Cabinet Member Report

Decision Makers: Cabinet Member for Housing, Regeneration, Business and Economic Development.

Cabinet Member for Built Environment

Date: 12th August 2014

Classification: General Release with Exempt Appendices F & G

Title: Tollgate Gardens Estate – Intention to make a Compulsory Purchase Order

Wards Affected: Maida Vale

Policy Context: Housing Renewal, Core Strategy

Financial Summary: This report relates to the proposed Compulsory Purchase Order of the Tollgate Gardens Estate. The budget required to fund this and the enabling work for the regeneration is included within the Housing Revenue Account Plan approved by Cabinet in March 2013.

Report of: Strategic Director of Housing, Regeneration Property

Strategic Director Built Environment

1. Executive Summary

1.1 The purpose of this report is to recommend the making of the Tollgate

Gardens Estate Compulsory Purchase Order (“CPO”). This will enable the

compulsory acquisition by the Council of land and interests falling within the

red line area on the plan attached at Appendix A required to facilitate the

redevelopment of the Tollgate Gardens Estate ("the estate / the site") under

section 226(1) (a) of the Town and Country Planning Act 1990 (as

amended). This will affect freehold and leasehold interests, third party rights

and landowners impacted by the acquisition and creation of new rights. The

CPO is required as a contingency measure to ensure the development can

proceed should the Council fail to reach a negotiated settlement with the

relevant affected parties.

1.2 This report confirms the Council’s intention to commence a compulsory

purchase procedure subject to the final detail of the CPO being delegated to

the Strategic Director of Housing, Regeneration and Property in consultation

with the Strategic Director Built Environment and the Head of Legal and

Democratic Services to deliver the project as approved by the planning

committee, once the referencing of all interests is complete and final

documentation required to make the CPO is completed.

1.3 The Council has powers under the Town and Country Planning Act 1990 (as

amended) and ancillary legislation to undertake land assembly. The

comprehensive regeneration offered by this scheme provides an opportunity

which is unlikely to proceed without the use of a CPO as vacant possession

of the development site is required to enable demolition and redevelopment

in relation to this project.

1.4 Following a positive vote by residents for the redevelopment of the estate in

November 2010, Cabinet approved the Tollgate Gardens master plan on 27

June 2011 and authorised officers to progress developing the design of the

scheme towards a planning application. The approval also authorised

officers to enter into negotiations for the Council to acquire the leasehold

interests in Godwin House and Wingfield House by agreement and

investigate the necessity of commencing a CPO. It was also agreed that

where voluntary acquisition could not be secured, a further report would be

made at the appropriate time recommending that all outstanding interests

be made the subject of a CPO.

1.5 On 20 February 2012 Cabinet reviewed the risks and viability of the

redevelopment, and confirmed that the planning application should be

submitted. A viability report prepared at that time demonstrated that the

scheme was viable. In October 2012 the Council appointed BDP architects,

who worked with residents and officers to submit a planning application for a

scheme based upon the approved master plan scheme, involving demolition

of 1- 57 Godwin House NW6 5SJ and 1-32 Wingfield House NW5 5SH

together with the community hall attached to Tollgate House. In December

2013, a potential development partner was engaged to produce checks on

the schemes viability based on current market conditions, this assessment

served to show the final project remained viable.

1.6 On 14th May 2013 the Cabinet Member for Housing approved the Tollgate

Delivery report which gave secure tenants on the estate decant status, and

approved the issuing of Initial Demolition Notices (“IDNs”) suspending the

Right to Buy. IDNs were subsequently served on all secure tenants in

Wingfield and Godwin.

1.7 Purchases of leaseholder properties in Godwin and Wingfield, commenced

in the autumn of 2012 by Westminster Community Homes Ltd (WCH) acting

under agreement, as the Council’s agent. At that point there were 29

leasehold interests in Godwin and Wingfield Houses, which the Council

needed to acquire to enable the redevelopment to proceed. One further

property was purchased before the IDNs were served taking the total to 30

to be bought out.

1.8 To date 22 leasehold interests have been acquired by agreement and

negotiations are ongoing in respect of the remaining 8 lessees, one of

whom has exchanged contracts to move, see Appendix F for further details.

1.9 There were originally 53 secure tenants remaining in Wingfield and Godwin

needing to be re-housed from Godwin and Wingfield at the time that the

Tollgate Delivery report was approved in May 2013 as well as 6 void

tenanted properties (59 secure tenants). All tenants have accepted offers or

moved and two of these are still waiting to move.

1.10 The residents in Tollgate House are also included in the CPO but they will

be affected by the development on the estate to a lesser extent than those

in the other blocks, as they will be able to remain in their homes. External

consultants involved in the project, have advised Council officers that only

two households will be required to move from Tollgate House on a

temporary basis to facilitate more extensive refurbishment / improvement

works. The rights and easements of Tollgate House residents over the

existing estate will be affected as they extend over the development site.

