35% Campaign update – The harsh reality of relocation for shopping centre trader

The harsh reality of relocation for shopping centre traders

Apr 23, 2020 12:00 am

Law centre survey shows that nearly half of traders have nowhere to go -The Southwark Law Centre (SLC) has written to Southwark Council, detailing the shortcomings of the relocation of the independent traders from the Elephant & Castle shopping centre, prior to its demolition on 31 July 2020. The letter is supported by Latin Elephant and Up the Elephant, which includes the 35% Campaign.

SLC’s letter supplies Southwark with the details of a survey of traders about the relocation, conducted just before the Coronavirus lockdown. This ‘snapshot’ survey of ten traders shows that 4 had not been offered a relocation space and the remaining six were offered the spaces that were inadequate, mainly because they were too small, but also because they were in poor locations for attracting trade and had no space for storage or for displaying their goods.

The letter also criticises the traders’ appointed business advisor, Tree Shepherd, for a lack of appropriate support, particularly during the lockdown. The relocation fund is described as not fit for purpose and the relocation database of limited value. It regrets that Southwark approved using CPO powers on Delancey’s behalf without any increase to the Delancey relocation fund.

The letter also notes that work on completing Castle Square had stopped and asks how this will impact on the traders’ relocation. This is one of the four relocation sites and due to open in June – but work has stopped as a result of the coronavirus crisis:

The letter acknowledges that Southwark is not able to control the wider economic circumstances, but nonetheless calls on them to give stronger and more effective support to the traders.

Loyalty not repaid

All the trader respondents to SLC survey come from black and ethnic minority backgrounds, the longest serving trader having been at the Elephant for 22 years, while the longest serving trader not offered relocation space has been there 15 years; all ten traders together clock up over 115 years at the shopping centre.

In their survey comments all the respondents say the same thing – that more money is needed, and more space, and if the space cannot be found then compensation should be offered.

Relocation applications rejected

The SLC survey is a relatively small, but its finding that 4 out of 10 traders have no place to go is mirrored by the much larger and earlier research of Latin Elephant/petit elephant. This has tracked the fate of nearly a hundred businesses, since December 2018 and estimated that only 40 would be relocated, a prediction that now appears to be confirmed by Southwark Council in its own assessment of the relocation process. This states that while there have been 64 applications for three of the four main relocation sites, only 36 have been successful, with 28 rejected1. Southwark gives no explanation for this, or says anything about what exactly it expects these 28 businesses to do. The fourth site, Elephant Park, has had one successful application out of 52.

Public support for development falls

Southwark prefers to emphasise the increasing confidence traders are said to have, that they will be able to at least remain trading, by reference to an Equality Impact Assessment (EIA). This is cited as evidence that the so-called mitigation measures are working, despite the 28 rejected relocation applications. The EIA also reveals the embarrassing fact that public support for the shopping centre redevelopment from 67% in 2016 to 42% today, mainly because of concern ‘about what will happen to businesses currently in the shopping centre’. The proposed remedy is to continue the well-meaning, but now hardly appropriate ‘Follow The Herd’ publicity campaign.

Crisis response needed

As we reported in our last blogpost Southwark has approved a welcome £200,000 in support of traders, agreed before the Coronavirus lockdown. Separately, Southwark has also launched a Business Hardship Fund of £2m, aimed at all the borough’s 10,000 microbusinesses.

But otherwise Southwark’s latest report on the progress of the shopping centre redevelopment takes no account of the entirely new, desperate circumstances of the Coronavirus pandemic. This could be excused as it is dated 24 March, the first day of the lockdown, but was not considered until 7 April, two weeks after lockdown, without any amendment or addendum, that recognised the new trading situation.

The report also gives no figures for any amount of money actually paid out to traders, from any source.

Support traders, not Delancey

Southwark has done Delancey the huge favour of adopting CPO powers and leasing both the shopping centre and the LCC, to override residents legal rights. While Southwark claim that is at nearly nil cost to itself, it will be of considerable financial benefit to Delancey, who would not otherwise have been able to secure the necessary funding for their redevelopment scheme3.

Southwark did this without insisting that Delancey improve its own support for traders. The relocation fund remains the meagre £634,700, agreed nearly 2 years ago, at planning committee. Delancey also still insist on closing the centre on the 31 July, with some minor concessions and despite the SE1 survey that showed 72% of local people want the centre kept open.

