A spokesman said: “This relates to an historical planning matter, subsequent complaint and investigation into the background by the Local Government Ombudsman (LGO), independent planning consultants and council officers.
“The LGO’s report is presently confidential and he is at this stage seeking resolution through local settlement. This payment will resolve the matter in full accordance with the LGO’s recommendations.”
Coun Roger Gambba-Jones, chairman of South Holland’s planning committee, said the pending payment related to an isolated issue and lessons had been learned.
He said: “There are always lessons to be learned but as best I can say, notwithstanding human error and of course there is always the possibility of human error, it couldn’t happen again.
“We now have a far more robust system.”
This case is understood to pre-date that which involved a Nestwood Homes development in Fleet on a site the company bought in June 2005.
In 2008, the council made payouts of £92,625 to neighbours of the development after it was built on higher ground to their homes.
In May 2013, the LGO found maladministration by the council in relation to its treatment of Nestwood Homes over the development and recommended the council pay substantial compensation to the company and its director, of around £250,000.
The council, however, resolved to pay only £50,000 plus interest. That decision was taken to judicial review in 2014, but it was ruled the council had acted within the law and Nestwood Homes’ challenge to the council’s decision regarding the payment was dismissed.
