Meeting documents

1. THE ISSUE

1.1 This report briefly outlines the current status of the redevelopment scheme, identifies the need for the whole site to be available for redevelopment when the programme requires, and asks the Executive to agree in principle to the use of compulsory acquisition powers if such powers become necessary.

2. RECOMMENDATION

The Executive:

2.1 Confirms its ongoing support in principle for the redevelopment of Southgate;

2.2 Notes the reasons why and the circumstances within which the making of a Compulsory Purchase Order may be recommended;

2.3 Confirms its "in principle" support for the making of a Compulsory Purchase Order if so recommended;

3. FINANCIAL IMPLICATIONS

These are the subject of ongoing discussion with the developer. The issue of a Costs Indemnity by the Developer is mentioned later in the report.

4. CURRENT SITUATION

4.1. At its meeting on 10 May 2002, the Development Control Committee resolved to approve the planning applications and the listed buildings and conservation area consent applications, subject to the papers being referred to the Secretary of State under the Shopping Direction, and subject to the completion of a s.106 Agreement dealing with a wide range of matters (set out in the report to that Committee). On 12 June 2002, the Government Office for the South West notified the Council that the Secretary of State did not intend to call in the applications for his own determination.

4.2 Work has continued by the professional team employed by the developers Morley Fund Management ("Morley") which is a subsidiary company of the Headlesee CGNU. The Morley team is undertaking further and detailed work on all matters needed to bring the scheme to fruition. Council officers and their advisers have been working with Morley. Some of the major work areas include:

- planning - detailed design, negotiations on the items listed for inclusion in the s.106 Agreement, etc.

- construction - drafting specifications, costings, etc.

- property - identifying precisely the interests to be acquired, and the terms of the Development Agreement to be signed between Morley and the Council. In essence, the Development Agreement will commit Morley to building the new scheme, and the Council as freeholder to subsequently grant Morley a new, long Headlease upon prior agreed terms (governing rent, repair, use, etc.).

4.3 Morley are continuing to apply resources to progressing the scheme. Morley have asked that they receive an "in principle" decision of support for the scheme, and the process. Particularly, Morley wish to be able to rely upon the Council being prepared to support the development process at the site assembly stage. Morley acknowledges this "in principle" support by the Council (acting through the Executive) will be subject to conditions (set out later in this report).

5. THE NEED FOR A COMPULSORY PURCHASE ORDER

5.1. Between them, the Council and Morley own the freehold of much of the site. Many (but not all) of the properties are occupied by traders (and others) upon a legal basis which allows the freeholder to regain possession upon service of notice upon the occupier. Negotiations will be progressed as far as possible with all parties to reach a voluntary agreement. However it is necessary to consider what the position would be if this could not be achieved and the Council would need to consider the powers available to it to secure the achievement of its objectives.

5.2 A Compulsory Purchase Order achieves three major advantages by -

- giving certainty of availability of all the land and property rights necessary for the redevelopment to proceed in a timely and efficient manner;

- giving all affected parties the right to object and be heard at a public inquiry together with rights to compensation, and assistance with the costs involved;

- ensuring that clear legal title to all the land vests in the acquiring authority (the Council).

5.3 A local authority has the power to compulsorily acquire any land in its area which is suitable for and required in order to secure the carrying out of development, redevelopment, or improvement (s.226(1)(a) Town and Country Planning Act 1990). In essence, the Executive (or the Council) will formally "resolve" to make a Compulsory Purchase Order; this may lead to a Public Inquiry and the hearing of objectors before a government Inspector recommends confirmation (or not) of the Order. After confirmation, when the Order comes into effect, the acquiring authority (the Council) will have the ability, by serving statutory notices, to ensure that the developer's contractor can go on site and build the scheme.

5.4 Prior to the Head of Property & Legal Services recommending a Resolution to make a Compulsory Purchase Order, progress towards several key events must be assessed; including the:

- completion of the s.106 Agreement;

- issue of the planning permissions, (conservation area consents, and listed building consents have already been issued);

- completion of the Development Agreement;

- completion of an Indemnity Agreement (whereby the developer undertakes to meet the costs of the Council in making and implementing a Compulsory Purchase Order).

5.5 At this stage the Council Executive is being asked to confirm its support in principle. The Head of Property and Legal Services will take expert legal and other professional advice as the project proceeds, and will keep the position under review whilst the terms and documents referred to in the preceding paragraph are being finalised. Indications are that this formal next stage will be reached later this year.

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This version was printed 21-Feb-03 3:56