Over the past 3 years and more the shopping centre traders have been fighting a hugely unequal battle to keep their businesses going, while the centre has been rundown and trade blighted. Now is the time for Southwark to start giving the level of support it has been giving Delancey. It must get cash to traders for their immediate survival. It must tell Delancey it will not be using its CPO powers on its behalf, until all the traders are either relocated or suitably compensated and that there must be no centre closure until this is done.

You can support us in our fight for fairness for traders, by sharing these hashtags;

#supporttradersnotdelancey #supportelephantnotdelancey #ElephantJR.

Footnotes:


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35% Campaign update – Shopping centre CPO – Southwark ploughs on regardless

Shopping centre CPO – Southwark ploughs on regardless

Apr 04, 2020 12:00 am

Southwark exercises CPO powers to clear E&C shopping centre site for Delancey -Southwark Council is set to assume Compulsory Purchase Order (CPO) powers, on behalf of offshore developer Delancey, at its Cabinet meeting this Tues 7 April (postponed from 24 March). While this extraordinary move will strengthen Delancey’s hand in ongoing negotiations with various development stakeholders, such as TfL, and will relieve Delancey of funding risks, the scheme itself remains unchanged, delivering only 116 social rented units and displacing traders wholesale.

The Cabinet meeting is also set to approve a report that will override local residents’ legal rights, for the loss of light caused by the redevelopment. A third report will approve the recently announced £200,000 relocation assistance for traders.

The meeting will be by videoconference, but no livestream is advertised.

As we reported in our last blogpost Southwark intends to lease both the shopping centre and London College of Communications buildings themselves. Subleasing arrangements will return the shopping centre and LCC back to the control of Delancey and University of the Arts London, but as nominal public property, residents legal ‘right-to-light’ options can be overridden. Residents will no longer be able to seek an injunction against the development (while remaining able to claim compensation). Southwark say that there will be no cost to the Council from their leasing arrangements, other than officer time, but the report supplies no figures.

No guarantee that scheme will be built anyway

Southwark’s extraordinary measures illustrate its determined support for Delancey’s redevelopment of the shopping centre, despite the shortfall in social rented housing provided and the mass displacement of traders. Local charity and advocate for all traders Latin Elephant estimates that over half still have nowhere to go.

Southwark’s unwavering support extends as far as neglecting to obtain a guarantee from Delancey that the scheme will go ahead, even with the CPO powers being exercised on their behalf, saying ‘it is not necessary to impose… an obligation to build the Scheme as the measures negotiated for inclusion in the indemnity agreement give the Council comfort that EC is likely to proceed with the Scheme.’ 1

72% say keep the centre open

The proposed measures follow a survey conducted by the SE1 news website that shows 72% of local people want the centre kept open, in the light of the Coronavirus public health crisis. In response Delancey reiterated that they still intend to close the shopping centre on 31 July, while waiving rent and service charges (a long-standing traders’ demand) and promising to making pharmacy and food supplies available, beyond then, if the public health crisis continues.

What we say…

The Up the Elephant Campaign, supported by the 35% Campaign, has consistently opposed Delancey’s shopping centre redevelopment scheme, since its inception, over 3 years ago. We support the ongoing legal challenge to quash Delancey’s planning permission.

Over time various concessions, dragged out of Delancey by campaigners, have made marginal improvements to the redevelopment. Southwark’s pledge of £200,000 for the traders is also welcome; it now urgently needs to be distributed as cash grants to traders. Nonetheless, Delancey’s scheme still remains a bad one. Delancey are displacing an entire community of traders, and destroying a social hub for the many working people from all over the world who have made the Elephant their home. The new development will have a miserly 116 social rented homes, out of nearly a thousand new units (if they ever get delivered).

So, Southwark Council should not be bending over backwards helping Delancey, in any circumstances – certainly not now, when half the traders still have nowhere to go, while Southwark has an obligation to help secure traders accommodation in the new development it never properly exercised. We do not need to add that the traders’ desperate situation has been rendered dire by the Coronavirus crisis.

The UP THE ELEPHANT CAMPAIGN HAS THEREFORE MADE THE FOLLOWING DEMANDS TO SOUTHWARK COUNCIL;

You can support us in our fight for fairness for traders, by sharing these hashtags; #supporttradersnotdelancey #supportelephantnotdelancey #ElephantJR.

