Heart of the City - Rights of Light
DIRECTOR OF DEVELOPMENT SERVICES
REPORT TO CABINET
22ND MARCH 2006
HEART OF THE CITY
RIGHTS OF LIGHT
PURPOSE
To seek authority to use the powers contained in Section 237 of the Town and Country Planning Act 1990 in order to ensure that forthcoming phases of the Heart of the City development are not prejudiced by excessive claims for rights of light compensation by adjoining land owners
BACKGROUND
Members will be aware of the forthcoming phases of the Heart of the City development which are due to commence this year. The apartment building received detailed planning approval in October 2005, whilst the multi-storey car park and second office building both received approvals in December. A planning application for the third, final office building was submitted in January.
These developments are an essential part of the regeneration of the city centre. It should also be acknowledged however that these are large buildings in a sensitive part of the city centre with numerous existing properties surrounding the site. Some of these properties could potentially be affected to a degree by the developments and, whilst there is not currently any threat that they will do so, it is possible that owners of certain properties might attempt to make excessive claims for compensation from the developers or even seek an injunction which could prevent the development from proceeding.
Section 237 of the Town and Country Planning Act 1990 states that –
Subject to subsection (3) ( apparatus of statutory undertakers or telecommunications), the erection, construction or carrying out or maintenance of any building or work on land which has been acquired or appropriated by a local authority for planning purposes (whether done by the local authority or by a person deriving title under them) is authorised by virtue of this section if it is done in accordance with planning permission, notwithstanding that it involves—
(a) interference with an interest or right to which this section applies, or
(b) a breach of a restriction as to the user of land arising by virtue of a contract.
The effect of this section is to ensure that where land is owned by a local authority and held for planning purposes then existing rights which could prevent the development of that land from proceeding can be overridden.
The powers contained in section 237 do not remove any legitimate rights of owners or occupiers to compensation which may arise from the loss of such rights but does remove the potential for excessive claims. If agreement cannot be reached as to the amount of compensation then this issue can be referred to the Lands Tribunal for a decision in the same way as for compensation under a compulsory purchase order.
CURRENT POSITION
The Development Agreement dated June 2004 between the Council and CTP St James Ltd for the Heart of the City site anticipated that rights of light claims from some adjoining owners could potentially become an issue. The Agreement includes provisions that the Council will use reasonable efforts to seek to assist the developers in respect of this issue subject to the developers indemnifying the Council against financial costs or claims.
CTP St James have commissioned reports from specialist rights of lights surveyors to assess the impact of the proposed new developments upon nearby existing buildings in order to determine whether any rights of light claims are likely to arise. These reports have concluded that there are certain properties which will be effected to an extent such that claims for compensation are possible. It should be appreciated that this is a financial matter and the extent of the reduction in light is not necessarily such that would be considered as part of assessing the planning applications.
CTP St James accept that they are likely to have to pay compensation in some instances and are not seeking to escape from that responsibility. However the formal approval of Cabinet to use the powers in section 237 if it is necessary to do so will enable them to enter into negotiations in the knowledge that these provisions are in place. If individual building owners feel that they are not being offered a fair amount of compensation the matter can be referred to the Lands Tribunal for a decision but this will not prevent the development from going ahead.
COUNCIL LAND OWNERSHIP
Now that the purchase of the Yorkshire Grey pub has been completed the City Council is the freehold owner of the whole of the Heart of the City site. Whilst the pub was acquired using planning powers the whole site was acquired over a number of years using a variety of different statutory powers.
In order for section 237 to apply the whole site must be held for planning purposes and it is therefore necessary to formally confirm that any part of the site not currently held for such purposes is appropriated as from the date of this Cabinet meeting.
FINANCIAL IMPLICATIONS
CTP St James will be responsible for paying compensation to affected parties and will indemnify the Council against any claims which may arise against the Council as a result of this process. Therefore there are no financial implications arising from this.
RECOMMENDATIONS
1 That Cabinet confirms that such parts of the Heart of the City development site shown on the attached plan as are not currently held by the Council for planning purposes are appropriated and as from today’s date held for those purposes.
2 That, if necessary, the Council will use the powers contained in Section 237 of the Town and Country Planning Act 1990 in order to ensure that forthcoming phases of the Heart of the City development are not prejudiced by claims of interference with rights of light by adjoining land owners.
David Curtis
Director of Development Services
6 February 2006
