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Trump handed secret £5m 'sweetener' for golf resort



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Published Date: 30 June 2008
THE US billionaire, Donald Trump, is to be given land worth an estimated £5 million from Aberdeenshire Council in a deal which one councillor yesterday criticised as a "sweetener" and a poor use of public property.
In the latest twist to the Trump saga, the land would be used to build 100 affordable homes for local people, as well as space for 52 homes which the Trump Organisation can sell.

The deal was made in secret by council officers who have the power t
o make such accords, known as Section 75 agreements, without oversight from elected councillors.

The homes would form a secondary part of the American businessman's proposed £1 billion golf resort at the Meanie Estate in Aberdeenshire.

However, Paul Johnston, the Lib-Dem councillor who represents the area in which Trump wishes to build his resort, described the deal as a "sweetener". He said: "We are giving away land worth millions without any councillor approving it. Is this the best value for the electorate? To me, this looks pretty much like a sweetener."

A public local inquiry is currently being held into the development, which would include two championship golf courses, a five-star hotel and nearly 1,000 homes.

Under current Aberdeenshire Council policy, developers are asked to provide housing for low-income families in return for being granted permission to work on major developments.

But George Sorial, Trump's managing director for international development, dismissed the suggestion that the deal is a "sweetener" as "absurd".

Mr Sorial said: "The council identified to us the land where it wished the affordable housing to be built and we have worked with them to make that an integral part of an overall project that features many millions of pounds of investment by us. It is absurd to view the arrangement as some kind of inducement and it's important to stress that we're still discussing the details of the arrangement with the council.

"The ongoing public local inquiry is examining every aspect of this development in detail and those councilors opposing it should really be focusing on the inquiry and respecting its processes."

The document revealing the land handover only came to light as part of the ongoing public inquiry.

At the moment, even the precise location of the land is being kept a secret.

Murray Shaw, QC, who is representing Aberdeenshire Council at the inquiry, was quoted as saying: "If you go to most local authorities and tell them that a developer will build 500 houses but also provide affordable homes if they put in some land, and be able to sell some as well, most would see that as a positive arrangement."

Inquiry to end, but minister has final say

THE public inquiry into plans by Donald Trump, the American tycoon, to build a £1 billion golf resort at the Menie Estate in Aberdeenshire is expected to finish this week.

The inquiry, which began on 10 June, was ordered by John Swinney, the finance secretary.

When the inquiry is complete, the inquiry reporter will present his findings to Mr Swinney, who will make the final decision.

However, ministers are not bound to follow the recommendations of a public inquiry. Nicol Stephen, the former Lib Dem transport minister, approved the M74 extension in Glasgow despite the public inquiry report recommending the road should not go ahead.

The Trump resort inquiry was ordered by Scottish ministers after an Aberdeenshire Council committee rejected the plans.

Environmental groups and local campaigners have criticised the proposal to build two golf courses, a five-star hotel, 1,000 holiday homes and 500 private houses on a three-mile stretch of coastline. Opponents argue it could cause irreversible damage to protected sand dunes in a Site of Special Scientific Interest.





The full article contains 632 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 29 June 2008 9:49 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Donald Trump
 
1

Charles Linskaill,

Edinburgh 30/06/2008 00:17:39

D'oh!....Am I in a 'Mental Institution'!,?

Nurse!,,,Nurse!...

Are the suggested "meds" that Boy Wonder talks about working on me,?

"Of-Course they Are Charles"!

Good!,..Then I was not dreaming about Mr Trump! and knew we all know about theses,,...

"secret £5m 'sweetener's'!!

"Perfectly correct my Charles, you can be released later today"!

"Thankyou Nurse"!
2

Charles Linskaill,

Edinburgh 30/06/2008 00:26:13

In other 'words' what can one expect,?

Money Talks!

Forget about,..'Morality'!
3

Charles Linskaill,

Edinburgh 30/06/2008 00:28:34

Its of 'NO' Surprise,..'NO',..Surprise Atall!
4

bring them on,

30/06/2008 03:31:30
Jobs for the boys....
5

Beth Boyle,

NY 30/06/2008 05:03:23
Oh big surprise there, Salmond the Banker and corporate clone loves Trump like he loves Trent Lott. They are all part of Team Bush!
6

Rulesbutnotrulers,

Federation, not separation 30/06/2008 06:57:40
Hey ho! Pork barrel politics thrives in the NE. No wonder Donald chose that area for what still looks to me like a housing scam.
7

dianne13 ,

Aberdeenshire 30/06/2008 08:04:37
The land that we have is our most valuable asset. It seems that our council are happy to literally give it away, no wonder the Chief exec has resigned!
It reminds me of the writings of John Muir, when the American government gave away millions of acres to land developers for a few dollars where every tree on it was worth more than a hundred dollars. Stop underestimating the value of protected land! It's protected for a reason. If you're going to take the anthropocentric approach then recognise that 80% of drugs are derived from plants yet we've only explored the value <10% of plants. 60,000 plants with valuable medicinal properties are set to become extinct by 2050 (WWF, WHO,IUCN). I could go on....global food shortages... oil crisis.....open your eyes. Is a golf course actually important?

