Cabinet Member Report Decision Makers: Cabinet Member for Housing, Regeneration, Business and Economic Development. Cabinet Member for Built Environment Date: 12th August 2014 Classification: General Release with Exempt Appendices F & G Title: Tollgate Gardens Estate – Intention to make a Compulsory Purchase Order Wards Affected: Maida Vale Policy Context: Housing Renewal, Core Strategy Financial Summary: This report relates to the proposed Compulsory Purchase Order of the Tollgate Gardens Estate. The budget required to fund this and the enabling work for the regeneration is included within the Housing Revenue Account Plan approved by Cabinet in March 2013. Report of: Strategic Director of Housing, Regeneration Property Strategic Director Built Environment 1. Executive Summary 1.1 The purpose of this report is to recommend the making of the Tollgate Gardens Estate Compulsory Purchase Order (“CPO”). This will enable the compulsory acquisition by the Council of land and interests falling within the red line area on the plan attached at Appendix A required to facilitate the redevelopment of the Tollgate Gardens Estate ("the estate / the site") under section 226(1) (a) of the Town and Country Planning Act 1990 (as amended). This will affect freehold and leasehold interests, third party rights and landowners impacted by the acquisition and creation of new rights. The CPO is required as a contingency measure to ensure the development can proceed should the Council fail to reach a negotiated settlement with the relevant affected parties. 1.2 This report confirms the Council’s intention to commence a compulsory purchase procedure subject to the final detail of the CPO being delegated to the Strategic Director of Housing, Regeneration and Property in consultation with the Strategic Director Built Environment and the Head of Legal and Democratic Services to deliver the project as approved by the planning committee, once the referencing of all interests is complete and final documentation required to make the CPO is completed. 1.3 The Council has powers under the Town and Country Planning Act 1990 (as amended) and ancillary legislation to undertake land assembly. The comprehensive regeneration offered by this scheme provides an opportunity which is unlikely to proceed without the use of a CPO as vacant possession of the development site is required to enable demolition and redevelopment in relation to this project. 1.4 Following a positive vote by residents for the redevelopment of the estate in November 2010, Cabinet approved the Tollgate Gardens master plan on 27 June 2011 and authorised officers to progress developing the design of the scheme towards a planning application. The approval also authorised officers to enter into negotiations for the Council to acquire the leasehold interests in Godwin House and Wingfield House by agreement and investigate the necessity of commencing a CPO. It was also agreed that where voluntary acquisition could not be secured, a further report would be made at the appropriate time recommending that all outstanding interests be made the subject of a CPO. 1.5 On 20 February 2012 Cabinet reviewed the risks and viability of the redevelopment, and confirmed that the planning application should be submitted. A viability report prepared at that time demonstrated that the scheme was viable. In October 2012 the Council appointed BDP architects, who worked with residents and officers to submit a planning application for a scheme based upon the approved master plan scheme, involving demolition of 1- 57 Godwin House NW6 5SJ and 1-32 Wingfield House NW5 5SH together with the community hall attached to Tollgate House. In December 2013, a potential development partner was engaged to produce checks on the schemes viability based on current market conditions, this assessment served to show the final project remained viable. 1.6 On 14th May 2013 the Cabinet Member for Housing approved the Tollgate Delivery report which gave secure tenants on the estate decant status, and approved the issuing of Initial Demolition Notices (“IDNs”) suspending the Right to Buy. IDNs were subsequently served on all secure tenants in Wingfield and Godwin. 1.7 Purchases of leaseholder properties in Godwin and Wingfield, commenced in the autumn of 2012 by Westminster Community Homes Ltd (WCH) acting under agreement, as the Council’s agent. At that point there were 29 leasehold interests in Godwin and Wingfield Houses, which the Council needed to acquire to enable the redevelopment to proceed. One further property was purchased before the IDNs were served taking the total to 30 to be bought out. 1.8 To date 22 leasehold interests have been acquired by agreement and negotiations are ongoing in respect of the remaining 8 lessees, one of whom has exchanged contracts to move, see Appendix F for further details. 1.9 There were originally 53 secure tenants remaining in Wingfield and Godwin needing to be re-housed from Godwin and Wingfield at the time that the Tollgate Delivery report was approved in May 2013 as well as 6 void tenanted properties (59 secure tenants). All tenants have accepted offers or moved and two of these are still waiting to move. 1.10 The residents in Tollgate House are also included in the CPO but they will be affected by the development on the estate to a lesser extent than those in the other blocks, as they will be able to remain in their homes. External consultants involved in the project, have advised Council officers that only two households will be required to move from Tollgate House on a temporary basis to facilitate more extensive refurbishment / improvement works. The rights and easements of Tollgate House residents over the existing estate will be affected as they extend over the development site. 1.11 It is therefore necessary to include Tollgate House within the Order Land in order to extinguish the rights currently enjoyed by its residents necessary to achieve the redevelopment. It will however be made clear to the leaseholders and tenants at Tollgate House that their interests are being included in order to acquire rights which are appurtenant to them and it is not intended that they are displaced. It is proposed that an agreement to release any rights over the estate will be entered into with leaseholders in return for formal agreement by the Council not to enforce any CPO against them. In respect of the tenancies, statutory security of tenure does not prevail. 