The full paper for the cabinet meeting can be accessed as a Word document at http://www.ealing.gov.uk/download/meetings/id/1918/item_20-ealing_cinema_site-redevelopment-compulsory_purchase_order%C2%A0%E2%80%A6
The contents of the Word Document are included below:
| Report for:ACTION |
| Item Number:20 |
| Contains Confidential or Exempt Information | Yes (part)Appendix 1 is exempt from disclosure by virtue of para 3 of Part 1 of Schedule 12A to the Local Government Act 1972 (see para 10.4 (3) of the Access to Information Procedure Rules) |
Title |
Ealing Cinema Site – Redevelopment CPO |
Responsible Officer(s) |
Pat Hayes – Director Regeneration and Housing |
Author(s) |
Lucy Taylor – Assistant Director Regeneration and Planning Policy |
| Portfolio(s) | Regeneration – Cllr Julian Bell |
For Consideration By |
Cabinet |
Date to be considered |
January 22nd 2013 |
Implementation Date if Not Called In |
4th February 2013 |
Affected Wards |
Ealing Broadway |
Keywords/Index |
Ealing Cinema, Empire, CPO Compulsory Purchase Order, Land Securities, |
| Purpose of Report:To update Cabinet on progress in selection of a developer partner to take forward the acquisition and redevelopment of the Ealing Cinema site and to seek authority to proceed (by compulsory purchase if necessary). |
- 1. Recommendations
That Cabinet:
1.1. Note and endorse the decision to select Land Securities as a developer to work with the Council to acquire the Empire cinema site and land surrounding (‘the Ealing Cinema Site’) and to develop a scheme including a cinema.
1.2. Agree the boundary for the land to be acquired, if necessary by Compulsory Purchase Order (CPO), as set out in Appendix 2.
1.3 Authorise the Executive Director of Housing and Regeneration to amend the boundary of the land to be acquired as appropriate once the details of the final scheme are known
1.4 Authorise the Executive Director of Housing and Regeneration to take all necessary steps to make the CPO and secure its confirmation by the Secretary of State as soon as Land Securities have entered into an indemnity agreement to cover Council costs.
- 2. Reason for recommendation and options considered
2.1 Ealing Town Centre has been without a cinema since September 2008 when Empire Cinemas closed the Ealing Cinema. The site, within the Ealing Town Centre Conservation Area has lain derelict since the demolition of most of the cinema building in February 2009. Since that time the front elevation has been supported with an unsightly steel structure and the failure of the owner to complete the development within a reasonable timescale is significantly undermining the Council’s efforts to regenerate the Town Centre.
2.2 On 25th July 2012, Cabinet agreed to commence action to acquire the site, either by agreement or through compulsory purchase. Cabinet authorised the Executive Director of Regeneration and Housing to select a developer partner to work with the Council to acquire the site and to undertake a scheme for redevelopment that will provide a cinema in Ealing Town centre.
2.3 Some activity has been noted at the site in the last two months. In the Cabinet report of July 25th 2012, and confirmed in correspondence with Empire, the Council set a deadline of 23rd October 2012 for commencement of works and evidence of a full construction contract being let. At the time of writing this report this has not been provided by Empire and, based on previous conduct, the Council is concerned that Empire are undertaking minimal works which can be stopped at any time and that there is no evidence of commitment to undertake the construction.
- 3. Key implications
Selection of the developer
3.1 The Executive Director of Housing and Regeneration has, with other officers and its advisors Cushman and Wakefield, undertaken a process to select a developer partner to acquire the Ealing Cinema Site and to develop a scheme including a cinema. The process involved:
- Advertisement in Estates Gazette September 2012
- Expressions of Interest by 19th October 2012.
- Shortlisted 1st November 2012.
- Second Stage selection submission 7th December 2012.
- Interviews 11th and 14th December 2012.
- Selection meeting 18th December.
3.2 There were 11 initial expressions of interest and 3 shortlisted parties:
- Barrett Developments plc and Wilson Bowden
- Land Securities
- Salmon Harvester and Cineworld
3.3 The proposals were considered against the following criteria:
- Development expertise, comparable experience and financial resource
- The financial parameters and envisaged terms
- Understanding of the Councils objectives in line with the Ealing Cinema Site SPD and guidelines as set out in the November 2012 financial brief (C&W).
- Schematic design thinking
- Provisional programme and strategy for implementation of the development.
- Potential viability as envisaged in the submissions.
