Signs of Progress?

According to Property Week there may finally be signs of progress wrt developing the Gateway site next door to East Croydon Station:

"Stanhope and Schroders have submitted a planning application for the redevelopment of Ruskin Square, adjacent to East Croydon Station.

The mixed-use scheme, which will be developed on a nine acre site, will provide1m sq ft of office space and 550 new homes, creating a new business and residential quarter at the ‘front door’ to Croydon.

The Ruskin Square masterplan also provides for a new direct route connecting the East Croydon Station with the town centre through the site.

David Camp, chief executive of Stanhope, said: “Just 15 minutes from central London by train, Ruskin Square offers modern workspace and residential accommodation in a new place just 2 minutes from an improved transport hub with competitive property prices and easy access to town centre retail and cultural amenities.”

Ian Mason, head of UK property fund management at Schroders, added: 'Ruskin Square is the centerpiece of East Croydon’s transformation into a new central business district. It will deliver restaurants, cafes, a theatre, new homes, new public routes and outdoor space and 1m sq ft of grade ‘A’ office space.'

A first phase of housing at Ruskin Square could be started to coincide with the expected opening date of the new station access footbridge in 2013."

The Times has issued a separate report on the subject, which indicates that Nestle may be persuaded to move there.

Lest there be any doubt, the reason that this site remains undeveloped is because of the council (both the current administration, and the previous Labour administration) allying themselves to the doomed Arena project.

Plus Ca Change

Property Week reports that Croydon Council has finally admitted defeat in its long running battle to impose an arena on Croydon, and said that "it is eager to work with Stanhope and Schroders" the developers of the rival Gateway site in East Croydon.

The council's agreement with rival developer Arrowcroft terminated at midnight last night.

The council and Arrowcroft had six weeks to mount a legal challenge to the Secretary of State's refusal of planning permission. Having not made this challenge, the agreement terminated last night and the council is now talking to Stanhope and Schroders about taking their rival 1m sq ft Ruskin Square scheme forwards.

Councillor Tim Pollard said:

"By there being no challenge to the public inquiry decisions, the opportunity exists for the Stanhope Schroder partnership to make its mark in Croydon through the early development of the site.

What matters now is building a positive relationship with Stanhope so that their scheme can be taken forward on what is the most prestigious building site in the town.

The Gateway site has stood empty for far too long – a real blot on our landscape and an unwelcome sight for every train passenger passing through East Croydon. Now that planning issues have finally been resolved there is no longer any obstacle preventing its redevelopment.

A chapter has closed and a new one opened – with a great opportunity for Stanhope to do something special for Croydon. Our early talks with the developer will aim at achieving a happy ending."

Re:

The Gateway site has stood empty for far too long – a real blot on our landscape and an unwelcome sight for every train passenger passing through East Croydon.

I am glad Councillor Pollard agrees with me, I have been saying that for years now (see www.croydoniscrap.com and this site).

The irony being that had the council not tied themselves to the mast of Arrowcroft's sinking ship, and thus delayed the development becuase of their CPO and public hearings etc, the site would have been developed by now.

The council are the cause of the delay.

The Final Nail in The Coffin

The final nail in the coffin of Croydon council's plans to impose an arena development on Croydon has been firmly hammered in.

The Croydon Guardian reports:

"Croydon council has been thwarted in its plans to force the Croydon Gateway developers to sell its land.

Hazel Blears, Secretary of State for Communities and Local Government, has rejected Croydon Council’s request for a compulsory purchase order on the land next to East Croydon station.

It effectively spells the end of any hopes held by the council-backed developer Arrowcroft to build a 12,500 seat arena on the site..."

Property Week also covers the same story:

"The Government has given Schroders and Stanhope the green light to commence the Croydon Gateway development, alongside East Croydon railway station.

Hazel Blears, Secretary of State for Communities and Local Government, has refused to confirm Croydon Council's compulsory purchase order on the site, which is owned by Schroders and Stanhope.

Last week she refused consent for a development scheme centred on a 12,500-seat arena, proposed by Croydon Council and developers Arrowcroft.

