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Executive (I)
Thursday, 12th December, 2013

REPORT TO:10
DECISION NUMBER:PH/129/2013
EARLIEST DATE FOR DECISION:12th December 2013

PAYMENT UNDER COMPULSORY PURCHASE - CHARTERHOUSE
Matter for Consideration:
Proposed mediation regarding The outstanding Compulsory Purchase claim made by Charterhouse in respect of North East Link Road.
Information:
Following the Blackpool Borough Council (North East Blackpool Link Road) Compulsory Purchase Order 2001, the Council has vested into its ownership 5473 sq m of level agricultural land which was formerly in the ownership of Charterhouse Land Ltd.

Under Rule 2 of section 5 of the Land Compensation Act 1961 the owner is claiming compensation amounting to the value of the land, if sold in the open market by a willing seller, might be expected to have realised on the valuation date of 28th February 2003.

Charterhouse Land Ltd, however, took the view that their land, in the absence of the Compulsory Purchase Order, would have enabled them to open up development in the area and in July 2009. The Council does not accept this view.

In June 2012, following an Inquiry held in November 2011 regarding Alternative Use, the original claim was abandoned and replaced by a significantly reduced amount - this later claim being based on the enhanced value their land would have possibly attained if their land had been used to access Council owned residential land. As a result of the replacement claim, the former costs have not been admitted, so only costs incurred since June 2012 can form part of the overall claim.

The amount claimed is based on increased land values as a result of obtaining an alternative access to the Council's Residential land. It assumes that the use of their land for access would be the preferred route and that the developer would not have any planning uncertainty.

In order to prepare for representation at Land Tribunal local professional Agents Duxbury's have been appointed to act as Experts on behalf of the Council and their report is forms an exempt background paper.

The Lands Tribunal has now set a date for a two day hearing in April 2014.

It should be noted that the possible cost incurred at the Tribunal would be significant. Therefore as an alternative to the Lands Tribunal, Charterhouse has offered to go to Mediation. In this instance each party would share the costs of the mediator and unless settled as part of the mediation, would meet their own costs incurred.

Authority is therefore sought for officers and the appointed experts to attend the mediation with a view to the Group Estates Officer (Development) agreeing a settlement within the parameters contained within the expert witness’s report.

Does the information submitted include any exempt information?NO
Legal Considerations:
The Council has a duty as the acquiring authority under the Compulsory Purchase Order, to meet the costs of the claim, including interest from the date of the acquisition.
Personnel Considerations:
None
Financial Considerations:
The claim and costs incurred will be met from within the Highways budget.
Performance Management Considerations:
None
Risk Management Considerations:
None
Relevant Officer:
Steve Thompson, Assistant Chief Executive- Treasurer Services
Relevant Cabinet Member:
Councillor S. Blackburn
Consultation Undertaken:
The Council have consulted with barrister from Kings Chambers for legal advice.
Background Papers:
None
Is this a key decision?NO
Is the decision required in less than 5 days?NO
Recommendations:
To approve the delegation of authority to the Group Estates Officer (Development) to agree the settlement for the Compulsory Purchase claim at mediation, provided the settlement is in line with the parameters of the report.
Reasons for Recommendations:
At mediation the officers will need the authority to agree a settlement.
Is the recommendation contrary to a plan or strategy adopted or approved by the Council?NO
Is the recommendation in accordance with the Council’s approved Budget?YES
Other alternative options to be considered:
If settlement is not achieved at mediation, it will be refered to Lands Tribunal.
Policy, Overview, and Scrutiny Committee Chairman (where appropriate)
Date Informed: N/A
Date Approved: N/A
DECLARATION(S) OF INTEREST (if applicable)
None
Decision:
The Leader of the Council agreed the recommendation as outlined above namely: To approve the delegation of authority to the Group Estates Officer (Development) to agree the settlement for the Compulsory Purchase claim at mediation, provided the settlement is in line with the parameters of the report.
Date:12th December 2013
Reason for Decision:
At mediation the officers will need the authority to agree a settlement.

Date of Publication:		12th December 2013


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