Agenda item

The City of Sheffield (3 Mulehouse Road) Compulsory Purchase Order 2018

Report of the Executive Director, Place.

Decision:

9.1

The Executive Director, Place submitted a report seeking authority to make a Compulsory Purchase Order in respect of 3 Mulehouse Road, Sheffield, S10 1TA to allow it to be renovated and occupied. 

 

 

9.2

RESOLVED: That:- 

 

 

 

(a)

authority be given for the Council to make a Compulsory Purchase Order ("CPO") under the powers conferred by Section 17 Housing Act 1985 to acquire all land interests in respect of the land coloured pink as shown on the Order Map, attached at Appendix 3, with title ‘The City of Sheffield (3 Mulehouse Road) Compulsory Purchase Order 2018’ (the "Order Land").;

 

 

 

 

(b)

Cabinet delegates authority to the Director of Legal & Governance to make the CPO for the Order Land, to take all necessary procedural steps prior to and after the making of the CPO, to enable the CPO to be submitted to the Secretary of State for confirmation, including:

 

 

 

 

 

(i)

finalising the draft Statement of Reasons, as attached at Appendix 1 to the report;

 

 

 

 

 

(ii)

serving notices of the making of the CPO on all persons entitled to such notice and placing all necessary notices in the press and on/around the Order Land;

 

 

 

 

 

(iii)

submitting the CPO to the Secretary of State for confirmation as soon as possible following making of the CPO; and

 

 

 

 

 

(iv)

self-confirming the CPO if authorised to do so by the Secretary of State;

 

 

 

 

(c)

Cabinet delegates authority to the Director of Legal & Governance to sign and serve any notices or documents necessary to give effect to these recommendations and to take all the other actions necessary to give effect to these recommendations;

 

 

 

 

(d)

as soon as the CPO is confirmed by the Secretary of State  or self -confirmed  where authorised by the Secretary of State, the Director of Legal and Governance be requested to advertise the confirmation, of the CPO and serve all necessary notices of the confirmation and once the CPO becomes operative, Cabinet delegates authority to the Director of Legal & Governance, in consultation with the Executive Director, Resources, to execute General Vesting Declarations under the Compulsory Purchase (Vesting Declarations) Act 1981, at the earliest opportunity and to thereafter serve all necessary documents and notices of the vesting of the Order Land in the Council;

 

 

 

 

(e)

Cabinet delegates authority to the Executive Director, Place, in consultation with the Director of Legal & Governance and the Executive Director, Resources, to manage the compulsory purchase process in accordance with all statutory requirements  and to otherwise promote or support the promotion of confirmation of the CPO, including the preparation for, and giving of evidence at, any public inquiry;

 

 

 

 

(f)

Cabinet delegates authority to the Chief Property Officer to agree terms for the acquisition of the Order Land and to instruct the Director of Legal and Governance to complete the necessary documents; and

 

 

 

 

(g)

upon the completion of the acquisition of the Order Land, consideration be given as to whether the property was needed for social housing. If not, the Chief Property Officer  be authorised to negotiate the disposal of the land to instruct the Director of Legal and Governance to complete all the necessary legal documents for the completion of the disposal. 

 

 

 

9.3

Reasons for Decision

 

 

9.3.1

The property has been vacant since at least 2004 and is in a poor state of repair, attracting anti-social behaviour and is having a negative impact on the local community. There is a demand for this type of property within Sheffield and the Council has, without success, attempted to engage with the property owner, in an effort to get the property back into occupation, including an offer to purchase the property by agreement.  In addition, particularly in respect of recent enforcement action taken by the Council, the owner has failed to take reasonable steps to make the property safe.  In those circumstances, as an option of last resort, the Council consider, to ensure that the property is put back into occupation, that it is appropriate to seek a CPO in respect of the property.

 

 

9.4

Alternatives Considered and Rejected

 

 

9.4.1

Demolition

The Property is in a state of disrepair, empowering the Council to take various steps to remedy the problem, including renovation and demolition.  As the Property is an end terrace house, the demolition option would not be practical as support is required to the adjacent property. Demolition will not result in the provision of housing as it is believed that it is unlikely the owner would rebuild should this option be taken.

