Businesses in the botched Park Place redevelopment are now dealing direct with the council over compensation claims.

Traders were originally in discussion with Minerva but the council severed its agreement after it failed to fund the redevelopment.

But the council has now taken over negotiations, apart from those already with cases lodged with the Lands Tribunal.

In a swipe at Minerva, it informed them last week it would be dealing directly with traders to ensure they have confidence the council is committed to resolving issues.

Croydon Council has stated regeneration plans for the area, which have been in limbo for years, are still one of its top priorities and it will pursue any necessary assembly of land required.

Speaking at the Outer London Commission summit Jon Rouse, chief executive, said: “I am as disappointed as anyone that it has not come to fruition.

“We need to go back out and choose a development partner who will be able to deliver in that part of Croydon.”

Council leader Mike Fisher added: “We’re aware traders will be concerned about the current blight affecting the area, and we are absolutely committed to doing something about it.

"We are meeting regularly with businesses there and while there are no simple solutions, we’re doing everything within our power to ensure any negative impacts are minimised for them.

“We are already looking at options to take forward a new redevelopment plan for Park Place, but the priority at the moment has to be to help those businesses which are suffering, and to do so as quickly as possible.

“We are no way wavering in our commitment to making this redevelopment work - and we are currently investigating options to secure the necessary land.”

Lambert Smith Hampton have been appointed as advisors.

The council is also giving an assurance to traders operating on the north side of Park Street and in George Street it will not be issuing a general vesting declaration (GVD) during the life of the current compulsory purchase order.

This means the council will not be acquiring any of the land under the existing CPOs.

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