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Page last updated at 11:13 GMT, Tuesday, 30 June 2009 12:13 UK

Fury over developer cash demand

New homes being constructed
Gladedale committed to the project as part of the Menstrie development

A housing company has been described as "despicable" after demanding the return of £200,000 it gave towards a community project that was delayed.

Gladedale had agreed to fund changes to the Dumyat Centre in Clackmannanshire as part of a planning application to built a luxury estate there.

However, the firm has taken legal steps to reclaim the cash after the work was not done within the agreed two years.

Local councillor Eddie Carrick said the firm was "not behaving morally".

He said protestors were due to meet at Gladedale's Stirling headquarters to demonstrate their anger over the company's actions in the coming days.

Clackmannanshire Council received the cash from Gladedale in 2006 as part of an application to build luxury homes in Menstrie.

The agreement stated that improvements to the Dumyat Centre would be started by 2008.

However, consultation with the town's community council has meant the work is still to be completed.

'Legal loopholes'

In a statement, Gladedale said: "The funds were paid to the council in July 2006, however when no work had started by the beginning of 2009 we regretfully had to take the decision to request for these funds to be returned, as set out in the contract with the council.

"Gladedale has also made other payments, totalling over £180,000 to Clackmannanshire Council, for facilities around Menstrie including an extension to the local Primary School, public art and new, improved play equipment and open space.

"The contract with the council sets out the procedures which have to be followed throughout the development process and Gladedale is confident that we have completed each stage required."

In response, Councillor Carrick said: "Gladedale are behaving despicably.

"They have been late in every community payment they made. They have ignored the reasonable request to extend the limit and were over a year late paying the money into the fund in the first place.

"Irrespective of the time, we are talking about a community here. They have made a profit out of these houses through building in this community.

"They are just looking for legal loopholes to avoid meeting their commitment."

It is understood that the council is currently involved in arbitration with Gladedale to resolve the issue.



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