3.4 Land Securities were considered to have submitted the best proposal as judged against these criteria and, following consultation with the Leader, the Executive Director of Housing and Regeneration selected them as preferred bidder. Confidential Appendix 1 – Developer Selection Report by Cushman and Wakefield – sets out the results of the shortlisted process including financial information.
3.5 The next steps are for Land Securities to enter into an agreement with the Council to indemnify the Council in respect of all costs associated with the process of acquiring the land and developing a scheme. Following this the Council will make preparations for a CPO and Land Securities will commence the design of a scheme for submission of a planning application.
3.6 Current position with Empire
Throughout this process the Council has kept Empire informed of its actions and intentions. Correspondence has been exchanged with Empire’s Chief Executive and between respective lawyers. There have also been meetings on a monthly basis with a project manager from Clarkebond, Empire’s project management company. A further meeting is scheduled for Friday 11th January and Cabinet will be updated of any further information made available at that meeting.
3.7 Empire have recently written to the Council stating they have undertaken some activity on site, including serving party wall notices, tree surveys, site preparation and test piling. They have also recently submitted a Building Control Notice application for the shell and core and to approve piling and fire strategy. They have also stated MidGard have been appointed as contractors to undertake test piling (which appears to have been undertaken in the week of 17th-21st December) and full piling scheduled to be undertaken between Jan-March 2013.
3.8 However, no evidence has been provided of a full construction contract having been let. As a result officers do not consider that there is evidence providing sufficient confidence at this stage that Empire will complete this development. The Statement of Reasons supporting a CPO is being prepared and will be submitted for Cabinet approval before a final decision to proceed is made and once Land Securities have signed the indemnity agreement with the Council.
3.9 Current position with other landowners
Officers have also written to the landowners of the surrounding sites which form part of the wider Ealing Cinema Site as shown on the plan in Appendix 2 and who therefore may also be affected by any CPO.. One landowner, the freeholder of Walpole House in Bond Street, has written objecting to any forthcoming CPO. The main concern is that their land may not be needed to achieve a cinema. The owner was invited to make representations on the draft Supplementary Planning Document that the Council has prepared in relation to the Cultural Quarter, including the Ealing Cinema Site, which sets outs the planning policy requirements for the whole site and the Council’s aspirations as outlined below.
3.10 Planning Policy
Since the 2004 UDP the Council has continued to develop and set out planning policy aspirations for a cinema and cultural quarter. The delay in the Empire Cinema development has provided an opportunity for the Council to develop its regeneration and planning policy position in relation to this part of the town centre particularly in the context of the emerging developments elsewhere in the town centre. These include the redevelopment of Dickens Yard, the Arcadia site and the confirmation of CrossRail as a scheme with a station at Ealing Broadway. It is considered that the planning policy has now evolved to the extent that it provides a justification in planning terms for the re-provision of a cinema as part of a redevelopment of a wider site forming part of the ‘cultural quarter’ of the Town Centre.
3.11 Development Strategy DPD (adopted April 2012)
The adopted Development Strategy sets out the strategic policy direction for the revitalisation of Ealing Metropolitan Town Centre in Policy 2.5, including the need to provide for a cinema in the town centre. These strategic policies are based on the Ealing Town Centre Spatial Development Framework.
3.12 Development Sites DPD Final Proposals (June 2012)
The Cinema Site is included as EAL6, with the proposed allocation as ‘mixed use development appropriate to the town centre, including multiscreen cinema, retail, commercial and residential’. The Design Principles also support the inclusion of additional arts and cultural uses, studios/flexible office space and community uses, and the creation of a new public space in the centre of the site. The allocation directs that achieving better integration of Ealing Green/Walpole Park should be a key outcome of proposals on the site, which should be reflected in the arrangement of new buildings. The site boundary is altered from the Initial Proposals to exclude 26-42 Bond Street, as this permission has been fully implemented.
The LDF Advisory Committee approved the Final Proposals document at the 22 March 2012 meeting, with public consultation beginning in late June. The Final Proposals include only those development sites which are considered central to delivering the policies and objectives of the Development Strategy DPD. Based on the consultation responses received on the Final Proposals, and the publication of the Draft Ealing Cinema SPD, minor revisions are suggested to EAL6 in the version of the DPD submitted to the Secretary of State for examination. The revisions clarify the relationship of the site allocation to the SPD and remove the reference to the extant planning permission in the Design Principles to ensure the allocation is deliverable; the Council considers that the extant permission, submitted as it was over ten years ago under a different (largely absent) policy context and within a much different town centre context, would not satisfy the design principles for the site nor realise the full potential of the site.
