Training centre "key" to Heron Quays CPO
Tower Hamlets Council saw Canary Wharf Group's contribution to a training centre as a "driving factor" in its decision to force occupiers off land at Heron Quays, an inquiry heard.
Documents referenced last week indicate officers described the money as "the key rationale" behind its decision to clear the way for CWG's Heron Quays West scheme.
The authority has repeatedly denied it was "bought" by the promise of a £5million endowment and £3million employment and training contribution for a replacement on-site Skillsmatch centre.
However, an internal council memo revealed at a public inquiry on Thursday stated the fund "represents the key rationale behind the council's use of CPO powers".
This statement - made in a document dated November 12, 2007 - was echoed, almost word for word, in a report on January 9, 2008, to the planning contribution overview panel, an officers' forum held in private.
Leaseholders Michael Gross and Michael Hunt - who hold the rights to 7 and 8 Heron Quays West - have accused the council of a "misuse" of its powers.
Development control manager Stephen Irvine told the inquiry two weeks ago that this was "not a well founded allegation".
He argued that the prospect of 7,960 extra jobs, regeneration and training at the 2.5million sq ft development made "a compelling case in the public interest" justifying the council's intervention.
The inquiry into the council's decision to use its powers closed last Thursday after five days in session. Leaseholder Michael Gross appeared on Thursday to answer accusations that the leaseholders drove CWG to seek a CPO by asking for a "ransom" of £25million each for their stake. CWG's biggest offer was £5million each in late 2006.
While he did not deny quoting the figure, Mr Gross claimed it was "a shot in the dark" figure devised to kick-start negotiations. He added that CWG had shown him a scheme during talks in 2006 that did not include the two pieces of land, and accused the company of "producing phony plans and phony photographs to distort the facts".
While Mr Iacobescu had told the inquiry these plans were drawn up to show CWG was "not prepared to be held to ransom", Mr Gross described the move as a "calculated, orchestrated attempt to deceive".
He had earlier accused CWG of believing it was "the inheritor of the powers of the London Docklands Development Corporation, and could get what it wanted, even if it cost a little more money along the way".
Acting for the authority, David Elgin QC asked Mr Gross to explain why the £25million he demanded for 8 Heron Quays was so much greater than the £1.325million purchase price in 1999, and the £2.1million valuation by DTZ in 2004 when he transferred the lease for off-shore tax purposes to Leeside International, of which he is the sole shareholder.
Mr Gross said that it reflected "the transition from hope value to marriage value", since CWG had since announced its intention to develop the land.
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Tower Hamlets made the right decision. It was a choice between thousands of new jobs + a training centre to help local unemployed people vs. supporting two millionaires trying to extort £50 million out of Canary Wharf. It's a no-brainer.
It certainly is a "no brainer" - Tower Hamlets were far more concerned about the money that they would recieve in respect of this development than helping the local unemployed! Quite simply, Tower Hamlets is a greedy and corrupt council with no regard whatsoever for local residents.