1.11 It is therefore necessary to include Tollgate House within the Order Land in

order to extinguish the rights currently enjoyed by its residents necessary to

achieve the redevelopment. It will however be made clear to the

leaseholders and tenants at Tollgate House that their interests are being

included in order to acquire rights which are appurtenant to them and it is

not intended that they are displaced. It is proposed that an agreement to

release any rights over the estate will be entered into with leaseholders in

return for formal agreement by the Council not to enforce any CPO against

them. In respect of the tenancies, statutory security of tenure does not

prevail.

1.12 The Cabinet Member for Business, Skills and Housing and the Cabinet

Member for Built Environment (“the Cabinet Members”) are therefore

requested to authorise:

I. The exercise of the Council’s powers of compulsory purchase to acquire

all land and outstanding interests in the site and to acquire new rights to

facilitate the redevelopment of the estate falling within the red line area

shown on the plan at Appendix A; and

II. To create new rights in order to secure the development of this renewal

scheme and the associated public benefits.

1.13 At the time of writing this report, the extent of land to be acquired is shown

at a maximum coloured pink and new rights to be acquired / created are

shown at a maximum coloured blue (interests acquired relate only to

easements and rights of light) on the draft Order Map attached at Appendix

D (“Order Land”) and detailed in section 2.2 below. In addition, the draft

Schedule of Interests (“Order Schedule”) is included at Appendix E.

1.14 Proposals for the redevelopment of the site have now been finalised and on

19th November 2013, the Council’s planning sub-committee resolved to

grant a planning permission for the scheme subject to GLA approval and

the signing of a Section 106 Unilateral Undertaking (UU). GLA approval has

now been granted and the terms of the UU are agreed and due to be

signed shortly. The Cabinet Member for Business, Skills and Housing and

the Cabinet Member for Built Environment are therefore asked to agree the

use of the Council’s powers of compulsory purchase to acquire the

remaining 8 leasehold interests (one has exchanged contracts) and 2

tenants in Tollgate Gardens Estate, who are still in occupation at the date of

this report as well as any other third party interests which exist.

2. Recommendations

2.1 That Appendices F and G to this report be exempt from disclosure by virtue of the Local Government Act 1972, Schedule 12A, Part 1, paragraph 3 (as amended), in that both documents contain information relating to the financial or business affairs of any particular person (including the authority holding that information).

2.2 That the Cabinet Members are requested to note the draft Statement of

Reasons attached to this report which sets out the justification for making

the City of Westminster (Tollgate Gardens Estate Regeneration) CPO 2014,

in relation to the red-line land shown at Appendix A.

2.3 That the Cabinet Members agree to the making of a CPO (or CPOs as

required) pursuant to s.226 (1) (a) of the Town and Country Planning

Act 1990 (as amended), s.13 and s.15 of the Local Government

(Miscellaneous Provisions) Act 1976 (in accordance with the

procedures in the Acquisition of Land Act 1981) and other relevant

powers, to acquire all outstanding interests in the site and to acquire

and create new rights facilitating the proposed development and to

submit to the relevant Government office for confirmation for the

acquisition of the land shown coloured pink and the creation and

acquisition of new rights over the land shown coloured blue on the

Order Map for the purposes of facilitating the comprehensive

re-development of the Tollgate Gardens Estate. Maida Vale NW6, as

detailed in the Order Schedule. This will be subject to the Strategic

Director of Housing, Regeneration and Property & the Strategic

Director for the Built Environment acting with a delegated power to

receive, agree, vary as necessary and approve all order

documentation and plans, prior to making the compulsory purchase

order. That the Cabinet Members authorise officers to proceed in

accordance with recommendations 2.3 – 2.7, as they relate to the

delivery of the Tollgate scheme as approved by planning committee in

November 2013, as detailed below:

2.4 That the Cabinet Members agree to delegate to the Strategic Director

of Housing, Regeneration and Property & the Strategic Director for the

Built Environment, working with the Head of Legal Services, to modify

the draft Statement of Reasons, the Order Map and Order Schedule

as necessary to finalise before submission and effect any other

procedural requirements including (but not limited to) the publication

and service of all notices and the presentation of the Council’s case at

any public inquiry;

2.5 That the Cabinet Members agree to delegate to the Strategic Director

of Housing, Regeneration and Property, to acquire any interests in

land within the Order area by agreement and the making of payments

equivalent to statutory compensation (or payments as are deemed

reasonable in the circumstances) and the provision of property or

services in lieu of compensation, in contemplation of the Order being

made;

2.6 That the Cabinet Members agree to delegate to the Strategic Director of

Housing, Regeneration and Property & the Strategic Director Built

Environment, working with the Head of Legal Services, to ensure, if the

CPO is confirmed, that the Order is implemented. The Cabinet Members

agree to the acquisition of the land and the acquisition and creation of new

rights which are the subject of the CPO, subject to there being no material

change in circumstances that would mean that the council cannot properly

pursue the CPO including the acquisition of interests by use of General

Vesting Declarations;

2.7 That, if the CPO is confirmed, the Strategic Director of Housing,

Regeneration and Property be authorised to settle the

compensation amounts payable in the acquiring the interests if

voluntary agreements cannot be reached;

2.8 That the Cabinet Members authorise officers to take all necessary steps to

implement these resolutions.

