Previous stories: 1 - 30 April 2008
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CENTROS REPORT:
DEVELOPMENT PLAN WILL BARELY BREAK EVEN
17/5/08: A leaked report says that Centros' finances aren't stacking up. Serious concerns have been raised over the future of a £500m redevelopment of Portsmouth city centre. A secret report leaked to local newspaper The News in March revealed huge worries over the funding of the Northern Quarter project.
It revealed that no major shops, apart from Marks and Spencers and John Lewis, have put their names to the scheme, no cinema will sign up to the project, no builder has been appointed ahead of this August's start date and the project developers Centros will barely break even.
It is predicted that Centros won't even earn £5m out of the scheme – well below the estimated £150m.
Shareholders are worried at the thought of paltry returns, considering Centros has already stumped up £40m and reported a loss of £2.9m in the residential build phase because of an increase in construction costs.
In the report, Paul Ellis, from the city council's property consultants DTZ (also the consultants for Centros and for Lancaster City Council), which compiled the secret report, warned councillors: 'Clearly if developers don't consider there is a sensible level of return for the monies needing to be invested then they won't proceed.'
And John Marsh, development director at Centros, said: 'At this stage our shareholders are being asked to contemplate investing £500m to generate a profit marginally above break even. This is something they will not do.'
Thus stampeded by both DTZ and by Centros (who have a long-standing business association), Portsmouth city councillors met behind closed doors and unanimously agreed to accept a smaller cut of Northern Quarter profits to keep investors happy, including less share in the rent paid by retailers who lease shops and letting Centros set its own costs for customer parking.
The news reports that plans for the £500m Northern Quarter redevelopment of Portsmouth city centre came under attack again in April.
Members of The Portsmouth Society, which has more than 200 members, gathered for their annual meeting and branded the scheme as dull and hostile, lacking leisure facilities and not serving the community.
The group's annual report contained a long list of criticisms which members want addressed.
The criticisms are the latest blow to what is supposed to be the bright future of Portsmouth city centre.
The Portsmouth Society report stated: 'We are profoundly disappointed by the proposal and very critical of it – for sheer dullness and lack of ambition. It crams as many shops as possible on to the site of the Tricorn – with very little if any gain to the public realm.
'None of the buildings – with the possible exception of Marks and Spencers, though it does not have a green roof and is arcaded – come up to current standards of sustainability.'
Dr Celia Clark, chairwoman of the society, said she doubted Portsmouth actually needed more shops.
She said: 'I am quite sceptical about whether we need that quantity of shops – we are over-shopped as it is.
'These plans drastically affect us as taxpayers. This city has been ripped off before and we don't want it to happen again.'
Meanwhile the Commission for Architecture and the Built Environment (CABE) has criticised Centros' proposals for Portsmouth as being too fussy.
The CABE review panel said the scheme needed to be simplified and given a more 'unified architectural language'.
The report said: 'We would encourage the design team to simplify the elevational treatment and recommend that the local authority attach to any approval robust conditions to external materials, environmental strategy and the quality of residential courtyards.'
Project architects are not duty-bound to follow Cabe's remarks but James McCosh of van Heyningan and Haward said the comments were unfair.
"'This is trying to put back variety similar to something which has grown up over 100 years. You will see more variety on the remaining part of the historic city.'
The Centros scheme in Portsmouth is currently suspended pending a legal challenge to the development by local trader Mark Austin, who alleges that the council has failed in its statutory duties in its dealings with Centros.

LANCASTER TORIES IN SLEAZE SCANDAL

David Sumberg

14/5/08: Two Conservative MEPs representing Lancaster in the European Parliament have been condemned by a national newspaper for the use of their expenses.
The News of the World on Sunday (11 May) revealed that MEP David Sumberg had paid his wife more than £95,000 in some years for "secretarial assistance", despite the fact that he has made only two speeches in the European Parliament since 2004.

Rt Hon Sir Robert Atkins

And in circumstances similar to those of the Conway affair in the House of Commons, Sir Robert Atkins was revealed as having both his pensioner wife and his son salaried at more than £2,500 a month EACH!
Now local Liberal Democrat MEP Chris Davies is demanding to know what Tory leader David Cameron is doing to clean up his party's act.

Chris Davies

Davies blew the whistle on attempts in the European Parliament to cover up reports into the abuse of expenses. He has led the campaign for wholesale reform and complete openness by all MEPs.
He says the shocking revelations suggest that the Conservative commitment to reform is skin deep.
Chris Davies said: "This looks like another case of sleaze, sleaze, sleaze, and it is bad for the reputation of everyone in politics. The people of Lancaster deserve better from their representatives.
"MEPs in all parties must set the same standards of financial probity that they would demand of every other public institution in Europe. They must never forget that they are spending taxpayers' money.
"I doubt if anyone locally has ever heard of David Sumberg. He lives in London but he is one of the three Tory representatives for Lancaster in the European Parliament. The newspaper dubs him "Britain's laziest MEP", and it is a matter of public record that he has made only two speeches in the past four years.
"He is David Cameron's man in Brussels, and we should be told just exactly what is he doing for the money he gets."
The entire North West region is represented by nine MEPs: 3 Conservative, 3 Labour, one Liberal Democrat, and one UKIP.
Details of the pay and expenses available to MEPs can be found on Chris Davies' campaign website: www.chrisdaviesmep.org.uk