3.13 Ealing Cinema SPD
The Council considered that a Supplementary Planning Document for the Ealing Cinema site was necessary due to the lack of progress on the site and the critical role the site plays in achieving one of the key objectives for the town centre, and the long-standing local support for an enlivened cinema/film quarter in this location. The draft Ealing Cinema SPD which went out for consultation in October 2012 establishes clear design objectives for those bringing forward proposals on the cinema site and demonstrates the need for connected thinking in terms of the site and about the necessary requirements for redevelopment proposals, particularly the design principles which are considered central to ensuring that the full potential of the area is realised.
3.14 On the basis of the current planning policy position as outlined above officers do not consider that there is any planning impediment to securing planning permission for the wider scheme. It will be a term of the development agreement with Land Securities that any proposal should be consistent with relevant planning policy
3.15 The Compulsory Purchase Order process
Cabinet first authorised officers to proceed with preparation of a case for a CPO in July 2012 given the lack of progress on site since the demolition of the cinema in February 2009 and the development of planning policy in relation to the wider site as outlined above. The Council has, however continued to give the owners of the Empire site every opportunity to demonstrate that they are committed to building a new cinema. That assurance has yet to be provided and officers therefore remain of the view that a CPO may be necessary to secure redevelopment of the site
3.16 In proposing that the Council should continue to proceed with preparations for a CPO officers have had regard to the relevant guidance (OPDM 06/2004) relating to CPOs, particularly those made pursuant to s226 of the Town & Country Planning Act 1990 .
3.17 In particular officers are satisfied that
- The purpose for which the land is being acquired fits in with the adopted planning framework including the Core Strategy adopted in April 2012. The proposal also fits in with:
- the emerging draft DPD which went out to consultation in June 2012 and is due to be submitted for Examination in Public in January 2012 and
- the draft SPD which went out to consultation in October 2012
Further details are outlined in paragraphs 3.11 to 3.14 above.
- The proposed purpose will contribute to the achievement of the promotion or improvement of the economic, social or environmental well-being of the area. This is on the basis that the proposal outlined by Land Securities as part of their bid will provide a much needed cinema complex to replace the original cinema and remove the current eyesore which has existed since the demolition of the cinema in February 2009. A new cinema complex and associated facilities is expected to improve the night time economy in particular and also reprovide a much missed social venue for residents. The lack of a cinema in Ealing is seriously undermining the Council’s efforts to regenerate the Town Centre.
- By selecting Land Securities as a developer of a new scheme officers are confident that the funding will be available to secure the implementation of the proposals. Land Securities have already demonstrated to officers that they have the necessary development expertise, experience and financial resource as part of the selection process (as outlined in Confidential Appendix 1) and will shortly demonstrate their commitment to redevelopment by entering into an indemnity agreement and then a development agreement.
- Given the lack of progress by the owners of the Empire site over a considerable period and the evolution of the Council’s planning policy relating as outlined above, officers remain of the view that the wider redevelopment of the Empire site and surrounding area cannot realistically be achieved by any other means. Once the indemnity agreement has been entered into Land Securities will be working up designs for a planning application having regard to the suitability of alternative locations consistent with planning policy. A further report will be submitted for consideration by Cabinet outlining the proposals in more detail before a final decision to make a CPO is made.
4 Financial
4.1 The fees associated with identifying and securing a developer partner are £45,000. These fees will need to be borne by the Council and will be met from the Property Advice revenue budget.
4.2 Should it prove necessary to proceed with a compulsory purchase of the site, it is anticipated that a budget of circa £250, 000 will be required to promote the order. The Council will secure an indemnity from Land Securities for these costs and for the full compensation payable to the present site owner/s, as was clearly set out in the selection process.
5. Legal
5.1 The Council has powers under s226 of the Town & Country Planning Act 1990 to acquire compulsorily any land in their area if the Council considers that the acquisition will facilitate the carrying out of a development, re-development or improvement on, or in relation to, the land and also considers that this will help to promote or improve the economic, social or environmental well-being of the area.
5.2 A final decision to proceed with compulsory purchase will be taken only once an indemnity agreement is in place and only if the site cannot be acquired by agreement.
5.3 Human Rights
5.3.1 A compulsory purchase order should only be made where there is a compelling case in the public interest. Before making a final decision to proceed with a CPO Cabinet should be satisfied that the purposes for which the order is to me made sufficiently justify interfering with the human rights of those with an interest in the land affected. Regard should be had in particular to the provisions of Article 1 of the First Protocol to the European Convention on Human Rights which states
“Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and the general principles of international law. The preceding provisions shall not, however, in any way impair the right of the state to enforce such laws as it deems necessary to control the use of property in accordance with the general interest….”