3. Reasons for Decision

3.1 To ensure that the master plan proposals for Tollgate which Members have

already approved in principle may proceed and to ensure that an effective

delivery plan is in place and to deliver the scheme.

3.2 An alternative option that has been considered is for the Council not to

make a CPO for the estate and to endeavour to assemble the site for

development. The Council has been negotiating with tenants and

leaseholders in an effort to reach to an agreed position for almost 2 years

and now feels it has reached a position of last resort (further details on the

Councils negotiation history is referenced in the statement of reasons see

Appendix B) which now requires the CPO to be made. Without CPO powers

therefore the Council cannot guarantee that the requisite land can be

assembled to enable the consented scheme to be delivered. The

development is of strategic importance to the Council as the first of the

Councils housing renewal programme for the borough and will deliver

necessary new housing.

3.3 Consideration of whether the Council should proceed with a CPO under

either s.17 of the Housing Act 1985 (‘the housing power’) or s.226 (1) (a) of

the Town and Country Planning Act 1990 (‘the planning power’) has been

fully explored in conjunction with Advice received from Counsel. Although

Circular 06/2004 Compulsory Purchase and the Crichel Down Rules (“the

Circular”) explains that acquiring authorities should proceed under the most

specific power available to them (para.15), it also explains that confirmation

of a CPO will not be refused solely on the basis that the authority could

have proceeded under another power, provided of course that the power

they have sought to use is applicable (Annex E, para.8). The regeneration

of Tollgate is a redevelopment project and, given the quantitative and

qualitative improvement in the Borough’s housing stock that will result, it can

be reasonably concluded that there will be an improvement in the social and

environmental well-being in the area.

3.4 Whilst the redevelopment scheme for which planning permission has been

approved in principle is essentially for a housing scheme, consideration of

the nature of the redevelopment works being carried out and the nature of

the interests existing over the land to be redeveloped have been explored.

This has included consideration of Tollgate House which is being retained

and the majority of its residents will remain in situ throughout the duration of

the redevelopment works. Those residents in Tollgate House will have rights

of access etc over the land which is being redeveloped and which, if not

released, substituted or overridden, would have the potential to hold up the

redevelopment works. Similarly, a number of properties located in proximity

to Tollgate have injunctable rights of light which again, if not released or

overridden, such rights would have the potential to hold up the

redevelopment works.

3.5 The Council as part of its negotiations is seeking to secure the release or

substitution of the rights over the redevelopment land by agreement with the

affected parties (such as statutory undertakers and estate residents and

owners and occupiers of neighbouring properties who have such rights) and

such negotiations will continue. Should it prove impossible, compulsory

acquisitions of rights under the planning power will enable the

redevelopment to proceed without impediment.

3.6 Furthermore, the community hall being provided as part of the

redevelopment proposals is intended not just for use by residents, but also

for use by the wider public. The housing power does enable local authorities

to acquire land to provide inter alia other buildings in connection with

housing accommodation provided by them, provided that the Secretary of

State considers such other buildings will serve a beneficial purpose in

connection with the requirements of the persons for whom the housing

accommodation is provided. Insofar as it is being provided at least in part for

the benefit of residents of the estate, the acquisition of land for the

construction of the community hall does fall within the scope of the housing

power, but arguably sits more comfortably and naturally within the scope of

the general redevelopment power.

4. Background, including Policy Context

4.1 The Tollgate Gardens Estate (location plan and views of the scheme in

Appendix D) was built in the late 1960s and early 1970s and was

transferred to the Council from the London Borough of Brent in June 1994

as part of boundary changes. The estate is a relatively low density

combination of five separate blocks of varying heights.

4.2 Tollgate Gardens is one of the Housing Renewal areas as set out in

Westminster’s Housing Renewal Strategy (HRS, March 2010). Through the

Housing Renewal Strategy, the Council aims to increase the supply and

quality of affordable housing to meet a variety of local needs including

families, and to improve the quality of the local environment.

4.3 The Tollgate Gardens Estate is identified in the Council’s March 2010

Housing Renewal Strategy as an area which needs improvement as it has

not had significant investment, over and above planned maintenance, for

some years and would also require £3.8m over the next 30 years in planned

maintenance. This planned maintenance programme would not deal with

inefficiencies of space which could otherwise provide much needed

additional housing, poorly laid out public spaces, perceived anti social

behaviour, high rate of resident turnover, and demands to move out of the

estate even from those who are not necessarily overcrowded. In addition

there was a need to rebalance the size of homes across the estate to

provide for current need if residents and build homes with more up to date

layouts (such as the provision of one bed homes to replace bedsits).

