PART I
ITEM NO.
REPORT OF THE STRATEGIC DIRECTOR OF HOUSING AND PLANNING
AND THE HEAD OF LEGAL SERVICES
TO:
LEAD MEMBER FOR PLANNING – 17 JULY 2007
TITLE : FORMER OAKWOOD HIGH SCHOOL
RECOMMENDATIONS :
It is recommended that subject to the consideration of the issues as set out in Para
3.4, Lead Member:
1.
Approves the use of the Councils Statutory powers under the Town and
Country Planning Act to enable that part of the former Oakwood school site,
currently subject to restrictive covenants, to be sold with clean title for
residential development.
2.
Approves the sale of the former Oakwood school site by way of informal
tender on the basis of the Brief as set out in Appendix 2 subject to traffic
engineers considering the impact of the development of the site on
surrounding roads and recommending any mitigation measures if such are
found to be required.
3.
Agrees that the land acquired for Education purposes in 1937 without
restriction in terms of its future use, which was subsequently included in Light
Oaks Park be placed under the same effective obligation as that set out in the
covenants attached to the 1902 acquisition.
4.
That local residents should be kept informed as to proposals relating to the
site, and is given the opportunity to comment on the Councils preferred
scheme/ developer before planning consent is sought and in advance of the
sale of the site.
EXECUTIVE SUMMARY :
This Report gives an update on the current position regarding the proposed sale of
the former Oakwood school (shown edged red on plan 1) and in particular the issues
surrounding the presence of a restrictive covenant on part of the land.
The report makes a recommendation as to the proposed way forward in this matter
for Lead Members consideration.
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BACKGROUND DOCUMENTS :
Lead Member for Planning Report
ASSESSMENT OF RISK: Medium
Compensation claims may be forthcoming,
but it is considered that potential claimants
will have difficulty in demonstrating what loss
they have suffered as a result of the council’s
actions.
THE SOURCE OF FUNDING IS:
Any compensation payments would need to
be met out of the Capital Receipt for the land.
LEGAL ADVICE OBTAINED:
Norman Perry/Counsel
FINANCIAL ADVICE OBTAINED:
No
CONTACT OFFICER :
Peter Openshaw
Norman Perry
WARD(S) TO WHICH REPORT RELATE(S)
KEY COUNCIL POLICIES
DETAILS (Continued Overleaf)
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779-6126
793-2325
Claremont
Regeneration/Investment in Education
TITLE: FORMER OAKWOOD SCHOOL
1.0
Purpose of the Report
This Report gives an update on the current position regarding the proposed
sale of the former Oakwood school (shown edged red on plan 1) and in
particular the issues surrounding the presence of a restrictive covenant on
part of the land.
The report makes a recommendation as to the proposed way forward in this
matter for Lead Members consideration.
2.0
Background
2.1
The subject land was declared surplus to the requirements of the Education
Directorate in 2005. Following due process, the Lead Member for Property
approved the sale of the land for residential purposes on the 9 th February
2006.
Lead Member for Planning on 21st August 2006 approved the proposal to sell
the land by way of auction
2.2
The matter was referred to Environmental scrutiny committee 3rd October
2006 by local members, where the Lead Member for Planning gave an
undertaking to inform local residents of the Councils intentions and to seek
their views regarding the proposals for the sale of the land.
2.3
A series of meetings have taken place with residents since scrutiny committee
as detailed below.
2.3.1 An initial meeting was held on the 5th October with Mr Kirk/ Mrs Jones and
another re the proposals.
2.3.2 A meeting organised by Light Oaks Park Residents Association (LOPRA) was
held on 23rd October 2006
2.3.3 A meeting organised by LOPRA was held on 27th February 2007
2.3.4 A meeting organised by LOPRA/Claremont residents association was held on
11th April 2007
2.4
The initial three meetings largely focused on the development proposals for
the site and in particular the proposed method of sale, and the form of brief
that would guide developers in formulating their development proposals for
the site.
2.5
Through discussions, the proposal to sell by way of auction was abandoned
and replaced by a proposal to sell by way of informal tender, so as to ensure
that the council would select a scheme that was the most suitable for the
subject site.
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As part of the informal tender sale route, a brief setting out the council’s
requirements, highlighting both National and Local planning guidance, was
produced to assist developers when formulating their proposals for the site.
The brief was shared with local residents and many of their comments have
been taken on board within it, however some requirements were not
considered acceptable for inclusion
2.6
The last meeting was mainly focused on the issue of the restrictive covenant
that is present on part of the site and it was very evident that the large
numbers of residents present wished to see the covenant on the land, that
was acquired by the Council in 1902, respected and for the land not to be
developed for residential purposes.
At the meeting the brief was also heavily criticised and an opinion given that it
would only lead to another very poor quality scheme in Salford.
Comments on the brief were requested from the speaker on this topic, but
none have been received.
2.7
At the meeting it was very clear that the central issue to be addressed in the
future of part of the site, was the presence of the covenant issue, and an
undertaking was given to the meeting that the council would take further
advice on this issue and then meet again with residents representatives to
discuss the matter further.
