Agenda item

To consider a report which outlines the Compulsory Purchase Order proposal in respect of the various land interests at Tyne Brand, North Shields. Those interests are within the area shown by the dark outline plan attached as Appendix 1 (the “Order Land”).

Cabinet considered a report which outlined a Compulsory Purchase Order (CPO) proposal in respect of the various land interests at the Tyne Brand Site, North Shields, shown on the plan (within the area in dark outline) attached at Appendix 1 to the report.

The former Tyne Brand factory site was a complex development site in multiple ownership.

Over the years there had been a number of reported efforts by private developers to purchase those land interests with a view to bringing forward housing development on the site.   However, these had been unsuccessful, and the site had remained an eyesore and undeveloped for in excess of 40 years.

Following the approval of the North Shields Master Plan in January 2021 and with no realistic prospect of the site being brought forward for development without public sector intervention an application was made to the North of Tyne Brownfield Housing Fund.  

Grant funding had been secured to assemble and remediate the site on the basis of adopting a staged approach to achieving its onward redevelopment.  The first stage of this approach included two key deliverable outcomes; these were to develop an Acquisition Strategy and a Demolition/Site Clearance Strategy by December 2021.

An Acquisition Strategy would set out how the Authority could acquire the remaining interests on the site. In the first instance this would be via negotiation with those landowners willing to engage.  However, in order that the land interests could be acquired in a timely manner the potential use of CPO powers must be a consideration.

A Demolition/Site Clearance Strategy would set out how the demolition and site clearance of as much of the site as feasible to facilitate safe access for more detailed Stage 2 site investigations could be achieved. 

In terms of the use of CPO powers, under section 226(1)(a) of the Town and Country Planning Act 1990 a local authority had a power to acquire compulsorily any land in their area in order to facilitate the carrying out of development, redevelopment or improvement on or in relation to the land.

In order to exercise such powers, the Authority must be satisfied that the proposed development, redevelopment or improvement was likely to contribute towards any of the following objectives:

·         the promotion or improvement of the economic well-being of their area;

·         the promotion or improvement of the social well-being of their area; or

·         the promotion or improvement of the environmental well-being of their area.

The site was part of a wider regeneration plan which was a valid reason to use CPO powers. 

To use its CPO powers the Authority must also demonstrate a number of further requirements:

A scheme for the site – the site has been problematic for several years and was an ideally placed gateway housing site for delivery of the Authority’s Masterplan ambitions. As such, it was anticipated that once the site was assembled and remediated, suitable development options, including an appropriate planning application, would be brought forward.  Housing concepts were shared during the initial Masterplan engagement exercise and which the Authority had discussed with some of the landowners. It was proposed that wider Statement of Reasons would confirm the work required to halt the further decline of the site, its impact on the immediate locality and an agreed housing development scheme.

A budget available to execute it – initial investment from the North of Tyne Combined Authority of £4.3m was being secured from the Department for Levelling Up, Housing and Communities (DLUHC) Brownfield Housing Fund to bring this site forward for development. As noted above, the availability of a fully assembled and remediated site in this desirable location was likely to lead to significant developer interest in due course.  The wider “Statement of Reasons” would confirm the funding model most appropriate for the onward redevelopment of the site before making a CPO.

Tried all other ways to secure the site by agreement - the proposed approach to reach negotiation first was set out above in line with the Acquisition Strategy.

The “Statement of Reasons” would be submitted for formal approval in accordance with the recommendations in section 1.2 of the report.

Cabinet considered the following decision options: to either accept the recommendations as set out in paragraph 1.2 of the report, or alternatively, to not approve the recommendations and request that officers look at other options available to the Authority.

Resolved that (1)the Chief Executive, in consultation with the Director of Commissioning and Investment, the Elected Mayor, the Deputy Mayor, the Director of Resources, the Director of Law and Governance and the Director of Regeneration and Economic Development, be authorised to:

a.    invoke Compulsory Purchase powers under section 226(1)(a) of the Town 

and Country Planning Act 1990 for the acquisition of the former Tyne Brand    

site, North Shields, within the area in dark outline on the plan attached at Appendix 1 should the site not be acquired by negotiation;

b.    agree a final “Statement of Reasons” that would be submitted with the Order to the Secretary of State for Levelling Up, Housing and Communities providing the justification for pursuing a Compulsory Purchase Order based on the information given in Section 1.5 of the report;

c.     agree a “Scheme” for the onward development of the site;

d.    take all necessary steps to secure the making, confirmation and implementation of the Compulsory Purchase Order, including the conduct of a Public Inquiry (if appropriate) to obtain confirmation of the Order by the Secretary of State; and

(2) the Order to be named “Former Tyne Brand site, North Shields Compulsory Purchase Order 2022”, be approved.

(Reason for decision:This will provide a clear legislative process for the Authority to secure ownership of the site, stop its further decline and negative impact on that locality and prepare the land for onward development.)