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England and Wales High Court (Administrative Court) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Administrative Court) Decisions >> The Cheesecake Shop Ltd (Or Masuka the Cheesecake Shop (UK) Ltd) v Secretary of State for Communities & Local Government & Anor [2009] EWHC 1748 (Admin) (20 July 2009) URL: http://www.bailii.org/ew/cases/EWHC/Admin/2009/1748.html Cite as: [2009] EWHC 1748 (Admin) |
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QUEEN'S BENCH DIVISION
BIRMINGHAM DISTRICT REGISTRY
ADMINISTRATIVE COURT
B e f o r e :
____________________
THE CHEESECAKE SHOP LIMITED (OR MASUKA THE CHEESECAKE SHOP (UK) LIMITED) |
Claimant |
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- and - |
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(1) THE SECRETARY OF STATE FOR COMMUNITIES AND LOCAL GOVERNMENT (2) THE CITY OF NOTTINGHAM COUNCIL |
Defendants |
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Mr Peter Goatley for the Defendant
Hearing dates: 10 July 2009
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Crown Copyright ©
Mr Justice Wyn Williams :
Relevant Factual Background
"The proposed development does not accord with an approved masterplan for the area. As such the development would be likely to prejudice the implementation of a comprehensive re-development scheme for the area, contrary to policy MU6 of the Nottingham Local Plan, the Waterside Interim Planning Guidance and the Trent Lane Planning Brief."
"MU6: Development proposals which contribute to the creation of a vibrant mixed use Riverside Quarter in the Waterside Regeneration Zone will be promoted and encouraged. In assessing development proposals the following factors will be taken into consideration:
(a) the provision of comprehensively designed schemes which maximised the development potential of the area in accordance with an agreed masterplan and the principles of sustainable development;
(b) the provision of a series of mixed use sustainable neighbourhoods that connect to the waterside, with each other and the surrounding communities;
(c) the provision of modern business accommodation, high quality offices and workshops space including live/work accommodation for small businesses;
(d) the provision of new housing providing a mixture of house type, size and affordability;
(e) transport measures agreed with the Local Authority which contribute to the provision of an integrated transport network including an east-west public transport link through the area linked to the City Centre, a link road between Trent Lane and Racecourse Road and the provision of a comprehensive network of cycle routes and footpaths, linked to public transport provision and the surrounding areas, and connecting Colwick Path, Victoria Embankment and the canal along the north bank of the Trent;
(f) the negotiation of financial contributions, or a contribution in kind, for the provision, and where appropriate maintenance, of measures and facilities made necessary by the development. Measures could include a contribution towards an integrated package of transport measures and drainage and public space works, including open spaces and a canal basin;
(g) the provision of appropriate training schemes to be agreed with the City Council to maximise opportunities for local recruitment to job; and
(h) improvements to the recreational, amenity and nature conservation aspects of the River Trent corridor."
Inspector's Decisions
"7. I am satisfied that the thrust of the LP (Local Plan) and the SPG (Supplementary Planning Guidance) advocates the comprehensive redevelopment of the area maximising the potential of the area, whatever its precise form would be, and even though this could be phased over a lengthy period of time. The development proposed here would represent a significant investment by the company in the property, but given that alternative high value proposals are being put forward I am not satisfied that it would maximise the sites' development potential. Whilst it would improve the premises and would not be inconsistent with LP policy E4 or the thrust of the policies in Regional Spatial Strategy for the East Midlands (RSS8), it would not form any part of a comprehensive redevelopment scheme or to fit in with anything already proposed. By enhancing the value of the property, which would need to be acquired for any comprehensive scheme, it would increase the development costs."
"As I have dismissed the appeal, it follows that I do not accept that there is insufficient evidence on which to base my conclusion that the scheme would affect the prospects for the comprehensive redevelopment of the area. Although no financial information has been provided by any party it makes sense that the development would increase the value of the premises, which would be an additional burden on the costs of any re-development, which is unwarranted."
In my judgment the terms of this decision strongly support the interpretation which I have placed upon the last sentence of paragraph 7 in the planning decision.
