Tough Times for Wimpey Homes?

The Economic Climate must be causing problems for Wimpey Homes - who are having a proposal considered by the strategic planning board on the 27th May to change the Section 106 agreement they have for the development at the Henbury School Site.

Money is tight is seems, and they say that:

In order for George Wimpey to be able to continue with the development in a viable manner they are unable to outlay the level of expenditure currently required by the S106 in advance of commencement/occupation of the residential units. The only way that the development can proceed is subject to committed sales, without this Wimpey cannot progress.

Section 106's are conditions with large planning applications that ensure the developer delivers something for the community. This is how we got cash for the Toddlers play area on the Weston, and it's how the new Macclesfield Skate Park will be built.

Essentially, the revisions means that Wimpey will not deliver the S106 projects as quickly as anticipated, instead having the delivery phased and linked to the number of houses they sell.

For example, the condition:

Wimpey Homes shall pay the County Council £100,000 for the delivery of highway improvements prior to the commencement of development.

Will become...

Wimpey Homes shall pay the Highways department £25,000 on the commencement of the development, thereafter £50,000 upon completion of the 50th open market unit (subject to agreed construction plan) and £25,000 upon commencement of the 100th residential unit, all payments are to be index linked.

It's very difficult for a reasonable person to disagree with this, although I do wonder if it's an indication that they were a little short sighted in the first place?