 

 

9.4.2

Renovation

 

The Council first visited the Property in 2004 and found it to be vacant. From this date, the Council has not observed or received any information that the property has been occupied.  The owner has taken inadequate steps to prevent its deterioration despite the Council writing on several occasions to the owner to express their concern over the condition of the property and asking for the owner to explain his intentions for renovation and bringing the property back into occupation. It is therefore unlikely, should the Council do works in default, that this would result in the improvements to the Property being sustained. In those circumstances this option would be a poor use of limited resources and unlikely to achieve its purpose.

 

 

9.4.3

Empty Dwelling Management Orders (EDMO)

These orders enable the Council to effectively step into the shoes of the owner and manage the property. However, prior to occupation, the Council would have to refurbish the property. Given the poor condition of the property, the cost of bringing it up to a habitable condition is likely to be significant. Furthermore, it is doubtful that the rental income would cover the costs within the timescale of the EDMO, which is seven years. Therefore it is highly likely that the Council would be unable to recover the significant costs of refurbishment, making this option inappropriate.

 

 

9.4.4

Purchase by Agreement

The Council have actively pursued this option which would have enabled it to sell the Property at auction, so that it could be renovated and reoccupied. On 15 August 2017 and 6 August 2018, the Council wrote to the owner to offer to purchase the property by agreement. No response was received by the Council to those letters. However, the Council will continue to attempt to negotiate with the owner for as long as it considers reasonable to do so.

 

 

9.4.5

Compulsory Purchase

 

All attempts at working with the owner have failed, as detailed in the Statement of Reasons. Due to the owner’s failure to take proper action, the property, for which there is a demand, has remained in a poor state of repair for a significant period and there is little prospect of it being brought back into occupation. Compulsorily purchasing the Property is currently the only feasible option to ensure its renovation and re-occupation. For these reasons, this is the preferred option.

 

 

9.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

9.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

9.7

Respective Director Responsible for Implementation

 

 

 

Laraine Manley, Executive Director, Place

 

 

9.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Safer and Stronger Communities

 

 

 

Minutes:

9.1

The Executive Director, Place submitted a report seeking authority to make a Compulsory Purchase Order in respect of 3 Mulehouse Road, Sheffield, S10 1TA to allow it to be renovated and occupied. 

 

 

9.2

RESOLVED: That:- 

 

 

 

(a)

authority be given for the Council to make a Compulsory Purchase Order ("CPO") under the powers conferred by Section 17 of the Housing Act 1985 to acquire all land interests in respect of the land coloured pink as shown on the Order Map, attached at Appendix 3, with title ‘The City of Sheffield (3 Mulehouse Road) Compulsory Purchase Order 2018’ (the "Order Land").;

 

 

 

 

(b)

Cabinet delegates authority to the Director of Legal & Governance to make the CPO for the Order Land, to take all necessary procedural steps prior to and after the making of the CPO, to enable the CPO to be submitted to the Secretary of State for confirmation, including:

 

 

 

 

 

(i)

finalising the draft Statement of Reasons, as attached at Appendix 1 to the report;

 

 

 

 

 

(ii)

serving notices of the making of the CPO on all persons entitled to such notice and placing all necessary notices in the press and on/around the Order Land;

 

 

 

 

 

(iii)

submitting the CPO to the Secretary of State for confirmation as soon as possible following making of the CPO; and

 

 

 

 

 

(iv)

self-confirming the CPO if authorised to do so by the Secretary of State;

 

 

 

 

(c)

Cabinet delegates authority to the Director of Legal & Governance to sign and serve any notices or documents necessary to give effect to these recommendations and to take all the other actions necessary to give effect to these recommendations;

 

 

 

 