William Hill, managing director of Schroders Investment Managers, said:

'We are delighted that the Secretary of State has declined to support the CPO. We argued at the planning inquiry that the arena scheme was not appropriate for this site and we are pleased to see that the Secretary of State agrees that it does not justify taking our land.'.."

I personally am delighted, it is a victory for the citizens of Croydon.

However, I would remind people that Dingwall Road has remained untouched for years because of the intransigence of the previous and current council administrations. Had they not pushed for an unwanted and poorly thought through arena project, the site would have been developed by now.

We have not been well served by either the Tory or Labour administrations.

Those who pushed this scheme should resign, now!

Victory

Breaking News

"In a decision announced this morning communities secretary Hazel Blears has rejected the council-backed Arrowcroft arena, homes and offices scheme planned for the Gateway site at East Croydon."

Excellent!

A lot of good people put in much time, effort and energy into opposing this scheme, today is their day.

Let us not forget that had the council not tried to push through this unwanted scheme, the eyesore that is Dingwall Road would have been redeveloped by now.

The people who have suffered because of the council's arrogance are the citizens of Croydon. It is now time for high level resignations from the council.

A copy of the full decision can be downloaded here: Decision

Our Non Listening Council

With very few weeks left before the results of the public inquiry, Stanhope made a full presentation to the Shadow Cabinet on 30 June.

It was, I understand, well received with extensive questioning on all aspects of the scheme including; housing mix, the new Warehouse Theatre, public performance space, build time, committed financing and the future of Fairfield Halls.

This is in stark contrast to the ruling Conservative administration of Croydon, who have refused a similar offer from Stanhope.

Stanhope and Schroders Win Croydon Appeal

Croydon Council said today it would not contest an appeal lodged by Stanhope and Schroders over non-determination of its planning application to redevelop part of the controversial Croydon Gateway site.

In December 2006 Stanhope and Schroders’ Croydon Gateway Limited Partnership submitted an application for a residential-led scheme to the north of Lansdowne Road.

The Council said it had not had time to determine the planning application as there were some unresolved matters but it was ‘not in the public interest’ to contest the non-determination appeal lodged in February.

A spokesman for Stanhope and Schroders said the decision meant that its planning permission for the entire site was in place "We are very happy with this decision and we hope that what this will mean is that we can engage with Croydon Council on a site that can be delivered."

Source Property Week.

This of course means that if Arrowcroft and the Council were to win the CPO, the price that they would have to pay for the site with planning permission would most as likely be out of their reach.

The Real Scandal of The Arena

This comment has just been posted on Croydon Is Crap.

I would be very grateful if the person who posted it could get in touch with me.

Thanks.

"My company were the originators of the Stanhope Schroder scheme having secured options on the site in 1976 in open competition. The site was originally due to be developed as a Millennium Site with completion in 2000 - what a joke.

After years of frustration the Council became seduced by an individual promoting an Arena as a so called expert. This same individual has tried unsuccessfully in other UK towns and been thrown out of most of them. To this day, he has no experience of building or running an Arena.

We fully investigated the Arena concept and had it potentially valued by one of the world's top consultants. In a nutshell, the Arena would cost £80m to build (ex land cost) and be worth £5m. on completion. There is no possibility of a privately funded Arena being built in a town centre anywhere in the UK - all others in Europe have had public funding and/or free land. American Arenas are supported by Ice Hockey which is their national sport.

It is arguable that through their intransigence Croydon Council have cost borough residents (of whom I am one) £millions in lost revenue from business rates on this site.

After spending £2m. and seven years on this site, we sold to Stanhope/Schroder as we were 'losing the will to live'."

Croydon Council Stalling

In a particularly pathetic attempt to slow the development of The Gateway site down, and favour their preferred project submitted by Arrowcroft, Croydon Council have been stalling on making a decision about the planning application submitted by Stanhope Schroders (the owners of the site) in December 2006.

Stanhope and Schroders have now lodged an appeal against the council.

