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Agenda item

New Bermondsey (formerly Surrey Canal Triangle) Regeneration - Proposed Compulsory Purchase Order

Decision:

Having considered an officer report, and presentations by the Deputy Mayor,

Councillor Alan Smith, an affected business and property owner, the Chair of

the Labour Group and a fan Director of Millwall FC, the Cabinet agreed that:

 

(a) the pre-conditions for compulsory purchase set by Mayor & Cabinet on 7th

March 2012 have been met;

 

(b) a Compulsory Purchase Order be made pursuant to powers under

Section 226(1)(a) of the Town and Country Planning Act 1990 and Section

13 of the Local Government (Miscellaneous Provisions) Act 1976 (in

accordance with the procedures in the Acquisition of Land Act 1981) for:

 

i) the acquisition of the land shown coloured pink on the plan at Appendix 2,

be approved save for the interests of the Council, Renewal and persons with

the benefit of rights of light; and

 

ii) the acquisition of new rights over the land shown coloured blue on the

plan attached at Appendix 2 be approved for the purpose of facilitating the

comprehensive redevelopment, development and improvement of the Site to

provide a mixed use residential-led scheme.

 

(c) delegated authority be granted to the Executive Director for Resources

and Regeneration in consultation with the Head of Law:

 

i) subject to a satisfactory Deposit or satisfactory alternative security

being provided by Renewal pursuant to the CPO Indemnity Agreement dated

20 December 2013, all necessary and appropriate steps be taken to secure

the making, confirmation and implementation of the Compulsory Purchase

Order (CPO) including the publication and service of all notices and promotion

of the Council’s case at any Public Inquiry, including but not limited to the

steps described below;

 

ii) any further or additional land referencing as may be considered appropriate

be carried out, including service of requisitions for information pursuant to

Section 16 of the Local Government (Miscellaneous Provisions) Act 1976 or

Section 330 of the Town and Country Planning Act 1990;

 

iii) any amendments, deletions, or additions to the draft Order Map and/or

draft Schedules to the CPO be made so as to include and describe all

interests in land and rights required to facilitate the carrying out of the

Scheme;

 

iv) such changes as may be considered necessary or

appropriate be made to the draft Statement of Reasons prior to publication;

 

v) interests and new rights in the Order Land be acquired either by

agreement or compulsorily (including pursuant to any blight or purchase

notices) and dispose of the same to Renewal;

 

vi) approval be given to negotiate, agree terms and enter into agreements

with interested parties, including agreements for the withdrawal of blight or

purchase notices and/or objections to the CPO and/or undertakings not to

enforce the CPO on specified terms, including where appropriate seeking the

exclusion of land or rights from the CPO;

 

vii) in the event that the Secretary of State notifies the Council that it

has been given the power to confirm the CPO to confirm the CPO if

the Executive Director for Resources and Regeneration, in

consultation with the Head of Law, is satisfied that it is appropriate

to do so;

 

viii) in the event the CPO is confirmed by the Secretary of State (or by

the Council if given the power to do so), to complete all necessary

statutory procedures and to take steps to implement the CPO,

including by way of General Vesting Declaration and/or Notice to

Treat/Notice of Entry;

 

ix) all steps be taken in relation to any legal proceedings relating to the

CPO, including defending or settling claims referred to the Upper

Tribunal (Lands Chamber) and/or applications made to the courts

and any appeals;

 

x) approval be given to retain and/or appoint external professional advisers

and consultants to assist in facilitating the promotion, confirmation and

implementation of the CPO, the settlement of compensation and any

other claims or disputes;

 

xi) all such other steps be taken as may be considered necessary or

appropriate to acquire all interests and rights required for the

Scheme (whether by agreement or CPO) and to dispose of the same

to Renewal;

 

(d) approval be given to the acquisition by the Council for planning purposes

pursuant to Section 227 of the Town and Country Planning Act 1990 of

Renewal’s freehold interest (both its existing freehold and any freehold

interest that Renewal may subsequently acquire by private treaty) in land

within Phases 1A, 1B, 2 and 3 as shown shaded grey on the plan

at Appendix 3 and the grant of a lease of that land to Renewal (with an

option for Renewal to repurchase the freehold interest) on the terms set out

in the Heads of Terms attached at Appendix 4, including any variation thereto

as the Executive Director for Resources and Regeneration, in consultation

with the Head of Law, may consider appropriate;

 

(e) The variation of the CPO Indemnity Agreement of 20th December

2013 be approved to ensure the agreement provides for the Council to be

indemnified by Renewal in respect of all compensation and other costs arising

in respect of any interference with rights affecting the land acquired by the

Council and leased back to Renewal as provided for in recommendation

(d) above.

