Heron quays land row could end in court

Cabinet members were informed on May 7 the owners of buildings seven and eight were “frustrating the delivery of the scheme” by refusing to sell.

But Mr Gross claims no offer had been made since a meeting at the end of 2006, in which he was told the scheme would build around them and their sites were not required. He says the council's intervention has given CWG "an unfair advantage in a commercial matter".

He said: “I had no notification of the revised planning application whatsoever. I wasn’t even told about the compulsory purchase order.
“I’m quite happy to sell my land, but I’m not willing to have it taken from me,” he added.

As part of the planning deal for Heron Quays West, the council announced the current Skillsmatch training centre would be incorporated in the new site along with a £5million ring-fenced endowment.

Cllr Shirley Houghton, who represents Millwall, requested the call-in due to concerns that “due process was not followed by cabinet” in making the decision.

She said: “A CPO is a big decision for all concerned. I wanted to be sure the cabinet had all the facts at hand.
"This is an important decision which sets an important precedent for other residents and businesses.”

Cabinet member Cllr Joshua Peck admitted the training centre provision had influenced the council’s decision, but was satisfied from the documents that the leaseholders were demanding “ransom value” and not “market value” for the land.

He said: “The regeneration benefits of this new development in a run-down area of older buildings would in itself be enough to justify this CPO.
"The training centre and a £5million endowment on top of that would see the council using its powers to get the greatest benefit for the community.”

Half of the six-strong panel voted to call-in the decision but acting chairman Cllr Bill Turner cast the deciding vote not to return the decision to cabinet.

A spokesman for CWG said: “We were pleased that the committee confirmed the decision to use Compulsory Purchase (CPO) powers as a matter of last resort.
“Part of the reason for the CPO revolves around two long leasehold interests, who are not in occupation, where negotiations have so far been unable to settle on a reasonable value.
“We remain committed to acquiring vacant possession of the site by negotiation if possible.
“Canary Wharf Group is now discussing the way forward with all parties who have a relevant interest in the site with a view to securing negotiated settlements.”