Or by lobbying the Councillors approving the decision directly: https://twitter.com/peterjohn6https://twitter.com/rebeccaluryhttps://twitter.com/evenor23https://twitter.com/Jasmine_Alihttps://twitter.com/steviecryanhttps://twitter.com/Livingstone_RJhttps://twitter.com/Victoria_Millshttps://twitter.com/Leo_Pollakhttps://twitter.com/kieronjwilliamshttps://twitter.com/JohnsonSitu.

  1. See para 76 Report: E&C CPO 

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Support Shopping centre Traders not Delancey

Dear Friend

We are in the midst of a public health crisis which has impacted severely on people’s lives and livelihoods, forcing shops and businesses across the UK to close. The position for the Elephant shopping centre traders was already serious, with over half having nowhere to go, come the scheduled centre closure in July – now their situation is acute.

A survey conducted by SE1 website forum found that 72% of people wanted the centre to remain open beyond July. In response developer Delancey says that it still intends to go ahead with closure on the 31st July, but pledged that essential food and pharmacy facilities would remain available, if needed.

This is not good enough. All the remaining shopping centre traders need support now if they are to survive.

Southwark Council are due to assume Compulsory Purchase Order powers on behalf of Delancey, at their reconvened Cabinet meeting, this coming Tuesday. With these powers behind them Delancey’s hand in negotiations with remaining leaseholders and stakeholders will be strengthened. Southwark should not be helping Delancey to build a development that puts small traders out of business and does not give us the social housing we desperately need. 

Instead we call on Southwark Council to support the traders. We welcome its recent promise of £200,000 and now call upon them to release this money immediately as cash grants to traders.

We also maintain our demand that the centre is not closed until all the traders have been properly relocated or suitably compensated.

Please share these hash tags;
#supporttradersnotdelancey
#supportelephantnotdelancey

You can also find Up The Elephant on Twitter & Facebook.
You can read more on the 35% Campaign blog.

Regards
Jerry

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35% Campaign update – Council to remove remaining shopping centre traders using CPO powers

Council to remove remaining shopping centre traders using CPO powers

Mar 23, 2020 12:00 am

Council to approve compulsory purchase of shopping centre traders and buy LCC/shopping centre sites -In an extraordinary move Southwark Council is poised to ‘buy’ both the Elephant and Castle shopping centre and the London College of Communication from current owners, developer Delancey and the University of the Arts London (UAL). It is also excercising Compulsory Purchase Order (CPO) powers over the shopping centre site, on behalf of Delancey’s British Virgin Islands registered offshore subsidiary1.

The CPO powers are needed because Delancey has failed to reach agreement with 11 of the remaining shopping centre traders who have secure tenancies and several other so-called third-party ‘interests’ including land owned by Transport for London and arches owned by Network Rail/Arches company. 2

The additional purchase of the shopping centre and LCC land is part of a legal manoeuvre, vesting ownership in a public body, that will override the rights of residents in surrounding homes whose daylight will be affected by the redevelopment of the two sites. A leasing arrangement will allow both sites to return to Delancey and UAL once the CPO process is complete. 3

Southwark say that both measures will ultimately result in no cost being incurred to itself (except for officer time plus a proportion of any public inquiry costs) with Delancey indemnifying all other costs, but no figures are provided in the three publicly available reports detailing the purchase arrangements and the indemnity agreement has not been made public. Decisions on both measures will be made at a video-call Cabinet meeting tomorrow – Tuesday, 24 March.

Will the scheme ever happen?

The main justification for the proposed measures is to ensure the success of the development. Council officers advise that if they are not adopted Delancey may meet delays and will not secure the ‘enormous funding’ the scheme requires and then the site could lie empty for years.

Despite this concern, officers are nonetheless so personally convinced that the development will ‘likely’ go ahead, that they are not requiring a guarantee from Delancey that it will proceed with the scheme after Southwark has cleared the site with its CPO powers. The CPO report says ‘it is not necessary to impose… an obligation to build the Scheme as the measures negotiated for inclusion in the indemnity agreement give the Council comfort that EC is likely to proceed with the Scheme.’ 4

The contrast between Southwark’s favourable treatment of Delancey, (a property developer rooted in offshore shell companies) and the neglectful manner it has treated traders who have made the Elephant their home is also laid bare. Under CPO legislation Southwark is required ‘to exercise its power…in a manner which, so far as practicable, secures that relevant occupiers of that land are provided with a suitable opportunity to obtain accommodation on the land in question.’ 5

This hasn’t happened; such relocation benefits as there are (eg the £634,700 relocation fund, the £200k New Home Bonus Fund) have been won by the traders and local campaigners and owe little to Southwark Council’s efforts. Even with these gains, 60 traders still have no new premises and those who do will be re-housed off-site, with only some (those in Castle Square) having the smallest possibility of ‘accommodation on the land in question’. Just last week the BBC ran a feature on the plight of the remaining traders.

