Newport City Council could be faced with a difficult and costly dispute following a decision by Iceland Foods to challenge (via judicial review) the Compulsory Purchase Order (CPO) of two of its stores in the Austin Friars area of the city centre. The CPO was originally served in 2007.
The Cabinet of the City Council stated it was very concerned about the basis of the challenge by Iceland Foods who appeared to be putting self interest before the opportunity to develop the city centre to the benefit of their own business and of all other businesses in the city centre. The Deputy Leader Ed Townsend stated that he hoped that Iceland would come to the table and work with Council officers who could facilitate the identification of a suitable alternative site near the original premises. It was confirmed that under the terms of the CPO, Iceland Foods would be subject to compensation for losses.
Iceland Foods contend that the decision to proceed with the implementation of the CPO at the present time is “unlawful” because
• The Council is effectively acting ultra vires by using the CPO powers for a different purpose to that originally intended
• The Council has failed to reconsider the alternative proposals that they put forward at the original CPO Inquiry and has failed to have regard to their “Human Rights”.
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