Stockport in stand-off with Stagecoach over land for £350m regen scheme
Talks over a deal for a bus depot off Daw Bank have broken down after the council refused to meet the operator’s financial demands, prompting the authority to use compulsory purchase powers to acquire the site.
Despite protracted negotiations, Stockport Council and Stagecoach have failed to reach an agreement over an important piece of land the authority needs to deliver Stockport 8, a £350m, 1,300-home regeneration scheme.
A council report published today states that a CPO is now needed to prevent “significant delays” to a major part of its town centre redevelopment programme.
Stagecoach, which is the leaseholder on the Daw Bank plot, is “demanding a financial payment… in excess of the sum to which the council’s advisers consider it is entitled” the cabinet report states.
A Stagecoach spokesperson said: “We remain engaged in ongoing, positive discussions with Stockport Council regarding the voluntary surrender of an element of our lease in advance of its expiry in 2046.
“Both parties continue to work collaboratively to support local regeneration goals while ensuring the uninterrupted delivery of local bus services.”
Cllr Micheala Meikle, Stockport Council’s cabinet member for economy, regeneration and skills, said: “Our focus remains on reaching a negotiated outcome with the leaseholder, while protecting the delivery of a project that will bring new homes, jobs, investment and long-term benefits for Stockport and its people.
“However, a scheme of this scale and importance cannot be left open to unnecessary delay. Seeking approval to prepare for the possible use of compulsory purchase powers ensures the Council has the appropriate tools available, if they are ultimately needed, to keep this major regeneration project moving to schedule.”
The site makes up the majority of the land needed for phase one of Stockport 8. The project features 435 homes, including 82 affordable ones, under plans from ECF that have already been approved. The scheme has also secured an allocation of £41m from Greater Manchester’s Good Growth Fund.
However, at present the project cannot progress due to a difference of opinion between the council and Stagecoach over the site’s valuation.
Stockport 8 will provide around 1,300 homes overall. Credit: ECF
The consequences of not agreeing a deal could be significant, the report states.
“Not only does the ongoing uncertainty risk significant delays to the delivery of a key regeneration scheme, but it could also risk the loss of the significant public funding that has been secured for the development”.
The plan, which had been agreed by the parties, had been to relocate Stagecoach to two temporary depots off Heaton Lane and Kingston Street while a permanent replacement in Cheadle Heath is developed.
The relocation is required so that the Daw Bank site can be demolished in early 2027 to pave the way for phase one of Stockport 8.
Meikle said: “Stockport 8 is one of the most significant regeneration projects in our UK-leading town centre regeneration, delivering more than 1,300 new homes, including affordable housing, alongside new commercial and community space, high-quality public realm and walking and cycling links. The new neighbourhood will stand beside the impressive Weir Mill scheme, which brought a landmark heritage site back into use for residents and visitors to enjoy.”
Stockport believes it has a “compelling case in the public interest for commencing the compulsory purchase process”, according to the report.
Stockport Council was contacted for comment.