David Camp, chief executive of Stanhope, and William Hill, director of property at Schroders, is quoted in Property Week as saying:

"Stanhope and Schroders already have planning permission, a fully assembled site and funding in place to commence work on the redevelopment of the Croydon Gateway main site - called Ruskin Square.

It is extremely frustrating to find ourselves in an appeal situation once again particularly when the development in question will deliver the much needed regeneration of a key site and additional affordable housing to Croydon in line with Council policy."

Croydon Council, by their actions (or rather their "inactions"), are demonstrating yet again that they are not acting in the best interests of the citizens of Croydon.

The Gateway site, had it not been for the obstacles put up by Croydon Council would have been well on the way to being developed by now.

D Day

A decision on Croydon's Gateway site will be made by the summer, the planning inspectorate has announced.

The secretary of state will decide on, or before July 30, as to which developer (Arrowcroft or Stanhope) gets to build on the land already owned by Stanhope (which also has planning permission).

Congratulations to Croydon council for dragging this sorry farce on for so long, and for allowing the blight that the citizens of Croydon have had to suffer to continue.

The Gateway site, but for the council, would have been developed years ago.

Closing Arguments

Croydon Gateway Limited Partnership (CGLP), a joint venture between developer Stanhope and Schroders, presented its closing arguments to the public inquiry into the arena development on Monday.

Keith Lindblom QC, for CGLP, said:

"CGLP's proposals are so distinctly superior in numerous respects to the Arrowcroft scheme that there is plainly a compelling case in the public interest to reject the CPO, thus preventing the possibility of Arrowcroft's scheme replacing a development of world class quality and function, or at best causing it still further unnecessary delay."

CGLP also questioned Arrowcroft's ability to fund the scheme, adding that the Arrowcroft designs were inferior to the CGLP office scheme, and that the arena was not financially or commercially viable.

The decision now rests with Hazel Blears, the Secretary of State, and is not expected to be announced for some months.

Arrowcroft To Make an Offer II

In today's Croydon Guardian:

"The fact Arrowcroft is looking to make an offer, days before the end of the inquiry, could indicate that it doesn't believe it is going to succeed in acquiring the site."

Exactly!

However, this "offer" has as much chance of succeeding as hell freezing over:

1 The difference in valuations £50M is far too large

2 Why did Arrowcroft not buy the land when it was available?

3 Why did they not make an offer before the CPO?

4 Albert Dock in Liverpool is owned by Arrowcroft, and shows losses in excess of £1M and debts of £24M in the company accounts. Given the financial difficulties of another Arrowcroft "prestige project", why are Croydon Council so sure that the Arrowcroft plans for the Gateway are financially viable?

Sign the petition against the arena via this link on the Number 10 website: Petition

Arrowcroft To Make an Offer

According to Property Week, Arrowcroft and Croydon Council are about to make an offer to Stanhope Schroders for the Croydon Gateway site.

Paul White of Frogmore (the company that is providing finance for the arena) is quoted by Property Week as saying:

"Notwithstanding the fact that we have now been told there is an overage* provision, that won't get in the way of negotiations on our acquiring Stanhope and Schroders' interest in the site."

*Overage provision is a condition attached to the sale of land, where anyone buying the site would pay more if or when planning permission for the site is granted.

However, don't worry, it should be noted that there is a £47M to £55M discrepancy between the two sides over how much they think the site is worth.

The fact that the council and Arrowcroft are looking to make an offer, before the end of the inquiry, indicates that they don't believe that they are going to win.

Sign the petition against the arena via this link on the Number 10 website: Petition

Warehouse Proof of Evidence

My thanks to the Warehouse Theatre for sending me their proof of evidence against the proposed arena development.

They will be presenting this at the public inquiry into the compulsory purchase order this coming week.

As you can see form the extract below, Arrowcroft and Frogmore have had no meaningful dialogue with the Warehouse; despite their, and the council's claims, that they have now included a genuine proposal for a replacement theatre in their plans for the arena development.

