Welcome to Amwell Street’s traders website. We have set this up as discussion forum so that the people affected by the council’s decision to sell off the commercial property in the area have a voice and the councils plans are fulfilled in a responsible way that considers local opinion, employment and future development.
The press articles section shows background information, support and attention the decision is getting.
Please show your support by signing the petition.
January 17, 2007 at 11:16 pm
To all who have received a letter from the Islington council about the sale of their commercial property and other interested people:
1. The Council approved the sale of 200 commercial properties at the meeting of the Executive on 11 Janaury 2007. 40 to 50 concerned leaseholders attended this meeting and asked questions of the Executive.
2. They will not provide details of the properties or the amount they expect to raise from the sale or the details of the process of the sale.
3. There will be a “call in” of the decision to sell the commercial properties by the Labour councillors. This will result in the Council’s Overview Committee discussing it at a meeting on 30 January 2007. This is also an open meeting beginning at 7.30pm at the Town Hall – so if you missed the Executive Meeting why not attend the Overview Committee and ask the questions that concern you.
4. The Council has said that we will be given the opportunity to purchase our properties in a blind bid against the property developers bidding for the portfolio. This has been said in the past in this borough in the last portfolio sell-off and in other boroughs but it is not in their interests to pull our properties from the portfolios.
5. What will be done to protect the interests of the leaseholders who cannot afford to or do not want to purchase their property? The Council response that their leases will provide them with protection of tenure with their new landlord is a nonsense when you consider how old and badly drafted many of our leases are. People will be forced out of their homes by huge rent increases if not by Dunlop Hayward then by the property developers who buy the freeholds.
6. So please put your views and details of your situation on this site, sign the petition, and most importantly attend the meeting on the 30 January at the Town Hall – if for no other reason than to say that you tried to make the Council listen to the views of its electorate.
January 19, 2007 at 1:59 pm
Thanks for this Margaret. I would also like to add that it would be great if other Islington leaseholders affected by these plans leave a comment online. We can then build up a network, share information and coordinate our efforts
January 21, 2007 at 10:23 pm
I too am concerned about the proposed sale of said properties . I have a shop in Arlington way and have been there for many many years.so to receive this letter was quite a shock. My husband unfortunately died in February 06 and with two young children to bring up, i need the assurance that my business is safe. As reliable tenants, if they were to sell i dont understand why we would not get a discount for all the years of loyalty or receive assurances that if we could not afford to buy then at least the rents would be resonable rents for us to afford . I have served the local community for many years and thought that the goverment would encourage the survival of small businesses.
January 22, 2007 at 5:12 pm
Hello,
I live locally and have been speaking to a friend who is a documentary maker – I thought that we could get some footage and put it on the internet, and do various other things to get publicity about the sale of amwell street.
Please be in contact so that we can discuss how to help. thanks. Mark
January 29, 2007 at 10:20 am
Our final opportunity to influence the decision
On Tuesday 30 January at 7.30pm, Islington Council Overview Committee will decide whether to confirm the Executive Committee’s decision to sell the Council’s commercial portfolio to the highest bidder in a process of sealed bids or return it to the Executive Committee to reconsider their approach to the disposal. This meeting is open to the public.
Background
The Council Executive has elected to dispose of the remains of its commercial portfolio. The Executive’s policy is not to hold a commercial portfolio and it has to be seen to gain best value in its disposal of these properties. Best value does not have to be exclusively financial return. When the rebuilding of infrastructure and schools is cited as the benefit of the sale, efforts by the affected leaseholders to protect their interests could appear to be self-interest in the face of general benefit.
The question is whether the need for capital to rebuild schools and infrastructure should compromise communities and neighbourhoods by destabilising long established businesses serving local communities throughout the borough.
