Part 1 ITEM NO. ___________________________________________________________________ REPORT OF STRATEGIC DIRECTOR FOR SUSTAINABLE REGENERATION ___________________________________________________________________ TO THE LEAD MEMBER FOR PLANNING ON 29th NOVEMBER 2010 ___________________________________________________________________ TITLE: PROPOSED COMPULSORY PURCHASE ORDER FOR SALFORD CENTRAL. ___________________________________________________________________ RECOMMENDATIONS: It is recommended that Lead Member for Planning approve - (1) The making of a Compulsory Purchase Order under section 226(1)(a) and 226(1A) of the Town and Country Planning Act 1990 (as amended by section 99 and Schedule 9 of the Planning and Compulsory Purchase Act 2004) and section 13 of the Local Government (Miscellaneous Provisions) Act 1976 for the acquisition of land and new rights within the area described in the report and shown edged red and shaded yellow, blue and green on the plan attached at Annex A, being land which, if acquired, will facilitate the carrying out of development, redevelopment or improvement on or in relation to the land and that such development, redevelopment or improvement is likely to contribute to the achievement of the promotion or improvement of the economic, social and environmental well-being of the area, as described in this report. (2) That the Council’s legal department, on the basis that there is a compelling case in the public interest to make the Order: (i) take all necessary steps to secure the making, confirmation and implementation of the Order including (but not limited to) updating the draft Statement of Reasons, attached as Annex B, as deemed appropriate, the publication and service of all notices and the presentation of the Council’s case at any public inquiry; (ii) acquire interests in land within the area subject to the planning compulsory purchase order either by agreement or compulsorily; (iii) complete agreements with landowners and others having an interest in the area to be the subject of the compulsory purchase order including where appropriate seeking agreements effecting the delivery of any part of the development and making arrangements for the relocation of occupiers. 1 (3) That the Strategic Director for Sustainable Regeneration progress, in parallel with the making of the compulsory purchase order, the closure of any highways and/or passageways within the Order area as necessary. (4) That the Order be named: “Salford City Council (Salford Central) Compulsory Purchase Order 2010”. ___________________________________________________________________ EXECUTIVE SUMMARY: On 3rd September 2008 the Lead Member for Planning approved, in principle, the use of the Council’s compulsory purchase powers to assemble land for the Salford Central regeneration project. Further to this decision the acquisition of land and property interests was progressed, where possible, by agreement and the redevelopment proposals themselves were granted outline planning consent. In order to be able to progress the redevelopment proposals it will be necessary to ensure the acquisition of all the land, property and rights required for delivery of the scheme can be obtained and on 27 th July 2010 the Lead Member for Planning approved the making of a compulsory purchase order for the acquisition of land and new rights within the area shown edged red and shaded yellow and blue on the plan attached at Annex A of this report. However after undertaking land and property title investigations and having given further consideration to the development proposals it is considered that it will be necessary to acquire further land and property interests and rights in order that a comprehensive and sustainable development can be achieved. The further land, property and rights that have been identified for inclusion in the Order are shown edged red and coloured green on the plan attached at Annex A. Negotiations to acquire by agreement will continue in parallel with the compulsory purchase process. BACKGROUND DOCUMENTS: Draft Statement of Reasons. Plan KEY DECISION: YES. Item 6 – Property Update. ___________________________________________________________________ DETAILS: 1.0 Background 1.1 Salford City Council entered into an Overarching Development Agreement with English Cities Fund (ECf) and Central Salford Urban Regeneration Company Limited on 15th December 2006, to secure the regeneration of the Salford Central area. 2 1.2 The City Council assets within this area are to be transferred to ECf at an appropriate time for development to take place but the majority of land within the area remains in third party ownership. The Council and ECf have been making efforts to assemble the site through negotiation though it is now considered that further site assembly is unlikely to be possible within a reasonable timeframe, or at all, without the use of compulsory purchase powers. 1.3 On 19th July 2010 planning consent was granted for a scheme that would enable comprehensive regeneration to take place in this important part of Salford. 1.4 On 27th July 2010 the Lead Member for Planning approved the making of an Order for the acquisition of land and new rights within the area shown edged red and shaded yellow and blue respectively on the plan attached at Annex A of this report. 1.5 A copy of this Lead Member for Planning report is attached at Annex C. The report sets out the planning policy framework under which the proposed development will take place, details the scheme benefits and addresses the justification for the use of compulsory purchase powers. 2.0 Detail 2.1 The railway lines in Salford Central are elevated above the surrounding land and streets. Around Salford Central Station, the railway viaducts, arches and colonnade are widely visible and present both significant visual structures and barriers to movement. However, as the majority of the viaducts are constructed as a series of arches, there are opportunities to introduce new uses into them and increase connectivity beneath the lines by converting a number of archways into pedestrian and cycle routes. 2.2 The Salford Central Development Framework sets out a number of proposals to transform the Salford Central Station area into a new commercial hub and corporate centre. These include the creative use of the railway arches for leisure, food and shopping uses as well as connections through, linking Chapel Street to the riverside. These elements are seen as absolutely critical to achieving the successful regeneration of this part of Salford. 2.3 Design work was also commissioned in 2009 by Central Salford Urban Regeneration Company, Salford City Council, Network Rail and GMPTE to examine options for the longer term redevelopment of the Station itself. This follows the successful completion of the £5m first phase of improvements which upgraded the entrance, provided a new ticketing hall and foyer, provided new lifts to the platform level and refurbished part of the Colonnade. 