How can you design a replacement Warehouse theatre if you have not spoken to the people who own and run the Warehouse?

1. In February 2004 we made our position in relation to both developers crystal clear on our web site. That statement was designed to ensure that everyone knew what our intention was:

"We seek a replacement for our current building, as we not only out-grew it some time ago, but it also does not comply with disability regulations nor does it have enough seats to continue to be commercially viable for the longer term.

We welcomed the offer by Stanhope/Schroders for a replacement theatre in their proposals. This had not been offered by the other potential developer. We believe that the provision of a new theatre for us on the Gateway site adds enormous value and diversity to this development.

Our responsibility is to ensure that we have a venue in Croydon to undertake our core activities - as a producing theatre for new writing and providing entertainment & education for the benefit of the Croydon community.

Accordingly, the company will continue to seek to have dialogue with developers, officers and members of Croydon Council, the Mayor of London, government ministers etc. to pursue our goal for a new theatre and our future in the development."

2. We continue to pursue the above policy and have made strenuous efforts to do so.
We have had several 'off the record' meetings with Arrowcroft since 2004 which have
led nowhere. In 2007 we also wrote to their new funding partner 'Frogmore' who referred us back to Arrowcroft.

3. The Warehouse Theatre therefore proceeded with our objections to the planning application and the CPO because a new theatre has not been included in Arrowcroft's
plans.

4. It was only on 5th June 2007 that we received a letter from Arrowcroft identifying
how a replacement theatre 'could' be included in their scheme and how this would be
achieved through a section 106 agreement. A plan (PL050) was included showing its proposed location. However, we then understood that this plan does not form part of
the planning application. We have had no meaningful dialogue with either the acquiring authority or Arrowcroft about this proposal either before, or indeed
subsequently.

5. The Theatre is of the view that this is not a viable way forward. A comprehensive
plan has to be in place to achieve the continuity of our business from our current site to a new building if our objections are to be removed. The Arrowcroft proposal does not achieve this.

The document goes on to note that the scheme "is we understand under financial stress without an end funder in place".

In other words, do Arrowcroft actually have the money to follow through on their plans for an arena development?

The complete Proof of Evidence document can be downloaded via this link: Warehouse Proof of Evidence.

Sign the petition against the arena via this link on the Number 10 website: Petition

Questions Over Funding

The public inquiry into the Arrowcroft and Croydon Council arena heard this week that there were question marks over the funding of the project.

It was pointed out that Arrowcroft and the council have not signed contracts with banks or third parties to provide the funding required for the project, and that so far Frogmore has only committed £3M to the project.

Source PropertyWeek.com

At a public inquiry last Friday, the possibility of the sale of the controversial Croydon Gateway site was raised, which could end the decade-long fight between the two rival developers: Stanhope and Schroders; and Arrowcroft and Croydon Council.

If a sale of the site can be agreed it will end the matter before it goes to secretary of state for communities and local government Hazel Blears at the end of the inquiry.

Stanhope and Schroders own the site in question, and have planning permission for a 1m sq ft office and residential-led scheme called Ruskin Square.

However, the council and development partner Arrowcroft, with funding from Paul White's Frogmore, have proposed a 2m sq ft Croydon Gateway scheme that would feature a 12,500-seat arena.

The inquiry, which has one week left to run, deals with two issues: whether planning permission should be granted to the arena-led scheme; and, if it is, whether Croydon Council can go ahead with a compulsory purchase order to force Stanhope and Schroders to sell the 9 acres that they own in the 13 acre site.

Last Friday, the inquiry heard that the council and Arrowcroft have never made a formal offer to Stanhope and Schroders to buy their part of the site.

Alan Jones, finance director of Arrowcroft, said this was because the company was unsure whether any purchase of the land would contain an overage provision.

This would state that a larger sum would have to be paid if planning consent for a higher use value were to be obtained.

Keith Lindblom QC, acting for Stanhope and Schroders, told the inquiry that no such provision existed, and that any bid for the land would be welcomed.