1.12 The Cabinet Member for Business, Skills and Housing and the Cabinet Member for Built Environment (“the Cabinet Members”) are therefore requested to authorise: I. The exercise of the Council’s powers of compulsory purchase to acquire all land and outstanding interests in the site and to acquire new rights to facilitate the redevelopment of the estate falling within the red line area shown on the plan at Appendix A; and II. To create new rights in order to secure the development of this renewal scheme and the associated public benefits. 1.13 At the time of writing this report, the extent of land to be acquired is shown at a maximum coloured pink and new rights to be acquired / created are shown at a maximum coloured blue (interests acquired relate only to easements and rights of light) on the draft Order Map attached at Appendix D (“Order Land”) and detailed in section 2.2 below. In addition, the draft Schedule of Interests (“Order Schedule”) is included at Appendix E. 1.14 Proposals for the redevelopment of the site have now been finalised and on 19th November 2013, the Council’s planning sub-committee resolved to grant a planning permission for the scheme subject to GLA approval and the signing of a Section 106 Unilateral Undertaking (UU). GLA approval has now been granted and the terms of the UU are agreed and due to be signed shortly. The Cabinet Member for Business, Skills and Housing and the Cabinet Member for Built Environment are therefore asked to agree the use of the Council’s powers of compulsory purchase to acquire the remaining 8 leasehold interests (one has exchanged contracts) and 2 tenants in Tollgate Gardens Estate, who are still in occupation at the date of this report as well as any other third party interests which exist. 2. Recommendations 2.1 That Appendices F and G to this report be exempt from disclosure by virtue of the Local Government Act 1972, Schedule 12A, Part 1, paragraph 3 (as amended), in that both documents contain information relating to the financial or business affairs of any particular person (including the authority holding that information). 2.2 That the Cabinet Members are requested to note the draft Statement of Reasons attached to this report which sets out the justification for making the City of Westminster (Tollgate Gardens Estate Regeneration) CPO 2014, in relation to the red-line land shown at Appendix A. 2.3 That the Cabinet Members agree to the making of a CPO (or CPOs as required) pursuant to s.226 (1) (a) of the Town and Country Planning Act 1990 (as amended), s.13 and s.15 of the Local Government (Miscellaneous Provisions) Act 1976 (in accordance with the procedures in the Acquisition of Land Act 1981) and other relevant powers, to acquire all outstanding interests in the site and to acquire and create new rights facilitating the proposed development and to submit to the relevant Government office for confirmation for the acquisition of the land shown coloured pink and the creation and acquisition of new rights over the land shown coloured blue on the Order Map for the purposes of facilitating the comprehensive re-development of the Tollgate Gardens Estate. Maida Vale NW6, as detailed in the Order Schedule. This will be subject to the Strategic Director of Housing, Regeneration and Property & the Strategic Director for the Built Environment acting with a delegated power to receive, agree, vary as necessary and approve all order documentation and plans, prior to making the compulsory purchase order. That the Cabinet Members authorise officers to proceed in accordance with recommendations 2.3 – 2.7, as they relate to the delivery of the Tollgate scheme as approved by planning committee in November 2013, as detailed below: 2.4 That the Cabinet Members agree to delegate to the Strategic Director of Housing, Regeneration and Property & the Strategic Director for the Built Environment, working with the Head of Legal Services, to modify the draft Statement of Reasons, the Order Map and Order Schedule as necessary to finalise before submission and effect any other procedural requirements including (but not limited to) the publication and service of all notices and the presentation of the Council’s case at any public inquiry; 2.5 That the Cabinet Members agree to delegate to the Strategic Director of Housing, Regeneration and Property, to acquire any interests in land within the Order area by agreement and the making of payments equivalent to statutory compensation (or payments as are deemed reasonable in the circumstances) and the provision of property or services in lieu of compensation, in contemplation of the Order being made; 2.6 That the Cabinet Members agree to delegate to the Strategic Director of Housing, Regeneration and Property & the Strategic Director Built Environment, working with the Head of Legal Services, to ensure, if the CPO is confirmed, that the Order is implemented. The Cabinet Members agree to the acquisition of the land and the acquisition and creation of new rights which are the subject of the CPO, subject to there being no material change in circumstances that would mean that the council cannot properly pursue the CPO including the acquisition of interests by use of General Vesting Declarations; 2.7 That, if the CPO is confirmed, the Strategic Director of Housing, Regeneration and Property be authorised to settle the compensation amounts payable in the acquiring the interests if voluntary agreements cannot be reached; 2.8 That the Cabinet Members authorise officers to take all necessary steps to implement these resolutions. 3. Reasons for Decision 3.1 To ensure that the master plan proposals for Tollgate which Members have already approved in principle may proceed and to ensure that an effective delivery plan is in place and to deliver the scheme. 