LIB DEMS 'CALL-IN' MAYOR'S DECISION ON OLDWAY

10.22.34am BST (GMT +0100) Fri 7th Aug 2009

Five Liberal Democrat Councillors have 'called-in' the Mayor's decision to choose a preferred developer for Oldway Mansion in Paignton.

This means that the decision will be scrutinised by the Council's Overview and Scrutiny Board within 10 working days.

The reasons for the 'call-in' are:

1) Paragraph 3.3 of the report states that "The developers would own and operate the hotel themselves." The Working Party were advised by Urban Splash that they would not operate the hotel themselves. The report appears to be incorrect.

2) A1.6 of the report states that, "The scheme will aid improvements in the delivery of health care by facilitating the development of a healthy living centre at Clennon Valley." Again the report is incorrect, as the Healthy Living Centre will be going ahead regardless of what happens to Oldway Mansion.

3) Urban Splash have pulled out of a project in Exeter and frozen work in Plymouth. There are concerns that there is no 'plan b' if the same should happen with Oldway.

4) 3.1 of the report states that "The Working Party is satisfied that the joint venture company has the resources and the commitment needed to advance the scheme at least to the point at least at which planning consent will be obtained." The Working Party have not seen any financial details, so how can that statement be correct?

5) Paragraph 2.3 of the report says that the Deputy Mayor will be consulted on the approval of the proposed contract. As the sole decision-maker on the Cabinet (who has not devolved decision making to his cabinet Colleagues) why is the Mayor not being consulted on this matter?

6) The Key Risks listed under A2 of the report are serious risks on their own. To have so many serious key risks in the current economic climate calls into question the viability of the scheme.

7) This decision is so serious and such a major decision that it should be referred to Full Council, so that a full debate can take place and all Councillors can have input into the decision.

8) If the Council has no money to repair Oldway, how can the Council possibly make a bid for Crossways, which also needs repair?

9) The Finance Company Akkeron Group Plc was only set up last year, with a member of Urban Splash now working for them. Akkeron Group has published no accounts to date and is an unknown company. More detail is needed about them before a decision is made.

10) Throughout the last meeting of the Working Party, Urban Splash the bidders were present, so members of the working party could not raise any concerns in private.

The signatories to the call-in are: Councillors Ruth Pentney, Christine Carter, Ian Doggett, Jenny Faulkner and Cindy Stocks.

Commenting on the Call-in Councillor Ruth Pentney said, "The concerns that myself and others expressed at the Cabinet were not considered seriously. There is no plan b if something goes wrong - and it would be appalling if Oldway were left to fester. Jumping at the first option is not always the best thing to do. Having a call-in will mean that the Mayor's decision can be scrutinised in detail to make sure it is the right decision."