Member Article

Cabinet meeting casts doubts over Manston Airport redevelopment

Cabinet members are set to discuss a report which recommends ‘no further action’ should be taken on the compulsory purchase of Manston Airport.

The discussion is taking place on the basis that RiverOak, the project’s US backer, do not fulfil the requirements of the council for an indemnity partner.

In July 2015, the Cabinet agreed to review its position on the Manston Airport site and to instruct specialist legal advice on the process.

Earlier this month, UKIP lost control over Thanet District Council, its only majority council, following ongoing disputes about the redevelopment of Manston Airport.

The airport has been closed since May last year and the current landowners want to develop it into a mixed-use development for businesses and homes, creating thousands of jobs in the process.

In August, RiverOak invested £2m to help the council cover legal costs should it decide to pursue the purchase, according to the BBC.

In a statement, Thanet District Counil said: “There is a lack of evidence that the financial resources are in place to acquire the land prior to the confirmation of a CPO – the council is obliged to attempt to purchase the land by negotiation in parallel with the CPO process

“There is a lack of any binding commitment – letters of support from potential investors are caveated and details of the investors were not disclosed to the council

RiverOak have publicly announced that no bond or surety would be offered to fund any shortfall,

“There is insufficient evidence that a proposed CPO is likely to be successful which would justify the council entering into an indemnity agreement.

“As RiverOak have said that they would need time after confirmation of the CPO to secure and document funding for the project, the airport could lie dormant for potentially five years – the council’s intention is that a viable airport could come into operation as quickly as reasonably possible.”

The Cabinet decision will be published after the meeting on Thursday night.

This was posted in Bdaily's Members' News section by Ellen Forster .