Grounds of Challenge
Ground 1
"I turn back to the main issue, whether the cost to the local planning authority of paying compensation is capable of being a material consideration as a matter of general principle (i.e. leaving aside the separate argument about the specific land-use consequence for the council). The Inspector and the Secretary of State proceeded on the basis that it is not, since it is not a land use planning matter. In my judgment that was a correct approach.
A decision maker will often be entitled, if not required, to take into account as a relevant or material consideration the financial consequences of his decision. Consideration of the effects of a decision on others is a normal aspect of the decision-making function and there is no difference of principle between financial effects and other effects. …….. Where decisions involve the expenditure of public funds, the decision maker will normally be entitled or required to take into account matters such as the availability of funds and competing demands on those funds.
All that, however, is at a level of generality. Whether a particular consideration is one that a decision maker is entitled or required to take into account in the exercise of a statutory power depends ultimately on the statute conferring that power. A statute may restrict the range of permissible considerations either expressly or by implication. Whether it does so is to be determined by reference to its provisions and to the statutory purpose.
In the exercise of their functions under section 97 and 100 of the 1990 Act with regard to the revocation and modification of the planning permissions, local planning authorities and the Secretary of State are required to have regard to "material considerations" (see section 97(2)). What is capable of amounting to a material consideration for this purpose must in my view be the same as in relation to the initial determination of planning applications, i.e. the "material considerations" referred to in sections 70(2) and 54A. Although the courts have adopted a flexible approach towards the concept, a consideration must in broad terms be a "planning" consideration in order to be material for that purpose. Any consideration which relates to the use and development of land is capable of being a planning consideration (see Stringer v Minister of Housing and Local Government [1970] 1 W.L.R. 1281, at 1294).
It follows that financial consequences are capable of amounting to a material consideration in so far as they relate to the use and development of land. R v Westminster Council, ex parte Monahan is an example. The need for a connection with the use and development of land was helpfully spelled out in the application of that decision in Northumberland County Council v Secretary of State for the Environment.
It also follows, however, that in so far as financial consequences do not relate to the use and development of land, they are not capable of amounting to material considerations. In my view that is fatal to the general proposition for which Mr Hoggett contends, that the cost to the local authority may be taken into account irrespective of land-use consequences………….."
"I turn to consider Mr Hoggett's narrower argument that the cost to the council was capable of being a material consideration in this case because of its land use consequences, namely the effect on Alnwick's proposed leisure facilities. It is a weightier argument, but I am not persuaded by it. It seems to me that the matters relied on as relating to the use and development of land are altogether too remote. The financial considerations in ex parte Monahan were closely related to the proposed development, since one part of the development would not be viable unless permission were granted for the other part. The relevant issue in Northumberland County Council was the weighing of the economic advantages of a development against the environmental objections to it. By contrast, the consideration raised in the present case has nothing to do with the development that is the subject of the planning permission. It arises as a contingent consequence of the statutory obligation to pay compensation once the relevant planning decision (i.e. to revoke the permission) has been taken. I say "contingent" consequence because everything depends upon the particular circumstances of the local planning authority at the time of the decision: it is a function of the funds available to the authority and of the authority's existing plans for development. I do not think that such an indirect consequence of the payment of compensation is sufficient to justify treating the financial impact on the local authority as a consideration relating to the use and development of land."
Ground 2.
"Furthermore, the Council considers that the level of investment proposed, and the additional floor space provided by the building, represent significant long term commitments that would be likely to restrict alternative comprehensive proposals. A comprehensive approach to the development will almost certainly necessitate the demolition of the Cheesecake Shop and connected units and it is submitted that significant additional expenditure on the building would make any scheme involving the demolition more difficult to achieve. The proposals would therefore restrict the range of options for comprehensive development and could potentially affect the viability of a range of alternative development proposals. It should be noted that the ISIS/EIP scheme requires significant levels of gap funding and that the Cheesecake Shop and adjoining unit are not currently under the ownership of the any of the applicants for the comprehensive scheme."
"It make sense that the development would increase the value of the premises, which would be an additional burden on the costs of any redevelopment, which is unwarranted."
In my judgment her view that any increase value of the premises would be an additional burden on the costs of redevelopment was not one which was justified on the evidence before her for the reasons I have explained. Certainly, in my judgment, there was no evidence for the conclusion that an unwarranted additional burden of cost would be imposed as a consequence of the grant of planning permission.
Grounds 3 and 4