Southwark has always had the power

By Southwark’s own account the scheme may well not go forward unless it exercises CPO powers, because Delancey is unwilling to bear the risk of the uncertainty created by its absence, given its ‘enormous capital investment in the Scheme’ and in addition ‘any prudent funder of the Scheme is also unlikely to fund the Scheme whilst that uncertainty persists’6

Southwark therefore has had a great deal of legitimate leverage. It was clear when Delancey first submitted its planning application for the shopping centre’s redevelopment back in 2016, that there was little intention of retaining resident traders in the new redevelopment. When Delancey described the traders as ‘benefiting from disproportionately low levels of rent’ and unlikely ‘to survive….over the longer term’7 Southwark should have made it clear then that any anticipated use of CPO powers would be dependent on fulfilling the requirement that ‘relevant occupiers’ ie the traders be given the opportunity to stay in the new development.

As it is, it looks as if Southwark intends to sacrifice trader’s interests, again, in favour of Delancey, just as it sacrificed those who depend on social rented housing, when it granted Delancey planning permission, without securing the minimum amount required by its own policies.

The coronavirus risk

Southwark’s attempts to indemnify itself against any mishaps in its CPO arrangements with Delancey includes, amongst other things, a requirement that there be a ‘reasonable prospect of the development of that area being delivered in a reasonable time frame’ 8.

Any sensible person, or local authority, must now see that this is unlikely, given the coronavirus crisis and it multi-dimensional impact. Southwark should at the very least defer consideration of exercising CPO powers and the purchase of the shopping centre and the LCC sites, on any terms. At the same time, Southwark should use its resources to maintain and improve support for the traders and insist that Delancey do the same, if it wishes to have the benefit of Southwark’s CPO powers at some time in the future.

Footnotes:

  1. According to Southwark, Delancey is not the developer, but rather the advisor to the so-called ‘Triangle Partnership’, which is a partnership between the Dutch pension fund APG; Qatari Diar and Door SLP (a joint venture involving Delancey’s DV4 offshore property fund). There are further partnerships within this Triangle, detailed in the Report: E&C CPO para 12. Southwark refer to the developer as Elephant & Castle Properties Co. Limited (“EC”) registered offshore in the BVI. We continue to refer to the developer by the commonly known name of ‘Delancey’. 
  2. See paras. 80, 59 Report: E&C CPO 
  3. See paras. 1,2 & 12 Report: E&C Property Rights 
  4. See para 76 Report: E&C CPO 
  5. See para 81 Report: E&C CPO 
  6. See para 57 Report: E&C CPO 
  7. See 8.7 Planning Statement 
  8. See para 74 Report: E&C CPO 

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Elephant Activism Week

Dear Friend

It’s Elephant Activism Week!

We’re calling on all supporters to join us this week for a bout of activism!

1 Doorstep Delancey!  Developer Delancey will be updating the Southwark Empowering Communities North West Area Forum on the Elephant and Castle shopping centre redevelopment this Thursday.

6:30pm-7:15pm Thursday 12 March, Outside Amigo Hall, St George’s Cathedral, Lambeth Road, SE1 7HY (intersection with St George’s Road).
FB Event here

This is a rare opportunity to DOORSTEP DELANCEY! We are demanding that the shopping centre is not closed, until all the traders are properly relocated (many still have nowhere to go) or suitably compensated.

We will be doing a photo opp and leafleting outside Amigo Hall as people go into the meeting, which starts at 7pm. More details are on the Southwark Council and SE1 Community websites.

2 Love the Elephant Film Night: “Why do Elephants keep developing?” 

Join us at 55East for an evening of solidarity to raise funds for the shopping centre Judicial Review Appeal. Emile Scott Burgoyne’s updated documentary, Why Do Elephants Keep Developing? exposes the dodgy deals and offshore billionaire backers behind the Elephant and Castle regeneration. The film showcases our many local heroes; our protests, parties, celebrations, victories and defeats.

