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Gala Leisure Ltd v Secretary of State for the Environment, Transport and the Regions and another

Council making compulsory purchase order where crucial aspect of development scheme remaining unresolved – Claimant objecting – Inquiry held – Secretary of State adopting inspector’s recommendations and confirming order – Whether Secretary of State’s decision lawful – Section 226 of Town and Country Planning Act 1990 – Claim dismissed

In May 1999 Coventry City Council made the City of Coventry (Phoenix Initiative) Compulsory Purchase Order (CPO) pursuant to sections 226(1)(a) and 226(3)(a) of the Town and Country Planning Act 1990. The CPO was part of the Phoenix Initiative, a proposed comprehensive redevelopment of the city centre for which the council had granted outline planning permission. Gala Leisure Ltd (the claimant) owned a prominent building in the city centre, which fell within the area subject to the CPO. Under the planning permission, a large road junction (the junction) and the claimant’s building were to be replaced by a large area of open space, known as Millennium Square. The claimant objected to the CPO and an inquiry was held.

The claimant’s case was that there remained uncertainties over a crucial aspect of the scheme, namely the closure of the junction to vehicular traffic. The inspector concluded that the closure of the junction was crucial and that it was “controversial” and “problematic”. He found that there were difficulties in implementing the various options for road closure and that it was premature to predict the outcome of those various procedures. However, the inspector recommended, “on balance”, that the CPO be confirmed without modification. In his decision letter, the Secretary of State agreed with the inspector “that it is premature to predict the outcome of any s 247 or other road closure procedure. Whilst recognising the difficulties over implementation, he is satisfied that alternative options for closure exist and… that such possible difficulties should not stand in the way of confirming the Compulsory Purchase Order”.

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