DEADLINE PASSES WITH NO DEAL ON ELEPHANT

2 July 2009

John Prendergast
johnp@southwarknews.org

The future of the £1.5million deal to regenerate the Elephant & Castle has a question mark over it this week, as the council failed to get its preferred development partner to sign up by Wednesday’s deadline.

Yesterday was a critical day for the deal as Lend Lease, the council’s preferred development partner, had to sign up or face losing an exclusivity option with the council.

The option has been on the table for two years, but at no point has the Australian firm signed on the dotted line to push ahead with the project. A council spokeswoman confirmed to the 'News' that the deadline had passed without a signature, but it still hoped to formalise something in the next few weeks.

Labour’s spokesman for regeneration, Cllr Chris Page, said: "People around the Elephant and Castle have been waiting for years to see this regeneration plan put into practice, but again and again the scheme has been hit by delays caused by council dithering before a spade has even been planted in the ground.

"The Lib Dem/Tory Executive which runs the council has simply run out of steam. The deal is still up in the air but there is still a real lack of leadership from the Executive. The danger for residents is that local people's needs are no longer the council's top priority.  We are pushing to make sure that local voices are heard in the Town Hall."

If it falls through it will be the second time a regeneration partner has pulled out. In March 2002 Southwark Land Regeneration (SLR), failed to reach an agreement with the council, which set the programme back years.

Southwark said on Wednesday that the recession had made reaching the agreement on time ‘more difficult’. It added that it was ‘confident that the market will recover over the medium term’ and that discussions will continue.
The Leader of Southwark Council, Cllr Nick Stanton, said: "The people of Southwark know the commitment this council has to regenerating an area that is at the heart of London.

The recession has been a huge setback for us, but it has not diminished our commitment, enthusiasm and determination to ensure that Elephant and Castle becomes a jewel in the crown of Southwark, and therefore of London."

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