Council steps in after heron quays west stalemate

LANDOWNERS at Heron Quays West are to be handed a council order forcing them to sell up to Canary Wharf Group (CWG).

Tower Hamlets cabinet members have agreed to use the council’s compulsory purchase powers to force two major long leasehold owners to pass on their interest in the site to CWG.

The major estate landowner wants to build a three-tower office and retail building on the land, which will accommodate as many as 7,960 staff.

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CWG was granted planning permission in March for towers rising to 12, 21 and 33 storeys, with council officers praising the “exemplary� design of architect Rogers Stirk Harbour and Partners. As part of the agreement, CWG agreed to pay a £18.3million contribution towards lighting, transport and training improvements.

But the council has now been asked to step in and use special powers as the refusals of the occupiers to surrender the land for market value was “frustrating the delivery of the scheme�.

Cabinet members agreed to authorise the order last Wednesday (May 7), but the leaseholders can still challenge the decision at a public inquiry. The council’s Overview and Scrutiny committee can also call for further assessment of the decision up until tomorrow (May 16).

The new development will accommodate the Skillsmatch learning and skills centre which is currently on site. A report seen by cabinet members stated the council had secured a deal for a 15,000 square foot training and enterprise centre on the second floor of the development’s pavilion, appearing within seven and a half years.

A council spokesman stated the negotiation for the facility was separate to the planning application for the development, adding that the order was imposed as “there was a clear and compelling case in the public interest�.

He said: “The council became aware some months ago as part of the planning discussions on the redevelopment of the site that the negotiations between CWG and the two long leaseholders were not proceeding well.
“Public authorities are provided these powers to facilitate development which is in the public interest, and while not too common, this is a well used and accepted practice in securing regeneration.
“CWG will continue to negotiate up to and after the making of a compulsory purchase order. It is for the council to initiate the making of the compulsory purchase order in accordance with legal provisions and guidance.
“Before a compulsory purchase order is confirmed, it would not be unusual for those on whom the notice has been served to seek a public inquiry to test its merits. The associated procedure can therefore take many months before a compulsory purchase order is ultimately confirmed.�

CWG declined to comment on the current negotiations or the order itself.

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