4.4 The five core principles to be used for identified renewal areas of

Westminster such as Tollgate Gardens as outlined in the Housing Renewal

Strategy are:

• to increase the supply and quality of affordable housing to meet a

variety of local needs including for families;

• to improve the quality of the local environment with outstanding green

and open spaces and housing that promotes low energy consumption

and environmental sustainability;

• to promote a high quality of life for people of all ages and

backgrounds in safe cohesive and healthy neighbourhoods,

supported by a range of high quality housing and excellent

community facilities;

• to enable people to maximise economic opportunity with housing

tenure with support for training, employment and enterprise, and

housing tenures which help those in work to remain in the City;

• To create a more distinct sense of neighbourhood ending the

physical divide between Westminster’s estates and surrounding local

streets.

4.5 A master plan for the redevelopment based on option 4 was approved by

Cabinet on 27 June 2011(background document to the report)

4.6 An application for planning permission was submitted to the Local Planning

Authority on 14 June 2013 (reference 13/05695/COFUL). The description

of the development was as follows:

‘Demolition of Godwin and Wingfield Houses and ancillary garages in

connection with the Estate Regeneration to provide 248 residential units

with 5 new buildings of between 2-9 storeys and the retention of Tollgate

House with associated external alterations (to Tollgate House),

construction of a new single storey community centre and associated car

parking, landscaping and open space.’

On 19 November 2013, the Planning and City Development Committee

granted conditional approval, subject to the completion of a legal agreement

and referrals, to the development scheme for Tollgate House Gardens.

The new scheme will provide:

• a mix of affordable and private homes, and a mix of sizes from one to

three bedrooms

• The removal of the existing community hall from Tollgate House and

two of the 195 new build residential units created in its place. The

new and enlarged community centre will have direct access from

Kilburn High Road.

• Improved public realm, new play areas, parking for 99 vehicles and

cycle storage, all homes will benefit from communal open space,

and private gardens or private balconies/terraces.

• All 59 social rent homes in Godwin and Wingfield will be reprovided

and there will be overall an increase of 31% affordable 1floor space

over that currently on the estate.

• 10 of the affordable units will be intermediate, first refusal as equity

loan homes whereby returning resident leaseholders may buy and

own new homes that are worth more their current homes, with the

Council providing the balance of monies for the additional equity.

The proposal is for this to be secured by way of a charge against the

property with a mechanism for repayment. As none of the resident

leaseholders have now accepted this offer (having being notified of

the opportunity in writing) these homes will be offered as shared

ownership to eligible returners or people from the Council’s housing

waiting list.

4.7 Unfortunately the development was not financially viable with 35% of net

new affordable floor space being provided, as requested by planning policy.

Officers revised the scheme to a breakeven point and ask the planning

committee to consider, that all the Council housing renewal schemes must

be capable of self-funding to be delivered. This meant a reduction in the

percentage of net new affordable units, to 31%, was required. A viability

assessment was submitted to back up this claim and was reviewed and

verified by an independent assessor for the planning authority. Overall

across the renewal areas and other projects in the Borough, the Council do

typically achieve above the 35% of affordable housing but clearly on some

less viable projects it will be less.

4.8 It is considered that delivering these benefits, and any other minor

alterations to improve the viability, quality and deliverability of the scheme

which will result in a significant transformation of the area and help achieve

the aims set out in the Housing Renewal Strategy, would be in the public

interest. The new Tollgate Gardens will make a positive impact on this key

location for new and returning residents and the improved Tollgate House,

with the improved elevations and new community hall facing Kilburn High

Road, new access to the High Road and bespoke sustainable and varied

landscaping, will also be significant benefits for residents of Tollgate House.

4.9 The Council’s powers to compulsory acquire land for planning purposes are

provided for under s.226 (1) (a) of the Town and Country Planning Act 1990

(as amended). This provides a positive tool for local authorities to assemble

land in order to facilitate the carrying out of development, redevelopment or

improvement on or in relation to that land. Ancillary powers to create new

rights and to override interests in land are also provided under s.13 of the

Local Government (Miscellaneous Provisions) Act 1976 and s.237 of the

Town and Country Planning Act 1990, respectively.

Despite the ongoing negotiations with third parties it is anticipated that the

Council will not be able to secure by agreement all the interests for the

Tollgate regeneration within the timescale needed for delivery of the

scheme. And thus it is necessary to use the powers described above.

4.10 Guidance is given on these issues and the other concerns that the Council

should take into account in the Circular as mentioned at 3.3 above. CPO

powers should only be exercised where there is a compelling case in the

public interest. Compulsory acquisition is usually a last resort, and

acquisitions should be by way of agreement wherever practicable. As

outlined in 1.7 above, significant negotiation has taken place over a

considerable period of time. Despite the ongoing negotiations it is

anticipated that the Council will not be able to secure all the interests within

the timescale needed for delivery of the scheme. Hence it is appropriate for

the Council to initiate the CPO process in tandem with these negotiations.

