A YORK company is at the centre of a High Court battle over stalled plans to develop land where it once hoped to create a £100 million golf resort.

Skelwith Group's latest plans for the Flaxby site, off the A59 between York and Harrogate, near Knaresborough, include building 2,500 homes new homes as part of a new "village" development.

But changes to the masterplan, and a lack of building work to date, have angered local farmers the Armstrongs, who sold the land to Skelwith in 2008.

As Skelwith is yet to pay the full £7 million sale price for the land, having only paid an initial sum just short of £3.5 million, the Armstrongs say they have called in the mortgage and have agreed to instead sell the site to local developers the Ward family, for £3.7 million.

York Press:

An artist's impression from Skelwith's plans

When it first unveiled its plans in 2008, Skelwith said its Flaxby Country Club would include 303 rooms, three restaurants, a luxury spa complex, bars and boutiques, set around a 27 hole golf course, within nearly 300 acres of countryside.

A spokesperson for the Armstrong family said: "The Armstrongs have waited for many years to be paid for the land. Their patience has come to an end.

"As mortgagees in possession they had agreed to sell the land to whom they consider are best placed to deliver housing and other facilities to the benefit of the local community while also protecting the interests of investors."

In February, Skelwith secured an injunction blocking the sale between the Armstrongs and the Wards, and it has since submitted a scoping application to Harrogate Borough Council's planning department to progress with its own plans for the homes.

Skelwith claims the Armstrongs undervalued the land in the sale to the Wards, citing £27.5 million as the actual value, based on the hope value of the housing scheme.

York Press:

The land at thre centre of the dispute

Skelwith, the Armstrongs and the Wards are now set to battle it out in the High Court. York-based Skelwith is seeking an order to prevent the sale of the land to Wards, while the Wards and Armstrongs are seeking a discharge on the injunction.

The Armstrongs' spokesperson said: "Even if Skelwith is successful at the upcoming court hearing, the Armstrongs will remain as mortgagees in possession, with the right to sell the land which they intend to do.

"There is no proper basis upon which Skelwith can commit to the development of the property in the near future and to contend otherwise is misleading.

"This development has been marked by a singular lack of progress over seven years, and counting.

"All that has been built is an expensive roundabout, while the golf course has recently been closed."

However Skelwith argues that if it is successful at the hearing, scheduled for the week of July 27, it will go ahead with its plans as it will be in a position to pay monies owed to the Armstrongs and discharge the mortgage.

A Skelwith spokesperson said: "To confirm, we have full ownership of the Flaxby site and are fully committed to delivering the development in the near future.

"We are working with all stakeholders to build a sustainable village that will not only deliver Harrogate's future housing needs, but will be a scheme that is exemplar in developing sustainable communities.

"We acknowledge the nearby owners’ legal activity, but it is important to note that while there are legal issues ongoing, we are confident that they will be resolved in the near future.

"It is important to recognise that these actions will have no impact on taking the site forward and delivering homes."

The High Court will hear a number of disputes between the parties, including the arrears on interest owed by Skelwith, and a covenant the Armstrong's claim is in place from the original sale ordering the site must keep an operating golf course. The golf course at Flaxby closed earlier this year.