Wolverhampton City Council

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1 Agenda Item: 8G Wolverhampton City Council OPEN EXECUTIVE DECISION ITEM (AMBER) CABINET Date 14th JULY 2010 Portfolio(s) REGENERATION & ENTERPRISE/ COUNCILLOR MRS BRADLEY Originating Service Group(s) REGENERATION & ENVIRONMENT CUSTOMER & SHARED SERVICES Contact Officer(s)/ JOHN BROTHERS - EXT 4823 Telephone Number(s) KEVIN MOORE - EXT 5570 MARK TAYLOR - EXT 6609 BOB BALDWIN - EXT 4962 KEY DECISION: IN FORWARD PLAN: YES YES Title: ALL SAINTS VICARAGE ROAD/RABY STREET COMPULSORY PURCHASE ORDER Recommendations i) That the changes in respect of this project since the previous report to Cabinet on 15 July 2009 be noted. ii) iii) iv) That the continuing negotiations to acquire properties required for the redevelopment of Vicarage Road/ Raby Street All Saints be noted. That the Wolverhampton City Council (Vicarage Road/Raby Street) Compulsory Purchase Order 2010 be made 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 respect of the acquisition of interests in land at Raby Street and Vicarage Road, as defined by the red boundary on the attached plan 1 (Vicarage Road/Raby Street CPO Boundary). That the Director for Regeneration & Environment, the Director for Customer and Shared Services and the Chief Legal Officer be authorised : a) To take all necessary steps as soon as is reasonably practical to secure the making, confirmation and implementation of the Order, including the publication and service of all notices and the presentation of the Council s case at any public inquiry; 1

2 b) To acquire interests in land and new rights within the Order, either by agreement or before or after the making of the Order or; c) To approve agreements with landowners setting out the terms for the withdrawal of objections to the Order, including where appropriate seeking exclusion of land or new rights from the Order and/or making arrangements for rehousing or relocation of interests affected. v) That the measures to be put in place to mitigate the Council s potential financial liabilities under the Order be noted. vi) That following confirmation of the Order, a General Vesting Declaration be made under the Compulsory Purchase (Vesting Declarations) Act 1981 in respect of any or all of the interests in land included in the Order and that Notices to Treat be served for any minor interests that exist for tenancies of less than 1 year. 2

3 1.0 Purpose of Report 1.1 The purpose of this report is to :- (i) (ii) (iii) To note progress in respect of this project since the previous report to Cabinet on 15 July To note the requirement to make a slight revision to the proposed Compulsory Purchase Order boundary to take account of new information on the extent of private land ownership. To seek approval to now make the Vicarage Road/Raby Street Compulsory Purchase Order as defined by the red boundary on the attached plan Background 2.1 On 17 October 2007, Cabinet endorsed the City Council s All Saints Renewal and Investment Strategy. Cabinet also approved, in principle, the use of compulsory purchase powers for various properties in Vicarage Road and Raby Street for the redevelopment of this area. 2.2 On 15 July 2009, Cabinet authorised the making of a CPO and a marketing campaign and procurement process for selection of a developer to undertake the development including the sites known as Vicarage Road/Raby Street and Gordon Street through an OJEU (Restricted Procedure). Cabinet also approved the Heads of Terms to a Framework Agreement with ABCD Development Trust which would govern the way the two parties cooperated to achieve the redevelopment by incorporating their own land and also provide the Council with an indemnification towards the costs of land acquisition No. expressions of interest were submitted by developers following the marketing campaign earlier this year, demonstrating a real interest in the site and the opportunity to be appointed as the development partner. 2.4 A shortlist of six developers has now been asked to submit tenders by 12 August 2010 with a view to being able to make a recommendation to Members as to a development partner in September. 2.5 A number of properties within the development area have been purchased by ABCD Development Trust and the City Council by agreement and negotiations are in progress for the acquisition of remaining private interests in advance of any CPO. However, to ensure that the redevelopment can proceed, the Council will need to seek compulsory purchase powers. 2.6 In preparation of the proposed Compulsory Purchase Order, further land referencing has been undertaken to identify the extent of private land interests within the development area. As a consequence, land lying to the west of 2 Vicarage Road, previously believed to have belonged to the Council, is now confirmed as being in private ownership and will now be included within the CPO boundary. Furthermore 28 Vicarage Road is excluded from the CPO boundary as it will be not necessary to 3

