THE council has agreed to use special powers to secure ownership of the Whitgift Centre in order to pave way for Westfield and Hammerson's £1 billion redevelopment scheme.
The decision means that anyone who fights the developers will face compulsory purchase orders (CPO).
All other options are supposed to be exhausted before the use of CPOs, which allow land or property to be obtained without consent of the owner.
Any CPOs would have to be approved by the Government before going to a public inquiry, which could be held in October this year at the earliest.
Aside from the use of the controversial powers, it also emerged this evening that the Whitgift Centre would be closed for three years while the work is done.
Westfield and Hammerson are confident the vast majority of negotiations will be resolved without CPOs, either through relocation or compensation, in the hope of construction beginning in late 2015.
The development, hailed by many as the key to Croydon's future prospects, will create a new shopping and leisure complex, hundreds of new homes and up to 5,000 new jobs.
Council leader Mike Fisher described the decision, taken by the cabinet this evening (Monday), as "truly historic".
He said: "We have seen a long and detailed presentation that has set out the huge benefits this scheme will have to Croydon and its residents - 5,000 new jobs and a complete step change to the retail and leisure opportunities in the borough.
"It's really important we now take the next step in bringing about this £1 billion worth of investment and regenerative opportunity, and that we grasp it with both hands and make sure Croydon feels the benefit of it for many years to come."
The only fly in the ointment was a new letter from the Whitgift Trust, the group with management control of the Whitgift Centre, reiterating its intent to seek a judicial review of the council's decision to approve the development.
Last week Croydon Central MP Gavin Barwell accused the Trust, which owns around 25 per cent of the leasehold of the Whitgift Centre, of playing a "game" to maximise its returns from the CPO process.
In a letter to the council last Friday, the Trust said any such accusation was "incorrect and misleading".
The Trust, essentially the Irish Bank Resolution Corporation (Anglo Irish Bank), accuses the developers of failing to engage in "any meaningful discussions" in relation to the compulsory purchase of its interests.
It also claims there is not sufficient public interest to justify the use of CPOs.
Jo Negrini, executive director of development & environment, told the council chamber there was a "compelling" case for the use of such powers.
She said the council had taken external advice from auditors Deloitte, who were "satisfied" the developers had made efforts to contact and engage with the more than 360 owners and occupiers of the Whitgift Centre.
"The council has to be satisfied that the developers have done everything they can to acquire the land and that CPOs are the last resort," she said.
"We're satisfied there has been sufficient engagement. We don't see the call for a judicial review as an impediment."
Cllr Fisher seemed unconcerned by the threat and accused the Whitgift Trust of trying to "kick the issue into the long grass".
Away from the dispute, Ms Negrini said the council will do all it can to help businesses affected by the development.
"Implicit within the agreement is we do everything possible to ensure businesses are found alternative places during construction and there are options for them to come back into the development once it's completed," she explained.
There will be a discretionary "exceptional hardship" scheme for those businesses significantly disadvantaged by the CPO process.
"If a small business has very difficult personal circumstances where the development really could send them under then there will be help available," said Ms Negrini.
During her presentation, Ms Negrini added that the proposal was the "absolute catalyst and accelerator" of the regeneration of the town centre, and a "major step change" in reversing its decline.
The redevelopment, given planning permission last November, has cross party support.
Labour councillor Alison Butler pressed for details of when construction would start and Ms Negrini replied that the most optimistic estimates were that work would begin in late 2015, with the shopping centre opening in December 2018.
That will only happen if the CPO process is complete and, with the council unsure as to how many objections it will receive, the real timetable looks unclear.