4.11 Council officers have engaged external Counsel to provide ongoing legal

guidance on CPO related matters.

5. Reasons for the CPO

5.1 Section 226 of the Town and Country Planning Act (as amended) enables

the Council to acquire land compulsorily for "planning purposes". These

powers may be used if acquiring the land will facilitate the carrying out of the

development, redevelopment or improvement on or in relation to the land

being acquired and it is not certain that it can be done by way of acquiring

through agreement. This is a wide power and it is subject to sub section

(1A) of section 226 which provides that an acquiring authority must not

exercise this power unless it thinks the proposed development;

redevelopment or improvement is likely to contribute to achieving the

promotion or improvement of the economic, social or environmental well-

being of the area.

5.2 In respect of Section 226 (1) (a), the Council is not certain that it can acquire

the land in question by agreement. There are still 7 leaseholders who have

not moved, and one who has only exchanged contracts (total 8). Although

all tenants have accepted offers of new flats two tenants have not moved

yet. This is after nearly 2 years of informal negotiations with the

leaseholders and nearly a year of working with secure tenants through the

Choice Based Lettings system and direct offers after that. Many of these

tenants and lessees have had several visits and many phone calls to assist

them in order to reach a satisfactory conclusion in negotiations. In addition,

the residents of Tollgate House have interests which will be interfered with

by the regeneration works and it is necessary therefore to include these

interests in the CPO to ensure that the development may proceed. Tollgate

House residents have been involved in consultations generally including in

the redevelopment proposals of the estate and had an opportunity to input

and also object to the proposed planning application submitted.

5.3 The Council at Gate panel in January 2014 approved the Procurement

Strategy to procure a developer partner for the Tollgate Gardens Estate.

Council officers are currently in the process of sending out Expressions of

Interest to the 8 developers on the Council’s approved Development

Framework Panel which was signed in March 2013, in order that the

Tollgate Gardens regeneration may proceed. Once the developer is

selected (anticipated September 2014) the Council will be working towards

obtaining vacant possession by mid 2015 to enable the developer to start on

site at Tollgate. Given the time already allowed for negotiations with

leaseholders and making offers to secure tenants it is the view that use of

the power pursuant to section 226(1) (a) would be appropriate, and would

justify applying to the Secretary of State for confirmation of the compulsory

acquisition of the land. Mindful of the disruption and interruption of their

rights the Council has ensured that the affected leaseholders and tenants

who have already moved from the blocks due to be demolished in

anticipation of the CPO being made, have been adequately compensated.

In addition the offer to leaseholders and secure tenants is as outlined in 5.4

below. A copy of the leaseholder policy is available on the Councils website.

5.4 Both secure tenants, resident and non resident leaseholders are receiving

statutory compensation to support their moves be they temporary or

permanent. They do however have significant additional generous support

over and above the statutory requirement which in the case of secure

tenants is to pay home loss and disturbance and in the case of leaseholders

to pay them market value for their homes and pay home loss and

disturbance payments or basic loss payments for non residential

leaseholders, and the offer of an equity loan product which allows them to

return to Tollgate Gardens to live and own a new property which is valued

at a higher value than the one they have sold to the Council in order for the

regeneration to proceed.

5.5 Dedicated advice and support is also being offered to tenants and

leaseholders through this process. The Council has appointed an

Independent Tenant and Leasehold Advisor (First Call) and an Independent

firm of solicitors for the provision of legal advice related to the CPO (Alan

Edwards and Co) to support residents as well as a Community Engagement

officer to support the whole consultation and rehousing process. There is a

dedicated Rehousing officer to support secure tenants to make their

decisions to move and a generous offer to returning resident leaseholders

which provides them with financial support if required whilst in temporary

accommodation, and the right to return as owners to a property on an equity

loan basis which will be worth more than their current home, giving them all

the rights of an owner, such as the ability to sublet. Details of the Council’s

leasehold and decant policies can be found on the Council’s website. The

future developer contractor will also be chosen on the basis of their ability to

work around residents and will be required to consult residents on their

development proposals.

5.6 Tollgate House residents were included in the original vote for the scheme

to proceed and have been involved in the ongoing resident consultation as

well as having been sent specific consultation material as regards the

improvements to Tollgate House, and invited to meetings to discuss the

improvements. Although they will not be displaced from their homes, the

potential loss and interference with rights is currently being assessed to

determine whether any compensation is payable. They also have access to

the council officer support and Independent tenant and leaseholder and

developer consultation advice available to other residents.

5.7 In addition, as outlined in 1.13 and 1.14 above, in order for the development

to proceed various interests need to be created and acquired in respect of

statutory undertakers, and adjoining properties.

5.8 In addition, to section 226(1) (a), sub section (1A) of section 226 would also

apply, whereby the proposed development is likely to contribute to achieving

the promotion or improvement of the economic, social or environmental

wellbeing of the area.