A parcel of thieves will destroy all - for short term gain and power. All the so called money will leave the area. The councillors, planners etc supporting this development are out of their depth with a rogue like
Trump , he's one of lifes takers.
Interestingly enough, Aberdeenshire Council put an insert into this months pay slips reminding ever citizen of their responsibility to preserve biodiversity...I'd like to remind them of their responsibility!
8

Mist001,

Marseille 30/06/2008 08:05:47
Another Monday, another Trump report, so we know of at least one article which is going to be reported on daily this week. It's getting like Groundhog Day.

Just get legally binding assurances from him, give him the go ahead and if he doesn't keep to the assurances, then demolish the houses and get him to foot the bill.

The longer this inquiry goes on, the more it's costing the Scottish taxpayer, and I'll bet it's a fair whack already,

Michael.
9

Mallory,

Edinburgh 30/06/2008 08:10:55
How many more such deals have been 'uncovered'?

The deal was made in secret by council officers who have the power to make such accords, known as Section 75 agreements, without oversight from elected councillors.
10

Beth Boyle,

NY 30/06/2008 08:16:34
You-all come back now ya here? There more where that come from , honey...
11

dianne13 ,

Aberdeenshire 30/06/2008 08:17:04
#9 Yes Mallory - just the tip of the iceberg under Section 75 - apparently our council officers feel they can make decisions for us without consultation with our elected councillors.

So the Chief Exec's hasty resignation is because the of the 'excellent' Best Value report eh?
12

Ken Mare,

Edinburgh 30/06/2008 09:24:40
Both Section 74 and Section 75 of the Local Government in Scotland Act 1973 deal with such disposals of land. As far as I am aware officials cannot decide to dispose of public land without the consent of elected MSPs or the legislature (eg Sherrif Court).

So, either inaccurate reporting, or someting rotten in the state of Aberdeen.....
13

Boy Wonder,

30/06/2008 09:48:39
Aberdeen is a cesspit ... and we are just finding that out now! Why did Trump choose it in the first place when, as he tells it, it's to honour his mother ... who came from the Islands??

There is something very fishy with this "deal" no matter how you look at it.
14

Horrible Cankers at the Cyber Shebeen,

30/06/2008 10:05:37
So is he being 'given' the land or does he merely have permission to build upon it...what will happen,say, if in the future the homes are dilapidated and bulldozed?...will Trump own the land?...will it be part of his estate?
15

Sue E,

Inverurie 30/06/2008 10:13:21
Unbelievable that Aberdeenshire Council are offering Trump £5million to build houses that he will sell for profit for himself.
Their draft Structure Plan states: Targets: to make sure that development improves and does not lead to the loss of, or damage to, built, natural or cultural heritage assets. Yeah ... right!!
No-one in that Council knows what they are doing, no wonder the Chief Executive has resigned - getting out before the ship sinks.
When will they stop licking the feet of Macdonald Trump and be proud of their county as it is, and not try and turn it into disneyshire?
It is great that the Scotsman reports things properly, the local Aberdeenshire papers are so biased it is unreal!
16

Embra Don,

30/06/2008 10:37:55
A number of points arise from the above piece:

1)Who says the land is worth £5M? The value is presumably predicated by the planning consent available. It is most likely that such planning consent would be dependant on the Trump development going ahead. Therefore the current value of the land may be negligible.

2)All planning consents which involve the transfer of local authority owned assets to a developer require the specific approval of Ministers, so the deal could hardly be described as secret.

3)One would imagine that most people would welcome the provision of 100 "affordable houses" in an area which desperately needs them after decades of neglect by Labour and Liberal imposition of Tory policies.
17

Embra Don,

30/06/2008 10:43:00
#15 Sue E

You criticise Aberdeenshire Council and then link that to the resignation of Aberdeen City's Chief exec. Maybe you read the Scotsman too often.
18

mobocaster,

Aberdeen 30/06/2008 10:50:45
Speechless!

