Mendip council has defended its decision to allocate further funds to its flagship regeneration project, claiming it will "add value" to the local area.

Mendip District Council's cabinet voted on Monday evening (July 12) to grant an additional £175,000 towards the Saxonvale regeneration scheme in Frome to ensure work can begin on the site in September.

Councillor Michael Dunk – whose Frome Market ward includes the site – questioned the wisdom of this decision, raising numerous queries about the cost of the scheme and its overall viability.

The council has responded that it does not expect all the allocated money to be used, and that future decisions over the site will all be subject to cabinet approval.

The council has already spent £9.2M on the Saxonvale site, including the original purchase of the land in August 2018 and various surveys and design stages needed before outline planning permission could be granted.

Its planning board voted in late-January to approve a scheme put forward by the Acorn Property Group, with Homes England providing £3.95M to fund "enabling works" such as clearing vegetation, disconnecting utilities and removing hazardous materials.

The council has appointed Balfour Beatty to undertake this remediation work – but some elements cannot get under way until all legal agreements (known as Section 106 agreements) are finalised between the council and Acorn – and the Homes England funding has to be completely spent by the end of the year.

The £175,000 of additional funds will allow more detailed plans for the site (known as reserved matters) to be produced, with Councillor Barry O'Leary promising that construction would begin in September.

Mr Dunk published his questions in writing before the cabinet met in Shepton Mallet on Monday evening (July 12), focusing on the funding for the reserved matters applications.

He said: "I would have thought that normally this expense would have fallen to Acorn as the applicants – why are we paying for it? Can we see a breakdown of what the £175,000 will be used for?

"Is the application restricted in scope to just the bridge over the river and the public green areas? If it is, when might we expect the other reserved matters to come forward and who is then footing the bill?

"Who is paying for the bridge to be designed and installed? When can Frome councillors have sight of what the Section 106 agreement entails (apart from the bridge and green spaces)?"

In addition, Mr Dunk requested details of a new viability assessment for the entire scheme – something which has proved a controversial issue throughout the project's history.

He said: "Will Frome councillors be able to see this document when it is finalised?

"I assume we will not need to borrow further funds to lend to Acorn, as we already have a considerable amount 'in the bank' that could be used?

"Are you able to confirm the split of profits percentage values which are dependent on whether the finance is provided by the council or not?"

Mr O'Leary, portfolio holder for enterprise and finance, declined to answer Mr Dunk's questions during the meeting, but said he would receive a full written response in due course.

The council subsequently responded to Mr Dunk in writing, stating the additional funding would "add value" to the site.

A spokesman said: "The costs will be in relation to planning, design, architects, landscape advice, etc. We don't expect to spend to this extent and have, in addition, allowed a contingency.

"Due to the commercial nature of the spend, a breakdown cannot be itemised at this point, but you have our assurance this will be forthcoming once the spend is complete.

"This reserved matters application covers the bridge over the river. Any further funding of reserved matters applications will be subject to further cabinet approval, or will form part of the consideration for funding the overall scheme.

"This scheme is policy-compliant and there is a real desire to deliver the benefits offered as quickly as possible to the Frome community. We would expect any further spending to be handled in a similar, transparent way, and come before cabinet."

The council clarified that the cost of the scheme would initially be covered by Acorn, with the funding of the bridge being subject to a future cabinet decision once viability work had been undertaken.

It also promised Mr Dunk that both the Section 106 agreement and the viability assessment would be made available to councillors "in the normal way" once they were completed.

We have made prudent, financial provision and have monies set aside for such purposes as these.

"Any return on our investment would only occur once the homes, both affordable and market value homes, have been sold, not before.

"The purpose of the development at Saxonvale, is to return a long-derelict site back into use to address the shortage of accommodation and retail space for the citizens of Frome, in addition to adding some civic buildings, new cycleways and a shared community space.

"The administration has already chosen to prioritise the preservation of services and their continued delivery, rather than making any cutbacks. Any return on investment would help in this respect."