4 acquire the full freehold interest in this property, although rights will be required to reinforce a Party Wall on the demolition of 26 Vicarage Road. 3.0 Report Detail 3.1 The extent of the two sites which have been marketed is as shown by the red line development boundary on the attached plan, titled Gordon Street and Raby Street Sites - The Development Area". The amended CPO boundary is shown on the attached plan 1, and comprises 2-26 Vicarage Road, 53-79/81 Raby Street and Raby Street and land adjacent to 56 Raby Street, but no longer the open space on the corner of Raby Street and Powlett Street, nor the land at Gordon Street which are both owned by the Council. The freehold acquisition of 28 Vicarage Road is also excluded, but rights will be required to treat the party wall with no 26 Vicarage Road on the demolition of that property. 3.2 The open space area at the corner of Raby Street and Powlett Street falls within the development boundary. Its disposal will be dealt with under provisions contained in the Local Government Act 1972 which require the advertisement of any proposal for the sale of open space land in the local press. The Council will then have to consider any objections made to the disposal and decide whether or not to proceed with the disposal. If a decision is made not to proceed with the disposal then the Council will have to review these proposals and consider whether to continue with the compulsory purchase proceedings. 3.3 The Order Land includes part of an alleyway which runs between properties in Raby Street and Vicarage Road outside the Order Land. The ownership of the alleyway is uncertain but residents have rights of access along it. Where the Council thinks that residents may have a claim for compensation for permanent interference with these rights, then it must include their interests in the Order. In this case, the proposed development will be required to maintain a right of access for all residents outside the Order along the alleyway and to incorporate a new exit at the northern end. On this basis, it is not considered there will be any diminution of value of properties which enjoy rights over the alleyway and indeed there are likely to be benefits arising from the scheme. In any event, all residents will be notified of the Order and will be given an opportunity to object if they wish to do so. However on the grounds that the Council believes that these residents will not have a claim for any permanent interference with their rights, they will not be included in the Order Schedule. 3.4 Negotiations to purchase some properties in Vicarage Road/Raby Street, All Saints have been successful. However, not all negotiations to acquire interests in Vicarage Road/Raby Street by agreement have been successful, therefore it is proposed to make a Compulsory Purchase Order to secure their acquisition. Negotiations will, however, continue whilst the Order is being made. 4

5 3.5 A resolution to grant outline planning permission for both the Vicarage Road/ Raby Street and Gordon Street sites has been approved for a combined scheme providing approximately 90 new homes plus public open space and improved connectivity throughout All Saints. Any developer appointed will be expected to agree with the details of a scheme meeting the requirements of the Development Brief with the Council and ABCD before securing its own planning permission. 4.0 Exercising Compulsory Purchase Powers 4.1 The Council has the power under Section 226(1) (a) of the Town and Country Planning Act 1990 (as amended by the Planning and Compulsory Purchase Act 2004) to make a Compulsory Purchase Order for any land in their area if the Council think that the purchase of the land will facilitate the carrying out of development, redevelopment or improvement on or in relation to the land. 4.2 The Council may not exercise the power under Section 226(1) (a) unless they think that the development, redevelopment or improvement is likely to contribute to the achievement of the promotion or improvement of the economic, social or environmental well-being of their area. 4.3 OPDM Circular 06/2004 (Compulsory Purchase and the Crichel Down Rules) provides updated and revised guidance to acquiring authorities on the use of compulsory purchase powers. In relation to orders made under the Town and Country Planning Act 1990, Appendix A of the Circular states: "The powers in Section 226 as amended by Section 99 of the Planning and Compulsory Purchase Act 2004 are intended to provide a positive tool to help acquiring authorities with their planning powers to assemble land where this is necessary to implement the proposals in their community strategies and Local Development Documents. These powers are expressed in wide terms and can, therefore, be used by such authorities to assemble land for regeneration and other schemes where the range of activities or purposes proposed means that no other single specific compulsory purchase power would be appropriate". 4.4 Importantly, the Circular requires that a Compulsory Purchase Order should only be made where this is a compelling case in the public interest. 4.5 The Circular provides that any decision by the Secretary of State about whether to confirm an order under Section 226 will be made on its own merit but the factors which the Secretary of State can be expected to consider include:- (a) (b) (c) whether the purpose for which the land is being acquired fits in with the adopted planning framework for the area; the extent to which the proposed purpose will contribute to the achievement of the promotion or improvement of the economic, social or environmental wellbeing of the area; the potential financial viability of the scheme for which the land is being acquired; and 5