It is thought that if Arrowcroft and the council receive written confirmation that there is no overage provision, they will make an offer to buy the land owned by Stanhope and Schroders after evidence on the site’s value is heard next week.

However, evidence is to be submitted showing a £47m to £55m difference in how much the two sides think the site is worth.

William Hill, head of property at Schroders, said: 'I can confirm that Arrowcroft and the council have made no offer to us or the previous landowners for part or all of the site.

However, there is no encumbrance to them doing so. If they made us an offer at a price that reflected the value and potential return of the site, then we would, of course, consider it. But as it stands, it is our intention to continue with our development.'

As the inquiry enters its final week, it has moved from examining whether the council and Arrowcroft’s scheme should be granted planning permission, to whether it should be allowed to use a CPO to purchase the land.

Stanhope and Schroders were among the objectors to the scheme being given planning permission. Their evidence to the planning inspector stated that the arena was not economically viable, and that the scheme did not contain enough affordable housing.

But in its submission regarding the CPO, Croydon Council said the arena was vital to regenerating Croydon and changing its image as a 'concrete jungle'. Jon Rouse, chief executive of Croydon Council, said in his evidence: ‘We all want it to happen because we know that it will have a profoundly positive impact on the prospects of this town.

'Only the Gateway [site] makes sense as the location for a major entertainment and leisure facility.'

However, Stanhope and Schroders sought to show that the funding and operation of the potential arena is far from secure. Lindblom pointed out that Arrowcroft and the council have not signed contracts with banks or third parties to provide the funding required for the project, and said that so far Frogmore has only committed £3m to the project.

However, Paul White, managing director of Frogmore, who agreed to fund the scheme in February, said: 'I am reasonably offended by the suggestion that I would go back on my word. Frogmore has an unblemished reputation when it comes to providing funding.'

Sign the petition against the arena via this link on the Number 10 website: Petition

The Place of Turmoil

Architectural expert Professor Robert Tavernor has told the inquiry into the CPO that the Arrowcroft development has no architectural merit, and stated that the site would end up as a "place of turmoil."

Quote:

"Far too much is being asked of the scheme and the site for the development to function properly."

Source Croydon Advertiser

Sign the petition against the arena via this link on the Number 10 website: Petition

The Elephant in The Room II

On the 13th of September I asked:

"If the Arena is such a good commercially viable project, as Arrowcroft and Croydon Council would have us believe, why is that no one has yet been found to take it on and run it (in the event that it is built)?"

I am pleased to see that the inquiry into the flawed, and misguided, plans of Croydon Council to build and arena on the Gateway site have now been told that Arrowcroft has been unable to sign up an anchor sports team for the arena. This of course knocks a major hole in their financial projections, and their claim that the project is commercially viable.

This is the point that many people have been making for years.

Sign the petition against the arena via this link on the Number 10 website: Petition

Public Inquiry

The public inquiry into the CPO and related matters wrt the Gateway site and the arena commences today.

Follow The Money

There are some people who, some might say, naively believe that Arrowcroft's intentions towards the Warehouse Theatre are honourable.

I most certainly would not wish to dispute/question Arrowcroft's intentions, or their recent "Road to Damascus" conversion wrt their new offer to include a space for the Warehouse in their plans.

However, a little bit of background wrt the money flows relating to this project may help "clarify" the reality.

Maybe our local media might like to start probing the agreement between "our" council and Arrowcroft a little more closely?

Warehouse - 'generous offer of £3Million'.

Guess who gets the money if the Warehouse cannot put together a robust business plan for a new theatre (following a three or four year decant from the site)?

Yes, that's right, Arrowcroft.

So what incentive does Arrowcroft have to actually make their arrangement with the Warehouse work?

A cynic might argue that the £3M is in fact an incentive to stop it working!

I leave it to you, the citizens of Croydon, to form your own judgement on that.

Stanhope, on the other hand, have to hand their £3M+ over to the council for arts related projects on site.

Here's another question that our local media might care to ponder.

The odd thing in all this is that the Fairfield Halls have not (yet) objected to the Arena.

Why is that?