I've heard rumours about another parcel of land connected to this scheme for a while now but they were always connected to a purchasse, not a giveaway.

Well yet again, so much for Trump's claims that his plans were going to be funded without any form of public support. Will we be hearing about tax-breaks/development grants next maybe?
19

Blue Tooner,

Aberdeenshire 30/06/2008 12:26:09
#17 Embra Don, the Aberdeenshire Chief Exec. resigned last week. Maybe you don't read the papers often enough? Not at all sure what's going on now, this whole saga is getting very confusing for us ordinary punters who pay our dues and hope for the best. One thing's for sure, it's causing a lot of stress!
20

Neil,

Glasgow 30/06/2008 12:44:28
Reading between the lines, because it doesn't say so, rather than being given the land Trump is paying for it by building 100 "affordable" homes which will presumably be either let or sold by the council or its approved pals. If so considering the going rate for 100 houses the coucil have got an extremely good deal.
21

Sedov,

Scotland 30/06/2008 12:51:34
The whole issue stinks like rotten fish at Aberdeen Harbour. Get this man out of Scotland at the same time thanking him for giving us an idea of how to develop this part of Scotland and start afresh with a project that will satisfy both jobs and environment- its not rocket science and we have able people in this country who will support a viable project for the NE.
22

mobocaster,

Aberdeen 30/06/2008 13:26:23
#20

It sounds more like he is even being subsidised in his "developer contributions" To make it look good maybe?

Never mind the reported 52 other houses on the site that he gets to sell at market value, presumably to offset his "costs" even further?
23

Arrow,

edinburgh 30/06/2008 14:18:21
do any of the people in this post actually know about S75 Agreements. have a look at this
http://www.aberdeencity.gov.uk/acc_data/committee%20reports/cs_com_r8_4_040914.pdf
dated 2004 and relating to aberdeen. it also gives an idiot's guide to Section 75 Agreements and it is simple enough for the councillors nothing new then. Edibnurgh Council and every Council in Scotland uses these agreements to get affordable housing, transport (the Tram!) school contributions. it is clear that the mind numbingly stupid anti-development bunch know this but a spinning it like mad. the alterative is a demonstration of the old saying there are none so deaf and those who will not hear.
24

mobocaster,

Aberdeen 30/06/2008 15:00:17
Nothing new & in some cases commendable maybe but in this case, I'd contend it is something else. Especially when you consider the BS that has been claimed for the scheme so far.

This is Aberdeenshire, not Aberdeen & Aberdeen has recently (last year) chosen to go its own way on such agreements by not adopting national guidelines.
25

Neil,

Glasgow 30/06/2008 15:01:39
Arrow I think you should have directed your justified ire not so much at posters but at Stephen McGinty the author of the article who has no excuse for not knowing (if indeed he doesn't know) how the rules work & that this is a contract with value on both sides rather than a "sweetener".
26

Tarvesian,

Tarves 30/06/2008 16:05:38
#16 Embra Don asks a pertinant question.

1] The land the Council has is currently within the settlement of Balmedie. It has development land value. The Council are not in dispute about the value of the land. However, the transaction is complicated. It allows Trump International to set the construction contracts for all the development and sell for themselves 52 houses on the open market. The land is 'made available' to Trump International, serviced to its edge which is an expense as well. They then use the profits from this to assist the package of 98 affordable homes, similary built on land made available to Trump International. Once completede they are handed back to the Coucil for letting.

Could this be a good deal? Might be - but who would have known? Not Councillors anyway. When one considers that the affordable homes SHOULD have been part of the new village [not part of the resort] that is being allowed nr Menie to help fund Trump Internationals ambitions. Affordable and starter homes should be on the Land Trump International have, then one can see that the supposed good value of this deal seems to fall down.

It looks very bad value, with the Council disposing of a millions of assets to assist Trump International alter an obligation they had for affordable homes which they did not want next or near to their 500 luxery home new settlement.

It's just plain wrong.
27

Tarvesian,

Tarves 30/06/2008 16:19:30
The agreement is of course a standard section 75 - there is value for both sides as Neil in #26 says. It does however, sweeten the deal for Trump International in assisting them in NOT developing the affordable houses on their own land. Keeping their 500 home village more luxury than it otherwise would have been. The Council in doing this deal, lose their own land worth £5million in effect allowing Trump International to build and sell an additional 52 houses on the Council land "made available" for Trump to sell.

I just get the impression that made available is rather like a gift. I thinks others might as well.

