Frequently Asked Questions
How does a Compulsory Purchase Order (CPO) work?
As the statutory planning authority, North Hertfordshire District Council (NHDC) is the body responsible for promoting a CPO.
An application to use CPOs is being made to NHDC. This will then be submitted to the Secretary of State for approval. There is then an objection period, and subject to the outcome of that, a Public Enquiry may follow. Once this process is completed the Secretary of State will make a decision on the CPO.
How much Compensation will I be entitled to?
Please visit the Department for Communities and Local Government web site where you can download information on statutory compensation.
www.communities.gov.uk/index.asp?id=1144816
What will happen if the Foundation does not get CPO powers?
If the Foundation is not able to utilise CPO powers to acquire key sites for the proposed redevelopments, then it is unlikely that they will progress. In that case alternative schemes may need to be considered.
When can we discuss our future options with the Foundation?
To date, we have held meetings with all the retailers, as well as some of the other occupiers and owners affected by the proposals, to establish their needs and discuss the possible options. If we have not spoken to you, or, following an initial meeting, you have further issues to discuss, please contact Lisa Stutely on 01462 476047 and she will be pleased to arrange a meeting with you.
Will the Foundation assist retailers in moving to another shop in the town?
The Foundation wishes to keep as many of our existing traders as possible.
We have already agreed relocation packages with over 100 retailers or owners, to prepare for the redevelopment of the areas.
Alternatively, if you find a shop in the town, which is not a Foundation unit, to which you wish to move and your shop is directly affected by the proposed development, then the Foundation would be willing to discuss terms for the surrender of your existing lease to assist you in moving to the alternative premises. Please contact Lisa on 01462 476047 to discuss a possible move.
Will I be entitled to a rent reduction owing to the disruption in the Town Centre?
The Foundation will not be making a further financial contribution by reducing rents during the period of the works. Inevitably the works in the Town Centre will cause disruption to both retailers and shoppers and we will be working with all parties to keep this impact to a minimum. The purpose of the works is to create a shopping environment that will attract a much higher footfall and create a growth in economic activity for the retailers and other Town Centre businesses. The Foundation will be investing a large sum of money to make this happen, and retailers stand to benefit from this huge investment, once completed.
Whilst the works are taking place you can apply to the local Valuation Office, using the form from the link below, for a reduction in your Business Rates payable. Claims can only be made after the works have started and you need to provide evidence that the works are having a disruptive impact upon your business.
The form is located here:
www.voa.gov.uk/business_rates/2005_proposal.pdf
The guidance note here:
www.voa.gov.uk/business_rates/guidenote_2005.pdf
Will the rents increase in the new developments?
The rent for the new units will reflect market demand. The Foundation’s aim is to attract a robust mix of multiples and independent retailers.
Why are rent reviews being progressed by the Heritage Foundation and increases proposed, when you are saying that the town centre retail offer is poor and in need of revitalisation?
The level of rents is a reflection of the market demand for retail units generally. Letchworth rents are currently lower than equivalent units in nearby town centres but they have still risen over the last three to five years – the usual period between rent reviews. Demand for units within Letchworth Town Centre is still strong enough to support increased rentals. As a charity the Foundation has no option but to seek ´market rentals´.
What is the Foundation’s response to claims which have appeared in the press that rents in the town are already too high?
Current rental levels in Letchworth Town Centre are reflected by the demand for vacant units and rental levels agreed by existing retailers. Rental levels in Letchworth are lower than those of Hitchin or Stevenage and so these claims are unfounded.
Will the Foundation buy my business if I no longer wish to carry on trading?
The Foundation does not want to buy businesses. Once the CPO ‘goes live’, only if the business is entitled to cease trading under the rules of the Compensation Code would compensation be paid on the basis of extinguishment of the business.
However, should you wish to assign your business to someone else, we would be willing to discuss terms with you and the proposed assignee, to assist this process.
What’s happening in the town during the construction period in terms of events?
The Town Centre Partnership - a collaboration of Town Centre stakeholders including retailers, businesses, Garden Square Shopping Centre, NHDC, LGCTC and the Foundation - will lead the marketing and publicity of the Town Centre during and after the construction phase.
Under the leadership of Martin Fletcher, the Town Centre Manager and his Board, the Partnership will determine what needs to be done over the development period to keep the Town Centre a lively, inviting place for shoppers.
Work on an events programme for next 18 months is already underway.
When will the redevelopments go ahead and which scheme will be started first?
Planning approvals for the street scene works and for the Wynd redevelopment have been obtained.
The street scene works are scheduled to begin in early 2009. Some minor setting up and preparation works will begin prior to this date. The period of the contract is still being finalised, but the aim is to avoid the Christmas trading periods. Discussions are in hand with the Town Centre Partnership on the details. The appointed contractor, Skanska McNicholas will have an office located at 30 Leys Avenue (the former Oxfam shop), throughout the duration of the contract.
Working with the Town Centre Partnership, Skanska will ensure that there is regular and timely communication with retailers and the public.
The Wynd redevelopment is hoped to start in early 2010. However, the timing will depend on a successful CPO, achieving an adequate level of pre-lets, and an improved economic climate.
We will be applying to NHDC for a Compulsory Purchase Order over the coming months. We will also be seeking a development partner for the Wynd scheme.
In addition, key pre-lets are being sought. Subject to achieving these and also subject to the financial appraisals being satisfactory, the Foundation will then go out to tender for the works and let the contracts.
The planning application for The Arena redevelopment is proposed for later this year or early next.
Which new retailers have we already signed up for the retail units?
We have identified the types of retailers we would like to see in each of the schemes, and are working with our appointed retail agents to approach these targeted retailers. Further information on retailers signed up for the schemes will be released when available. It is, however, early days yet.