3.2 An alternative option that has been considered is for the Council not to make a CPO for the estate and to endeavour to assemble the site for development. The Council has been negotiating with tenants and leaseholders in an effort to reach to an agreed position for almost 2 years and now feels it has reached a position of last resort (further details on the Councils negotiation history is referenced in the statement of reasons see Appendix B) which now requires the CPO to be made. Without CPO powers therefore the Council cannot guarantee that the requisite land can be assembled to enable the consented scheme to be delivered. The development is of strategic importance to the Council as the first of the Councils housing renewal programme for the borough and will deliver necessary new housing. 3.3 Consideration of whether the Council should proceed with a CPO under either s.17 of the Housing Act 1985 (‘the housing power’) or s.226 (1) (a) of the Town and Country Planning Act 1990 (‘the planning power’) has been fully explored in conjunction with Advice received from Counsel. Although Circular 06/2004 Compulsory Purchase and the Crichel Down Rules (“the Circular”) explains that acquiring authorities should proceed under the most specific power available to them (para.15), it also explains that confirmation of a CPO will not be refused solely on the basis that the authority could have proceeded under another power, provided of course that the power they have sought to use is applicable (Annex E, para.8). The regeneration of Tollgate is a redevelopment project and, given the quantitative and qualitative improvement in the Borough’s housing stock that will result, it can be reasonably concluded that there will be an improvement in the social and environmental well-being in the area. 3.4 Whilst the redevelopment scheme for which planning permission has been approved in principle is essentially for a housing scheme, consideration of the nature of the redevelopment works being carried out and the nature of the interests existing over the land to be redeveloped have been explored. This has included consideration of Tollgate House which is being retained and the majority of its residents will remain in situ throughout the duration of the redevelopment works. Those residents in Tollgate House will have rights of access etc over the land which is being redeveloped and which, if not released, substituted or overridden, would have the potential to hold up the redevelopment works. Similarly, a number of properties located in proximity to Tollgate have injunctable rights of light which again, if not released or overridden, such rights would have the potential to hold up the redevelopment works. 3.5 The Council as part of its negotiations is seeking to secure the release or substitution of the rights over the redevelopment land by agreement with the affected parties (such as statutory undertakers and estate residents and owners and occupiers of neighbouring properties who have such rights) and such negotiations will continue. Should it prove impossible, compulsory acquisitions of rights under the planning power will enable the redevelopment to proceed without impediment. 3.6 Furthermore, the community hall being provided as part of the redevelopment proposals is intended not just for use by residents, but also for use by the wider public. The housing power does enable local authorities to acquire land to provide inter alia other buildings in connection with housing accommodation provided by them, provided that the Secretary of State considers such other buildings will serve a beneficial purpose in connection with the requirements of the persons for whom the housing accommodation is provided. Insofar as it is being provided at least in part for the benefit of residents of the estate, the acquisition of land for the construction of the community hall does fall within the scope of the housing power, but arguably sits more comfortably and naturally within the scope of the general redevelopment power. 4. Background, including Policy Context 4.1 The Tollgate Gardens Estate (location plan and views of the scheme in Appendix D) was built in the late 1960s and early 1970s and was transferred to the Council from the London Borough of Brent in June 1994 as part of boundary changes. The estate is a relatively low density combination of five separate blocks of varying heights. 4.2 Tollgate Gardens is one of the Housing Renewal areas as set out in Westminster’s Housing Renewal Strategy (HRS, March 2010). Through the Housing Renewal Strategy, the Council aims to increase the supply and quality of affordable housing to meet a variety of local needs including families, and to improve the quality of the local environment. 4.3 The Tollgate Gardens Estate is identified in the Council’s March 2010 Housing Renewal Strategy as an area which needs improvement as it has not had significant investment, over and above planned maintenance, for some years and would also require £3.8m over the next 30 years in planned maintenance. This planned maintenance programme would not deal with inefficiencies of space which could otherwise provide much needed additional housing, poorly laid out public spaces, perceived anti social behaviour, high rate of resident turnover, and demands to move out of the estate even from those who are not necessarily overcrowded. In addition there was a need to rebalance the size of homes across the estate to provide for current need if residents and build homes with more up to date layouts (such as the provision of one bed homes to replace bedsits). 