CENTROS GO TO PLAN B
8/5/08: A revised planning application is being launched by development company Centros and a copy of their brochure for the proposals can be downloaded here.
This plan has a Booths supermarket, and according to the development agreement, a two century long stranglehold on the city centre economy. But is the development agreement a valid document?
Preferred Bidders
Recent European Court rulings indicate a judicial movement away from the system of 'preferred bidders' for development contracts, in favour of competitive tendering.
And while these may have come too late to apply to this situation, questions have arisen as to the propriety of Lancaster City Council (LCC) employing the surveyers Donaldsons as 'independent' advisors whilst negotiating the development agreement agreement with the company then known as Centros Miller.
Donaldsons
Donaldsons had a long-standing business association with Centros Miller and a history of profitable involvment in other development deals with them.
In April Cllr Abbot Bryning informed a full council meeting that; "When the Council then agreed to appoint Centros, Donaldsons were asked to provide assistance on the valuation of the site and the preparation of the Development Agreement. These two pieces of work are inextricably linked and are consistent with the provision of advice give to the Council regarding its obligations under s123a of the LGA 1972. Donaldsons did not work for the developer but for us and therefore there was no prejudicial interest."
Cllr John Whitelegg asked if Cllr Bryning accepted that Donaldsons had several times acted for both sides of the agreement, for Centros and for the Council.
Councillor Bryning replied that he was not aware that this was the situation and would take advice before providing a written response.
Cllr Bryning should find helpful the advice from Graham Cox, head of LCC property services, provided in response to a FOI request in October 2007: "Donaldsons are known to act on behalf of local authorities in a wide range of property matters, one of which relates to advice provided on city centre developments. It is usual for them to act on behalf of the local authority in such circumstances, rather than the developer, and enquiries made of Donaldsons have confirmed this."
So that's all right then.
Developers guarantee plan - for just £100 liability
And, as was revealed at the last City Council meeting, the development agreement relies on two Guarantors from Centros Miller. The Guarantors, Cllr Bryning quoted to the council, "shall duly perform and observe all the obligations on the part of the Developer contained in this agreement including (without limitation) the payment of any amounts agreed to be paid or payable under this agreement by the Developer on the days and at the times and in the manner herein specified and in the case of default by the Developer the Guarantors will indemnify the Council on demand against all loss damages costs and expenses thereby arising or incurred by the Council."
Cllr Whitelegg pointed out that one of these Guarantors had been restructured to now be legally liable for a maximum of just £100 and asked if this was satisfactory. The other Guarantor is registered in the British Virgin Islands, an impenetrable tax haven.
Dumfries
Economic downturn on the highstreet and a stripping of assets from the liable Miller Construction Group subholding (Miller bailed out of the Centros Miller partnership earlier this year) were factors in the breakdown in negotiation of a new development deal between Dumfries City Council and Centros in April, leading to Centros walking away from the planned Dumfries development for good.
Impact Assessments
And all this is before their revised Lancaster planning application (Plan B) goes under the microscope when it is submitted in June.
Although the Centros brochure indicates that Plan B is fully formed, their retail, traffic and environmental impact assessments (on which Plan A failed) have yet to be produced.
The Show Must Go On!
Part of the Canal Corridor development was to be the renovation and facelift of Lancaster's Grand Theatre complete with new foyer and disabled access. However as it is by no means certain now that Centros can realistically renegotiate the development deal with LCC, local stakeholders have been notified that the Grand Theatre redevelopment plan (Plan C) will be submitted for planning permission separately. S.

ADULT EDUCATION CUTS AT UNIVERSITY
1/5/08: Lancaster University bosses are being urged to think announced plans to slash their Adult Education program and its plans to cut several jobs.
Last month the University's Vice Chancellor Professor Paul Wellings announced a "reduction in activities" for the Department of Continuing Education (DCE). This will mean a drastic cutback in the University's adult education provision in the North West and leave thousands of part-time students unable to complete their studies. For a university with Lancaster's long-standing and honourable regional commitment to adult education, opponents of the plans describe the cuts as a public relations disaster.
It is also an explicit threat to the jobs of the forty staff in DCE. Staff are already being encouraged to look for other employment - and our 200 part-time tutors. The
A review of DCE activities is taking place but the remit and power of the review group is unclear. By his actions, the Vice-chancellor has pre-empted the outcome of this review. The trade unions have asked for full meeting of the University/Trade Unions Joint Consultative Committee to discuss this, but this has been denied.
The link below will take you to a petition addressed to the Lancaster University Chancellor. Please sign it if you would like to show your support for the department. It would be very helpful if you could include a message of support in the space provided.
• Sign the Petition on GoPettion

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