THE CABINET
12 DECEMBER 2016
Subject:
Wellesbourne Mountford Airfield
Lead Officer:
Dave Webb/David Buckland
Contact on 01789 260100/260425
Lead Member/
Portfolio Holder:
Councillor C Saint
Summary
Owning to the imminent threat to the future of Wellesbourne Mountford Airfield,
the purpose of this report is to request the possible compulsory purchase of
Wellesbourne Mountford Airfield. The compulsory purchase appears necessary in
order to preserve the uses of the site identified within the Council’s agreed Core
Strategy and to promote and economic and social wellbeing of the area.
Recommendations:
1) That a Direction is made with immediate effect under Article 4 of
the
Town
&
Country
Planning
(General
Permitted
Development)(England) Order 2015 to remove the permitted
development rights over Wellesbourne Mountford Airfield (The
Site) (which includes the provision for demolition)and that the
Head of Governance and Democracy be authorised to draft and
implement the Direction immediately; and
2) Subject to Council approving an appropriate amendment to the
Policy and Budgetary Framework as identified on this agenda
(Item 3), authority be given to the Head of Community and
Technical Services, in consultation with the Leader and the Head
of Governance and Democracy to:(a) Enter into negotiations and take any necessary further
steps with the owners of the Site to agree the purchase of
the Site;
(b)In the event that (a) is not achievable, to commence and
take any necessary further steps to compulsorily purchase
the Site, in accordance s226 of the Town & Country
Planning Act 1990 (as amended);
Background/Information
1.1
Wellesbourne Airfield is an active airfield of an approximate area of 100
hectares/247 acres, located to the east of Stratford-upon-Avon. It is
classified as a general aviation airfield and currently provides facilities for
private pilots, flying schools, a general aviation charter and hire
company, a general aviation maintenance company, a museum and a
number of local businesses.
1.2
The Council is aware of around 15 businesses operating from the airfield
and it is reported that there are around 200 jobs associated with these
businesses. If the site is developed for housing purposes, then these
jobs will be under threat.
1.3
The site is owned by the Littler family and the site is operated under a
Civil Aviation Authorities operator’s licence by Radarmoor, a company
whose Directors are members of the Littler family.
1.4
The Council is aware that the owners have entered an arrangement with
Gladman Developments, who wish to lose the airfield and redevelop the
land predominantly for housing purposes, with the provision of c. 1,800
houses.
1.5
The site is not allocated for this purpose within the approved Core
Strategy of the Council within the Council’s approved Core Strategy Policy
AS.9 Wellesbourne states the following:-
Policy AS.9 - Wellesbourne
The Council will apply the following principles in considering development
proposals and other initiatives relating to the Wellesbourne area. It will
assess the extent to which each of these principles is applicable to an
individual development proposal. Developers will be expected to
contribute to the achievement of these principles where it is appropriate
and reasonable for them to do so, taking into account the provisions of
the Infrastructure Delivery Plan.
C. Economic
2. Retain and support the enhancement of the established flying
functions and aviation related facilities at Wellesbourne Airfield.
1.6
The points above were specifically endorsed by the Planning Inspector
during the Examination in Public.
1.7
It has now become evident that the current owners are now wishing to
progress the plans referred to above in the near future. The Council has
become aware that eviction notices have been served on all of the
current tenants of the site.
In addition, an application has to be
submitted to the Building Control department of this Council, under
Section 80 of the Building Act 1984, to undertake the demolition of a
building on the site.
1.8
Legislation then requires a local authority Building Control department to
respond with a Section 81 Demolition Notice advising the company which
is to carry out the demolition a list of requirements that need to be
addressed and noted. However, there is no provision under this
legislation for the Council to refuse the application.
1.9
The Cabinet has been reviewing options for preventing the closure of the
airfield, to preserve the existing use of site for the promotion of the
economic and social wellbeing of the area. In the absence of cooperation
from the owners, the Council has the potential of making an application
to a Compulsory Purchase Order (CPO) to purchase the airfield. A CPO is
a lengthy process and the process for making such an order is identified
as follows:1.10
CPOS powers are laid out in the Department for Communities and Local
Government ‘Compulsory Purchase and Compensation - Compulsory
Purchase Procedure’ which can be summarised as follows:1.