2.8
A date for such a meeting has proved difficult to arrange, however the
Informal Lead Member meeting on 2nd July has been arranged to provide the
opportunity for such discussion as part of the Councils decision making
process in relation to its future proposals for the site.
3.0
Information
3.1
The restrictive covenant on part of the former Oakwood school site, as shown
edged Blue on plan 1 formed part of the conveyance to the City Council when
it acquired the land from the Sir A.P Heywood and others for the sum of
£6267.3.9 in 1902.
All parties are fully conversant with the wording of the covenant that is
detailed at Appendix 1.
Officers have been consistent their view that the presence of the covenant
would not constitute a barrier to the Councils proposed sale of the land and
remain of this opinion. An approach was made to the Land Registry that the
covenant should be removed on a range of grounds, however the Land
Registry did not agree with the councils opinion and did not remove the
covenants. (This correspondence has been shared with residents).
3.2
Following the last meeting with residents, the council sought the advice of
counsel on the matter of the covenant and its potential influence on the
council’s proposals to sell the land.
In summary Counsels advice concluded that the covenant was likely to be
enforceable and the council would be in breach of that covenant if it were to
take forward its proposals in their current form.
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3.3
In addition, Counsel provided advice on the routes open to the council if it
wished to seek the removal of the covenant to enable it (the Council) to take
forward its development aspirations for that part of the site affected by the
covenant.
Essentially two options are open to the council if it wished to take this route
1.
Application to Lands Tribunal to set aside the covenant
2.
Use of the Councils Statutory Powers under the Town and Country
Planning Act to overcome the presence of the covenants
Counsel concluded that the most appropriate and straightforward way for the
council to proceed would be by the use of its statutory powers.
This would require the Council to appropriate the land for Planning purposes
under the Act, which would enable it to sell the land affected by the covenants
with a clear title to the acquiring party (a developer in this case).
Parties feeling that they have suffered a loss as a result of the council’s use of
its statutory powers would then be able to make a claim to the council. Parties
making such a claim would need to justify the same, and ultimately if
claimants and the council cannot agree, then parties would have the option of
applying to the Lands Tribunal for the determination of claims.
3.4
In coming to a decision on whether this is an appropriate route to take, it is
suggested that Lead Member may wish to consider a range of issues relevant
to this case as follows:-
3.4.1 The views of local residents and parties associated with the covenant itself.
3.4.2 The actual price paid for the 1902 land that is considered to be a full open
market value for the unrestricted use of the land at that time.
3.4.3 The details of the adjoining land acquired from Lt Colonel Sir G.P.Heywood
and others in 1937, which was not subject to any covenant preventing the
residential sale of the land and was acquired at a lower price per Acre than
the 1902 land.
3.4.4 The actions taken by the council using its powers under the Salford
Corporation Act in taking part of the 1902 land for school use and then,
without obligation, replacing the taken Land with an identical area of land
(from the 1937 land) within Light Oaks Park.
3.4.5 The intended use of monies raised through the sale of the former Oakwood
school site that are earmarked for reinvestment in Education provision within
the City, some of which will be spent locally.
3.5
A copy of the latest version of the sales Brief is attached as Appendix 2.
Officers believe that this is as far as the brief can be taken without being over
prescriptive in term of the design of the scheme, and breaching UDP and
National Planning Guidance.
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4.0
Financial Implications
4.1
A decision to proceed with the sale of land will lead to the council receiving a
capital receipt for its land interest.
4.2
The development of the site will also lead to the securing of a section 106
payment from the developer
5.0
Recommendations
It is recommended that subject to the consideration of the issues as set out in
Para 3.4, Lead Member:
6.0
1.
Approves the use of the Councils Statutory powers under the Town and
Country Planning Act to enable that part of the former Oakwood school
site, currently subject to restrictive covenants, to be sold with clean title
for residential development.
2.
Approves the sale of the former Oakwood school site by way of informal
tender on the basis of the Brief as set out in Appendix 2 subject to traffic
engineers considering the impact of the development of the site on
surrounding roads and recommending any mitigation measures if such
are found to be required.
3.
Agrees that the land acquired for Education purposes in 1937 without
restriction in terms of its future use, which was subsequently included in
Light Oaks Park be placed under the same effective obligation as that
set out in the covenants attached to the 1902 acquisition.
4.
That local residents should be kept informed as to proposals relating to
the site, and is given the opportunity for to comment on the Councils
preferred scheme/ developer before planning consent is sought and in
advance of the sale of the site.
Conclusion
This Report gives an update on the current position regarding the proposed
sale of the former Oakwood school (shown edged red on plan 1) and in
particular the issues surrounding the presence of a restrictive covenant on
part of the land.
The report makes a recommendation as to the proposed way forward in this
matter for Lead Members consideration.
Proposals to keep residents fully included in the relation to emerging
proposals for the land will demonstrate transparency in its actions and
decision-making process.
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