Part 1 / ITEM NO.

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REPORT OF THE DEVELOPMENT DIRECTOR

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TO THE DEPUTY CITY MAYOR ON

11th SEPTEMBER 2012

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TITLE:Appropriation of land to be redeveloped within the Creating a new Pendleton PFI Regeneration Area

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RECOMMENDATION:

That the Deputy City Mayor approvesthe appropriation, for planning purposes, of all council owned land to be redeveloped and within the boundaries of the Pendleton PFI area, pursuant to Section 122 of the Local Government Act 1972, as and when the land to be redeveloped (or parts of) and is no longer required for the purpose for which it is held.

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EXECUTIVE SUMMARY:

Cabinet approved the Creating a new Pendleton PFI scheme in June 2008. Subject to approval of the Final Business Case by the City Mayor, the Council will enter into a Development Agreement with SP+ later this year to ensure the comprehensive redevelopment of the Pendleton PFI area. Under the Development Agreement the Council will have lead role in site assembly, which will include a general obligation to address any title encumbrances prior to the grant of leases.

It is proposed that all council owned land to be redeveloped situated within the Pendleton PFI is appropriated for planning purposes pursuant to Section 122 of the Local Government Act 1972. All land to be appropriated is contained within Planning Guidance Pendleton as adopted 11 March 2009.

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BACKGROUND DOCUMENTS:

Pendleton Planning Guidance adopted March 2009

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KEY DECISION: No

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DETAILS:

1.0 / Background
1.1
1.2
1.3
1.4 / The council proposes to enter into a development agreement with the preferred PFI bidder to ensure the comprehensive redevelopment of the Pendleton PFI area.
Within the Pendleton PFI area there are sites which are to be redeveloped in accordance with the development agreement. Under the Development Agreement the Council will have the lead role in site assembly, this will include a general obligation to seek to address any title encumbrances prior to the drawdown of land.
The land to be redeveloped is to be redeveloped in accordance with current planning policies and guidance for the Pendleton area.
The redevelopment will assist to achieve the proposals for the regeneration of Pendleton and will promote or improve the economic social and environmental well being of the area.
2.0 / Details
2.1 / Under Section 122 of the Local Government Act 1972 the City Council can appropriate land within its ownership for any purpose for which it is authorised to acquire land by agreement and where that land is no longer required for the purpose for which it is held.
2.2
2.3
2.4
2.5
2.6 / Appropriation for planning purposes means that the appropriated land will be held for the purpose for which it is to be used.
Appropriation should not take place until the land is no longer required for the purpose for which it is held immediately prior to appropriation. The land to be appropriated is currently used and held for a number of purposes. Appropriation will be at various stages of the PFI proposals and works. Some of the land to be developed is housing land and will only be appropriated once it has been cleared and is available for its new use.
Once appropriated to planning the land to be developed will be correctly designated in accordance with it proposed use/development.
Where any land consists or forms part of an open space common or allotment the council will cause notice of its intention to appropriate in a newspaper circulating in the area in which the land is situated.
Where land is appropriated for planning purposes, the consequence (by virtue of Section 237 of the Town and Country Planning Act 1990, as amended by Schedule 9 of the Planning Act 2008) is that the erection, construction or carrying out of any maintenance of any building or work on the subject land and subsequent use of that land is authorised, if it is done in accordance with planning permission, even if it involves the interference with third party rights.
2.7 / The purpose of Section 237 of the Town and Country Planning Act 1990 (as amended) is to ensure that where land has been appropriated for planning purposes, then existing rights, which could prevent development of that land from proceeding in accordance with planning permission, can be overridden. Any third party claiming the benefit of a third party right is prevented from taking injunctive action against the council thus preventing development. There remains however a right to compensation for loss of the right calculated in accordance with the loss or injury to the third party.
2.8 / It is not considered that there will be any significant financial implications arising directly from the report other than a remote risk of future compensation claims arising from the potential interference with third party rights.
3.0 / Recommendation
3.1 / That the Deputy City Mayor approvesthe appropriation, for planning purposes, of all council owned land to be redeveloped and within the boundaries of the Pendleton PFI area pursuant to Section 122 of the Local Government Act 1972 as and when the land to be redeveloped (or parts of) and is no longer required for the purpose for which it is held.

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KEY COUNCIL POLICIES:

  • Regeneration
  • Creating prosperity in Salford

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EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS:-

The appropriation is made to support the wider regeneration plans for Pendleton and therefore there are no specific issues or implications relating to equality and diversity

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ASSESSMENT OF RISK:

Low – medium. The appropriation could give rise to claims for compensation which would be assessed under the compensation code, but this is unlikely.

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SOURCE OF FUNDING (Simon Ashworth, Capital/PFI Accountant x0219):

In the unlikely event funding is required: Housing Capital Programme PFI funding

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LEGAL IMPLICATIONS:

(Michelle Brice, Deputy team leader Legal Service 0161 219 6303

S122 Local Government Act 1972 does permit the council to appropriate land held for one purpose to another where it no longer requires the land for the current purpose for which it is held. The purpose to which land is to be appropriated must be one for which the council is authorised to acquire land. Sections 226/227 Town and Country Planning Act 1990 permits the Council to acquire for planning purposes so long as criteria are met. The Pendleton PFI proposals meet those criteria. Appropriation should not take place until the development land is no longer required for its current purpose.

S237 Town and Country Planning Act 1990 gives the Council (and its successors in title) the power to override third party rights subject to payment of compensation only, development is therefore not prevented by third party rights so long as and development is done in accordance with planning permission. The redevelopment of the sites within the Pendleton PFI area will be done in accordance with planning pursuant to the terms of the Development Agreement.

This decision falls under the portfolio of Deputy City Mayor, as set out in section 4b) of the Council’s constitution.

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FINANCIAL IMPLICATIONS:

(Simon Ashworth, PFI Accountant, x0219)

There is a low risk that funding will be required. In the unlikely event that funding be required, then provision will be made from within the Pendleton PFI project allocation approved by Cabinet on the 24th June 2008.

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OTHER DIRECTORATES CONSULTED: None

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CONTACT OFFICER:Angela Martens, Urban Vision, 0161 779 6077

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WARD(S) TO WHICH REPORT RELATE(S): Langworthy

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