I cannot imagine which mayor or Labour party cabinet member signed this piece of paperwork, they must have been round the bend.”

Less than a fortnight ago, Doncaster Council’s cabinet member for finance Coun Paul Coddington revealed the authority’s financial position was much worse than many senior councillors and officers had anticipated.

He revealed that the council was facing a £29 million cash black hole next year alone - and will need to make savings totalling £118 million over the next five years to meet Government targets.

In February this year the authority announced 350 redundancies and £30m of cuts. Union officials now fear a third of staff from the council’s 6,500 strong workforce could be axed to save further costs.

Despite receiving the legal advice. officers say in their report on the Herten Triangle situation that McDonald’s could still challenge its action in court.

They add: “A slight risk would remain that McDonald’s might be able to challenge the validity of the appropriation by judicial review . However, they would need to bring any proceedings within three months of the date on which they become aware of the appropriation.

“Hopefully the council would be able to convince a court that its primary and proper motive in appropriating the land was to achieve regeneration of the site.”

Officers also admit that any judicial review should be inured against, because the council is not currently covered for such proceedings.

Nobody at McDonald’s could be contacted for comment.