Decision details

The Leader and Cabinet Member for Strategic Growth presented an update to Members on the Prestwich Village Regeneration, namely the appropriation of land at Fairfax Road and Rectory Lane for planning purposes.

The Leader reported that a large part of the Council’s Land included in the Prestwich Village proposals is currently open to public access and may be impacted by to varying degrees adverse third party rights.  Any person who holds the benefit of such a legal right or interest and who suffers a relevant loss when development takes place would be entitled to claim statutory compensation pursuant to section 204 of the Housing and Planning Act 2016.

The Leader reported that the details of the statutory compensation are commercially sensitive and linked information which is likely to reveal the identity and financial position of individuals is personally sensitive and is therefore exempt from this Part A Cabinet report. Such details are set out in a Part B Cabinet report.

Recommendation(s)

Cabinet:

1.   Approves the appropriation of the Council’s Land for planning purposes to facilitate the development of the Council’s Land by the Prestwich Regeneration LLP.

2.   Notes the criteria to be met before development that may interfere with third party rights may take the benefit of section 203 of the Housing and Planning Act 2016.

3.   Notes the potential for claims for compensation arising from the interference with third-party rights. And to ensure that prior to the commencement of any development that might cause such interference, sufficient funds have been reserved by the Council before its development of the Council’s Land and/or an indemnity has been put in place with the Prestwich Regeneration LLP as a condition to the drawdown and development of the Council’s Land by them to meet the likely compensation arising from such claims.

4.   Approve for the Executive Director of Place in consultation with the Executive Director of Law and Democratic Services to have delegated authority to enter into an indemnity agreement with the Prestwich Regeneration LLP and settle compensation claims that may be submitted.

Reasons for Recommendation(s)

The Council’s Land may be impacted by third-party rights or interests that could affect the development to be carried out by the Prestwich Regeneration LLP.

The owners and beneficiaries of third-party rights may take legal action to protect those rights.

The appropriation of the Council’s Land for planning purposes would convert any third-party rights or interests to an entitlement to compensation allowing the development to be carried out.

The criteria to be satisfied before the powers within section 203 of the Housing and Planning Act 2016 may be relied on have been clearly identified and it has been made clear that the carrying out of building or maintenance work may not be undertaken in breach of a private right or interest unless those criteria are met.

The Human Rights of third parties, who may claim to have the benefit of rights over the Council’s Land have been considered and the interference with any such rights would be proportionate in the context of the public benefits of the scheme proposals and that there is a compelling case in the public interest to do so.

Alternative Options Considered and Rejected:

The scheme proposals could be designed in such a way as to avoid the infringement of potential rights or interests but the constraint that would place on the development proposals would significantly reduce or potentially negate the regeneration benefits of the scheme.

In some cases, it is possible to identify the beneficiaries of every private right or interest over land and negotiate the release of such right or interest, but the nature and uncertainty of the potential rights or interests in this case do not make that feasible or achievable within a reasonable timescale.

Another alternative to appropriation of land for planning purposes would be for the Council to seek title indemnity insurance, but such insurance would not overreach any claimed rights, leaving a residual risk that a third party could prevent the redevelopment of the Council’s Land.

It is therefore considered that the best option to deal with any third-party rights is to appropriate the Council’s Land for planning purposes.