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1 Cabinet 5 May 2004 Exempt Gill Macquarie Mile End Stadium

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1 Cabinet 5 May 2004 Exempt Gill Macquarie Mile End Stadium COMMITTEE DATE CLASSIFICATION REPORT NO AGENDA Cabinet 5th May Exempt ITEM NO. 2004 REPORT OF ACTING CORPORATE DIRECTOR TITLE: (ENVIRONMENT & CULTURE) Mile End Stadium Outstanding Interests Compulsory Purchase Orders ORIGINATING OFFICER(S) Gill Macquarie WARDS AFFECTED: Limehouse Ward Reason for Urgency: this report needs to be considered at this meeting of Cabinet in order to satisfy the full conditions associated with the award of grants from Sport England, the Millennium Commission, Ocean NDC and the Football Foundation. It will also reassure the main Contractor and negate any possible delay in the start date for construction. Not for Publication: this report is exempt from publication under Paragraph 8 of Part 1 of Schedule 12a of the Local Government Act 1972. Paragraph 8 states “The amount of any expenditure proposed to be incurred by the Authority under any particular contract for the acquisition or disposal of property or the supply of goods or services”. 1. SUMMARY 1.1 This report updates Cabinet on the consolidation of title to the site of the Mile End Leisure Centre and seeks approval to use powers of compulsory purchase to ensure that London Borough of Tower Hamlets can assert title to all interests within the site. 2. RECOMMENDATIONS Cabinet are recommended: 2.1 To authorise the making of a compulsory purchase order (or orders) under Section 121 Local Government Act 1972 to acquire any interests within the area edged by a red dotted line on the attached plan 1 which are not vested in the Mayor and Burgesses of the London Borough of Tower Hamlets for the purposes of providing public walks or pleasure grounds in accordance with Section 164 of the Public Health Act 1875 as extended by paragraph 27 of Schedule 14 to the Local Government Act 1972 . 2.2 To authorise the Chief Legal Officer to take all necessary steps to ensure the implementation of the proposal set out in 2.1 above where the Authority’s constitution does not make provision for this. LOCAL GOVERNMENT ACT, 2000 (SECTION 97) LIST OF BACKGROUND PAPERS USED IN PREPARATION OF THIS REPORT Brief description of background paper Name and telephone number of holder and address where open to inspection Mile End Stadium Gill Macquarie ext. 3214 Paul Martindill ext. 3157 Graeme Peacock ext. 4240 D:\modernGov\Data\Committ\Intranet\Cabinet\20040505\Minutes\Mile End Stadium Outstanding Interests CPO_CAB_050504_AT0.doc 1 3.0 BACKGROUND 3.1 A separate report on this agenda details proposals for the development of a new Leisure Centre adjacent to Mile End Stadium. In order to fulfil funding criteria of grant-making bodies, Legal Services have been instructed under delegated powers to consolidate evidence of ownership into a single comprehensive registered title to underpin the process of funding and construction. 3.2 Planning permission for the Mile End Leisure Centre was granted in July 2003. No further highway closure or other associated orders were anticipated at that time. 3.3 This entire site has been subject to acquisition over a number of years by different authorities using both compulsory purchase and purchase by agreement. The site previously contained housing, highways, industrial and educational property. The major part (but not all) of the existing stadium was amalgamated into a single registered title but the remainder reflects the historic situation with over 60 separate registered titles and areas of unregistered land where there were formerly highways. 3.4 It was initially thought that all of the land required for the development was in Council ownership and registered as such. However, Legal Services’ research has now identified an area where (although want of title is unlikely to impede development) difficulty anticipated in obtaining registered title. 3.5 The area in question is the site of 194 Burdett Road and is shown on the attached Plan. This remains registered in the name of an individual who is shown as acquiring in 1939. His address on the Land Register is given as a property that has since been demolished. Information obtained indirectly indicates that he has died and that his widow was bankrupt. There was some interest from persons involved in the insolvency but this has not been pursued for some time and there is no current record of bankruptcy. The Greater London Council made a compulsory purchase order for this and other properties under the powers mentioned in the recommendation but evidence of the service of appropriate notices has not been able to be established. It may therefore be assumed that any compulsory purchase proceedings, which were initiated by the Greater London Council lapsed. The property was demolished in 1996 and a dangerous structure notice had been issued before then. The land has been in occupation by the Council since 1996 and the area is currently part of a small car park used by the Go-Kart Track on an informal basis. Under the development proposals it will form part of one of the ten football pitches being provided. 