“A Level Playing Field”
Leaseholders have 3 to 4 months to employ surveyors, lawyers, and if possible, raise commercial mortgages and present sealed bids to the authority in competition with any interested parties who can offer for the entire portfolio. Leaseholders have to continue running their enterprise whilst completing this process. Investment companies, in comparison, have established teams for just this and will be able to raise funds at considerably lower interest than is available for normal commercial mortgages.
In representations to the Deputy Chief Executive Andy Jennings and Councillor Andrew Cornwall, a request to recognise the contributions of leaseholders and their businesses to local communities by allowing leaseholders the opportunity to offer for their freeholds prior to compiling the portfolio has been rejected. The Executive continues to assert that the process they have devised is “a level playing field” and nothing can be done to support leaseholders for legal reasons. Despite several requests to be told what these legal reasons are, leaseholders are none the wiser.
Law or Policy
Leaseholders and residents deserve to know if the method of sale of the portfolio is a policy choice on the part of the Executive or if there are genuine legal restrictions.
Guidance from CIPFA on the interpretation of the Local Authority Act 2000, and other legislative sources suggest that there is flexibility in this matter. We have been advised that
the Council “can use discretionary power to do anything they consider likely to promote or improve the economi,c social or environmental well being of the area”. and
“Legislation allows authorities to protect local business and to take a lower price on the sale of their assets because in the long term this is in the best interests of the electors of the Borough.”
What are the legal reasons that conflict with the above guidance?
Impacts on local businesses
In event of leaseholders not being successful in their bids or being unable to afford to bid, the Executive assures us that we are protected by the terms of our leases. Theoretically this may be true. Practically if a new landlord wished to gain vacant possession a property they could make unreasonable rent demands, service charges or repair schedules to pressure the tenants to surrender their leases prematurely. Leaseholders would have to employ expensive legal advice to challenge these issues.
Admittedly these are potential issues but they have established precedent in the disposal of commercial properties by this Council in 2002/2003. Leaseholders now confront continuing their business concerns in this adversarial environment as a direct result of the Executive policy choice
Impact on local communities
- Loss of variety and service from small independent enterprise
- Loss of employment locally
- Inflationary pressure on the cost of services
- Indiscriminate redevelopment as seen in other streets in the Borough
In summary communities face the prospect of losing their local services. The Executive has invited interests from outside the communities to compete for the freehold of these businesses. They have disregarded other options and have not considered the historical contribution of established leaseholders.
Islington’s commercial leaseholders have one opportunity to make a market value offer for the freehold of their premises in a closed bid in competition with large external development interests.
This is patently unfair and will decimate distinctive local shopping facilities.
January 31, 2007 at 9:18 pm
Last nights meeting at Islington Town Hall was really disappointing.
Andrew Cornwell refused to answer many questions relating to the leaseholders and communities fears and made no attempt to genuinely debate the issue. His mind was made up and the ‘call in’ turned into petty rhetoric between the Lib dem and Labour councilors with four on each side and the chairperson’s casting vote plainly sided with the Lib dem camp. Therefore the event was sadly a sham and very disappointing insight into the so called democratic process of Islington council.
Certain questions remain unanswered despite repeated requests for answers and urge anyone upset by the planned sell off process to lobby the council or their MP for a judicial review.
Questions that need to be addressed;
1. Andrew Cornwell stated the council have created a level ‘playing field’ between bidders. Can the council please explain how the playing field is level, pitching property companies against individual business owners in a sealed bidding process is a bit like expecting a Sunday morning pub side to compete with Arsenal.
2. Repeatedly the question was asked about the ‘legal reasons’ which prevent the council giving the leaseholders the opportunity to match the developers highest bid? No answers given.
3. Alternately why not get a true valuation from Dunlop Hayward or similar expert valuers and see if the value of the portfolio can be reached by selling at the asking price to the leaseholders with no negotiation. This way the council realises what they need, do not enter into protracted negotiations with individuals and any residual property can be sold to developers or at public auction where it will be sure to sell at market price anyway.
