A POTENTIAL stumbling block which could have halted a controversial new 'mini town' of 2,700 houses has been cleared by councillors.

A legal covenant on farmland previously owned by North Yorkshire County Council still had an agreement which would have meant them getting nearly three-quarters of any increase in the value of the land, amounting to millions of pounds. Councillors have now agreed to vary it.

Residents have campaigned against the development, saying it will swamp their community, crippling local schools, doctors and facilities.

The 420 acres of the council’s former tenanted land holding, at New Farm, Green Hammerton, on the A59 between York and Harrogate, was sold 14 years ago to farmer Derek Pickles.

Now it forms part of a site which is being backed by Harrogate Borough Council as the preferred area for a new development, Great Hammerton, which would be earmarked in the local development plan – although the council now says other areas are also being examined.

Because of the covenant, the county council could have clawed back 70 per cent of any increase in the value of the land which developers said would make it unviable.

Corporate Director Gary Fielding, told members of the executive committee the covenant prevented the land being used for any purpose other than as a single private residence, allowing only agricultural, equestrian or horticultural use.

He recommended the variations be approved.

Mr Fielding said:“Officers have carried out their own assessment of the scheme and concur that the scheme is not viable without varying the covenant.”

He said the council had a statutory duty to achieve "best consideration" for the land and the authority would receive a share of the proceeds from the disposal of the land if the development went ahead.