Agenda item

Arndale Centre extension - use of 'section 237' powers to assist with delivery of the proposed development (KD).

Report of Senior Head of Regeneration, Planning and Assets

Cabinet lead member: Councillor David Tutt.

 

Decision:

Agreed, in principle, that the acquisition of the land, as identified on the attached plans and schedule by the council pursuant to Section 227 of the Town and Country Planning Act 1990 be authorised in order to then engage powers under section 237 of the Town and Country Planning Act 1990 for the planning purpose of facilitating the carrying out of the development (in its current form or as may be varied or amended) and subsequent disposal of that land to the developer (or an associated company) under section 233 of the Town and Country Planning Act 1990, and the following authority delegated to senior head of regeneration, planning and assets in consultation with the lead cabinet member to finalise the terms for the acquisition and disposal of the above land with the developer (or associated company) and for the relevant documentation to be entered into by the council; and finalise the extent/boundary of the land identified in the attached plans and schedule to be acquired by the council and subsequently disposed of to the developer once S.237 powers have been exercised over the land.

Minutes:

8.1 Cabinet considered the report of the senior head of regeneration planning and assets.  Following the secretary of state’s decision to approve the compulsory purchase order (CPO) to allow the £85m planned extension to the Arndale to proceed (which would provide an additional 22 new retail units, approximately 300 extra car parking spaces, seven restaurants and a nine-screen cinema and was expected to create approximately 800 retail and catering jobs) it was considered that the acquisition of the land for planning purposes of the development, so as to engage S.237 of the Town and Country Planning Act 1990, should be approved on the following basis:

(i) The development had the benefit of planning permission and it was considered desirable that the development progress and be completed as soon as possible;

(ii) the council had already undertaken a lengthy CPO process to secure the necessary land and rights needed to facilitate the development;

(iii) it was considered that appropriate investigations had been undertaken by the developer to identify those with the benefits of the rights proposed to be infringed and that it was reasonable to conclude such beneficiaries could not or would not be identified within a reasonable time period;

(iv) the development would deliver public benefits to the borough; and

(v) those who currently benefited from the restrictive covenants would be entitled to compensation for the interference with their rights.

Accordingly, all relevant considerations had been assessed and on balance it was considered appropriate that the recommendation be approved.

 

8.2 Prior to and following the making of the CPO, the developer had sought to separately negotiate with relevant third party landowners in order to secure the land required for the Arndale extension by agreement.  Various restrictive covenants existed over some areas of land which had been acquired by the developer and also over its existing land holding.  A composite list of those rights, so far as it was possible to ascertain the rights from the title documentation, was set out in the schedule attached to the report. 

 

8.3 The acquisition of the land by the council and subsequent use of S.237 powers to secure the release of any covenants that might impact upon the development would be followed by the transfer of the land to the developer.  The CPO indemnity agreement between the council and the developer provided that the council's costs associated with the transfer of third party rights, the exercise of the section 237 power and any compensation payable as a result would be met by the developer.  Accordingly, there were no financial implications for the council.

 

8.4 Resolved (key decision): That, in principle, the acquisition of the land, as identified on the attached plans and schedule by the council pursuant to Section 227 of the Town and Country Planning Act 1990 be authorised in order to then engage powers under section 237 of the Town and Country Planning Act 1990 for the planning purpose of facilitating the carrying out of the development (in its current form or as may be varied or amended) and subsequent disposal of that land to the developer (or an associated company) under section 233 of the Town and Country Planning Act 1990, and that the following  authority be delegated to the senior head of regeneration, planning and assets in consultation with the lead cabinet member to:

 

(a) Finalise the terms for the acquisition and disposal of the above land with the developer (or associated company) and for the relevant documentation to be entered into by the council; and

(b) finalise the extent/boundary of the land identified in the attached plans and schedule to be acquired by the council and subsequently disposed of to the developer once S.237 powers have been exercised over the land.

 

 

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