Council: "We're not Canary Wharf Group's poodle"
Tower Hamlets Council has dismissed claims that it is Canary Wharf Group's "poodle" as the row over land at Heron Quays continues.
The authority chose to use its compulsory purchase powers last year to allow Canary Wharf Group to snap up the last pockets of land for its 2.5million sq ft Heron Quays West development.
The move prompted the leaseholders to push for a public inquiry, which opened at 6 Heron Quays on Tuesday. It follows their failure to secure a judicial review into the matter this summer.
Michael Gross and Leeside International's Michael Hunt - who own the long leases for 7 and 8 Heron Quays West - claim the council was "bought" by the promise of a £5million endowment and £3million employment and training contribution for a replacement Skillsmatch training centre on-site.
Under cross-examination by David Elvin QC, the council's development control manager Stephen Irvine said: "No one can say negotiations with Canary Wharf Group have been entirely smooth over the years, so there's no suggestion that Tower Hamlets is the poodle of Canary Wharf in any way."
The Wharf revealed in May last year that the council had agreed to a compulsory purchase order after CWG claimed the owners were "frustrating the delivery of the scheme" following eight years of talks.
In his opening statement, Mr Elvin said Mr Hunt and Mr Gross were seeking a "ransom" of £25million each.
He said there was "no reasonable prospect of agreement due to the insistence by the objectors wishing to realise a form of ransom value".
Despite a low current demand for large trading centres, CWG chief executive George Iacobescu told the inquiry that the developer considered it essential to begin work by the end of 2010 to "keep companies in London".
He said: "There's a point when a company makes a decision and you have to be ready with the product."
He also denied claims the provision for the Skillsmatch centre was an "inducement".
He said: "It's purely a replacement for what's there now.
"If we don't develop Heron Quays West, it will be there forever. If we do, we'll put them somewhere else.
"If we didn't want to pay for that, we could have just used the money to pay Mr Gross and Mr Hunt."
Mr Gross is set to appear later in the five-day inquiry, which will run until today and resume for two days next Wednesday.
Nathalie Lieven QC, representing the leaseholders, told the inquiry her clients had been offered £5milllion each in late 2006, but that sum had been reduced to £1.9million this January and £1million last month.
She said: "The reality of this inquiry and this CPO is that it is not about securing a site for the public interest, let alone the national interest. It is about CWG being able to buy the site at a low point in the market cycle, on a forced sale."
The inquiry continues.
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Thank goodness the Canary Wharf estate is not under the control of Tower Hamlets Council.
Just look at the many ways they are wasting their £1.1 billion pound budget.
Turns out the leader of the council Luftur Rahman did not vote in June's Euro elections! And he is the leader of a Labour council because?
I do not have any connection to anyone in this story, but here are my thoughts: Mr Gross and Hunt acted unreasonably and are just trying to extort more money out of Canary Wharf. Their continued presence at this location is against the greater good. Canary Wharf provides employment to tens of thousands and has contributed many millions to local schools and transport. It is only natural that Tower Hamlets Council works together with them to promote Canary Wharf is the premier business district in Europe.