6pm-9pm Friday 13 March, 55East, 53-63 East St SE17 2DJ 
Tickets from Eventbrite here (donations)
FB Event here

3 Share and donate! We have raised a fantastic £2,375 in our new Judicial Review Appeal, in just six days! Please help us push on to our £3,000 target by sharing and donating – any amount big or small!

Regards
Jerry

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A success for shopping centre traders!

Dear Friend

The shopping centre traders’ deputation and protest at Southwark Council’s Assembly on Tuesday was a great success.

Prior to the Assembly, Southwark Council agreed to contribute £200,000 towards traders’ relocation costs. The money will be in addition to the relocation fund of £634,700, paid by Delancey. Southwark also promised a further announcement on the issue. Details of how the £200k wiil be administered are also awaited.

There can be no doubt this was a response to the campaign and the traders determination to get a fair deal.

The deputation’s 6 representatives (from the main centre, market stalls, arches, plus Latin Elephant and Southwark Law Centre) were well received by the Assembly. It presented their seven demands and took questions from the councillors.

A vibrant protest heard speeches from Paul Heron, of the Public Law Interest Unit and Patria Roman of Latin Elephant, amongst others.

A key demand is for more money from Delancey and no centre closure until all the traders are relocated or suitably compensated – sign the petition here!

We will be meeting very soon to see how we take the campaign forward …hope to see you then!

You can read more here and here

Regards
Jerry
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Shopping centre protest tomorrow

Dear Friend

Just a reminder that the shopping centre traders are sending a deputation to Southwark Council’s Assembly tomorrow evening, Tuesday 28 January.

We will be supporting them with a vibrant demonstration outside Southwark Council HO, Tooley St, SE1 2QH at 6pm – please join us!

These are the traders’ demands;

  1. that the shopping centre is not closed until every independent trader is relocated or receives financial compensation.
  2. that Delancey increases the relocation fund.
  3. that the rent and service charge costs of the relocation options are brought into line with each other.
  4. that the businesses in Arch 7 are fully included in the relocation strategy and can draw from the relocation fund.
  5. that the market traders around the centre are equally and fairly treated and that all traders get the benefit of rent reductions, until the shopping centre closes.
  6. that the independent business adviser, Tree Shepherd, applies the agreed criteria for the allocation of relocation spaces in a fair and transparent way.
  7. that the database of opportunities reflects what was agreed on the approval of planning permission.

    You can read more here

    Regards
    Jerry

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Shopping Centre stall and demonstration

Dear Friend

Please join us at our Up the Elephant campaign stall on Saturday, 25 January 11.30pm just outside the former Charlie Chaplin pub, on the New Kent Rd side of the shopping centre.

This is in preparation for our demonstration, in support of the traders deputation to Southwark Council’s first assembly meeting of the year on Tuesday 28 January, Southwark Council Head Offices, Tooley St 6pm – everyone who wants a fairer, inclusive regeneration at the Elephant is welcome.

We have also this week made an application for permission to appeal against the High Court decision to refuse our claim to quash Delancey’s planning permission for the shopping centre redevelopment. This was agreed at our last campaign meeting and is the first step in the process of appeal. David Wolfe QC (Matrix Chambers), Sarah Sackman (Francis Taylor Building) and Paul Heron (Public Interest Law Centre) continue to represent us – many thanks to them, as always. We will of course keep everyone updated on our progress.

Regards
Jerry

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35% Campaign update – Elephant traders still homeless

 

Elephant traders still homeless

Jan 20, 2020 12:00 am

Survey shows two-thirds of current traders have nowhere to go -As Delancey announces its intention to close down the E&C shopping centre, research by Latin Elephant has shown that only around 40 out of nearly 100 independent traders still operating at the centre have been allocated new premises.

Latin Elephant’s interactive map, accompanied by supporting evidence, narrates the decline in trader’s numbers, up to late spring 2019. Latin Elephant’s figures show that there were originally 130 independent traders operating in January 2018, of whom only around 40 will be relocated, if the relocation strategy continues on its present course.

How many traders?

The figure of 130 independent traders (ie traders with less than three outlets) was supplied by Southwark Council in January 2018 and later confirmed by officers at planning committee in July. These include market stallholders and businesses in Hannibal House, the office block above the centre, and all lie within the so-called ‘red-line’ of the proposed redevelopment area. Latin Elephant, with the assistance of petit elephant, then conducted its own survey in December 2018, just before the redevelopment was finally granted planning permission. This found only 97 traders remained indicating a loss of 30 traders over a few months.

