Residents of a growing Somerset town have missed out on more than £575,000 for their local services after changes in a crucial legal agreement.

Stonewater is in the process on delivering 125 homes on the Mulberry Meadows site, located west of the B3152 Station Road in Castle Cary.

Under the original legal agreements signed with South Somerset District Council, the developer committed to providing thousands of pounds towards various local facilities – including changing rooms, a village hall, playing pitches and local arts venues.

However, Somerset Council has approved changes to the legal agreements, ensuring the developer does not have to pay for these facilities.

Stonewater has also secured permission that many of the remaining transport improvements near the site (formerly known as Wayside Farm) will be delivered later in the construction stage than was originally intended.

The development (originally referred to as Wayside Farm) secured outline planning permission on appeal in January 2017, with Stonewater subsequently purchasing the site from the original promoter, Waddeton Park Ltd.

Under the original Section 106 agreement (which was carried over with the purchase of the land), the developer committed to providing more than £350,000 towards school places in the town.

This funding which could either be used to extend existing primary schools or constructing a new school, pooling funding from several developments – with Somerset County Council earmarking land for such a school to the south of the Stonewater site.

Stonewater also committed to providing the following contributions towards amenities in Castle Cary and the neighbouring parish of Ansford (in which the development is located):

• Nearly £154,000 towards a play area (plus nearly £7,000 to cover ongoing maintenance)
• Nearly £105,000 towards new or improved changing rooms
• Nearly £82,000 towards playing pitches (including ongoing maintenance)
• Nearly £62,500 towards community hall facilities
• Nearly £38,000 towards improvements to the Westlands Entertainment Venue in Yeovil
• More than £26,000 towards local youth facilities

Under the revised legal agreements, which were signed just before Christmas, the education contribution will be capped at just over £190,000 – which has already been paid in full.

The play area funding will be used, but Stonewater will now spend £97,635 on providing the equipment itself and then transfer the remaining £56,350 to the council to cover future maintenance.

The contributions towards changing rooms, community halls, playing pitches and improving Westlands have all been removed from the legal agreement.

Any unspent funding allocated 'green travel vouchers' (which can cover the cost of purchasing a new bike or other measures to reduce car park) will be retained by the council – which currently amounts to £22,950.

As a result of these changes, Castle Cary and Ansford residents are missing out on nearly £577,000 of funding for their local services.

The developer had previously pledged to deliver numerous transport improvements on and near the site – including a new pedestrian crossing over Station Road, relocating and upgrading two bus stops (one on Station Road, one south of Churchfield Drive), and diverting the 1 and 1A services to serve the development site along with Churchfield Drive, Florida Fields and Victoria Gardens.

These improvements were originally due to be in place by the time the first home within the Mulberry Meadows site was completed and occupied.

Under the agreed changes, the improvements will still be made – but not until the 75th home has been occupied.

An independent viability assessment carried out in March 2021 (at the height of the coronavirus pandemic) concluded that the development "would make a significant loss" if these changes were not implemented.

Ansford Parish Council objected to changing the agreements back in July 2020, describing Stonewater's actions as "opportunistic and invalid" and claiming its viability concerns were "spurious".

A spokesman said: "This is nothing more than an opportunity for Stonewater to try and dictate terms solely in their favour, where their own gains would be at the expense of the complete loss of the planned community benefits.

"Each one of these facilities is essential for the well-being of parishioners of all age groups, including the families coming to live at Wayside Farm, and it is therefore vital that Stonewater is held fully accountable for honouring their commitment to fund these contributions in full."

Castle Cary Town Council published its own objection in March 2021, stating: "We do not wish to see any reduction in the Section 106 contributions, particularly and essentially the remaining 50 per cent of the education contribution.

"We do not see why the developer's significant over-payment for the land should impact adversely on services for the local community rather than their profit."

David Kenyon, Somerset Council's principal planning specialist, said the viability assessment had been "undertaken in a satisfactory manner" and the changes were the only way to ensure the site could be completed.

He added: "Having due regard also to the comments from the county education team and our play and open spaces team, who reluctantly accept the district valuer's assessment and conclusion, it is considered that it has been demonstrated that the payment of all the financial contributions set out in the Section 106 agreement would not be viable."