4. Do the council want to behave responsibly or do they stand for an agenda so right wing and capitalistic where the ‘highest bidder wins’ mentality is more important than running the risk of damaging popular communities which have taken decades to build.
This is a terrible mistake and clearly Andrew Cornwell and his team appear not to have investigated the full implications of their decision and need to be made accountable in the future when the effects are seen.
February 8, 2007 at 11:05 am
DEVELOPMENTS IN DISCUSSIONS WITH ANDREW CORNWELL AND GEORGE ALLAN
MEMBERS OF THE LIB DEM EXECUTIVE
On the 06/02/07 members of the Amwell Street Traders Group and a chemist and GP from Roman Way met Andrew Cornwell to discuss their reconsideration of the method of disposal of the commercial portfolio.
The meeting resulted in the clarification of some misunderstandings that arose after the meeting of the Overview Committee on the 30/01/2007.
THIS PORTFOLIO IS DEFINITELY BEING SOLD.
Methods of disposal being considered are:
- Leaseholders can express interest and make offers to purchase their freeholders in a sealed bidding competition against the speculative interests of external bidders wishing to buy the entire portfolio
- Leaseholders can bid in an open auction market competing against all interested parties.
- Leaseholders can be given the opportunity to match or better the best bids
- Leaseholders can have first option to buy at valuations established by external independent surveyors- for example the RICS ( The Royal Institute of Chartered Surveyors)
The Executive’s preferred method is the sealed bidding process.
The leaseholder’s representation on 06/02/07 was told that all these options were being considered again and the results of this would be available by the end of February.
Leaseholders preferred options are first offer with independent valuation or to match or better their best offer.
These options are:
- politically safer for the Lib Dem executive
- ensures the Executive’s need for maximising financial gain from this disposal
- protects the interests of established leaseholders and the sustainability of the communities served by the businesses affected.
A few leaseholders attended Councillor George Allan’s surgery at Finsbury Town Hall on the 07/02/2007.
Each person was told that the Executive is not meeting to reconsider all these options.
The leaseholders now have the sense that efforts to appease us are only to distract us from their very real intention to challenge all 200 leaseholders in the sealed bidding process outlined above.
The Lib Dem agenda is established and efforts to influence this process continue to stall at every juncture.
IF YOU WISH TO MAKE YOUR VIEWS KNOWN:
- PLEASE USE THIS BLOG SITE
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- PLEASE LOBBY YOUR LOCAL COUNCILLOR
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- PLEASE ATTEND THE PUBLIC MEETING AT ISLINGTON TOWN HALL ON 22/02/2007,MEETING ROOM 1 AT 7.00 PM
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February 19, 2007 at 11:33 am
Dear neighbours
Just to wish you every success in your campaign to keep the distinctive local shops in Clerkenwell (and elsewhere). The contribution made to local life by small independent traders is invaluable–and under threat in too many places.
Diana Shelley
Chair, Cally Rail Group
February 25, 2007 at 2:49 am
Businesses affected by the sell-offs may wish to attend the following event which was advertised to LBI councillors this week
From: Pollaya, Joyce [mailto:Joyce.Pollaya@islington.gov.uk]
Sent: 21 February 2007 17:57
Hello,
The council are holding a breakfast event on Tuesday 6th March at 8am at the Town Hall to formalise their committment to working with businesses in the borough, which will involve the signing of a business concordat, which is an agreement between the council and businesses, and the way in which they work together.The concordat will be signed by the Chief Executive and the Leader of the Council, along with businesses representing various parts of the borough. It is an important event which I would urge businesses to attend. Formal invitations will be sent out to you over the next day or so.
Kind regards,
Joyce Pollaya
Nag’s Head Area Co-ordinator
Islington Council
Environment & Regeneration Department
Municipal Offices
222 Upper Street
Room 225
London N1 1XR
Tel: 020 7527 3558
Fax: 0207 527 3096
March 9, 2007 at 1:23 pm
Hello
What is the best way to contact Dale Barter (Chariman of the Traders Committee) or other members?