5.8(i) Economic:

i) At least 1000 jobs are being created across the Renewal Estates from

construction jobs from the various programmes such as Tollgate and from

jobs created in the West End reorientated towards the Renewal Estates. In

addition there is support to be given to being ‘job ready’ across Renewal

Estates such as Tollgate. Tollgate is the first of these projects to start and

thus its hoped that these residents will not only be the first to benefit but

also get further benefits as other opportunities through the renewal

programme come on line. Thus there are clear economic benefits for

Tollgate residents in being part of the renewal programme and Tollgate itself

will provide some of the construction jobs from this 1000 unit programme.

ii) The provision of 106 net additional homes on the Estate will increase the

ability of Westminster residents to live closer to job opportunities, reducing

the need for longer distance commuting and its negative environmental and

sustainability impacts.

iii) More housing on this site, and particularly more market and intermediate

housing with households of higher incomes will also benefit local shops and

services.

iv)The new community hall in the accessible location facing Kilburn High

Road, include small training /consulting rooms which along with the

improved and more accessible community hall, will be targeted for

employment and training initiatives for local people.

5.8(ii) Social:

i) There will be a net increase of homes on the Tollgate Gardens estate of

106 homes generating an increase of 366 habitable rooms. This will make a

substantial contribution to addressing the housing need requirements of the

Council and Mayor.

ii) In addition there will be a qualitative improvement in the homes of

returning residents as their homes will be built to the Mayor’s standards –

providing larger and better laid out homes. In the case of the current

Tollgate residents living in bedsits – there will be particular improvements in

the provision of one bed units.

iii) The benefits of the complete scheme includes the provision of not only

new and better housing, but larger community facilities with better kitchen

facilities which are accessible by wheelchair users.

iv) There will be 5786 sq.m. of useable open space – an increase of 2603

sq m included within it;

• formal play hub of 168 sq m

• semi enclosed games area 60 sqm

• informal play area of 1335 sqm including Tollgate Lawn which will be

enlarged through the demolition of the part of the existing community

hall attached to Tollgate House and the Corner House Lawn

• Private gardens of 2219 sqm

The remainder of the 5786 sq m comprises trees and floral planting seating

area and allotment growing areas.

v) The scheme will also make a life time car club membership contribution

for residents, increased and secure parking along with cycle storage

5.8(iii) Environmental:

The scheme will significantly improve the transport and pedestrian

environment, creating a high quality public realm whilst integrating with the

local community. Environmental benefits can be measured largely through

the significant physical improvement over the current situation in addition to

the substantial enhancements to the overall public realm. The proposals will

maximise the site's potential, enhance public space, provide a mix of uses

and will be accessible, legible and sustainable. This in turn, together with

the land use facilities provided and the safe and secure nature of the

development, will have a beneficial impact on well being. The scheme is a

Code for Sustainable Homes scheme ensuring reduced carbon emission to

the wider neighbourhood around the Tollgate Gardens estate.

5.9 In conclusion there is a compelling case in the public interest. The tests

outlined in the Circular apply as outlined in 5.5 above.

Deliverability

5.10 The proposals involve the demolition and redevelopment of Godwin and

Wingfield Houses and their replacement with new build housing. There were

originally 30 leasehold interests and 53 secure tenants within these blocks

which the Council needed to acquire and rehouse respectively to enable the

scheme to proceed.

5.11 The Council has started work towards the selection of a development

partner and has approved the Procurement Strategy for the selection of the

developer partner. Expressions of Interest were issued on 9th May 2014

with the ITT being sent out mid June and a developer partner in place by

the end of September/ October 2014 .To this end BDP consortium and

Pinsent Masons have been appointed to prepare the necessary documents

as part of the mini tender package going out with the ITT.A viability report

was prepared for the recent planning submission and a confidential report

was prepared by Deloittes ( part of the BDP consortium) for this submission

which confirmed that the scheme was viable.

5.12 Negotiations in respect of Rights of Light are progressing in parallel with the

proposed acquisition of new rights as part of the Order Land. Thirty seven

properties surrounding Tollgate Gardens Estate are affected by the

development for the site and all potentially affected parties have received a

letter in this regard, (including individual flats, landlords, tenants and

occupiers). To date, 20 out of the 37 properties have been accessed and

two further appointments have been made although no settlements have yet

been agreed. However two of the main properties suffering injury of light

from the proposed development are close to settlement and it is expected

that offers will go out to the remaining properties very shortly as extensive

attempts have been made to access all properties including ongoing

communications and an invitation to a stakeholders event on the estate as a

way of making contact.

5.13 The creation of new rights to over sail cranes during construction, undertake

surveys, and minor external works will ensure that the development will

proceed unimpeded.

5.14 Financial deliverability is dealt with in section 6 below and also in the

attached draft Statement of Reasons.

6. Financial Implications

6.1 Financial implications are exempt from publication and have been placed in

Appendix G.