3.6 The scheme is receiving significant external funding from Sport England, the Millennium Commission, Ocean Estate New Deal for Communities and the Football Foundation. Funders are entitled to assurances as to ownership. Confirmation that compulsory purchase would be used if necessary is required, in order to give assurances to the grant aid bodies abut the scheme. 3.7 Subject to confirmation of grant aid from Sport England of £5.483 million it is proposed that Jackson Construction plc will be appointed as the main contractor. The contractor also requires such assurance. D:\modernGov\Data\Committ\Intranet\Cabinet\20040505\Minutes\Mile End Stadium Outstanding Interests CPO_CAB_050504_AT0.doc 2 3.7 In summary, the use of powers to obtain a Compulsory Purchase Order is critical to: (i) Demonstrate to the grant aiding bodies that LBTH is able to obtain full title of the Mile End site; (ii) Confirm with the main contractor that LBTH is in the process of obtaining full title of the Mile End site and thereby negate any risk of the project start date being postponed. 3.8 Officers together with the scheme architects (Limbrick Limited) have considered options to avoid the use of this particular piece of land by re-locating the football pitches. This increases the risk to the scheme in a number of ways: (i) Delay in the start of construction due to re-design requirements and the need to vary quantities from the tender figures submitted by the main Contractor. (ii) Additional design costs. (iii) Additional construction costs. 4. OBSERVATIONS OF THE CHIEF FINANCIAL OFFICER 4.1 The report proposes the making of Compulsory Purchase Orders under Section 121 of the 1972 Local Government Act to acquire any interests in land as highlighted within the attached plan. The CPO is necessary to ensure the scheme for Mile End Leisure Centre can proceed unencumbered, and that funding criteria of grant making bodies is satisfied. 4.2 At this stage parties with interests to the land have not been identified and therefore no financial implications immediately arise. The value of land is estimated at £50k and therefore, if ownership were established provision for this sum would need to be identified within the Capital Programme. 5. CONCURRENT REPORT OF THE CHIEF LEGAL OFFICER 5.1 This report provides an example of the situation where a substantial site has been accumulated piecemeal over a protracted period. It will be apparent from paragraph 3.5 above, which records possible participation in the land accumulation process by the former Greater London Council, that the lengthy process was itself accompanied by statutory local government reforms. Long afterwards, funders and others now require what is effectively certification of title. In the particular circumstances, it is not surprising that such certification cannot unequivocally be given in relation to every fragment of the site. The invocation of compulsory acquisition powers, which this report recommends, does not in any way anticipate contested or costly proceedings D:\modernGov\Data\Committ\Intranet\Cabinet\20040505\Minutes\Mile End Stadium Outstanding Interests CPO_CAB_050504_AT0.doc 3 with active landowners, but is merely seen as the route by which the required formal title certification as respects the entire site can be achieved. 6. EQUAL OPPORTUNITIES IMPLICATIONS 6.1 The equal opportunities considerations were fully reported to Cabinet on 12th November 2003. 7. ANTI POVERTY IMPLICATIONS 7.1 The anti poverty considerations were fully reported to Cabinet on 12th November 2003. The project seeks to address the anti poverty agenda, and in particular through two initiatives: providing new jobs for local people both during construction and in leisure once the facility is open; and increasing participation, especially by people who are traditionally under-represented. Both initiatives are being managed in partnership with New Deal for Communities programme. 8. RISK MANAGEMENT IMPLICATIONS 8.1 The fact that this small piece of land is not formally in the Council’s ownership, despite having been occupied by the Council for some years, gives rise to one particular risk for the Council. 8.2 That risk is that in order to meet the timetables required by funding bodies, notably the Millennium Commission, work will need to commence before the Council owns the land in question. This risk, whilst significant, is considered very unlikely due to the period that has elapsed since demolition, and the inability to readily establish contact with the last known owner. 8.3 The essential nature of this development and the immediate availability of grant funding to enable the project to proceed outweighs the very minor risk involved in proceeding now. 8.4 In order to still further reduce the risk it is proposed to take out Title Insurance, costing no more than £2,000, which will fund any compensation costs the Council may incur.
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