Endgame approaches in Croydon redevelopment saga

The ten-year saga over the redevelopment of a key South London site has come to a head. Communities secretary Hazel Blears has rejected Arrowcroft's council-backed proposals for an arena-led scheme on the Gateway site next to East Croydon railway station.

And the Government Office for London has refused the compulsory purchase order sought by the council to facilitate the project.

A rival scheme by developers Stanhope and Schroders is now in poll position.

Blears' decision letter on the Arrowcroft application made it clear that, like the inspector who chaired last year’s call-in inquiry, there were doubts over the viability of the proposed 12,500-seater arena.
 
"With doubts about its financial soundness, I cannot be even reasonably assured that the arena would be delivered. Without that component of the scheme its transforming potentials would not be achieved," said Blears' letter.

However, she also concluded that the Arrowcroft proposals for 6m sq ft of shops and offices and 900 flats were deficient in terms of local policies on transport and highway matters.
 
Stanhope and Schroders already have planning permission for a less ambitious 1.6m sq ft mixed use scheme at the location.

In a statement, Croydon Council voiced disappointment at Blears' stance, saying: "Refusal of Arrowcroft’s arena-led planning application is extremely disappointing.

"In the meantime we need an opportunity to study the Secretary of State's decision letter and reflect on the detailed findings. While naturally understanding the amount of public interest in the matter, we have no intention of saying anything further at this stage as we want to provide only considered comments and this won’t be possible until we have gone through the decision letter and the CPO outcome."

Arrowcroft said it shared the council’s disappointment: "We will need to review the decisions very carefully before coming to any decision concerning the way ahead."

William Hill, managing director of Schroders Investment Managers, and David Camp, chief executive of Stanhope, said: "We are not surprised that the Secretary of State has refused to grant planning permission for a 12,500-seat arena given the weaknesses in the scheme which were identified at a public inquiry last year.

"Schroders and Stanhope will now take time to study the decision by the Secretary of State and to consider its implications."

Read the Secretary of State's decision letter

Roger Milne

7 August 2008