7. Legal Implications

7.1 Section 1 of the Localism Act 2011 provides the Council with the power of

general competence and states that “A local authority has power to do

anything that individuals generally may do”. Section 2 sets out the

boundaries of the general power, requiring local authorities to act in

accordance with statutory limitations or restrictions. In addition, the Council

must also adhere to the duty of Best Value and must consider this duty in

the manner in which services are provided/procured in accordance with the

Local Government Act 1999. The recommendations within this report are in

accordance with these powers.

7.2 Under section 226 (1) (a) of the Town and Country Planning Act 1990 a

local authority has a general power to make a compulsory acquisition of any

land in their area in order to facilitate the carrying out of development,

redevelopment or improvement in relation to the land.

7.3 In order to exercise the s.226 powers the local authority must be satisfied

that the proposed development/improvement is likely to contribute towards

any of the following objects, namely the promotion or improvement of the

economic or social or environmental well-being of their area.

7.4 Under section 227 of the Town and Country Planning Act 1990 the Council

has the power to acquire by agreement any land which they require for any

purpose for which a local authority may be authorised to acquire land under

section 226 as aforementioned.

7.5 When dealing with secure tenants the Council must comply with the

provisions of the Housing Act 1985 in respect of the service of demolition

notices and the rehousing of secure tenants.

7.6 The Council, as a public body, is under a duty to consider whether the

exercise of its powers interacts with rights protected by the European

Convention on Human Rights. Section 6 of the Human Rights Act 1998

prohibits public authorities from acting in a way, which is incompatible with

those rights. Section 10 of the attached draft Statement of Reasons

provides further detail on this aspect.

7.7 The Council is in certain circumstances empowered to dispose of housing

land under Section 32 of the Housing Act 1985 and General Housing

Consents issued by the Secretary of State for Communities and Local

Government. However, an open market disposal of the housing land at

Tollgate Gardens Estate will require the specific consent of the Secretary of

State. An application will need to be made and the consent will need to be

obtained to meet the lease preconditions with the developer partner.

7.8 All legal agreement(s) to be entered into will need to be in a form approved

by the Director of Legal Services.

8. Staffing Implications

8.1 Additional staffing costs currently include the costs of a decant officer

dedicated to the Tollgate Gardens to support secure tenants who have to

move. Additional resources are also available to give support to lessees

considering the various options open to them as a permanent move,

including the equity loan option and there is a dedicated resource devoted

to Independent Tenant and Leasehold advice.

9. Business Plan Implications

9.1 The recommendation of this report will, if agreed by Cabinet, contribute

towards the Leader’s Better City Better Lives since this scheme will improve

the overall environment of the neighbourhood and improve the living

standards of Tollgate residents.

10. Consultation

10.1 Comments from Legal, Finance and Transportation sections within the

Council have been incorporated into the body of this report.

11. Crime and Disorder Act 1998

11.1 The scheme has been designed in accordance with “Secure by Design”

principles and will include features such as more defensible space.

11.2 The main health and safety issues arising from this report are the fact that

there will be residents in Tollgate House present during the works and there

will be visitors to Tollgate House. The developer partner will be required to

provide a Health and Safety Plan to be approved before work commences

for the Council’s approval. It is also a condition of the recommended

planning approval for the scheme, to have approved before work

commenced a Construction Environmental Management Plan (CEMP)

including a Demolition Code of Practice.

12. Health and Safety Issues

12.1 Due to the nature of the development and the fact that residents of the

tower will not be vacated whilst the main works are ongoing. Special

consideration must be taken in procuring a developer that can provide a

safe and clean environment during the development.

13. Human Rights Act 1998

13.1 Officers have considered the proposed Compulsory Purchase Order in light

of the relevant provisions of the Human Rights Act 1998.

In view of the factors set out in this report, officers consider that the exercise

of compulsory purchase powers is, in this case, justified by the reason that it

is in the public interest, authorised by law and necessary and proportionate

towards meeting the Council’s objectives as set out in the Core Strategy.

13.2 The proposed CPO procedure will be consistent with Article 6 of the Human

Rights Act 1998. All those affected will be informed and advised of a right to

make representations to the Secretary of State, to be heard at a public

inquiry and have fair entitlement to compensation. The CPO will also be

confirmed in accordance with law and done in the public interest – as

required by Article 8. Full consideration of Article 1 protocol is included at

section 10 of the draft Statement of Reasons.

Equalities Act 2010, section 149

13.3 The Equality Duty is designed ensure public bodies play their part in making

society fairer by tackling discrimination regarding:

o Age,

o Disability,

o gender reassignment,

o pregnancy and maternity,

o race – this includes ethnic or national origins, colour or nationality,

o religion or belief – this includes lack of belief,

o sex,

o sexual orientation,

and by providing equality of opportunity for all.

13.4 An Equality Impact Assessment has been undertaken to ensure that due

regard has been taken of our general duties to equality. The results

informed the final design and decision to proceed. This is currently being

updated and it will inform any ongoing design and resident related decisions

in respect of the Tollgate Gardens regeneration.