Minutes:

The Mayor withdrew from the meeting having declared a prejudicial interest in

this item. The discussion on this and all the following items was chaired by the

Deputy Mayor, Councillor Alan Smith.

 

The Deputy Mayor introduced the report and recounted his personal

involvement in Regeneration over the last six and a half years as portfolio

holder. He pointed out that the Renewal group already held interests in 90%

of the land needed for the regeneration proposals and that the use of CPO

powers by the Council could allow the assembly of land allowing completion

of the Renewal scheme.

 

The Executive Director for Resources and Regeneration reminded the

Cabinet that the CPO proposals had been deferred in February following

which the Chief Executive had facilitated discussion between Renewal and

Millwall FC which had failed to arrive at a satisfactory resolution.

 

The Head of Planning next outlined the Planning background highlighting the

Core Strategy which promoted the growth of large scale development in the

north of the Borough and identified five key sites accompanied by delivery

stages.

 

The Executive Director for Resources and Regeneration confirmed that notice

of this Cabinet meeting and determination of a CPO proposal had been given

to all involved parties on August 8. She stated that representations from

Eversheds and Shoosmiths had been circulated to all Cabinet members.

 

Willow Winston, an affected local resident and business owner, next

addressed the Cabinet. She explained she had set up her business in the

area 16 years ago and had lived with the threat of a CPO for the last six

years. She said she had received only a desultory offer of £58,000 for her 700

square feet of living and workspace. She believed the threat of a CPO had led

to health problems for her. She stated she thought development might be

good in many respects and that she had taken part in one cordial meeting

with Renewal but overall she believed consultation with her and other local

business owners had been completely inadequate. She called on the Cabinet

to defer any decision on the CPO to allow meaningful consultation to take

place with local residents and business owners.

 

Councillor Brenda Dacres addressed the Cabinet in her capacity as Chair of

the Labour Group. She said Group members had considered the CPO

proposals in a meeting without Cabinet member attendance. They had

unanimously concluded that the CPO was premature and not in the public

interest. Councillor Dacres said negotiations between Millwall FC, Renewal

and other interested parties should continue and that a CPO should only be

considered as a last resort.

 

The Chief Executive pointed out there had already been a five month deferral

and he had appointed an independent facilitator to arrange a meeting

between Renewal and Millwall FC. This had taken 3 months to conclude and

while the meeting had been congenial, promises by the parties to share

information had not been honoured. He reported there had thus been only

one meeting with no agreed proposals.

 

Mr Peter Garston, a Fan Director of Millwall FC next addressed the Cabinet.

He said the Club was the heartbeat of the area and he feared a CPO would

threaten the existence of the highly regarded Millwall Community Scheme. He

said reprovision of facilities to areas not adjacent to the Den were not

acceptable. He urged Cabinet members to either vote against or defer the

CPO proposal.

 

Having been able to question all the presenters, Cabinet members considered

carefully all the evidence which had been presented to them before reaching

their conclusions.

 

Councillor Joe Dromey said the area was in need of new development but

that granting a CPO required compelling reasons and he believed the onus

should have been on Renewal to secure agreement with the other parties. He

did not feel confident in entrusting such a massive project to a company with

no track record in delivering successful developments. In terms of applying a

public interest test he stated the priority for his ward was the provision of

affordable housing and he did not believe the promise of 12% for housing

being affordable in this project was sufficient. He recognised this was a

difficult and finely balanced decision but that he could not support a CPO.

 

Councillor Rachel Onikosi said her understanding of the evidence offered led

her to the conclusion that extensive efforts to reach agreements had been

made over many years but that only Renewal had the finances and land

holdings in place to successfully carry out the project.

 

Councillor Joan Millbank said she would apply a public interest test to the

broader project and with the range of jobs, transport links, housing, and

community facilities on offer she believed there was an amazing placemaking

opportunity available.

 

The Deputy Mayor said he had been a Councillor for 18 years and this was

the best offer he had seen for the area. He stated as Chair he would only vote

in favour of the project if there was an equality of votes.

 

Councillor Kevin Bonavia noted the Den would be protected and alternative

provision would be made for Millwall’s excellent community schemes. He said

he would have liked more affordable housing but the proposals would create

some new genuinely affordable housing.

 

Councillor Janet Daby said she believed Millwall FC had had ample

opportunity to bring proposals to the rable but development was needed now

and on balance the Renewal proposals appeared to be the best option.

 

Councillor Chris Best said she was excited by the project with a sports led

regeneration that would create the biggest sporting facility in the capital for 50

years.