4.4 The five core principles to be used for identified renewal areas of Westminster such as Tollgate Gardens as outlined in the Housing Renewal Strategy are: • • • to increase the supply and quality of affordable housing to meet a variety of local needs including for families; to improve the quality of the local environment with outstanding green and open spaces and housing that promotes low energy consumption and environmental sustainability; to promote a high quality of life for people of all ages and backgrounds in safe cohesive and healthy neighbourhoods, supported by a range of high quality housing and excellent community facilities; • • to enable people to maximise economic opportunity with housing tenure with support for training, employment and enterprise, and housing tenures which help those in work to remain in the City; To create a more distinct sense of neighbourhood ending the physical divide between Westminster’s estates and surrounding local streets. 4.5 A master plan for the redevelopment based on option 4 was approved by Cabinet on 27 June 2011(background document to the report) 4.6 An application for planning permission was submitted to the Local Planning Authority on 14 June 2013 (reference 13/05695/COFUL). The description of the development was as follows: ‘Demolition of Godwin and Wingfield Houses and ancillary garages in connection with the Estate Regeneration to provide 248 residential units with 5 new buildings of between 2-9 storeys and the retention of Tollgate House with associated external alterations (to Tollgate House), construction of a new single storey community centre and associated car parking, landscaping and open space.’ On 19 November 2013, the Planning and City Development Committee granted conditional approval, subject to the completion of a legal agreement and referrals, to the development scheme for Tollgate House Gardens. The new scheme will provide: • a mix of affordable and private homes, and a mix of sizes from one to three bedrooms • The removal of the existing community hall from Tollgate House and two of the 195 new build residential units created in its place. The new and enlarged community centre will have direct access from Kilburn High Road. • Improved public realm, new play areas, parking for 99 vehicles and cycle storage, all homes will benefit from communal open space, and private gardens or private balconies/terraces. • All 59 social rent homes in Godwin and Wingfield will be reprovided and there will be overall an increase of 31% affordable 1floor space over that currently on the estate. • 10 of the affordable units will be intermediate, first refusal as equity loan homes whereby returning resident leaseholders may buy and own new homes that are worth more their current homes, with the Council providing the balance of monies for the additional equity. The proposal is for this to be secured by way of a charge against the property with a mechanism for repayment. As none of the resident leaseholders have now accepted this offer (having being notified of the opportunity in writing) these homes will be offered as shared ownership to eligible returners or people from the Council’s housing waiting list. 4.7 Unfortunately the development was not financially viable with 35% of net new affordable floor space being provided, as requested by planning policy. Officers revised the scheme to a breakeven point and ask the planning committee to consider, that all the Council housing renewal schemes must be capable of self-funding to be delivered. This meant a reduction in the percentage of net new affordable units, to 31%, was required. A viability assessment was submitted to back up this claim and was reviewed and verified by an independent assessor for the planning authority. Overall across the renewal areas and other projects in the Borough, the Council do typically achieve above the 35% of affordable housing but clearly on some less viable projects it will be less. 4.8 It is considered that delivering these benefits, and any other minor alterations to improve the viability, quality and deliverability of the scheme which will result in a significant transformation of the area and help achieve the aims set out in the Housing Renewal Strategy, would be in the public interest. The new Tollgate Gardens will make a positive impact on this key location for new and returning residents and the improved Tollgate House, with the improved elevations and new community hall facing Kilburn High Road, new access to the High Road and bespoke sustainable and varied landscaping, will also be significant benefits for residents of Tollgate House. 4.9 The Council’s powers to compulsory acquire land for planning purposes are provided for under s.226 (1) (a) of the Town and Country Planning Act 1990 (as amended). This provides a positive tool for local authorities to assemble land in order to facilitate the carrying out of development, redevelopment or improvement on or in relation to that land. Ancillary powers to create new rights and to override interests in land are also provided under s.13 of the Local Government (Miscellaneous Provisions) Act 1976 and s.237 of the Town and Country Planning Act 1990, respectively. Despite the ongoing negotiations with third parties it is anticipated that the Council will not be able to secure by agreement all the interests for the Tollgate regeneration within the timescale needed for delivery of the scheme. And thus it is necessary to use the powers described above. 4.10 Guidance is given on these issues and the other concerns that the Council should take into account in the Circular as mentioned at 3.3 above. CPO powers should only be exercised where there is a compelling case in the public interest. Compulsory acquisition is usually a last resort, and acquisitions should be by way of agreement wherever practicable. As outlined in 1.7 above, significant negotiation has taken place over a considerable period of time. Despite the ongoing negotiations it is anticipated that the Council will not be able to secure all the interests within the timescale needed for delivery of the scheme. Hence it is appropriate for the Council to initiate the CPO process in tandem with these negotiations. 4.11 Council officers have engaged external Counsel to provide ongoing legal guidance on CPO related matters. 