(d)

as soon as the CPO is confirmed by the Secretary of State  or self -confirmed  where authorised by the Secretary of State, the Director of Legal and Governance be requested to advertise the confirmation, of the CPO and serve all necessary notices of the confirmation and once the CPO becomes operative, Cabinet delegates authority to the Director of Legal & Governance, in consultation with the Executive Director, Resources, to execute General Vesting Declarations under the Compulsory Purchase (Vesting Declarations) Act 1981, at the earliest opportunity and to thereafter serve all necessary documents and notices of the vesting of the Order Land in the Council;

 

 

 

 

(e)

Cabinet delegates authority to the Executive Director, Place, in consultation with the Director of Legal & Governance and the Executive Director, Resources, to manage the compulsory purchase process in accordance with all statutory requirements  and to otherwise promote or support the promotion of confirmation of the CPO, including the preparation for, and giving of evidence at, any public inquiry;

 

 

 

 

(f)

Cabinet delegates authority to the Chief Property Officer to agree terms for the acquisition of the Order Land and to instruct the Director of Legal and Governance to complete the necessary documents; and

 

 

 

 

(g)

upon the completion of the acquisition of the Order Land, consideration be given as to whether the property was needed for social housing, and if not, the Chief Property Officer  be authorised to negotiate the disposal of the land and to instruct the Director of Legal and Governance to complete all the necessary legal documents for the completion of the disposal. 

 

 

 

9.3

Reasons for Decision

 

 

9.3.1

The property has been vacant since at least 2004 and is in a poor state of repair, attracting anti-social behaviour and is having a negative impact on the local community. There is a demand for this type of property within Sheffield and the Council has, without success, attempted to engage with the property owner, in an effort to get the property back into occupation, including an offer to purchase the property by agreement.  In addition, particularly in respect of recent enforcement action taken by the Council, the owner has failed to take reasonable steps to make the property safe.  In those circumstances, as an option of last resort, the Council consider, to ensure that the property is put back into occupation, that it is appropriate to seek a CPO in respect of the property.

 

 

9.4

Alternatives Considered and Rejected

 

 

9.4.1

Demolition

The Property is in a state of disrepair, empowering the Council to take various steps to remedy the problem, including renovation and demolition.  As the Property is an end terrace house, the demolition option would not be practical as support is required to the adjacent property. Demolition will not result in the provision of housing as it is believed that it is unlikely the owner would rebuild should this option be taken.

 

 

9.4.2

Renovation

 

The Council first visited the Property in 2004 and found it to be vacant. From this date, the Council has not observed or received any information that the property has been occupied.  The owner has taken inadequate steps to prevent its deterioration despite the Council writing on several occasions to the owner to express their concern over the condition of the property and asking for the owner to explain his intentions for renovation and bringing the property back into occupation. It is therefore unlikely, should the Council do works in default, that this would result in the improvements to the Property being sustained. In those circumstances this option would be a poor use of limited resources and unlikely to achieve its purpose.

 

 

9.4.3

Empty Dwelling Management Orders (EDMO)

These orders enable the Council to effectively step into the shoes of the owner and manage the property. However, prior to occupation, the Council would have to refurbish the property. Given the poor condition of the property, the cost of bringing it up to a habitable condition is likely to be significant. Furthermore, it is doubtful that the rental income would cover the costs within the timescale of the EDMO, which is seven years. Therefore it is highly likely that the Council would be unable to recover the significant costs of refurbishment, making this option inappropriate.

 

 

9.4.4

Purchase by Agreement

The Council have actively pursued this option which would have enabled it to sell the Property at auction, so that it could be renovated and reoccupied. On 15 August 2017 and 6 August 2018, the Council wrote to the owner to offer to purchase the property by agreement. No response was received by the Council to those letters. However, the Council will continue to attempt to negotiate with the owner for as long as it considers reasonable to do so.

 

 

9.4.5

Compulsory Purchase

 

All attempts at working with the owner have failed, as detailed in the Statement of Reasons. Due to the owner’s failure to take proper action, the property, for which there is a demand, has remained in a poor state of repair for a significant period and there is little prospect of it being brought back into occupation. Compulsorily purchasing the Property is currently the only feasible option to ensure its renovation and re-occupation. For these reasons, this is the preferred option.

 

 

 

Supporting documents: