CPA Compulsory Purchase Association The Compulsory Purchase Association.

1845 to 2010

Compulsory Purchase= the taking of a person or

company’s land by compulsion

Compensation= the monetary recompense

(usually!) that person or company receives for its interest in the land and for the disruption caused to its affairs

Some differences in law and legal systems

The English system Terms and jargon – 19th Century roots Compulsory Purchase, Compensation,

Blight, Material Detriment, Severance and Injurious Affection, Betterment, Disturbance

Dispute Resolution – Lands Tribunal

Combination of general and specific Acts of Parliament

Government level (Federal level)= an Act of Parliament

County/local authority level – (State level)

= a Compulsory Purchase Order

Transport – roads, railways and airports Planning – regeneration and housing Energy – electricity, gas and oil Government facilities – education,

defence

No compulsory purchase without a “compelling case in the public interest”

Burden of establishing this lies with the acquiring authority

CPO powers are an important tool for local authorities and other public bodies to use as a means of assembling the land needed to help deliver social and economic change

Used properly they can contribute towards effective and efficient urban and rural regeneration

Bodies possessing compulsory purchase powers are therefore encouraged to consider using them pro-actively wherever appropriate to ensure real gains are brought to residents and the business community without delay

The confirming minister must Take a balanced view between the

intentions of the acquiring authority and the affected landowner

Be satisfied that the acquiring authority has made out a compelling case that justifies the taking of another’s land

Be satisfied that what the acquiring authority intends to do with the land once acquired WILL be done within a reasonable timescale

Acquiring authorities should always seek to acquire by negotiation - CPO a last resort – but use ‘in parallel’ is encouraged

Provide full information about the scheme, CPO process and timetable

They can make a CPO and negotiate simultaneously

A CPO is ‘made’ – but at this stage it has no force

A Public Inquiry is held – an independent Inspector examines the justification for the CPO and the basis of objections to it

The Inspector reports and makes a recommendation to the appropriate central government Minister of State

The Minister confirms or modifies the Order – but the Minister can also reject it

The CPO is ‘confirmed’ – at this stage it has force

2008 - Infrastructure Planning Commission

Fast track process12 – 18 months for obtaining Planning and CPO

LHR T5 - 19 years proposal to opening – 4 year Public Inquiry 1995 to 1999

Nuclear Power, Wind Farms, Railways, Roads, Waste etc

National Policy Statements/Developemnt Consent Orders

Curtailed Public Inquiry

The Channel Tunnel Rail Link – High Speed One

Highbury – Arsenal FC

The 2012 Olympic Games

Crossrail

High Speed Two

The UK had some ambivalence about being ‘joined’ to France but….

The Channel Tunnel opened in 1994 – high speed rail links to Paris opened at the same time

The next stage was to connect to London Acquisition process for HS1 started in 1995

Powers obtained in 1996

62 miles tunnel portal to St Pancras London

A Private Finance Initiative – Public Private Partnership

Financing difficulties in 1997 delayed start and project split into section 1 (Channel Tunnel to North Kent) and section 2 (North Kent to Central London)

Section 1 completed 2003 Section 2 completed 2007

Line also used for fast commuter trains but as yet no freight

$10bn – on sale for $2.5bn

Farmers! Tunnels

Statutory Undertakers

Finishing the job

CPO powers sought for what objectors to the scheme claimed was the use of compulsory purchase powers to assist the development aspirations of a private company

Major 500 acre+ regeneration site East London

$12bn cost (4x original estimate)

52 electricity towers removed – tunnel

Huge remediation

CPO implemented in 2007 - $1.5bn cost of acquisitions 800+ businesses displaced

Linked to HS1 – javelin trains (Japanese) 7 minute journey time St Pancras to Stratford

Problems with relocating ‘bad neighbour’ users

Wrong time in property cycle

Planning issues

Compensation costs circa $1.5bn

The implementation of an old idea -- a fast rail link crossing London from East to West

1836 – Robert Stevenson scheme

1991 – ‘East-West’ scheme

2005 – Crossrail Bill

2008 - Acquisition of land begins

Crossrail Act 2008

Funding - $20+ bn Private/GLA/Government with a business

rates levy

Very high value property

‘Wrong’ time in the cycle

Hugely disruptive work sites in central London

Interaction with Olympics

Completion 2017??

London to Birmingham – stage 1

Then (perhaps) Birmingham to Manchester – Leeds – Glasgow and Edinburgh

$50bn

Very early stages - completion 2035

Blight issues – hardship schemes - huge opposition from wealthy residential areas - The Chilterns

UK used to rely on North Sea

Now vulnerable to winter shortages

Need for massive increase in storage capacity Saltfleetby CPO 2009

750 interests

Connection to gas grid

•Market value/willing parties/no scheme world•Valuation date

•Equivalent reinstatement•Comparables v development appraisal/residual

Land Compensation Act 1961

6 statutory ‘Rules’ set out in the Act to govern the principles to be applied

2 specific valuation ‘Rules’

Rule 2

‘The value of land shall, subject as hereinafter provided, be taken to be the amount which the land if sold in the open market by a willing seller might

be expected to realise’

Rule 5

‘Where land is, and but for the compulsory acquisition would continue to be, devoted to a purpose of such a nature that there is no general demand or market for land for that purpose, the compensation may, if the

Lands Tribunal is satisfied that reinstatement in some other place is bona fide intended, be assessed

on the basis of the reasonable cost of equivalent reinstatement’

Statutory referral to Lands Tribunal (Upper Tribunal – Lands Chamber) – Court of Appeal – Supreme Court

Alternative Dispute Resolution – Mediation Early Neutral Evaluation

Fees and costs

Planning Assumptions

Advance Payments

Compensation when no land is taken

Loss Payments

1901 : Zanzibar – Railway constructionSecretary of State for Foreign Affairs –v- Charlesworth

1914 – Canada – Hydro-electric powerCedar Rapids Co –v- Lacoste

1917 – Canada - Hydro-electric powerFraser –v- Fraserville City

1939 – India – Harbour constructionVyricherla Narayana Gajapatiraju –v- Revenue Divisional Officer Vizigapatam

1947 -Trinidad : Naval base construction

Pointe Gourde Quarrying & Transport Co Ltd –v-

Sub-Intendent Crown Lands 1979 – Australia – Shopping centre

Melwood Units Otd –v- Main Road Commissioner

1995 – Hong Kong – New town

Director of Buildings and Land –v- Shun Fung Ironworks Ltd

2002 – Wales – Replacement wildlife ‘wetlands’

Waters –v- Welsh Development Authority

Population densities people per square mile

Japan – 873UK – 659USA – 82Canada – 9

Different countries, different challenges but common experiences and issues!