To consider the above report

Members considered using the council’s compulsory purchase powers to facilitate the land assembly needed to deliver the final (3^rd) phase of Chapel Arches. The report requested the council’s support in principle to use its powers of Compulsory Purchase orders (CPO) should they be needed to facilitate the remainder of the land required.

Members noted that the Shanly Group was in possession of all bar two units in the Colonnade. The two tenants were proving difficult in terms of making a decision about leaving the premises.  The Shanly Group had requested the council to be on stand-by to use its CPO powers as a last resort. It had been made clear in previous negotiations that the council would, subject to Member decision, be prepared to use its CPO powers. The Shanly Group felt that a more formal process was now required.

It was confirmed that if no CPO was needed, work could start on site in early 2017; the need for CPO could delay the timetable for a year. The timelines were crucial as contractors were already on site working on the first two phases. The Chairman suggested the two tenants in question be advised that if they moved to another premises in the town that had been vacant for 12 months, they could take advantage of business rate relief from the council. The Lead Member for Planning commented that any delay could also affect the Waterways project. It was also confirmed that the Shanly Group was not relying on the council’s CPO powers, it had already put alternative locations to the two tenants, to encourage them to make a decision. 

It was highlighted to Members that it was common practice for local authorities to use CPO powers in relation to town centre regeneration and large scale development.  The Strategic Director commented that the council would be using its CPO powers, if needed, to facilitate the vision for the town centre and support the redevelopment. Unless the two tenants moved, the council could not ensure the redevelopment could go ahead including the homes, shops and jobs that would be provided for the town.

It was noted that one of the two tenants was operating a profitable business and was concerned that they should not leave until the very last moment. The proposal, if agreed, would provide certainty that they would have to move at a certain point. The second tenant had a general reluctance to move, possibly due to a lack of understanding of the process.

RESOLVED UNANIMOUSLY: That Cabinet Regeneration Sub Committee:

i.              Approves its support, in principle, to using compulsory purchase powers to facilitate the land assembly needed to deliver the final phase of Chapel Arches.

ii.            Delegates authority to the Strategic Director of Corporate & Community Services to undertake all necessary negotiations to enter into a CPO Indemnity Agreement with Sorbon Estates Limited, the developer of Chapel Arches.

iii.           Following completion of the CPO Indemnity Agreement above, delegates authority to the Strategic Director of Corporate & Community Services to proceed with preparations for the making of the CPO (as described in paragraph 2.8 of this report) in parallel with discussions and negotiations for the acquisition of property by agreement.

iv.           Endorses a subsequent report being brought to full Council making the case for a CPO.