The affordable and low income housing of course is on land which overlooks Wester Hatton landfill site. No such problem for the 500 new houses in the now more valuable village to the North at Menie.

28

Buttress,

30/06/2008 17:06:17
Neil is, of course, a great Trump apologist.

29

Beth Boyle,

30/06/2008 18:13:03
Some would call this a wee bribe. Tisk tisk!
30

Ken_Fitlike,

30/06/2008 19:31:39
There is something not quite right about how this has been reported here and I don't mean the Section 75 which is usually agreed with the local planning authority towards the latter stages of the application process.

What are the details of the Section 75 agreement?

Who has valued this land at £5M

Agreements under Section 75 of the Town and Country Planning (Scotland) Act 1997 are made between the local planning authority, the developer and landowners (in this case the local authority) as a condition to granting planning consent, usually involving mitigation measures and/or restoration of the development site after use.

This is to build 98 affordable homes (does the author mean 'social rented accommodation') and another 52 affordable homes for sale.

Taken together this meets Aberdeenshire Council's 35% Affordable Home Requirement in their own Local Plan.

This is NO DIFFERENT to what every other council in Scotland does, Glasgow City Council has done this to regenerate half of Glasgow with new social housing/for sale mixed developments, see the Gorbals, Clydeside and areas of the East End.

The mitigating factors that they contain are usually onerous on the developer, the provision of play spaces and or funding for specific facilities associated with the housing.

I fear that this is more clogs in the machine from the Lib Dems.
31

Ken_Fitlike,

30/06/2008 19:34:49
15 Sue E, Inverurie 30/06/2008 10:13:21

The whole point is that the profit from reale of the affordable homes will be clawed back by having Trump pay for infrastructure improvements.

That's the point of a Section 75 usually.

32

Ken_Fitlike,

30/06/2008 19:38:40

PS - It's actually 98 New Homes for Rent and 52 Affordable Homes for Sale.

150 Affordable home sin line with Aberdeenshire council's 35% Affordable Homes Planning Policy, Trump is proposing 450 new residential units and a further 550 golf holiday timeshare homes.....

Comparing the article above with that similar ones in the Herald and Sunday Herald and there appears to be huge holes of either journalistic knowledge of intentionally misleading information.

I think the lib dems have been working the black arts here.

The majority of the local population and certainly the business community won't be thanking them for that..... wipeout 2011


33

Ken_Fitlike,

30/06/2008 19:40:46
"If you go to most local authorities and tell them that a developer will build 500 houses but also provide affordable homes if they put in some land, and be able to sell some as well, MOST would see that as a positive arrangement."

This is wrong.

They would ALL see it as beneficial.

34

dido-bendigo,

Scotland 30/06/2008 19:50:36
How many deals like this have been drawn up with other developers in the last two years?

Was the land concerned earmarked for such a development and indicated as such, in the original drawing up of the Local Plan?

Do the people who are responsible for the deal play golf?

When was the deal made? Before or after Alex's meeting at the hotel with the developers team?

If the application is turned down (titter!), will the land return to the council land-bank and be offered to another developer?

Will the buildings be eco friendly, or just cheap?
35

Ken_Fitlike,

30/06/2008 20:05:28

Read the BBC Version for a more balanced slant
http://news.bbc.co.uk/1/hi/scotland/north_east/7480870.stm
36

Ken_Fitlike,

30/06/2008 20:11:31
dido-bendigo,
Scotland 30/06/2008 19:50:36

How many deals like this have been drawn up with other developers in the last two years?

A. Not sure but Aberdeenshire are apparently very good at getting concessions form developers, their spokesman has said that the people of Balmeadie will be benefiting from the 'extra's' that Trump will be doing for infrastructure in the areas as part of the Section 75.

"...Was the land concerned earmarked for such a development and indicated as such, in the original drawing up of the Local Plan?...."

A. This is unclear from all of the versions for this story, I suspect that the alternative site under discussion is designated for the housing.

"Do the people who are responsible for the deal play golf?"

A. Why don't you ask through Freedom of Information

When was the deal made? Before or after Alex's meeting at the hotel with the developers team?

A. The deal hasn't been made yet, Section 75's are deiscussed in advance of adecision on many major planning applications - see Glasgow's Gorbals or the redevelopment by the Clyde for a very large examples of between 1000-5000 homes....

"If the application is turned down (titter!), will the land return to the council land-bank and be offered to another developer?"

A. The council still own the land, the Section 75 is a condition on approval.

Will the buildings be eco friendly, or just cheap?