14. Reasons for Decision

14.1 There is a compelling case in the public interest to proceed with a CPO

however this is only as a last resort, to allow the scheme to proceed. This

will significantly improve the well-being of the area in a manner consistent

with the adopted planning framework. There is a reasonable expectation the

scheme will proceed, although this cannot be delivered simply through the

granting of planning permission.

14.2 In balancing the benefits of the scheme and the concerns of those whose

interests in land it is proposed to acquire compulsorily, there is clear

evidence that the public benefit outweighs the private loss.

14.3 Parties affected by the CPO will be entitled to be paid compensation in

accordance with the general law relating to compensation known as the

Land Compensation Code, the purpose of which is to assess the payment

of fair compensation to eligible parties. The compensation payable will be

determined by reference to the open market value of the property acquired,

supplemented where appropriate by (a) payments in respect of disturbance,

(b) compensation for loss of value of land retained by the dispossessed

owner due to it being severed or otherwise harmfully affected as a result of

the compulsory purchase and (c) certain additional top-up payments

claimable by a person who owns or occupies property subject to compulsory

purchase irrespective of any particular loss; together with compensation in

certain cases for interference with other legal rights. The details of additional

support to tenants and leaseholders can be found on the Council’s website

where these policies are located.

14.4 The social, economic and environmental benefits of the scheme support the

principles of the Council’s 2010 Renewal Strategy and various planning

policies relevant to and adopted by the Council as local planning authority.

If you have any queries about this Report or wish to inspect any of the Background Papers please contact:

Ben Denton, Strategic Director of Housing, Regeneration and Property

bdenton@westminster.gov.uk BACKGROUND PAPERS (Reference Documents) Cabinet Report on Tollgate Master Plan June 27th 2011 plus Appendices Appendices Appendix A - Draft CPO Red line plan Appendix B – Draft Statement of Reasons Appendix C – Images of new scheme Appendix D - Draft Order Map (Order Land) Appendix E - Draft Order Schedule (Order Schedule) Exempt Appendices Appendix F – Summary of decants for Leaseholders and Tenants Appendix G – Financial Implications

For completion by the Cabinet Member for Housing, Regeneration, Business and Economic Development

Declaration of Interest I have <no interest to declare / to declare an interest> in respect of this report

Signed: Date:

NAME: Councillor Daniel Astaire

State nature of interest if any PPPPPPPPPPPPPPPPPPPPPP..PP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP.. (N.B: If you have an interest you should seek advice as to whether it is appropriate to make a

decision in relation to this matter) For the reasons set out above, I agree the recommendation(s) in the report entitled Tollgate Gardens Estate – Intention to make a Compulsory Purchase Order and reject any alternative options which are referred to but not recommended. Signed PPPPPPPPPPPPPPPPPP Cabinet Member for Housing, Regeneration, Business and Economic Development Date PPPPPPPPPPPPPPPPPPP If you have any additional comment which you would want actioned in connection with your decision you should discuss this with the report author and then set out your comment below before the report and this pro-forma is returned to the Secretariat for processing. Additional comment: PPPPPPPPPPPPPP.PPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPP..PPPPPPPPPPP If you do not wish to approve the recommendations, or wish to make an alternative decision, it is important that you consult the report author, the Head of Legal & Democratic Services, Director of Finance and, if there are resources implications, the Strategic Director of Resources (or their representatives) so that (1) you can be made aware of any further relevant considerations that you should take into account before making the decision and (2) your reasons for the decision can be properly identified and recorded, as required by law.

For completion by the Cabinet Member Built Environment

Declaration of Interest I have <no interest to declare / to declare an interest> in respect of this report

Signed: Date:

NAME: Councillor Robert Davis DL

State nature of interest if any PPPPPPPPPPPPPPPPPPPPPP..PP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP.. (N.B: If you have an interest you should seek advice as to whether it is appropriate to make a

decision in relation to this matter) For the reasons set out above, I agree the recommendation(s) in the report entitled Tollgate Gardens Estate – Intention to make a Compulsory Purchase Order and reject any alternative options which are referred to but not recommended. Signed PPPPPPPPPPPPPPPPPP Cabinet Member for Built Environment Date PPPPPPPPPPPPPPPPPPP If you have any additional comment which you would want actioned in connection with your decision you should discuss this with the report author and then set out your comment below before the report and this pro-forma is returned to the Secretariat for processing. Additional comment: PPPPPPPPPPPPPP.PPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPP..PPPPPPPPPPP If you do not wish to approve the recommendations, or wish to make an alternative decision, it is important that you consult the report author, the Head of Legal & Democratic Services, Director of Finance and, if there are resources implications, the Strategic Director of Resources (or their representatives) so that (1) you can be made aware of any further relevant considerations that you should take into account before making the decision and (2) your reasons for the decision can be properly identified and recorded, as required by law.