In March 2019, Southwark responded to a Freedom of Information (FOI) request, with a database of 79 ‘independent local operators’, eligible for relocation funds as defined by the legal agreement between Southwark Council and developer Delancey; Latin Elephant identified a further 21 independent businesses omitted from this list.

Latin Elephant also consider that 17 more businesses are excluded from relocation funding, simply by the wording of the legal agreement. These includes sub-tenants in Arch 7, on Elephant Road, and small traders in the shopping centre that rent their space through third parties, such as Forum CentreSpace Ltd.

In any event, in March 2019, Southwark confirmed that only 36 of the 79 ‘independent local operators’ had been offered a relocation unit.

Not enough relocation space

Even though Latin Elephant has voiced concerns about the shortage of relocation units on many occasions, both before and after planning approval, only 40 units are being provided on three sites. Latin Elephant identify 12 units in Perronet House, 8 in Elephant One, and 20 in Castle Square.

In addition to these sites Southwark claim that Lendlease’s Elephant Park development (formerly the Heygate estate) offers 1,350 sq m of affordable retail space, but this only equates to eight units, at most. To date, none of the Elephant Park units has been offered to traders affected by the shopping centre redevelopment, according to an FOI response to a Southwark Law Centre question. Thirty market pitches in East St market were also suggested by Delancey in its planning application, but these are nearly a mile away and have never been delivered.

Unfit database

Delancey has also a legal obligation to maintain a database of vacant retail properties and make it available to eligible traders. Even though Southwark Council says on its regeneration webpage that properties are in the borough and within one mile of the shopping centre, petit elephant found that as of June 2019 many did not meet these criteria. Moreover, many demanded rents between £50,000 and £100,000 per annum, which Latin Elephant has already submitted are beyond the means of small-sized businesses. The whole list of 54 relocation units in the database is here.

So, the best-case scenario is that less than half of all independent traders within the red line have been relocated to premises that might be more or less suitable for their businesses, with all other traders looking at options some distance away and/or too expensive.

Not enough money

Another obstacle to successful relocation is the cost of moving, fitting-out new premises and re-establishing the business. The relocation fund provided by Delancey stands at £634,700, with a vague commitment to an unspecified greater amount, after ‘all claims have been properly assessed’ and ‘taking into account genuine trader hardship’. This averages out at a £17,630 per trader, given thirty-six traders and a very modest £8,034, given 79 traders. In fact, the costs will of course vary, according to size and other needs. By way of example, one business was quoted £121,000 including VAT, for the fit-out works of a 65 sq m unit at Elephant Park.

Feeble enforcement from Southwark Council

The trader’ relocation strategy was inadequate from the start, with too little space to move to and too little money to do it with, but it has been made worse by ineffectual enforcement by Southwark Council.

The relocation process is effectively controlled by Delancey and, in the case of Elephant Park premises, fellow developer Lendlease. Both developers have obligations to provide affordable retail premises to shopping centre traders, under their respective legal s106 development agreements with Southwark Council. Southwark therefore has the power to take action if it thinks that these obligations are not being fulfilled. Traders complain that this is indeed the case, with shopping centre traders not fitting the retail profile required by Delancey and Lendlease for the new Elephant developments. Southwark Law Centre has taken up the case of one trader, refused premises because of the nature of their trade.

Even those traders who have been allocated space have justifiable complaints about its size, cost and position – all critical factors for successfully continuing business. In particular, there are complaints about Perronet House. Despite being owned by Southwark Council, who is thus the traders’ new landlord, both the service charges and rent will be higher there than those for Castle Square, the relocation site owned by Delancey. For example, the rent of a 26 sq m unit on the ground floor in Castle Square is £6,768 per annum, plus £2,256 of service charge (£8 per square foot), while Southwark Council offers a 25.7 sq m unit in Perronet House at an average of £7,645 over 5 years, with an ‘estimated’ service charge of £3,047 (£11 per sq ft).

What information does Southwark Council hold?

Several FOI requests have been made to Southwark, in pursuit of information about the traders’ relocation. The latest request is for information about which traders have succeeded in their relocation requests (thirty-six in number), those refused (28 in number), those who have left the Elephant and Castle, plus the 130 Elephant traders initially identified by Southwark, back in January 2018. Perhaps unsurprisingly this request has been refused, on the grounds that it would prejudice the commercial interests of unspecified third parties; an appeal has been made against the decision.