5. Reasons for the CPO 5.1 Section 226 of the Town and Country Planning Act (as amended) enables the Council to acquire land compulsorily for "planning purposes". These powers may be used if acquiring the land will facilitate the carrying out of the development, redevelopment or improvement on or in relation to the land being acquired and it is not certain that it can be done by way of acquiring through agreement. This is a wide power and it is subject to sub section (1A) of section 226 which provides that an acquiring authority must not exercise this power unless it thinks the proposed development; redevelopment or improvement is likely to contribute to achieving the promotion or improvement of the economic, social or environmental wellbeing of the area. 5.2 In respect of Section 226 (1) (a), the Council is not certain that it can acquire the land in question by agreement. There are still 7 leaseholders who have not moved, and one who has only exchanged contracts (total 8). Although all tenants have accepted offers of new flats two tenants have not moved yet. This is after nearly 2 years of informal negotiations with the leaseholders and nearly a year of working with secure tenants through the Choice Based Lettings system and direct offers after that. Many of these tenants and lessees have had several visits and many phone calls to assist them in order to reach a satisfactory conclusion in negotiations. In addition, the residents of Tollgate House have interests which will be interfered with by the regeneration works and it is necessary therefore to include these interests in the CPO to ensure that the development may proceed. Tollgate House residents have been involved in consultations generally including in the redevelopment proposals of the estate and had an opportunity to input and also object to the proposed planning application submitted. 5.3 The Council at Gate panel in January 2014 approved the Procurement Strategy to procure a developer partner for the Tollgate Gardens Estate. Council officers are currently in the process of sending out Expressions of Interest to the 8 developers on the Council’s approved Development Framework Panel which was signed in March 2013, in order that the Tollgate Gardens regeneration may proceed. Once the developer is selected (anticipated September 2014) the Council will be working towards obtaining vacant possession by mid 2015 to enable the developer to start on site at Tollgate. Given the time already allowed for negotiations with leaseholders and making offers to secure tenants it is the view that use of the power pursuant to section 226(1) (a) would be appropriate, and would justify applying to the Secretary of State for confirmation of the compulsory acquisition of the land. Mindful of the disruption and interruption of their rights the Council has ensured that the affected leaseholders and tenants who have already moved from the blocks due to be demolished in anticipation of the CPO being made, have been adequately compensated. In addition the offer to leaseholders and secure tenants is as outlined in 5.4 below. A copy of the leaseholder policy is available on the Councils website. 5.4 Both secure tenants, resident and non resident leaseholders are receiving statutory compensation to support their moves be they temporary or permanent. They do however have significant additional generous support over and above the statutory requirement which in the case of secure tenants is to pay home loss and disturbance and in the case of leaseholders to pay them market value for their homes and pay home loss and disturbance payments or basic loss payments for non residential leaseholders, and the offer of an equity loan product which allows them to return to Tollgate Gardens to live and own a new property which is valued at a higher value than the one they have sold to the Council in order for the regeneration to proceed. 5.5 Dedicated advice and support is also being offered to tenants and leaseholders through this process. The Council has appointed an Independent Tenant and Leasehold Advisor (First Call) and an Independent firm of solicitors for the provision of legal advice related to the CPO (Alan Edwards and Co) to support residents as well as a Community Engagement officer to support the whole consultation and rehousing process. There is a dedicated Rehousing officer to support secure tenants to make their decisions to move and a generous offer to returning resident leaseholders which provides them with financial support if required whilst in temporary accommodation, and the right to return as owners to a property on an equity loan basis which will be worth more than their current home, giving them all the rights of an owner, such as the ability to sublet. Details of the Council’s leasehold and decant policies can be found on the Council’s website. The future developer contractor will also be chosen on the basis of their ability to work around residents and will be required to consult residents on their development proposals. 5.6 Tollgate House residents were included in the original vote for the scheme to proceed and have been involved in the ongoing resident consultation as well as having been sent specific consultation material as regards the improvements to Tollgate House, and invited to meetings to discuss the improvements. Although they will not be displaced from their homes, the potential loss and interference with rights is currently being assessed to determine whether any compensation is payable. They also have access to the council officer support and Independent tenant and leaseholder and developer consultation advice available to other residents. 5.7 In addition, as outlined in 1.13 and 1.14 above, in order for the development to proceed various interests need to be created and acquired in respect of statutory undertakers, and adjoining properties. 