Is it because the councillors that sit on its board (Cllr Dudley Mead is one of them) have a conflict of interest?

Our councillors of course do not like conflicts of interest, that is why the recent junket offer by Arrowcroft to fly a few of them over to the Hamburg arena was rejected.

Good for them!

Pity that the same offer last year was not rejected by those in the council, who made the trip in 2006, who are now so vociferously promoting the scheme.

Maybe it is time that our local media started to act in the interests of the citizens of Croydon, and investigated what is really going on here?

What do I know?

I'm just a local resident who's opinions, like many others, have been ignored by "our" council!

Carry On Regardless

I am pleased to see that Stanhope intend to start work on the Gateway site later this year, thereby sticking a metaphorical two fingers up at the council's compulsory purchase order (CPO).

According to the Croydon Guardian, Stanhope will start work as soon as minor conditions are approved by the council.

Charles Walford from Stanhope Plc said:

"However we have everything we need to start - we own the land, we have finance, we have occupier interest and we have planning permission granted from the council."

Rather amusingly, Councillor Tim Pollard, cabinet member for finance and regeneration whined:

"The council has always tried to have constructive dialogue with both Stanhope and Schroder and Arrowcroft but Stanhope seem determined to hold us back."

Can this be same the same council that doesn't want Stanhpope to build on the land?

Is this not the same council that has signed a contract with rival developer Arrowcroft?

Is this not the same council that is trying to impose a CPO on Stanhope's legitimate ownership of the land?

Is this not the same council (albeit under the guise of a Labour administration) that are referred to in the minutes of the Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions (1 November 2004). Where it was made very clear that the committee believed that the then Labour administration had a conflict of interest?

Quote:

The minutes also note that the then Labour administration made the dispute between themselves and Stanhope personal. Sir Paul Beresford is quoted as saying:

"I just happen to have been given the Croydon Gateway report that you gave to your Labour group. It is quite abusive, it is personally abusive. I find it quite extraordinary...

It is the report that went to the Labour group on 5 February this year and it says:

'These so-called blue-chip developers have acted like irritable children when their toy has been snatched from them, whining and screaming to the press and anyone else who will listen.' Then it goes on to name a number of individuals, including Sir Stuart, but naming him with a rather abusive phrase, which I will not use, and others that have resisted or not agreed with you also get abusive names applied to them?..

Calling one of the individuals, that I have not named, 'Mr Slime' and another one 'Mr Dud'..

You are in a position where, certainly by the paper, you have got some personal difficulties with individuals, you want an Arena on the schemes and really you want Arrowcroft to do the development, so that, in essence, anyone else putting in an application, including the people that own the land, is wasting their time?.."

Therefore how can Councillor Pollard claim that the council have tried to have a "constructive" dialogue with Stanhope?

The council have done their very best to block Stanhope, and to remove them from the site and public consciousness.

Good luck to Stanhope, by commencing work on the site they will all but nullify the absurd CPO and stick a very well deserved two fingers up to the council who have failed the citizens of Croydon.

Let us develop the site now, and build a better brighter future for Croydon (with or without the council).

The Croydon Expo

Next week the Expo comes to town, EXP07 is (to quote the website):

"your chance to experience the amazing things happening in the borough today and in the next 15 years. Croydon Council and our partners in Industry and the community are working together to establish Croydon as London’s 3rd city."

EXP07, according to Councillor Pollard, will be financed entirely by private sponsorship.

Therefore it should not be of any surprise to learn that the EXP07 website is but a one page list of links to property developers et al who are operating, or who wish to operate, in Croydon. Needless to say Arrowcroft, Croydon Council's preferred developer for the Gateway site, is listed.

However, Stanhope Schroders are not listed. This is somewhat surprising given that they have a development scheme for the Gateway site, and actually own a large amount of the land on which the Gateway development will be built.

EXP07 will feature a large 3D model of the future Croydon town centre. The question is, will this model feature the arena (which is currently subject to the public enquiry) and therefore is unlikely to be built?

Anyone care to take a bet on that?