(Updated18/2/09): The Lancaster Guardian reports that the future of the £150 million scheme to transform Lancaster’s shopping centre has been thrown into doubt after developers Centros would not confirm whether it would be represented at a planning inquiry – but campaigners against the scheme are still urging objectors to send letters to the Planning Inspectorate before its 9th March deadline.

The Secretary of State for Communities and Local Government Hazel Blears decided last month that Lancaster City Council’s resolution to grant planning permission for the controversial Canal Corridor North planning application, which centres on a major shopping development, should be tested at a public inquiry, which will take place later this year.

Now Centros, apparently reeling from problems with its projects elsewhere in the country, is concerned at the potential cost of the inquiry arguing the call-in will add dramatically to the cost and will delay theirCastle View scheme.

“It’s difficult to comprehend that decision in this economic climate,” a spokesman for the company told the newspaper. “It goes against the Government’s aim of getting the economy moving, and it puts a huge burden onto the developer.”

Clearly, Centros had hoped the government would simply rubber stamp the development without any regard to objections raised by hundreds of locals, national organisations and other groups objecting to their plans, including local campaign organisation It’s Our City, who have offered alternate suggestions for the land.

Counting the Cost of Planning Inquries

Centros executives have long railed against the British planning process on costs grounds. In July 2008, interviewd by the BBC’s File on 4 for a feature on Urban Regeneration (PDF link), Centros Chief Executive Richard Wise argued the Government could do a lot more to help speed up the process.

“The single greatest killer to a council or a developer is time,” he commented, “and delays are a very very major contributor to a lot of these schemes being delayed further and/or shelved. So if central Government wanted to look at this seriously, firstly try and give local government a little bit more power, because it’s the guys on the ground that know what works and what doesn’t within their towns and cities…

‘…People do have a right to object,” he acknowledged, “but what I’m trying to suggest to Government is that there is a really serious piece of work that central Government/local government can do looking at how can we make them shorter, and it would definitely mean that more of them went ahead, because the cost base would then be significantly lower.”

Centros Miller, now Centros, unveiled its initial plans for the Canal Corridor in May 2006, which include shops, a department store and some green space. The Musicians Co-op would have its own new building and both the Dukes and the Grand could see additional features. A multi-storey car park is also part of the scheme.

Objections Still Need to be Raised

Campaigners against the Centros scheeme point out that anyone objecting to it should still send in letters of objection, which, unless there is a change of schedule by the Planning Inspectorate, must be received by them by 9th March.

Concerns include whether Lancaster really needs so much more retail space, issues over increased traffic, the destruction of some historical buildings and the potential for other uses for the site which whould be more sustainable and better reflect the needs of the local area, without damaging existing retail business in both Lancaster and Morecambe.

In July 2007, MVA Consultancy declared that Centros’ Transport Assessment for the project as flawed in a number of ways and that, fundamentally, it did not present a clear analysis of current traffic levels or the future traffic volumes likely to be generated by the development.

Objectors point to the City Council’s marginalisation of the expensive and comprehensive White Young Green Retail Survey which the Council commissioned and was published in 2006 and relegated its status to that of a background document. It’s Our City notes that Council head of planning Andrew Dobson Dobson even sent a ‘letter of comfort‘ to Centros’ planning consultant in March 2006, assuring him in essence that the conclusions of the report, which among other things argued for a grocery store in the town centre, would not interfere with Centros Miller’s ‘retail growth options’.

Its Our City argues the Centros masterplan proposes a retail capacity far in excess of that recommended by the White Young Green report, resulting in greater potential profits for Centros Miller and a greater threat to local retailers.

Credit Crunch a blow to developer

Centros has been beset with problems over its planned developments elesewhere in the country. Already mired in controversy, it was announced its £500m transformation of Portsmouth’s city centre had been put on hold indefinitely. Apparently struggling to come up with a design that gives a decent return on any investment — the company went back to the drawing board in July 2008 — local paper The News reported that Centros told council leaders they won’t be able to build the planned Northern Quarter development by 2011.

This means compulsory purchase orders, which allow them to buy up property to make way for the development, a stage not even reached yet in Lancaster, will expire in 2010 before any work starts. After that, Centros will have to start applying for them again, which is likely to take years.

Neither is this the first development scheme Centros has backed away from. Last April, Centros, regared as one of the UK’s leading urban regeneration and mixed-use property development companies, pulled out of a deal to build a £50 million shopping centre in Dumfries town centre, to the dismay of Dumfries and Galloway Council. Debenhams – a key store in the Lancaster plans — was apparently a key partner in those plans.

18/2/09: In a brief statement, Centros told virtual-lancaster that they had no comment to make at this stage on recent developments. “We will make a statement about the inquiry at the appropriate time,” said Centros spokesperson Steve Bryson.

• Any correspondence concerning the Canal Corridor application should be sent to the Planning Inspectorate at:- The Planning Inspectorate PINS SAC(B)Room 3/17, Temple Quay House, 2 The Square, Temple Quay, Bristol, BS1 6PN. Their telephone number is 0117 372 8918 and fax 0117 372 8181.

Links
It’s Our City Campaign Site
Centros’ Castle View Development Site
Council Regeneration Strategy documents on the council web site (PDF files)