 

Having considered an officer report, and presentations by the Deputy Mayor,

Councillor Alan Smith, Willow Winston, an affected business and property

owner, the Chair of the Labour Group, Councillor Brenda Dacres and a fan

Director of Millwall FC, Peter Garston, the Cabinet, for the reasons set out in

the report:

 

RESOLVED that:

 

(a) the pre-conditions for compulsory purchase set by Mayor & Cabinet on 7th

March 2012 have been met;

 

(b) a Compulsory Purchase Order be made pursuant to powers under

Section 226(1)(a) of the Town and Country Planning Act 1990 and Section

13 of the Local Government (Miscellaneous Provisions) Act 1976 (in

accordance with the procedures in the Acquisition of Land Act 1981) for:

 

i) the acquisition of the land shown coloured pink on the plan at Appendix 2,

be approved save for the interests of the Council, Renewal and persons with

the benefit of rights of light; and

 

ii) the acquisition of new rights over the land shown coloured blue on the

plan attached at Appendix 2 be approved for the purpose of facilitating the

comprehensive redevelopment, development and improvement of the Site to

provide a mixed use residential-led scheme.

 

(c) delegated authority be granted to the Executive Director for Resources

and Regeneration in consultation with the Head of Law:

 

i) subject to a satisfactory Deposit or satisfactory alternative security

being provided by Renewal pursuant to the CPO Indemnity Agreement dated

20 December 2013, all necessary and appropriate steps be taken to secure

the making, confirmation and implementation of the Compulsory Purchase

Order (CPO) including the publication and service of all notices and promotion

of the Council’s case at any Public Inquiry, including but not limited to the

steps described below;

 

ii) any further or additional land referencing as may be considered appropriate

be carried out, including service of requisitions for information pursuant to

Section 16 of the Local Government (Miscellaneous Provisions) Act 1976 or

Section 330 of the Town and Country Planning Act 1990;

 

iii) any amendments, deletions, or additions to the draft Order Map and/or

draft Schedules to the CPO be made so as to include and describe all

interests in land and rights required to facilitate the carrying out of the

Scheme;

 

iv) such changes as may be considered necessary or

appropriate be made to the draft Statement of Reasons prior to publication;

 

v) interests and new rights in the Order Land be acquired either by

agreement or compulsorily (including pursuant to any blight or purchase

notices) and dispose of the same to Renewal;

 

vi) approval be given to negotiate, agree terms and enter into agreements

with interested parties, including agreements for the withdrawal of blight or

purchase notices and/or objections to the CPO and/or undertakings not to

enforce the CPO on specified terms, including where appropriate seeking the

exclusion of land or rights from the CPO;

 

vii) in the event that the Secretary of State notifies the Council that it

has been given the power to confirm the CPO to confirm the CPO if

the Executive Director for Resources and Regeneration, in

consultation with the Head of Law, is satisfied that it is appropriate

to do so;

 

viii) in the event the CPO is confirmed by the Secretary of State (or by

the Council if given the power to do so), to complete all necessary

statutory procedures and to take steps to implement the CPO,

including by way of General Vesting Declaration and/or Notice to

Treat/Notice of Entry;

 

ix) all steps be taken in relation to any legal proceedings relating to the

CPO, including defending or settling claims referred to the Upper

Tribunal (Lands Chamber) and/or applications made to the courts

and any appeals;

 

x) approval be given to retain and/or appoint external professional advisers

and consultants to assist in facilitating the promotion, confirmation and

implementation of the CPO, the settlement of compensation and any

other claims or disputes;

 

xi) all such other steps be taken as may be considered necessary or

appropriate to acquire all interests and rights required for the

Scheme (whether by agreement or CPO) and to dispose of the same

to Renewal;

 

(d) approval be given to the acquisition by the Council for planning purposes

pursuant to Section 227 of the Town and Country Planning Act 1990 of

Renewal’s freehold interest (both its existing freehold and any freehold

interest that Renewal may subsequently acquire by private treaty) in land

within Phases 1A, 1B, 2 and 3 as shown shaded grey on the plan

at Appendix 3 and the grant of a lease of that land to Renewal (with an

option for Renewal to repurchase the freehold interest) on the terms set out

in the Heads of Terms attached at Appendix 4, including any variation thereto

as the Executive Director for Resources and Regeneration, in consultation

with the Head of Law, may consider appropriate;

 

(e) the variation of the CPO Indemnity Agreement of 20th December

2013 be approved to ensure the agreement provides for the Council to be

indemnified by Renewal in respect of all compensation and other costs arising

in respect of any interference with rights affecting the land acquired by the

Council and leased back to Renewal as provided for in recommendation

(d) above.

Supporting documents: