Agenda item

Report of the Director of Placemaking and Housing. To be introduced by the Cabinet Member for Council Housebuilding, Placemaking, and Development.

 

This report will seek Cabinet approvals to progress Phase A of the High Road West scheme, including seeking to use the Council's compulsory purchase powers to acquire all property interests in Phase A to secure vacant possession, and the appropriation of certain pieces of land belonging to the Council within the Phase A boundary for planning purposes.

 

 

The Cabinet Member for Council Housebuilding, Placemaking, and Development introduced the report which sought Cabinet approval to progress Phase A of the High Road West scheme, including seeking to use the Council's compulsory purchase powers to acquire all property interests in Phase A to secure vacant possession, and the appropriation of certain pieces of land belonging to the Council within the Phase A boundary for planning purposes.

 

Following the grant of planning permission, the proposed use of CPO powers for Phase A would provide much-needed certainty for residents that the 500 new Council homes and other community benefits would be delivered, and that residents were not waiting any longer than they needed to for their new home in a safe and secure neighbourhood.

 

It was noted that there was a dedicated housing team which would look after the interests of all of the tenants and leaseholders including the private tenants that were on that scheme. The Council were determined to work with the businesses and ensure the scheme, which will facilitate an increase in the population in the High Road West Area , would also include focus on improving the businesses. The Council would be making sure that the businesses that do reside there, that are very valued by the local community and Council, continue to exist and to thrive in the area.

 

In response to questions from Cllr Connor the following information was noted:

 

• There were set development phases and Lendlease would need to satisfy the Council conditions for each phase before progression and this included reimbursement of CPO costs for each phase.

 

• Regarding the potential judicial review by Tottenham Hotspur and Peacock Estate Management Limited and the expected impact on the time scales of development and whether this would affect the ability to successfully draw down GLA funding, it was noted that Council had sought legal advice that confirmed that there was no reason to not progress the CPOs. The Council would be robustly resisting the legal challenges.

 

• It was noted that all landowner parties had been contacted several times over by letter or through one to one meetings. This included businesses and residential leaseholders on the Love Lane estate. It was noted that, of the commercial landowners owning the shops on the High road, there was only one landowner that the Council had not heard from.

 

• It was noted that the Council had not heard from around a third of leaseholders on the Love Lane estate when putting forward substantial negotiation for the purpose of acquiring their property and rehousing options for those living in their properties. However, for those who haven’t substantially engaged, the Council would be continuing to make contact and open up negotiations. The Council were in regular dialogue with the remainder of leaseholders.

 

 

Following consideration of the exempt information, it was

 

RESOLVED

 

i.              To resolve to make a Compulsory Purchase Order for the acquisition of land, interests and new rights over the Order Land shown pink and blue on the Plans attached as outlined at paragraph 6.15-6.17 and Appendix 2, pursuant to section 226(1)(a) and 226(3)(a) of the Town and Country Planning Act 1990, section 13(1) of the Local Government (Miscellaneous Provisions) Act 1976 and other relevant powers, known as “The London Borough of Haringey (High Road West Phase A) Compulsory Purchase Order 2022” (“the Order”), to enable the redevelopment of the Order Land through delivery of Phase A of the High Road West Scheme and promote or improve the economic, social and environmental well being of the area;

 

ii.            To delegate to the Director of Placemaking & Housing the power to effect the making, to seek confirmation and to effect implementation of the Order and to take all necessary steps to give effect to the Order in respect of the Order Land, including the following:

 

a.    Making such amendments and additions to the draft Statement of Reasons attached at Appendix 1 as deemed necessary;

 

b.    Making such reductions to the draft Order Plan attached at Appendix 2 as deemed necessary;

 

c.    Finalising and then making the Order, the publication and service of any press, site and individual notices and other correspondence for such making;

 

d.    Entering into and monitoring of negotiated agreements with or undertakings to landowners or statutory undertakers as applicable, setting out the terms for withdrawal of any objections to the Order;

 

e.    Seeking confirmation of the Order by the Secretary of State including the preparation and presentation of the Council’s case at any Public Inquiry which may be necessary and requesting that the Secretary of State make any necessary modifications to the Order;

 

f.     Publication and service of notices of confirmation of the CPO and thereafter to execute and serve any General Vesting Declarations and/or notices to treat and notices of entry, and any other notices or correspondence to acquire those interests within the area;

 

g.    Acquiring title to or such rights or interest in the Order Land and, taking and enforcing possession of the Order Land,

 

h.    Paying all costs associated with the Order including negotiating and paying any compensation to owners and others entitled to it, provided that the total sum to be spent on these acquisitions shall not exceed the sum referred to in the approved up-to-date capital programme and Project Cost Estimate (PCE) as referenced in the exempt report, noting that those costs will be reimbursed to the Council by Lendlease in accordance with the terms of the CPOIA; and

 

i.      Referral and conduct of disputes, relating to compulsory purchase compensation or relating to rights which are overridden, at the Upper Tribunal (Lands Chamber).

 

iii.           To agree the acquisition for planning purposes by the Council of all the third party land interests located within the Order Land, shown in pink at Appendix 2 and the new rights required over the Order Land shown in blue at Appendix 2, should an agreement be reached with landowners to acquire these by private treaty, and give delegated authority to the Director of Placemaking & Housing and the section 151 Officer after consultation with the Cabinet Member for Finance and Local Investment and the Cabinet Member for Council House Building, Placemaking and Development to agree the final price (including the land price, costs, compensation and fees) to be paid for each of these third party land interests provided that the total sum to be spent on these acquisitions shall not exceed the sum referred to in the approved up-to-date capital programme and Project Cost Estimate (PCE) as referenced in the exempt report, noting that those costs will be reimbursed to the Council by Lendlease in accordance with the terms of the CPOIA;

 

iv.           To approve the appropriation from housing purposes to planning purposes of the land edged red on the plan attached at Appendix 6 of this report to enable delivery of Plot D of Phase A, pursuant to section 122 of the Local Government Act 1972, subject to Secretary of State consent being granted, pursuant to section 19 (2) of the Housing Act 1985, and noting that section 203 of the Housing and Planning Act 2016 may then apply to override (subject to payment of compensation) any rights or covenants (to which section 203 applies);

 

v.            To approve the appropriation from highway purposes to planning purposes of the land edged green on the plan attached at Appendix 6 of this report to enable delivery of Plot D of Phase A, pursuant to section 122 of the Local Government Act 1972, subject to the Council being registered as the owner of the freehold interest in the subsoil, and noting that section 203 of the Housing and Planning Act 2016 may then apply to override (subject to payment of compensation) any rights or covenants (to which section 203 applies);

 

vi.           In relation to the open space land within Phase A (shown edged red on the plan at Appendix 7 of this report), to consider the objection received in response to the notice given in accordance with section 122(1) and (2A) Local Government Act 1972 and section 233 (1) and (4) of the Town and Country Planning Act 1990 before deciding whether or not this land should be appropriated from housing purposes to planning purposes and disposed of; see paragraphs 6.79-6.82; and

 

vii.          Subject to recommendation vi., to approve the appropriation from housing purposes to planning purposes within Phase A edged red on the plan attached at Appendix 7 to enable delivery of Phase A (including Plot F and infrastructure works related to Plot D), pursuant to section 122 of the Local Government Act 1972, section 233 of the Town and Country Planning Act 1990 and section 203 of the Housing and Planning Act 2016, and override (subject to payment of compensation) any rights or covenants (to which section 203 applies); and

 

viii.         To confirm that the land appropriated for planning purposes to enable the delivery of Plot A, following the decision by Cabinet on 19 July 2022 (agenda item 13), is the land edged in red on the plan attached at Appendix 11, noting that the area remains unchanged and is the same as that described in that report.

 

Reasons for decision

 

The High Road West Scheme has been supported by residents through an estate ballot and has now been granted Planning Permission. The Council has entered into a Development Agreement and CPOIA with Lendlease who will deliver the scheme. The Council has also entered into funding agreements with the GLA to support the delivery of Phase A. The CPOIA with Lendlease requires that the Council seeks authority from Cabinet to make a CPO once certain conditions have been met. Those conditions have now been fulfilled in relation to Phase A. The use of CPO powers is necessary in order to ensure that the benefits of Phase A can be delivered and in a timely manner.

 

The Government‘s Guidance on Compulsory purchase process and the Crichel Down Rules (the ‘Guidance’) sets out that a CPO should only be made where there is a compelling case in the public interest. The factors that the Secretary of State can be expected to consider include the extent to which the proposed purpose will contribute to the achievement of the promotion or improvement of the economic, social and environmental wellbeing of its area. The Council is satisfied that there is a compelling case in the public interest for the use of CPO powers to deliver Phase A. The reasons for this are set out in the draft Statement of Reasons in Appendix 1 and summarised within paragraphs 6.18-6.42 of this report.