A. They will need to satisfy current Building Standards just like every other development proposed in Scotland, except I believe that new changes to the planning system will mean that a percentage of energy will need to be site generated and co2 emissions reduced in line with new Planning Policy SPPC6.



It's time we had amore accurate reporting on thsi story rather than the sad excuse printed above......
37

Caora Dubh,

Eilean a' Cheò 30/06/2008 20:15:02
I am disgusted. I am sure none of the houses will be for the poor. So the rich get richer. To Donald Trump I say: Yet another golfing estate is probably the most banal, unexciting, unimaginitive venture you could have come up with. Covert one old oil rig into an offshore gambling/hotel/conference centre, and another one into a museum of the oil industry. Start up a brewery in Aberdeen that sells its own unique brew - the last brewery closed years ago, yet Aberdeen has first class water & access to wheat/barley/you name it. Start tourist submarine tours of Scapa Flow. Buy and rebuild a couple of old castles, to be run as hotels. DONALD TRUMP: USE YOUR BLOODY HEID!
38

dido-bendigo,

Scotland 30/06/2008 20:29:59
#36 Ken-Fitlike.

Nay bad loon, nay bad ata. An yersel?

Thanks for the civilised reply.

#37 Caora

A developer asked our community council meeting to define what 'affordable' is in value? He never got an answer.

Dido.
39

Beth Boyle,

30/06/2008 21:46:32
This whole thing Disgusts me and smells of rotted fish! And the rich get richer and the poor get poorer....
40

Kitti Kat,

PA 30/06/2008 21:54:17
What is considered "afforable"? Affordable to the rich or affordable to "ordinary" people. It will be interesting to see what the houses will sell for. As usual, money talks!!! HOpe it doesn't turn into Atlantic City or even Augusta, GA---home of the Master's. My father's family lives there and believe me, it is far from the lovely city that is shown on television during the Master's. Not many "affordable" homes there.
41

Horseman,

Aberdeenshire 30/06/2008 23:14:14
In case anyone is interested in the facts, rather than the drivvle pushed by the numpty councillors, here is a copy of Alan Campbell's statement in response to the rubbish in the papers about this "sweetener":

Further to the article on the front page of today’s Press and Journal, there follows further clarification of the position regarding the provision of affordable housing linked to the proposed development of a golf resort by the Trump organisation.

The Council has followed the same approach to determine the appropriate developer contributions for this planning application as it would for any other. Developer contributions mitigate the impact of new development by providing new facilities for communities and officers have been consistent in applying adopted Council policies.

With regard to affordable housing, the Council has long recognised that supply of affordable housing is a key priority across Aberdeenshire and has very positive and well established partnership arrangements with local housing associations, developers and the Scottish Government.

In terms of the affordable housing contribution arising from the Trump application, a site has been identified in Balmedie that can accommodate 98 homes for affordable rent and 52 aimed at first time buyers. This site will not be gifted to the Trump organisation for development. The Council in fact sold the site in question in April 2007 to Castlehill Housing Association at a market value consistent with its future use for affordable housing development. This is entirely in line with the Council's strategic approach to enable land to be brought forward for future affordable housing development.

The contribution by the Trump organisation would be to fund the development of all 98 affordable rented homes at an estimated cost of £10 million. The homes would then be owned and managed by Castlehill Housing Association. Funding secured through this route means that the development of these homes will alm
42

Horseman,

Aberdeenshire 30/06/2008 23:16:18
Funding secured through this route means that the development of these homes will almost certainly be earlier than would otherwise have been the case. The principles around how the affordable housing for this development have been put together is again consistent with the established policies of the Council - if the planning application is approved this contribution would be the single biggest contribution ever made by a developer for affordable housing in Aberdeenshire.

It is also important to confirm that the design and construction of the homes will be to the usual high quality required by housing associations - particularly around energy efficiency.

The remaining 52 homes for first time buyers will also meet the high design standards required by the Council and any future consideration of the detailed planning issues will ensure the housing development as a whole is well thought through and sustainable.

With respect to the location of the homes, Balmedie is the preferred area given the proximity of local services and transport links. This would not be the case were the homes to be located on the Menie Estate itself. The proposed site in Balmedie is also adjacent to existing homes and is allocated in the Aberdeenshire Local Plan as having the potential to be developed for housing in the future.

The Council has rightly been praised for its approach to securing developer contributions, most recently by Audit Scotland as part of its Audit of Best Value and Community Planning. The Council is absolutely satisfied that the approach to dealing with this application is consistent with established good practice and should the planning application be approved will result in significant investment in the local community.


 

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