The Isle of Wight Council could face legal proceedings after ending the housing partnership behind the controversial Crossways development.
Five years since the partnership started it is uncertain if anything came from it.
The relationship was terminated quietly, towards the end of 2020, by the previous Conservative administration and under delegated decision.
The Isle of Wight Council and Public Sector PLC have declined to comment further, on the partnership and any potential financial losses, citing current negotiations.
A council spokesperson said the authority expects to make a full statement when it is appropriate to do so.
In 2015, the Isle of Wight Council and Public Sector PLC Facilitating Ltd entered into a limited liability partnership.
The partnership (PSP Isle of Wight LLP and informally ‘iWight Developments’), saw an agreement to develop council land, property and other assets.
In a statement in 2015, then executive member for resources and now council’s deputy leader, Cllr Ian Stephens, said it would provide opportunities for the council to get benefits from assets with no risk.
Public Sector PLC had similar partnerships with other local authorities.
The partnership’s biggest project was Crossways, a plan to develop a greenfield site in East Cowes with 165 houses.
Next to Queensgate Primary School, on Beatrice Avenue, the plan was deferred by the council’s planning committee, in December 2019, due to a lack of information.
Reacting to this most recent development, Cllr Stephen Hendry, for Osborne ward, said he understood the partnership had not been working for the Island, ‘demonstrated by the lack of delivery’.
Cllr Hendry said it may have been down to a plan to ‘overdevelop’ sites.
He believed Crossways would have faced less opposition if a more modest, mixed-use scheme had been brought forward instead.
The Crossway scheme’s future is still uncertain, but Cllr Hendry said he would like to see the site retained for agricultural use.
He said:
“East Cowes has taken more than its fair share of housing over the past 15 years, and this green space needs to be preserved as a vital buffer between the communities of East Cowes and Whippingham.”
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