6 (d) whether the purpose for which the acquiring authority is proposing to acquire the land could be achieved by other means, e.g. alternative proposals put forward by the owners of the land. 4.6 The Circular also requires the Council to have regard to other factors including whether the scheme is likely to be blocked by planning or other impediments to implementation and the degree to which other parties (including the private sector) have agreed to make financial contributions or to underwrite the scheme. 4.7 In addition, the Circular requires authorities to be sure that the purpose for which it is making a Compulsory Purchase Order sufficiently justifies interfering with the human rights of those with an interest in the land affected, having regard in particular to the provisions of Article 1 of the First Protocol of the European Convention of Human Rights and, in the case of a dwelling, Article 8 of the Convention. In this respect, Article 1 protects the rights of everyone to the peaceful enjoyment of possessions, so that no-one can be deprived of them except in the public interest and subject to the relevant national and international laws, and Article 8 protects private and family life, home and correspondence so that no public authority can interfere with these rights except if it is in accordance with the law and is necessary in the interest of national security, public safety or the economic well-being of the country. 4.8 The proposals are broadly in line with the Development Brief for the area save that in respect of the Order Land only phase 1 is included. The Development Brief is adopted Supplementary Planning Guidance based on the adopted Unitary Development Plan and was approved by the Council following public consultation. 4.9 It is intended that the development will significantly improve the social, economic and environmental well-being of the area by overcoming the problems in the area and creating an attractive environment where people will want to live in good quality housing, with significantly improved living conditions, more housing choice, with improved safety and security and enhance quality public realm The Council have obtained advice as to the likely overall liability which could arise if the Compulsory Purchase order is confirmed and implemented and has identified funds within the Council and through agreement with ABCD to meet these costs. Whilst ABCD will cease to exist after March 2011, arrangements have been made to ensure funding remains in place to take the scheme forward beyond this date. Once submissions have been received from Developers the funding basis of the project may be reviewed and a further report on funding presented to Members. However, the emphasis on this project is to secure a quality development and it will not be necessary to rely on developer contributions to ensure the scheme can proceed No landowner has come forward with an alternative way in which the purpose can be achieved. Whilst the Council would have liked to promote a scheme on the whole of the area identified in the development brief, it is felt that the land in phase 1 is the minimum required to achieve the step change" in the area which is being sought by this initiative. 6