2.
3.
4.
5.
6.
7.
8.
9.
The need for a formal resolution setting out the reasoning behind
the compulsory purchase;
Identification of those with an interest in the land and will be
affected by the Order;
The making of the Order;
Notification;
Objections;
The Inquiry;
The Decision;
Possession; and
Compensation
1.11 This can be also shown in a flow chart, shown below is an extract from the
Compulsory Purchase Procedure; however, in order to commence the
process, there would need to be a resolution from The Cabinet.
1.12
It is important to note that, if successful, the Council would be required
to pay compensation for the Compulsory Purchase. This is based upon
the market value of the site, along with a premium of around 10%. The
value would be determined by the Land Tribunal (LT). The Council’s
position to the LT would be that the value would relate to existing use as
defined within the approved Core Strategy. However, it is likely that the
owners would argue for the valuation to be based upon the ‘hope value’
from the proposed alternative uses for the site.
1.13
If The Cabinet agrees to the proposal to seek a CPO for the Wellesbourne
Airfield site, it is likely that it would take several months to progress.
During this period, there is a risk that the owners of the site would
progress with plans to demolish the existing facilities, thereby making it
unlikely that the asset could ever be re-opened as an airfield. There are
two routes the Council could progress in order to protect the airfield:1. Council could consider making an Article 4 direction under General
Permitted Development Order 2015. This would mean that the
permitted development rights that currently exist for demolition would
not apply and Littler Investments would need planning permission in
order to demolish the Airfield infrastructure.
2. Alternatively, should The Cabinet approve the principle of progressing
a CPO for the Wellesbourne Mountford Airfield that, in parallel, an
injunction is sought if necessary, to prevent the demolition until the
CPO has been considered.
2
Evidence Base
2.1
Not appropriate.
3
Implications of the Proposal
3.1
Legal/Human Rights Implications
3.1.1 In this instance the Council would be seeking to make an Order under
s226 of the Town and Country Planning Act 1990 (as amended) on the
basis that to CPO the airfield would result in ‘the development, redevelopment or improvement contributing to the achievement of:(a)
the promotion or improvement of the economic well-being of their
area; and/or
(b)
the promotion or improvement of the social well-being of their area;
and/or
(c)
the promotion or improvement of the environmental well-being of
their area.
3.1.2 The evidence for such promotion or improvement is supported by the
Core Strategy namely:Policy AS.9 Wellesbourne – c. Economic –
2. Retain and support the enhancement of the established flying functions
and aviation related facilities at Wellesbourne Airfield.
3.1.3 This policy clearly states that it is the intention under the Core Strategy
to ‘retain and support’ the airfield. Specifically, these powers would seek
to protect the jobs which otherwise would be at risk from the closure of
the airfield.
3.1.4 In order to avoid having to seek application for an injunction, the Council
could consider making an Article 4 direction. Under s60(3) Town and
Country Planning Act 1990 (as amended), the Secretary of State, or the
Council, may direct that the permitted development rights should not
apply, either in whole or in part, ‘in relation to development in a
particular area’ or ‘in relation to any particular development.’ The power
is contained within Article 4 GPDO 2015.
Compensation would be
payable to Littler Investments but this would be unlikely to be
substantial.
3.1.5 This would mean that the permitted development rights described above
(which would enable Littler Investments to demolish parts of the Airfield
infrastructure) would not apply and Littler Investments would need
planning permission in order to do so.
3.1.6 A direction can be made with or without immediate effect. One of the
two (alternative) criteria for a direction to be made with immediate effect
(under Schedule 3 GPDO 2015) is if:
‘(a)
it relates only to development permitted by Parts 1 to 4
(householder, minor operations, change of use and temporary use)
or Class B or C of Part 11 (demolition); and the authority consider
that the development to which the direction relates would be
prejudicial to the proper planning of their area or constitute a threat
to the amenities of their area”;…
3.1.7 Given the clear evidence of an imminent threat of demolition then the
Council would have a strong case for making such an Article 4 direction,
especially as reference is made to the economic importance of the airfield
in the Core Strategy 2011-2031.