Thank you.
March 13, 2007 at 12:03 pm
Contact Dale Barter by e-mail on dbzorg@aol.com or by telephoning Amwell Veterinary Surgery on 020 7833 1320 between 9.00am and 7.00 pm
March 14, 2007 at 12:58 pm
PROGRESS IN THE DISPOSAL OF ISLINGTON COUNCIL’S COMMERCIAL PROPERTY PORTFOLIO
The 02/03/07 cut off date for expressions of interest from business leaseholders for their properties freeholds has passed.
Approximately 180 leaseholders out of the 240 affected properties have expressed interest.
The Lib/Dem Executive have not been slow in capitalising on the political kudos gained from their capitulation over the issue of how this process would proceed.
The political pressure put on councillors in the borough by concerned voters was instrumental in reminding the Lib/Dem Executive of their obligation to consider the social implications of their proposed property disposal. Issues of sustainability, diversity and ultimately fairness won this argument.
Business leaseholders are now confronting the next step in the process.
The Lib/Dem Executive has insisted that only those businesses able to prove they are able to raise a specified sum by supplying a letter from a financial institution. This letter of reference has to be furnished to their agents- Dunlop Hayward- by the end of March.
The amount specified in the letter from their agents Dunlop Hayward (now operating as the Erinaceous Group) has proven to be 30-50 % above the most optimistic surveyed valuations of the affected properties.
The purported reason for these inflated values is to eliminate time wasters from the process. The Islington Traders Group do not consider this time wasting- ideally true valuation and subsequent opportunity to raise funds is the preferred method.
Assurances have been made that the information would be kept confidential.
The Islington Traders Group will be requesting that this information be kept by an independent solicitor or body not dealing with the compilation or administration of the portfolio.
They request this to ensure portfolio bidders have little chance to ramp up the values of properties with an expression of interest at the expense of valuations of properties that do not. Whilst 180 people genuinely have a chance to bid for their freeholds this is unlikely. Many may fall at the first hurdle because of the requirement of a letter of financial reference at such short notice and inflated valuations.
Unfortunately the administrative failings of Dunlop Hayward has resulted in a significant proportion of business leaseholders receiving a letter outlining the sealed bidding process and a timetable for the process of disposal that no longer applies. There has been no confirmation of how they will respond to the dissemination of this inappropriate timetable. Reissuing the letter and extending the deadline for procurement of the letter of financial reference is the minimum the group would require. Elimination of this requirement would be ideal.
They are requesting this because trust of Dunlop Hayward is poor. Recent disclosures in the press of fraudulent practice in the valuation of property by this company does not sit well with business leaseholders.
At every juncture we have queried the objectivity of the councils agent- Dunlop Hayward. Their management of properties affected by the portfolio sale has resulted in rushed and poorly considered rent and lease reviews. Their process appears to promote inflation of values and prohibitive rent increases- up to 90% rent increases in recent negotiations in Amwell Street alone.
In every instance the process favours the advantage that professional property developers have.
This is still not the level playing field that the Executive has been trumpeting since the start of the process.
There is a real need for close monitoring of their process.
Their preferred method of disposal is still bulk sale to one buyer. Their process favours this.
Constant political lobbying and exposure of any inappropriate dealings with the Council or their agents should continue.
If you are being discriminated against through any process- from rent reviews or lease renewals to disadvantage because of unreasonable or disproportionate valuation of your property- please let The Islington Traders Group know by-
E-mail- dbzorg@aol.com or
Blogging at- amwelltraders.wordpress.com or
By contacting your local councillor
March 19, 2007 at 6:49 pm
I paid a visit to the Nat West Rak Chawdan 02083441032 they were very helpful in finance and they advised if any shop owners require their help they would be happy to advise
April 22, 2009 at 6:51 am
The style of writing is very familiar to me. Have you written guest posts for other bloggers?