A bad tale continues

An Evening Standard article, enthusiastically endorsed by Southwark Council leader Peter John, tells the shopping centre redevelopment story that developer Delancey wants the world to believe in – new homes, new jobs, ‘funky street food’. Through their diligent research Latin Elephant and petit elephant tell a different story; one of neglect and broken promises. The independent traders, their families, customers and the social fabric they have built over many years is being pulled apart to enable Delancey and Southwark’s idea of a bright future.

But it is not too late for Southwark to partly redeem themselves – the traders need more space and more money for their relocation fund. Delancey (and Lendlease) are well able to provide it. Delancey’s anticipated profit from the shopping centre redevelopment is at least £137.1m.

The Up the Elephant campaign will be holding a stall on Saturday, 25 January 11.30pm just outside the former Charlie Chaplin pub, on the New Kent Rd side of the shoppin centre.

There will also be a demonstration, organised by the Up The Elephant campaign, in support of the traders’ deputation to Southwark Council’s first assembly meeting of the year on Tuesday 28 January Southwark Council Head Offices, Tooley St 6pm – everyone who wants a fairer, inclusive regeneration at the Elephant is welcome.


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35% Campaign update – Delancey deals double blow to shopping centre traders

Delancey deals double blow to shopping centre traders

Apr 29, 2019 12:00 am

Tesco leaves, bingo hall boarded

Traders at the Elephant and Castle shopping centre were dealt a double blow last week, by the closure of Tesco and the erection of a large unsightly hoarding, isolating shops on the second floor.

1

The 8-foot high boards surround the bottom of the escalator to the Palaces Bingo and Bowling Hall, which has now closed. Delancey claim it is necessary to prevent children getting onto the escalator and becoming a site for anti-social behaviour. Traders, however, have demanded its removal, saying it is blighting their trade and customers will assume that the centre is closing.

Traders were also rocked by Tesco’s announcement that it was permanently closing the Metro supermarket in the centre. This follows four weeks of closure, to deal with a mice problem.

Local news website, SE1, reported Tesco as saying “We have today announced to colleagues that we have taken the difficult decision to close our Elephant & Castle Metro store”. An earlier announcement had said that the store was only “temporarily closed” while Tesco worked with Delancey and “a specialist pest control company to take urgent steps to deal with this problem”.

Both these events will reduce the ‘footfall’ in the centre, which smaller traders rely on for their custom and the responsibility lies squarely with shopping centre owner and developer Delancey.

The hoarding on the second floor is oversized, obtrusive and unnecessary. The Palaces can be safely closed by securing the doors at the top of the escalator, and the escalator itself does not need an 8-foot high barrier to prevent children climbing on to it. The hoarding was erected without any consultation with traders and is having a detrimental impact on their businesses.

Delancey manage centre’s decline

Delancey have been the landlords of the shopping centre since 2013, when it bought the centre with the express intention of demolition and redevelopment. Tesco’s departure is clear evidence that it has failed to keep the centre as a fit place to trade. It follows traders’ long-term complaints that the centre is being deliberately run-down, complaints which were described as having ‘some validity’ by Southwark Council planning officers.

Delancey are obliged by the terms of its legal s106 agreement to give 6-month notice of both the centre’s closure and any demolition. Campaign groups and traders fear that it is evading this obligation, by closing the centre bit-by-bit. Many traders are also angry at being excluded by Delancey in its allocation of alternative premises. The latest figures from Latin Elephant show that there are still 62 shopping centre traders who haven’t been offered any relocation space.

Southwark Council have taken no action, either to deal with the rodent problem or to force Delancey to abide faithfully by its s106 agreement.

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Petition – Keep Tesco at the Elephant!

We think that it cannot be beyond Tesco’s resources to solve this problem and Southwark Council should be insisting that it does so, not standing idly by. The Up the Elephant Campaign has started a petition, ‘Keep Tesco at the Elephant! – please sign it and share!

Save the Elephant’s Diverse Community!

35% Campaign is part of the Up the Elephant legal challange to the planning approval for the redevelopment of the centre, on the grounds that it fails to provide enough social rented housing. If you would like to help us in our fight, you can donate to our funding appeal here.

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