5.8 In addition, to section 226(1) (a), sub section (1A) of section 226 would also apply, whereby the proposed development is likely to contribute to achieving the promotion or improvement of the economic, social or environmental wellbeing of the area. 5.8(i) Economic: i) At least 1000 jobs are being created across the Renewal Estates from construction jobs from the various programmes such as Tollgate and from jobs created in the West End reorientated towards the Renewal Estates. In addition there is support to be given to being ‘job ready’ across Renewal Estates such as Tollgate. Tollgate is the first of these projects to start and thus its hoped that these residents will not only be the first to benefit but also get further benefits as other opportunities through the renewal programme come on line. Thus there are clear economic benefits for Tollgate residents in being part of the renewal programme and Tollgate itself will provide some of the construction jobs from this 1000 unit programme. ii) The provision of 106 net additional homes on the Estate will increase the ability of Westminster residents to live closer to job opportunities, reducing the need for longer distance commuting and its negative environmental and sustainability impacts. iii) More housing on this site, and particularly more market and intermediate housing with households of higher incomes will also benefit local shops and services. iv)The new community hall in the accessible location facing Kilburn High Road, include small training /consulting rooms which along with the improved and more accessible community hall, will be targeted for employment and training initiatives for local people. 5.8(ii) Social: i) There will be a net increase of homes on the Tollgate Gardens estate of 106 homes generating an increase of 366 habitable rooms. This will make a substantial contribution to addressing the housing need requirements of the Council and Mayor. ii) In addition there will be a qualitative improvement in the homes of returning residents as their homes will be built to the Mayor’s standards – providing larger and better laid out homes. In the case of the current Tollgate residents living in bedsits – there will be particular improvements in the provision of one bed units. iii) The benefits of the complete scheme includes the provision of not only new and better housing, but larger community facilities with better kitchen facilities which are accessible by wheelchair users. iv) There will be 5786 sq.m. of useable open space – an increase of 2603 sq m included within it; • • formal play hub of 168 sq m semi enclosed games area 60 sqm • • informal play area of 1335 sqm including Tollgate Lawn which will be enlarged through the demolition of the part of the existing community hall attached to Tollgate House and the Corner House Lawn Private gardens of 2219 sqm The remainder of the 5786 sq m comprises trees and floral planting seating area and allotment growing areas. v) The scheme will also make a life time car club membership contribution for residents, increased and secure parking along with cycle storage 5.8(iii) Environmental: The scheme will significantly improve the transport and pedestrian environment, creating a high quality public realm whilst integrating with the local community. Environmental benefits can be measured largely through the significant physical improvement over the current situation in addition to the substantial enhancements to the overall public realm. The proposals will maximise the site's potential, enhance public space, provide a mix of uses and will be accessible, legible and sustainable. This in turn, together with the land use facilities provided and the safe and secure nature of the development, will have a beneficial impact on well being. The scheme is a Code for Sustainable Homes scheme ensuring reduced carbon emission to the wider neighbourhood around the Tollgate Gardens estate. 5.9 In conclusion there is a compelling case in the public interest. The tests outlined in the Circular apply as outlined in 5.5 above. Deliverability 5.10 The proposals involve the demolition and redevelopment of Godwin and Wingfield Houses and their replacement with new build housing. There were originally 30 leasehold interests and 53 secure tenants within these blocks which the Council needed to acquire and rehouse respectively to enable the scheme to proceed. 5.11 The Council has started work towards the selection of a development partner and has approved the Procurement Strategy for the selection of the developer partner. Expressions of Interest were issued on 9th May 2014 with the ITT being sent out mid June and a developer partner in place by the end of September/ October 2014 .To this end BDP consortium and Pinsent Masons have been appointed to prepare the necessary documents as part of the mini tender package going out with the ITT.A viability report was prepared for the recent planning submission and a confidential report was prepared by Deloittes ( part of the BDP consortium) for this submission which confirmed that the scheme was viable. 5.12 Negotiations in respect of Rights of Light are progressing in parallel with the proposed acquisition of new rights as part of the Order Land. Thirty seven properties surrounding Tollgate Gardens Estate are affected by the development for the site and all potentially affected parties have received a letter in this regard, (including individual flats, landlords, tenants and occupiers). To date, 20 out of the 37 properties have been accessed and two further appointments have been made although no settlements have yet been agreed. However two of the main properties suffering injury of light from the proposed development are close to settlement and it is expected that offers will go out to the remaining properties very shortly as extensive attempts have been made to access all properties including ongoing communications and an invitation to a stakeholders event on the estate as a way of making contact. 5.13 The creation of new rights to over sail cranes during construction, undertake surveys, and minor external works will ensure that the development will proceed unimpeded. 5.14 Financial deliverability is dealt with in section 6 below and also in the attached draft Statement of Reasons. 