2.4 The study concluded that the Colonnade should be refurbished to create a lively and interesting space which links the arches into the new Corporate Centre development. Refurbishment would include repainting, cleaning brickwork, relaying cobbles, remedying leakage and drainage issues and fully 3 glazing in. 2.5 Existing arches adjoining the Colonnade would be refurbished as retail units, creative workshops, cafes and other uses to complement the wider development. Three arches would provide walk-throughs to link north and south of the viaduct. Overall, the redevelopment of the arches and Colonnade will be an essential element of the comprehensive transformation of this area. 2.6 However, following the Lead Member for Planning meeting on 27 th July 2010 a desk top study of land ownerships and occupations was commenced and simultaneously further detailed consideration was given to the delivery of the new development particularly in respect of the immediate settings of any new buildings. 2.7 One area of land that was given further consideration was that bounded by the River Irwell, Irwell Street and New Bailey Street. This area is to be developed to provide Grade A offices but it has now become apparent that on completion the new development would overlook, at the north west boundary, the Colonnade, viaduct and railway arches. 2.8 The desk top study revealed that the existing tenure arrangements for the viaduct, arches and Colonnade are complex. The freeholder of the subject land is Network Rail Infrastructure Limited with long leases having been granted to Guardian Media Group plc and Bishopsgate Parking (No.2) Limited. An underlease was subsequently granted to NCP Limited. As a result of these levels of ownership and particularly the length of the leases it is unlikely that the proposals contained within the Salford Central Development Framework could or would be carried out in the short/medium term. However it is vital that works be undertaken to the Colonnade in order to support and reinforce the impact of the new development taking place. 2.9 However incorporating the Colonnade into the development in this way would sever access to and between the railway arches which are currently used for car parking purposes which would necessitate the acquisition of the arches themselves. 3.0 Proposal 3.1 In order to be able to undertake the comprehensive redevelopment of the area it will be necessary to secure sufficient legal title and rights to such parts of the Colonnade, viaduct and arches to enable the works of repair and improvement to take place. In this respect the City Council would be seeking to acquire all interests in the land except for those interests held by Network Rail Infrastructure Limited in the physical structure of the viaduct and Colonnade. However in addition the City Council will also be seeking rights to, inter alia, affix signage, lighting and other structures to the arches and Colonnade together with the right to clean, decorate and make good as necessary. 3.2 It is considered necessary therefore to extend the boundary of the previously approved area that could be subject to the compulsory purchase order to 4 include the additional areas shown edged red and coloured green. 3.3 The inclusion of these areas would enable the Council, following confirmation of the Order, to secure the acquisition of title/rights as appropriate in order to undertake the works. 4.0 Conclusion 4.1 The use of Compulsory Purchase powers is a vital tool in delivering large, mixed use regeneration schemes and indeed the making of a Compulsory Purchase Order to assemble the development site was envisaged within the Overarching Development Agreement entered into between the partners. 4.2 As outline planning permission has now been granted for the proposed redevelopment and as it is considered that further site assembly is unlikely to be achieved by agreement it is considered that it is appropriate to progress the making of a compulsory purchase order to support the delivery process. 4.3 The acquisition of further land/rights as detailed in the report will ensure that a comprehensive and integrated redevelopment can be undertaken. ___________________________________________________________________ KEY COUNCIL POLICIES: Connecting People to Opportunities: Sustainable Community Strategy for 20092024. Theme 5 – To deliver an inclusive city. Theme 6 – To deliver an economically prosperous city. Theme 7 – To deliver a city that is good to live in. ___________________________________________________________________ EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: - Local residents and stakeholders have been fully consulted and engaged in the development of the proposals for the area which will include new offices, commercial, retail and leisure uses which will be complemented by family housing and apartments linked by highquality public realm and civic spaces. ___________________________________________________________________ ASSESSMENT OF RISK: Medium. If the compulsory purchase order is confirmed then the parties to the Overarching Development Agreement will be able to progress the comprehensive redevelopment proposals for the area. However if the compulsory purchase order is not confirmed then alternative solutions will need to be identified for the remaining land and property in private ownership together with those properties/land which are already in the ownership of the City Council and ECf. 5 ___________________________________________________________________ SOURCE OF FUNDING: Under the Overarching Development agreement ECf are to be responsible for meeting all reasonable and proper compensation payments and costs arising from the use of Compulsory Purchase powers. ___________________________________________________________________ LEGAL IMPLICATIONS Supplied by Norman Perry – Ext 2325 / Eversheds Comments: Providing that there are sound reasons for the making of the compulsory purchase order on planning grounds, then I cannot see any legal implications other than the usual possible challenges from affected persons which could result in a Public Inquiry at which the Council, and it’s development partners, would of course present their case. Care must be taken however not to use the land for a purpose for which it was not acquired. The Crichel Down Rules must be followed. ___________________________________________________________________ FINANCIAL IMPLICATIONS Supplied by– Alison Swinnerton - Ext 2585 The Overarching Development Agreement for the area provides a binding commitment/indemnity by ECf to be responsible for meeting all reasonable and proper compensation payments made and costs incurred by the Council arising from the use of Compulsory Purchase powers. This indemnity also extends to any costs incurred by the Council which are associated with any blight notices that may be properly served upon the Council Such eligible expenditure will become a development cost within the eventual property development schemes within the Agreement. ___________________________________________________________________ OTHER DIRECTORATES CONSULTED: Not applicable. ___________________________________________________________________ CONTACT OFFICERS: Richard Wynne – Tel. 779 6127 Phil Holden - Tel. 779 6069 ___________________________________________________________________ WARDS TO WHICH REPORT RELATES: Ordsall and Irwell Riverside ___________________________________________________________________ 6