Rooff wins crucial Olympics compensation battle

It’s been a long time coming, but Rooff has won government support for its stance over the value of land in Carpenter Estates that was compulsory purchased to make way for the Olympic Park.

This could mean the Greater London Authority essentially having to shell out a whole lot more for the land it acquired to make way for the 2012 Games. That’s been an interesting debate for some time. Surely, the GLA and Newham will not appeal this latest decision and we will at last find out.

Any way here is my version of events.

Landowner wins crucial Olympics CPO compensation battle

By Paul Norman – Friday, September 28, 2012 13:15

The government has backed a landowner in a crucial legal case, opening the door to a substantial increase in the compensation bill it will need to pay businesses relocated to make way for the 2012 Olympics Games.

 

The Secretary of State for Communities and Local Government has backed building contractor Rooff’s appeal against a Newham council planning certificate in a move which effectively means the London Development Agency has been seeking to significantly underpay for Rooff’s land at Carpenter’s Estate in Stratford, east London.

The decision follows a four-year battle by Rooff to have its site valued as a potentially highly lucrative residential development opportunity close to the Olympics Park, rather than an industrial development opportunity.

A Newham council certificate had ruled that planning permission would only have been awarded on the site for B1 (business) and B2 (general industrial). The certificate was the basis for the values the London Development Agency sought to attach to the land when compulsory purchasing it to make way for the 2012 Olympic Park.

Rooff has argued over several appeals and inquiries however that because of the regeneration being brought about by the development of the 500-acre Olympic Park its land is instead suitable for a lucrative “landmark” development of mixed residential and business uses, as a key part of the regeneration of the area that is taking place in the area.

Rooff has sought a Section 17 award for residential development.

Following a four-day public inquiry in May, the Secretary of State this week backed Inspector Wendy McKay’s report which recommends the appeal be allowed and that the certificate issued by Newham be cancelled and a new “positive” certificate be awarded for a higher value mixed-use development incorporating residential and commercial.

The decision overturns a government decision made after a July 2009 public inquiry which rejected Rooff’s appeal initial appeal under the Land Compensation Act 1961.

The secretary of state then backed the inspector’s report that found that when the compulsory purchase order was launched on 16 November 2005, the only alternative development use for which planning consent would have been granted was B1 (business) and B2 (general industrial).

Rooff went to the High Court over this decision claiming the inspector’s reasoning was “unintelligible”, “inadequate” and gave rise to a “substantial doubt as to whether the inspector erred in law in many respects”.

At the High Court Rooff’s challenge was rejected by Mr Justice Blake who found that while the inspector’s report lacked the sufficient clarity, it could not be challenged as irrational, illogical or insufficiently reasoned.

In 2010 Rooff appealed claiming that the judge erred in failing to quash the decision after coming to a finding that the inspector’s reasoning was not sufficiently clear.

Rooff said the inspector’s reasoning was “elliptical”.

In April 2011, Lord Justice Carnwath backed Rooff and agreed that the argument should go back to the Secretary of State to decide whether to reconsider the entire case, potentially leading to a further enquiry.

A number of other significant landowners has been waiting to see what the outcome of the case is. It is likely that Newham will now accept that other sites coming forward in the area now should receive a Section 17 award enabling resi development, leading to a likely substantial increase in the government compensation for sites compulsory purchased to make way for the Games.

The decision was forwarded on 21 September to Eversheds acting on behalf of the Greater London Authority and Newham council.

Trowers & Hamlin advises Rooff. Savills advises Rooff on Compulsory Purchase Order matters.

pnorman@costar.co.uk

Advertisements

About Paul Norman's Olympics blog

News Editor of CoStar News, a commercial property news service. Regular blogger on the London 2012 Olympics and what it means for property and the the regeneration of East London
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s