THE DEVELOPER behind Abingdon’s Old Gaol revamp has asked to almost double the time allowed to pay off a £1m affordable housing contribution after struggling to fill restaurant units.

The Bridge Street building was bought by Abingdon-based developer Cranbourne from Vale of White Horse District Council in 2007.

Cranbourne built a gym, car park and 43 new flats, with a further 18 converted from existing buildings – some of which once served as a prison dating back to 1811. Other parts of the building date back to its use as a leisure centre.

As well as the luxury flats, which were all snapped up before they were even completed, three restaurant units were created but have proved a less enticing prospect for investment.

Since they were put on the market in summer 2015, just one has been let – to coffee chain Costa, which moved in last year.

Building eight affordable houses was also part of the original 2012 agreement with the local authority but when plans for Harcourt Way were submitted in 2014 the council decided against going forward with the scheme.

Instead, a £1m financial contribution, called a Section 106 agreement, was made to go towards affordable housing in the area in lieu of the houses.

The original schedule was for payments of £180,000 each year, with the final payment due in April 2020.

But Cranbourne has now proposed to half this and instead make six annual payments of £90,000, pushing back the last payment to April 2024.

Blake Morgan, in a letter accompanying the application to the district council on behalf of the developer, explained: “Having marketed the restaurant for three years through specialist agents, the developer has been unable to let Unit 3 to a restaurant operator and thus has incurred restricted cash flow which would have enabled the 2018 to 2020 payments under the Supplemental S106 to be made.

“Moreover, the developer has been unable to obtain further funding from alternative equity or debt sources. The developer is however able to meet the outstanding payments but on a reduced annual quantum basis.”

He added Cranbourne were committed to paying the full amount and if the third unit was let would revert back to the original £180,000 payment plan.

The Vale announced in October it intended to create Abingdon’s the first council-built homes in decades at the Old Abbey House using money from financial contributions from other housing developments including the nearby Old Gaol.

The authority has already lost out with the development, originally valuing the site at £6.3m but revealing it had settled for just over half that – £3.2m after the global recession in 2008. The district council is expected to make a decision on the application by January 18.