5.3.2 Although the Council is entitled to control the use of property in accordance with the general interest Cabinet should be satisfied that the exercise of CPO powers is proportionate and is justified in order to secure economic, social or environmental well being
5.3.2 If a CPO is made landowners will have an opportunity to make an objection and have an opportunity to be heard by a person appointed by the Secretary of State before a decision is made as to whether the Order should be confirmed
5.4 Under section 233 of the 1990 Act the Council has powers to dispose of land that is held by the Council for planning purposes.
5.5 This report provides information which shows that there is a compelling case for a CPO in the public interest. The Council has clearly set out how it intends to use the land affected by the CPO. In addition this report demonstrates that the necessary resources are available and the basis on which it is considered that that there are no planning impediments to the proposed redevelopment and that the of the preparations for a compulsory purchase order are not premature.
6. Value for money
6.1 The Council has made significant investment into the regeneration and improvement of Ealing Town Centre. The derelict cinema site is blighting this part of the town centre. An attractive new development incorporating a cinema and creating the Cultural Quarter will attract new investment into Ealing town Centre.
7. Sustainability Impact Appraisal
7.1 By partnering with a developer the Council will have greater input into the design standards that will apply to new development. The aim will be to secure new buildings to meet a BREEAM rating of very good.
8. Risk management
8.1 There is a risk that the Council and Land Securities may not be successful in acquiring the Ealing Cinema Sites either by agreement or through a CPO if Empire commence significant construction works on site.
8.2 The Council has taken legal advice and believes the legal case for the CPO is strong. This will be continually reviewed with Land Securities who will fund all Council costs associated with the process. However until the indemnity agreement is signed the Council is at risk of costs for the legal and other fees currently being incurred.
9. Community Safety
9.1 None.
10. Links to the 5 Priorities for the Borough
10.1 Delivery of the cinema will complement the Council’s priorities for the borough and contribute to the vitality of Ealing Town Centre including securing new jobs and homes.
11. Equalities, Human Rights and Community Cohesion
11.1 An initial equalities impact assessment has been undertaken and it has been concluded that a full Equality Impact Assessment (EIA) is not required.
12. Staffing/Workforce and Accommodation implications
12.1 None.
13. Property and Assets
13.1 The Council acquired the YMCA Building on Bond Street with the specific intention of offering the site to Empire Cinemas in order to improve the viability of a development scheme consistent with planning policy. They chose not to acquire this site from the Council. The Council will therefore offer the YMCA building to Land Securities to facilitate any proposed development scheme. It is anticipated that the Council will, as a minimum, recover its costs related to the acquisition of this building.
14. Any other implications:
14.1 The Property Strategy has been prepared alongside the Council’s Infrastructure Delivery Plan, which is an important part of the Local Development Framework, so that the two pieces of work support each other.
15. Consultation
15.1 The Ealing Cinema Draft Supplementary Planning Document was prepared in September 2012 and consulted upon between October and November 2012.
16. Timetable for Implementation
- Feb 2013 – Indemnity Agreement with Land Securities signed
- March 2013 – Further Cabinet report to confirm CPO and Statement of Reasons
17. Appendices
Confidential Appendix 1 – Report by Cushman and Wakefield detailing the selection process for a developer partner
Appendix 2 – CPO plan
18 Background Information
- Cabinet report 25th July 2012 – Empire Cinema, 59-61 New Broadway, Ealing
- ODPM 06/2004
- Ealing Cinema draft SPD October 2012
- Draft Development Sites DPD June 2012
- Adopted (Core) Strategy April 2012
- Ealing Town centre Strategy October 2004
- Adopted UDP Sites & Areas October 2004
- UDP SPG Site 60 October 2004
- 1. Internal Consultation
| Name of consultee | Department | Date sent to consultee | Date response received from consultee | Comments appear in report para: |
Internal |
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| Pat Hayes | Exec Director Regeneration and Housing | |||
| Cllr Julian Bell | Leader | |||
| Jackie Adams | Head of Legal (Property & Regulatory) | |||
| Matthew Bunyon | Head of Finance | |||
External |
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Report History
| Decision type: |
Urgency item? No |
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| Key decision | ||||||
| Authorised by Cabinet member: | Date report drafted: | Report deadline: | Date report sent: | |||
| Report no.: | Report author and contact for queries: | |||||
| Lucy Taylor – Assistant Director of Regeneration and Planning Policy | ||||||
Ealing Cinema 