6. Financial Implications 6.1 Financial implications are exempt from publication and have been placed in Appendix G. 7. Legal Implications 7.1 Section 1 of the Localism Act 2011 provides the Council with the power of general competence and states that “A local authority has power to do anything that individuals generally may do”. Section 2 sets out the boundaries of the general power, requiring local authorities to act in accordance with statutory limitations or restrictions. In addition, the Council must also adhere to the duty of Best Value and must consider this duty in the manner in which services are provided/procured in accordance with the Local Government Act 1999. The recommendations within this report are in accordance with these powers. 7.2 Under section 226 (1) (a) of the Town and Country Planning Act 1990 a local authority has a general power to make a compulsory acquisition of any land in their area in order to facilitate the carrying out of development, redevelopment or improvement in relation to the land. 7.3 In order to exercise the s.226 powers the local authority must be satisfied that the proposed development/improvement is likely to contribute towards any of the following objects, namely the promotion or improvement of the economic or social or environmental well-being of their area. 7.4 Under section 227 of the Town and Country Planning Act 1990 the Council has the power to acquire by agreement any land which they require for any purpose for which a local authority may be authorised to acquire land under section 226 as aforementioned. 7.5 When dealing with secure tenants the Council must comply with the provisions of the Housing Act 1985 in respect of the service of demolition notices and the rehousing of secure tenants. 7.6 The Council, as a public body, is under a duty to consider whether the exercise of its powers interacts with rights protected by the European Convention on Human Rights. Section 6 of the Human Rights Act 1998 prohibits public authorities from acting in a way, which is incompatible with those rights. Section 10 of the attached draft Statement of Reasons provides further detail on this aspect. 7.7 The Council is in certain circumstances empowered to dispose of housing land under Section 32 of the Housing Act 1985 and General Housing Consents issued by the Secretary of State for Communities and Local Government. However, an open market disposal of the housing land at Tollgate Gardens Estate will require the specific consent of the Secretary of State. An application will need to be made and the consent will need to be obtained to meet the lease preconditions with the developer partner. 7.8 All legal agreement(s) to be entered into will need to be in a form approved by the Director of Legal Services. 8. Staffing Implications 8.1 Additional staffing costs currently include the costs of a decant officer dedicated to the Tollgate Gardens to support secure tenants who have to move. Additional resources are also available to give support to lessees considering the various options open to them as a permanent move, including the equity loan option and there is a dedicated resource devoted to Independent Tenant and Leasehold advice. 9. Business Plan Implications 9.1 The recommendation of this report will, if agreed by Cabinet, contribute towards the Leader’s Better City Better Lives since this scheme will improve the overall environment of the neighbourhood and improve the living standards of Tollgate residents. 10. Consultation 10.1 Comments from Legal, Finance and Transportation sections within the Council have been incorporated into the body of this report. 11. Crime and Disorder Act 1998 11.1 The scheme has been designed in accordance with “Secure by Design” principles and will include features such as more defensible space. 11.2 The main health and safety issues arising from this report are the fact that there will be residents in Tollgate House present during the works and there will be visitors to Tollgate House. The developer partner will be required to provide a Health and Safety Plan to be approved before work commences for the Council’s approval. It is also a condition of the recommended planning approval for the scheme, to have approved before work commenced a Construction Environmental Management Plan (CEMP) including a Demolition Code of Practice. 12. Health and Safety Issues 12.1 Due to the nature of the development and the fact that residents of the tower will not be vacated whilst the main works are ongoing. Special consideration must be taken in procuring a developer that can provide a safe and clean environment during the development. 13. Human Rights Act 1998 13.1 Officers have considered the proposed Compulsory Purchase Order in light of the relevant provisions of the Human Rights Act 1998. In view of the factors set out in this report, officers consider that the exercise of compulsory purchase powers is, in this case, justified by the reason that it is in the public interest, authorised by law and necessary and proportionate towards meeting the Council’s objectives as set out in the Core Strategy. 13.2 The proposed CPO procedure will be consistent with Article 6 of the Human Rights Act 1998. All those affected will be informed and advised of a right to make representations to the Secretary of State, to be heard at a public inquiry and have fair entitlement to compensation. The CPO will also be confirmed in accordance with law and done in the public interest – as required by Article 8. Full consideration of Article 1 protocol is included at section 10 of the draft Statement of Reasons. Equalities Act 2010, section 149 13.3 The Equality Duty is designed ensure public bodies play their part in making society fairer by tackling discrimination regarding: o Age, o Disability, o gender reassignment, o pregnancy and maternity, o race – this includes ethnic or national origins, colour or nationality, o religion or belief – this includes lack of belief, o sex, o sexual orientation, and by providing equality of opportunity for all. 13.4 An Equality Impact Assessment has been undertaken to ensure that due regard has been taken of our general duties to equality. The results informed the final design and decision to proceed. This is currently being updated and it will inform any ongoing design and resident related decisions in respect of the Tollgate Gardens regeneration. 