Wolverhampton considers plan to push through Smithgate development

City councillors in Wolverhampton will consider using delegated powers in order to drive through the first phase of the city’s long-awaited Smithgate regeneration scheme.

City of Wolverhampton Council earmarked a 12-acre site known as Smithgate for a mixed use development in 2016, describing the site as as the largest regeneration opportunity in the city centre.

A hybrid application for the project, which was formerly known as “City Centre West”, was approved in March – including full planning permission for phase one of the scheme on the site of a former bicycle works between Salop Street and Peel Street.

As part of the first phase of the scheme, a total of 331 new apartments are set to be built in three new, six-storey residential blocks, with work due for completion in 2027 by developer English Cities Fund(ECF) – a joint venture between Muse, Homes England and Legal & General.

However, after a neighbouring property raised concerns that the development may interfere with their established rights to light, City of Wolverhampton Council is now set to consider a plan to appropriate the bicycle works site using its delegated powers.

A report set to go before the council’s cabinet on Wednesday, 15 October, will recommend that the authority uses appropriation powers granted by the Housing and Planning Act 2016, which allows development to proceed despite interference with private rights.

If approved, neighbouring properties with existing rights would be able to claim compensation, but would not be able to prevent the development from going ahead.

“The impact to the right to light at Salop Street has been identified as a risk and there is greater chance that infringement of these rights could potentially see the right-holder seek an injunction to stop the scheme. This presents a material threat to the timely delivery of Phase 1 and underscores the importance of using appropriation powers to mitigate legal and financial risks,” the report says.

“If the Council does not appropriate the risk is a potential injunction with the associated costs both financial and to programme delivery. With the developer of Phase 1 and its agents actively engaged in attracting end-users for the building, the reputational risk of late (or non) delivery is also considered to be high.

“With such an injunction in place the Council would not be able to use the powers of appropriation set out above. The only conceivable way the developer could progress with this level of risk would be to have the Council underwrite all scheme costs going forward (and not limited to the pre-development costs). This is not a level of risk the Council should be exposed to.”

Around 1,000 homes are set to be built as part of the wider development, as well as a number of new shops, cafes, restaurants and public spaces.

Last week, the council announced plans to relocate a works compound to a vacant site in Bell Street in anticipation of work commencing on Smithgate this year.

City of Wolverhampton Council’s cabinet will make a decision on the appropriation plans on Wednesday, 15 October.