7 4.12 The Project Team consider that the acquisition of the privately-owned properties in All Saints 1 referred to above is necessary in the interests of the regeneration of the area and, having regard to all of the relevant statutory and advisory criteria set out above, recommend that a Compulsory Purchase Order be made for this purpose. In this respect, the team consider that there is a compelling case in the public interest for the exercise of compulsory purchase powers and that this would be proportionate and justified in the circumstances including in relation to the human rights of individuals having an interest in the properties. 5.0 Financial Implications 5.1 The estimated costs of land acquisition and the compulsory purchase process are being carefully managed in order to ensure that they do not exceed the sum which has been identified and set aside by ABCD specifically for this project. The details of which were set out in the indemnity given by ABCD to the Council under the Framework Agreement which was completed on 2 July This includes the development of risk mitigating measures to protect the Council s financial position due to the time limited nature of the ABCD funding, which has to be spent by 31 March The requirement to make a slight revision to the proposed Compulsory Purchase Order boundary, will have no material impact of the existing financial implications and risks associated with this project. 5.3 The Council are intending to enter into a Development Agreement with the successful Tenderer and a further report will be submitted in due course detailing associated financial implications and risks for the Council. [MT/ /O] 6.0 Legal Implications 6.1 The Council is empowered to promote Compulsory Purchase Orders by virtue of Section 226 of the Town and Country Planning Act 1990 as amended by Part 8 of the Planning and Compulsory Purchase Act 2004, Section 13 of the Local Government Miscellaneous Provisions Act 1976 and by the Acquisition of Land Act 1981, as amended. 6.2 In order to make a Compulsory Purchase Order and to submit it for confirmation, it is necessary to identify a power under which the Order can be made. As the land in question is in need of regeneration, the Order will be made under Section 226 of the Town and Country Planning Act 1990 which authorises acquisition of land to facilitate development, redevelopment or improvement of land. 6.3 It should be noted that the procedure for obtaining a confirmed Compulsory Purchase Order is lengthy and requires much supporting documentation, such as a Statement of Reasons, certificates in support, and for a personal notice of the making of the Order to be served on all interested parties. It will be appreciated that until a Compulsory Purchase Order is confirmed, the land cannot be compulsorily purchased and consequently no liability incurred to pay compensation. There may 7

8 be a risk that a blight notice may be served, but the Council has the financial resources to meet this cost (see above). 6.4 Once the necessary documentation is prepared and the Order made this will be submitted to the Secretary of State for confirmation. 6.5 The Council may confirm an unopposed Compulsory Purchase Order but if an objection is made and not withdrawn the Secretary of State will call for a public inquiry to be held, which lengthens the process for obtaining the Order even more. If any objection is withdrawn or if there are no objections the Order may be confirmed by the Secretary of State or the Local Authority where appropriate. The process of acquiring the properties can then begin. 6.6 The remaining legal implications in connection with making a CPO are fully referenced elsewhere in this report. 7.0 Equal Opportunities Implications 7.1 This report has implications for the Council s equal opportunities policies as it deals with the redevelopment of a major investment site in the New Deal area to provide a high quality residential development within a diverse community. 8.0 Environmental Implications 8.1 This report has implications for the Council s environmental policies in that it will bring forward the development of sites necessary to regenerate a location blighted by social and economic deprivation. The new development has been conceived and supported by the local community. 9.0 Schedule of Background Papers All Saints Vicarage Road/Raby Street Compulsory Purchase Order Cabinet Report dated 15 July

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10 El Sub Sta 241 Gordon Street and Raby Street Sites - The Development Area Raby Street Warehouse CLEVELAND ROAD 156.1m Posts TCB Shelter The Royal Shelter POWLETT STREET 157.6m BM m Ward Bdy 2 VICARAGE ROAD 20 Garage 2a 151.7m 158.5m Playground Vicarage TCB SUTHERLAND PLACE 157.0m SUTHERLAND PLACE STEELHOUSE LANE Garage 3 RABY STREET to 63 Works Builder's Yard Cleveland House Car Park Car Park 152.1m BM m Works JENNER STREET Works 159.1m LB a GORDON STREET 48 GORDON STREET GORDON STREET 151.5m El Sub Sta Wks EVER STREET 79 68a 68b 70 BM m DARTMOUTH STREET PH 56 GRANVILLE CLOSE DARTMOUTH STREET GRANVILLE STREET m 157.3m GRANVILLE STREET GRANVILLE STREET RABY STREET HOWARD STREET ADELAIDE WALK 28 Playground Wedge Building 160.0m All rights reserved Wolverhampton City Council OS Licence Number Copyright MAXWELL ROAD MAXWELL ROAD 71 Playground 1:1,