Compulsory Purchase Orders (‘CPO’)
A recent case has highlighted the need for a proper approach to be taken to ensure that an application for a CPO and its management is crucial to success. The London Gateway Development Corporation (‘LGDC’) had its request for a CPO rejected because: it failed to assist an existing business to relocate; the management of the CPO did not follow government advice in Circular 6/2004; and there was a risk that the reason for the CPO could not be delivered.
There has been little use of CPO powers in the recent past and in consequence experience in establishing and implementing CPO’s is limited.
The failure to assist an existing business arose because LGDC did little to meet the occupiers requirements and provided limited assistance in helping the occupier to find suitable alternative premises, which if not found would result in real risk and significant harm to its business.
The Circular 6/2004 directs acquiring authorities to acquire land by negotiation and compulsory powers should only be used in a last resort. In addition to the specific complaint that LGDC did not give material help to one occupier to relocate, offers to acquire other lands were made only shortly before the public inquiry commenced.
Finally, the LGDC did not meet the test of viability and this deliverability since there were uncertainties relating to planning, funding and land assembly, which collectively demonstrated that the proposal could be delivered in a reasonable timescale.
The fundamental requirement in a successful CPO is to demonstrate a compelling case in the public interest and show that the benefits of the scheme for which the CPO is required outweigh the losses to be suffered by the affected landowners. This requires an appropriate scheme, a coherent approach with early and good communication from the outset, with a commitment to deliver (i.e. to have funding and a developer in place to commence the scheme) and strong management to progress the acquisitions and complete the scheme.
JK has that commitment and experience having advised on many compulsory purchase schemes for development and regeneration and has acted for numerous landowners and businesses affected by such schemes. These include establishing and implementing the strategy for acquisitions (including compulsory purchase) for the Tyne & Wear Development Corporation. The East Quayside development was one of the largest and challenging cases. Sunderland arc on acquisition of the Vaux Brewery site from Tesco, again a challenging case, which included finding an alternative supermarket site for development by Tesco. Advising Network Rail on its objection and subsequent agreement with Highways Scotland on compulsory acquisition and compensation payments for the M74 Glasgow scheme.
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