Croydon Council will not be exercising its compulsory purchase order (CPO) on shops in Minerva’s failed Park Place development.
A CPO for the £500million Park Place development was issued by Croydon Council in March 2005.
The council is embroiled in a Lands Tribunal case over claims by local traders they have mishandled the CPO.
It was meant to pave the way for Minerva to begin work on the 900,000 sq ft development which included flats, restaurants and shops.
The traders in St George’s Walk were told they would be offered compensation packages for the market value for their businesses and the cost of relocating.
However offers failed to materialise for the five remaining businesses on the east side of the walk.
Croydon Council terminated the development deal with Minerva on May 12, leaving furious traders desperately worried about their futures.
Under Minerva’s care the once thriving shopping area has become virtually abandoned.
Passing trade has all but stopped as shoppers no longer walk down the deserted parade.
As a result, the five business owners made a complaint about the council to the Lands Tribunal who are investigating.
It is not thought the council’s latest decision will affect the tribunal case.
Chris Ross, the owner of Surrey Goldsmiths which has been trading in the Walk for 40 years has criticised the council for neglecting the struggling businesses.
He said they are doing anything to survive while they wait on the outcome of the Lands Tribunal case.
If they win, the council could end up paying them hundreds of thousands of pounds.
He said: “It is becoming increasingly impossible to trade. Vandals have smashed the windows of the old Milletts opposite us and the empty hairdressers next door to me.”
He said the businesses were all dying and nothing was being done to clean up the walk or make it more attractive to shoppers.
Jon Rouse, chief executive of the council, said: “Croydon Council has today announced that it has no intention to implement its current CPO in respect of properties north of George Street, following the termination of its development agreement with Minerva.
“This is mainly intended to provide a level of certainty for retailers, particularly in what remains a difficult trading environment.”
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