Premiership football club Arsenal has won High Court backing for its £357m regeneration project in Islington, north London.
The court upheld a compulsory purchase order (CPO), issued by Islington council in June 2002, to acquire properties for the 220,000 sq ft (20,440 m2) residential, retail and leisure project at Highbury Stadium, London N5, and in Lough Road and Ashburton Grove, London N7.
Collins J dismissed claims by five local businesses that the CPO had been made for an improper purpose, and that Arsenal’s proposed 60,000-seater stadium in Ashburton Grove could not form a legitimate part of an urban regeneration scheme for which a CPO could be justified in the public interest.
The judge said that although he had “considerable sympathy” with concerns that local businesses would be disrupted for the benefit of Arsenal, the first secretary of state, in confirming the CPO in May, had been “entitled to conclude that the main purpose, and certainly the main effect, was to achieve a comprehensive and desirable redevelopment of a deprived area”.
He said: “Developments that result in regeneration of an area are often led by private enterprise. The fact that the scheme was led by, and, to a large extent, was dependent upon, a private developer is not a reason why it should be rejected.”
Raymond Pinn, a director of spring manufacturer Alliance Spring of Queensland Road, London N7, said that he was “devastated” by the decision, and that he would consider taking the case to the Court of Appeal.
“I’ve lived for five years under constant pressure from the council and Arsenal,” he said. “To hear something dismissed in 15 seconds leaves me shattered.”
Alison Carmichael, of the Islington Stadium Communities Alliance, added that the scheme would be “grim for businesses”.
She said: “This is an example of John Prescott supporting a private football club. We do believe that this is not for the public benefit. We would be very happy if it went to appeal.”
Arsenal FC hopes that the regeneration scheme will finance its new stadium, which is scheduled to open for the 2006/07 Premiership season. The club believes that the project is vital to its future, because the capacity at its existing Highbury stadium, at 38,000 seats, is almost half that of major rival Manchester United’s Old Trafford ground, with 68,000.
The existing stadium will be redeveloped as part of the area regeneration, which includes the construction of an education centre, a sports and community building, a recycling plant, 2,200 new homes, two gyms and nurseries, shops, and restaurants.
Arsenal FC said that it is “delighted” with the ruling. Arsenal director Ken Friar said: “As stated previously, this did not affect the construction of Emirates stadium. However, we are obviously delighted that the High Court has approved the CPO.
“This decision will now enable us to further enhance our significant regeneration programme, which is already generating many new homes and jobs in the borough of Islington.”
The Alliance Spring Co Ltd and others v First Secretary of State Administrative Court (Collins J) 18 January 2005.
Matthew Horton QC and Jeremy Pike (instructed by EarthRights Solicitors, of Axminster) appeared for the claimants; John Litton (instructed by the Treasury Solicitor) appeared for the defendant; Christopher Katkowski QC and Karen McHugh (instructed by the solicitor to Islington London Borough Council) appeared for the first interested party; Karen McHugh (instructed by David Cooper & Co) appeared for the second interested party, Arsenal Football Club.
References: EGi Legal News 18/01/2005