14. Reasons for Decision 14.1 There is a compelling case in the public interest to proceed with a CPO however this is only as a last resort, to allow the scheme to proceed. This will significantly improve the well-being of the area in a manner consistent with the adopted planning framework. There is a reasonable expectation the scheme will proceed, although this cannot be delivered simply through the granting of planning permission. 14.2 In balancing the benefits of the scheme and the concerns of those whose interests in land it is proposed to acquire compulsorily, there is clear evidence that the public benefit outweighs the private loss. 14.3 Parties affected by the CPO will be entitled to be paid compensation in accordance with the general law relating to compensation known as the Land Compensation Code, the purpose of which is to assess the payment of fair compensation to eligible parties. The compensation payable will be determined by reference to the open market value of the property acquired, supplemented where appropriate by (a) payments in respect of disturbance, (b) compensation for loss of value of land retained by the dispossessed owner due to it being severed or otherwise harmfully affected as a result of the compulsory purchase and (c) certain additional top-up payments claimable by a person who owns or occupies property subject to compulsory purchase irrespective of any particular loss; together with compensation in certain cases for interference with other legal rights. The details of additional support to tenants and leaseholders can be found on the Council’s website where these policies are located. 14.4 The social, economic and environmental benefits of the scheme support the principles of the Council’s 2010 Renewal Strategy and various planning policies relevant to and adopted by the Council as local planning authority. If you have any queries about this Report or wish to inspect any of the Background Papers please contact: Ben Denton, Strategic Director of Housing, Regeneration and Property [email protected] BACKGROUND PAPERS (Reference Documents) Cabinet Report on Tollgate Master Plan June 27th 2011 plus Appendices Appendices Appendix A - Draft CPO Red line plan Appendix B – Draft Statement of Reasons Appendix C – Images of new scheme Appendix D - Draft Order Map (Order Land) Appendix E - Draft Order Schedule (Order Schedule) Exempt Appendices Appendix F – Summary of decants for Leaseholders and Tenants Appendix G – Financial Implications For completion by the Cabinet Member for Housing, Regeneration, Business and Economic Development Declaration of Interest I have <no interest to declare / to declare an interest> in respect of this report Signed: NAME: Date: Councillor Daniel Astaire State nature of interest if any PPPPPPPPPPPPPPPPPPPPPP..PP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP P.. (N.B: If you have an interest you should seek advice as to whether it is appropriate to make a decision in relation to this matter) For the reasons set out above, I agree the recommendation(s) in the report entitled Tollgate Gardens Estate – Intention to make a Compulsory Purchase Order and reject any alternative options which are referred to but not recommended. Signed PPPPPPPPPPPPPPPPPP Cabinet Member for Housing, Regeneration, Business and Economic Development Date PPPPPPPPPPPPPPPPPPP If you have any additional comment which you would want actioned in connection with your decision you should discuss this with the report author and then set out your comment below before the report and this pro-forma is returned to the Secretariat for processing. Additional comment: PPPPPPPPPPPPPP.PPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPP..PPPPPPPPPP P If you do not wish to approve the recommendations, or wish to make an alternative decision, it is important that you consult the report author, the Head of Legal & Democratic Services, Director of Finance and, if there are resources implications, the Strategic Director of Resources (or their representatives) so that (1) you can be made aware of any further relevant considerations that you should take into account before making the decision and (2) your reasons for the decision can be properly identified and recorded, as required by law. For completion by the Cabinet Member Built Environment Declaration of Interest I have <no interest to declare / to declare an interest> in respect of this report Signed: NAME: Date: Councillor Robert Davis DL State nature of interest if any PPPPPPPPPPPPPPPPPPPPPP..PP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP P.. (N.B: If you have an interest you should seek advice as to whether it is appropriate to make a decision in relation to this matter) For the reasons set out above, I agree the recommendation(s) in the report entitled Tollgate Gardens Estate – Intention to make a Compulsory Purchase Order and reject any alternative options which are referred to but not recommended. Signed PPPPPPPPPPPPPPPPPP Cabinet Member for Built Environment Date PPPPPPPPPPPPPPPPPPP If you have any additional comment which you would want actioned in connection with your decision you should discuss this with the report author and then set out your comment below before the report and this pro-forma is returned to the Secretariat for processing. Additional comment: PPPPPPPPPPPPPP.PPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPP..PPPPPPPPPP P If you do not wish to approve the recommendations, or wish to make an alternative decision, it is important that you consult the report author, the Head of Legal & Democratic Services, Director of Finance and, if there are resources implications, the Strategic Director of Resources (or their representatives) so that (1) you can be made aware of any further relevant considerations that you should take into account before making the decision and (2) your reasons for the decision can be properly identified and recorded, as required by law.
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