Fenham Properties Ltd admitted two offences when one of the directors Mohammed Suleman appeared before Newcastle magistrates.
The court heard the offences took place while the company was refurbishing Pendower Hall, a former education centre which is Grade II Listed.
The company is converting it into four seven-bedroom homes complete with private leisure and wellness centre with its own swimming pool, gym and sauna.
In December 2024 the council received a report of a large bonfire on land just off the West Road at Fenham. It was alleged the waste – predominantly wood - had come from a derelict house.
On arrival, a senior environmental health technical officer found several skips outside the Hall and one of them set aside as a makeshift incinerator.
The large skip which was big enough to hold 100 bin bags of rubbish was severely fire damaged consistent with sustained use as an illegal burning chamber, the court heard. The skip contained ash which was also spilling out onto the ground.
The officer revisited the premises on several occasions but was unable to find anyone to speak to so wrote to the owners Fenham Properties Ltd and received a reply admitting they had burned wood in a skip.
It is a criminal offence to dispose of waste in a way which can pollute the environment and/or harm human health. Burning solid waste in the open as opposed to through controlled incineration results in poor combustion and emissions likely to harm human health.
On behalf of the company, Mr Suleman admitted illegally disposing of waste and operating a facility to dispose of waste without an environmental permit in breach of the Environmental Protection Act 1990 and Environmental Permitting (England and Wales) Regulations 2016.
For the first offence the company was fined £6,000, and ordered to pay a £2,000 victim surcharge, £422 investigatory costs and £85 legal costs making a total of £8,507. There was no penalty for the second offence.
Magistrates made an order for the skip and ash to be destroyed and the company to pay the fine at a rate of £750 per month.
Newcastle City Council which brought the prosecution told the court that the offences were carried out deliberately to save money. The defendant is a registered waste carrier so should have been aware of the law and its responsibilities. If properly conducted the wood could have been recycled or recovered for fuel.
In mitigation, the court heard all five company directors were of good character. They have put methods in place to stop it happening again including training and employing a full-time site manager to ensure the law is complied with.
The company has made a loss of £450,000 a year over the last three years and a heavy fine could impact on it remaining solvent. They are fixing a derelict building in the West End, employing people and creating housing.
Deputy leader of Newcastle City Council, Cllr Alex Hay, who is Cabinet Member for Neighbourhood Services, said: “Everyone has a right to breath clean air and live in a green pleasant neighbourhood.
“This was a deliberate illegal act to cut costs while building luxury homes.
“It is not right, nor is it fair to expect others to endure this act of environmental vandalism.
“The directors are of good character, so I hope this acts as a warning to everyone including those with businesses to be aware of environmental legislation under the Companies Act. It shows we will not hesitate to prosecute any company or individual, regardless of who they are, when they break the law."