The council today announced it is exercising its right to give Minerva ten days notice of the termination of the preferred developer agreement after it became clear the property company would be unable to realise the 1m sq ft scheme.

Planning permission for the scheme was granted five years ago. This has now expired.

The council said:

“With the planning permission for the scheme having lapsed on 7 May and Minerva failing to replace Lend Lease who pulled out of the project last year the council considers there is no viable scheme for the site and therefore the CPO granted in March 2007 cannot be implemented by next year's statutory deadline. In these circumstances it believes it has had no option but to give the developer notice of termination.
 
“Rather than prolong the inactivity that has blighted the site for so long, the council now intends drawing up a revised strategy for the site which will include attracting John Lewis to the town centre. It is hoped that a new CPO will not be necessary but this will be a fall back position when a new development partner is in place.”

Council leader, Councillor Mike Fisher said: "It has become all too apparent that in the present economic climate there is virtually no chance of Minerva bringing on board the partners it needs to make the retail scheme happen.
"We hope to continue amicable negotiations with Minerva to allow a fresh start with another partner who is capable of proceeding with a scheme that meets Croydon's needs and will bring John Lewis to the town. I very much hope that we do not have to resort to CPO proceedings as this will only further prolong the delay that has blighted the area and devastated so many of the traders who used to operate in St George's Walk, but if another CPO is the only way we will follow that route to ensure the area is regenerated.

"We have kept the development agreement alive even though Minerva knew full well that they were on ten-days' notice as a result of not being able to confirm funding. However, for the good of the town we cannot afford any further delay.  Terminating the agreement will clear the way for a fresh start and renewed hope for a key part of our town centre. Minerva has had its chance. It is a shame for everyone concerned, including the developer, that this chapter has not produced a happy ending. Now, though, is the time to end the frustration and uncertainty and to move forward with businesses in which we can be confident that they will start and finish the job."