3.2
Financial
3.2.1 The Council has not had access to the detailed accounts from the airfield,
however, estimates have been made of the income which is currently
derived from the site and these are predominating from the following
uses:



Rental from buildings;
Rental from agricultural land;
Profit from operating airfield;
Profit from operating Wellesbourne Market.
3.2.2 It is estimated that the airfield could generate an income of
approximately £400,000 per year. Based upon a 6% yield requirement,
this would equate to a capital value of approximately £5.5m. This is
purely an indicative valuation and should the principle of CPO for the
airfield is supported then a detailed valuation would be commissioned
immediately with the results reported to The Cabinet. As mentioned
above, in addition to the market value of the site, an additional premium
to compensate the owners is also payable. However, there is a risk that
the land tribunal would determine a higher value for the site. It should
be noted that at this point it would be too late for the Council to withdraw
from the CPO process.
3.2.3 The Council does not have any identified capital receipts available to
support such a CPO. However, if the report on this same agenda is
approved to amend the Council’s Policy and Budgetary Framework to
allow the Council to borrow, this could subject to a separate report to The
Cabinet be used to finance any CPO. Any income that the Council would
receive by way of rent would reduce the on-going debt costs arising from
any potential need to borrow, however, again, this would be the subject
of a detailed future report to The Cabinet in relation to the ongoing
financing of any debt costs.
3.2.4 Budgets have been identified for the necessary legal and valuation costs
of initiating the CPO process, along with seeking to obtain an injunction.
3.3
Environmental
3.3.1 There are no direct environmental implications arising from this report.
3.4
Corporate Strategy
3.4.1 Key Objective 1 within the Corporate Strategy 2015-19 relates to the
Council supporting a flourishing local economy. The specific aim within
this objective that relate to this issue are identified as follows:
‘The Council will work with partners and local businesses to create jobs
through business retention, growth and new inward investment
from the UK and abroad. The Council will encourage local businesses to
remain and grow and welcomes new business investment.
The Council will continue to assist in delivering an increase in economic
prosperity in helping to create jobs for residents, and supporting
businesses to grow and expand.’
3.5
Analysis of the effects on Equality
3.5.1 There are no direct or indirect impacts on equality issues for the Council
arising from this report.
4
Risk Assessment
4.1
There is no guarantee that a CPO process would be successful for the
site. There also remains the risk that the CPO would be unaffordable for
the Council should the LT choose to value the site for the alternative uses
that the current owners are seeking to progress. Indicative estimates for
housing use of the land would value the site more than £100m. IT
SHOULD BE NOTED THAT THE COUNCIL WOULD HAVE TO PAY
WHATEVER THE LAND TRIBUNAL DETERMINED FOR THE SITE.
4.2
Should The Cabinet approve the principle of progressing a CPO for the
site, as detailed above to preserve the existing uses, it is suggested that
the Council also seeks an injunction, if necessary, to prevent the
demolition of the existing buildings.
5
Conclusion
5.1
Wellesbourne Mountford Airfield is an important employment site within
the District, supporting up to 200 local jobs. The airfield is also used as a
popular recreational activity. In addition, the Council’s approved Core
Strategy seeks to preserve the existing uses of the site.
5.2
The proposals from the current owners are at odds with the Core Strategy
and would lead to the potential loss of local jobs and removal of the
recreational activity. There are no means from a planning or building
control perspective to prevent the demolition of the buildings on the site.
It appears that the only option the Council would have would be to CPO
the airfield and seek an immediate injunction preventing demolition.
5.3
Should Council approve the report on this agenda (Item 3) in relation to
allowing the borrowing of funds for strategic purposes, this funding could
be used to fund the CPO. Any ongoing income from tenants would reduce
or eliminate the cost of borrowing for this purpose; however, this would
be subject to a further report to The Cabinet.
Dave Webb /David Buckland
EXECUTIVE DIRECTORS (Head of Paid Service & s151 Officer)
Background papers: None