Furious row breaks out over Old Oak ‘cock-up’

A major landowner in west London has clashed with the Greater London Authority over the future of the £26bn Old Oak regeneration scheme. Car processing and retail plant Cargiant has called for a public inquiry into the area’s regeneration plans, which it claims are an “unprecedented waste of public money”. The west London locale, between Harlesden and East Acton, is home to the city’s biggest regeneration project. Cargiant has launched a scathing attack on the Old Oak and Park Royal Development Corporation (OPDC), the regeneration agency set up to manage the project by former mayor of London Boris Johnson in 2015. ‘Outrageously high cost to the public purse’ The firm alleges that the OPDC, which has full planning powers over the 1,600-acre site, has wasted nearly £30m in public funds. It claims the scheme’s “outrageously high cost to the public purse” means that it is no longer viable and has called for “an immediate halt” to further spending and consultant appointments. Tony Mendes, managing director of Cargiant, said: “This is an absolute scandal, and Old Oak Common is fast becoming known as Old Oak Cock-Up. The area was supposed to help meet the housing crisis in London with 25,500 new homes, but it is going to fail to deliver all but a fraction of that number.” A spokesman for the mayor of London immediately hit back, saying: “These comments are barely worth the paper that they are written on. The mayor would be letting down Londoners if he allowed private sector vested interests to get in the way of the homes and jobs that Londoners need. “Old Oak Common is a flagship regeneration project for the mayor. Sadiq and the Old Oak and Park Royal Development Corporation have been working to deliver a scheme that was left in a complete mess by the mayor’s predecessor.” Cargiant owns 46 acres at Old Oak Common and said it has “grave concerns” about OPDC’s bid for a further £250m from the government. The funds will be used to bring the forward delivery of 10,000 homes, largely on the Cargiant site, with a further 3,000 nearby. It claims that development will require more than £500m in infrastructure spend, and over £600m to relocate or close Cargiant. Meetings continue “We have been having these delivery-focused discussions for many months, including with Cargiant, and so their current public approach is disappointing. We will continue and we believe solutions will be found,” said OPDC chairman Liz Peace. EG understands that meetings have focused on how land to the north of the site, some of which is held by Cargiant, can be opened up for the development of the 3,000 homes. Separately Peace has offered to meet Cargiant owner Geoffrey Warren. “Comprehensive development of the area is unviable, unaffordable and undeliverable,” said Mendes. “We are calling for an immediate pause on further spending and consultant appointments, for the OPDC to make public their bid for £250m of government money so this can be properly scrutinised by the London Assembly and MPs, and for a full inquiry into this matter.” Mendes has asked for clarity on the number of homes that will be delivered if the grant is awarded, and how much additional public money will be required to bring forward the homes. A public inquiry should also explain whether the development represents value for money for the taxpayer, Mendes said. He added: “[The OPDC] has utterly failed to bring forward development or demonstrate how large numbers of new homes can be afforded. Their sums just don’t add up.” ‘Extremely disappointed’ The mayor’s spokesman said: “The mayor is extremely disappointed that Tony Mendes is looking to frustrate a project that will deliver tens of thousands of much-needed new homes and jobs. “OPDC has submitted to government a business case for the housing infrastructure funding that will unlock this complex scheme and expects a final decision to be made in due course.” It is not the first time the London scheme has come under fire. In 2016, architect Sir Terry Farrell branded the development London’s “worst cock-up in 50 years”, after 6,200 homes were slashed due to the Crossrail Depot being built in the wrong place. The current mayor of London, Sadiq Khan, launched a review that year into the project, citing concerns over the cost of development and ability to deliver affordable housing. Published accounts reveal that the OPDC will have spent £29.4m at the end of 2018/19. This includes £2.3m in emergency GLA funding approved by the mayor in December 2018 to support the Housing Infrastructure Fund bid and enable OPDC operations to continue. To send feedback, e-mail emma.rosser@egi.co.uk or tweet @EmmaARosser or @estatesgazette