 

The Council and Lendlease have sought to acquire all of the remaining third party land and property interests in Phase A by agreement, as is set out in the draft Statement of Reasons and paragraphs 6.43-6.60 of this report. It is clear that it is unlikely that it will be possible to acquire all outstanding interests through mutual agreement within a reasonable timescale, and without the use of the CPO. The Council and Lendlease will continue to negotiate with landowners with the aim to acquire these outstanding interests by mutual agreement, alongside the CPO process being progressed.

 

The appropriation of various land parcels belonging to the Council for planning purposes will support the delivery of Phase A, alongside the progression of the CPO. The appropriation will give the Council and its development partner Lendlease the ability to rely on sections 203 and 204 of the Housing and Planning Act 2016 (“2016 Act”) to override any easements or other private rights (such as rights to light) which might otherwise impede redevelopment of this land in accordance with planning permission.

 

The land to be appropriated for planning purposes includes the land required to deliver Plot D, the second development plot of Phase A, following the decision by Cabinet in July 2022 to appropriate the land required to deliver Plot A. Although the Plot is included within the Order Land, given the small number of acquisitions required, it is hoped that an agreement can be reached with each of the leaseholders and tenants ahead of the CPO, with the aim that Plot D can start on site in 2023, following the commencement of Plot A which is targeted for late 2022. The appropriation of Plot D will facilitate the delivery of this plot should agreement be reached with those leaseholders and tenants. As the land includes a residential block, the proposed appropriation for planning purposes will be subject to consent by the Secretary of State, pursuant to section 19 (2) of the Housing Act 1985. An application would be submitted following the Cabinet decision if approved.

 

It is also proposed that the Council appropriates open space land within Phase A for planning purposes. This would enable development to proceed within this location as and when it is required, firstly to enable infrastructure works associated with Plot D (currently due to start in 2023), and subsequently the delivery of Plot F (currently due to start in 2025). The open space is currently a playground and a grassed/seating amenity area. Amenity space will be re-provided as part of Phase A, in the form of Moselle Square and other public and private amenity areas (secured through the section 106 agreement associated with the planning permission). The proposed appropriation of the open space land will allow that part of Phase A to come forward, in line with the development programme, ensuring that there are no impediments to delivery (as set out further below). Pursuant to section 122(1) and (2A) Local Government Act 1972 and section 233 (1) and (4) of the Town and Country Planning Act 1990, a notice of the intention to appropriate and dispose of this land was published. One representation was received which is considered at paragraph 6.82.

 

The officer report accompanying the Cabinet decision of July 2022 to appropriate for planning purposes the land required to enable the development of the first plot (Plot A), included an appended Plot A Appropriation Plan. While the plan and area shown in the appendix was correct, the report referenced a colour label for the boundary which differed to that shown in the appendix. As clarification, Cabinet are asked to confirm that the land that has been appropriated to enable delivery of Plot A following that decision is that shown edged in red on Appendix 11 of this report. To confirm, the plan and extent of the area remain unchanged.

 

Alternative options considered

 

Not to make a CPO or to do so at a later date

 

If the Council chose not to make a CPO, and instead to solely continue to seek to acquire outstanding land interests in Phase A through mutual agreement, based on the number of interests and the extensive negotiations to date it would not expect that it would be possible to acquire all interests. It is expected that the Council would not be able to deliver Phase A at all in this scenario, potentially losing all the benefits that Phase A of the High Road West Scheme will deliver, the Council’s funding with the GLA and failing to honour its commitments to residents set out in the ballot and Landlord Offer.

 

If the Council chose to make the CPO at a later date, this would result in a significant delay to the delivery of Phase A and the provision of the new Council homes. The process to implement a CPO can take a substantial period of time, and as described above, the Council and Lendlease may not be able to progress development of future plots until this is in place. The Council is satisfied that the required conditions and compelling justification are now in place to progress a CPO for Phase A, and that there is no justifiable reason for postponing action to secure such powers.

 

Not to appropriate the land for planning purposes or to do so at a later date

 

If the Council chose to progress development of the land required for Plot D, or on open space land within Phase A, without having appropriated the land for planning purposes, this would risk the potential for third party claims, which could result in the proposed development being delayed or stopped. The current phasing strategy also has works commencing on the site in the near future. To provide certainty that is needed to enable the works to go ahead, as part of and alongside the remainder of Phase A, the appropriation decisions need to be taken now. As noted at paragraph 6.79 below, the relevant areas (including in particular the open space) will remain available for public use until required for the relevant works.

 

Based on the consideration of these options, Cabinet is recommended to reject them and approve the recommendations outlined in Section 3 of this report.