Monday, December 19, 2011

Permission to build a block of offices rejected?

a) Holger, a fishmonger by trade, is also the owner of a brown-field plot of land in the centre of Manchester. Holger bought the plot from an inner-city farm, which unfortunately had to close down due to cut-backs by the local council. Holger has never done anything with the plot, but has held onto it as an investment. He decides that now is the time to sell, and he enters into negotiations with SkyReach Ltd., a property developer. Building permission has never been applied for, but Holger is aware from the local news that many building schemes have recently been given the go ahead by the local planning department. In one meeting, Jaki, the manager of SkyReach, asks Holger if he (Holger) considers that planning permission will be granted for the plot. Holger replies, “of course, it should be no problem. As I understand it, inner city development is a top priority here.” A week later, Holger and SkyReach enter into a contract for the sale of the plot. Consequently, SkyReach apply for planning permission to build a block of offices on the site. This is rejected, and SkyReach are informed by the local planning department that the use of the plot is restricted to ‘educational purposes’ only. What advice would you give to SkyReach?

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