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Crossrail is forcing us out of business and the compensation is tiny, say firms
Sri Carmichael and Benedict Moore-Bridger17 Nov 2009
Firms being forced out to make way for Crossrail denounced the compensation process as “appalling” today.
Companies in Dean Street, Soho, accused transport bosses of throwing them out without giving them sufficient cash to pay for the move.
More than 80 got only three months' notice to vacate premises by tomorrow so a ticket hall for the £16 billion project can be built for Tottenham Court Road. Demolition is due to start in the new year. Most of the shops, pubs, restaurants and law, media and PR firms have already left, with retailers holding discount sales. Many have leases rather than own the freehold of buildings, and want their relocation costs reimbursed.
Today campaigners claimed Crossrail was “playing hardball”, offering a “fraction” of moving costs. Some firms are shutting permanently. Laura Carr, 27, manager of the Couch Bar, said: “It's the end. I've been selling off furniture.”
Holly Hartley, 45, a co-owner of Short Films, said the estimated cost of moving was £32,000, adding: “Crossrail has offered us £1,000 but I'm not going to accept it.” A Crossrail spokesman said: “All claims are dealt with under the terms of the National Compensation Code and many are ongoing.” Landlords were offered 90 per cent of “assessed property value” and there is a helpline.
We have been given the worst Christmas ever'
Domenico Savaresa, 45
Owner, Spaccanapoli restaurant,
101 Dean St
Open: 17 years
Closing
Job losses: 24
“We are a very successful business but could not find anywhere suitable to move to in just three months. The employees are not going to find jobs now. I spent 17 years of my life working to build this place up and now I have nothing. I just have to worry about if and when I get any kind of compensation. It is devastating, but more for my staff.”
Sami Pour, 50
Owner, Donelli shoe shop, 102 Dean St
Open: 30 years
Estimated cost of moving: £300,000
Job losses: potentially four
Mr Pour said he was expecting to lose “tens if not hundreds of thousands of pounds” as lawyers had advised him compensation offered by Crossrail would be “minimal”. He said: “It is not easy to find suitable replacement premises. In the meantime we have to close and I am preparing to lose out [in takings while the shoe shop is closed]. It's like the reverse of winning the lottery.”
Roddy Gye, 58
Owner, GHA Group (media technology), 1 Great Chapel St
Open: 24 years
Estimated cost of moving: £10,000- £12,000
Job losses: none
“All my staff have been working full-time on the move, which has taken weeks of management. We are a small business and have had to find new premises but have no clue what sort of compensation we are going to get. Our concern is the cost involved. It is extremely disruptive. We were not given formal notice until three months before D-day' — not a lot of time.”
Laura Carr, 27
Manager, Couch bar
97-99 Dean St
Open: nine years
Closing
Job losses: 11
“We made a decision to close on Saturday. We have not been looking for a new venue, that's it — end of. The bar was quite successful and popular: Soho is quite insular — there's a big community feel — and so it is a shame it's going. I don't think anybody has got compensation yet. In some ways I understand why the development is happening, but I employed 10 staff. The last place I worked at was shut down too.”
Reader views (9)
Luke and Prj45 may not know that it is impossible to buy new premises until you have an agreement to buy your existing one, a date that will happen and a price.
A bank won't lend and the new seller won't sell on the understanding that you might sell your exiting place in the next few years!
It could be that many of these businesses support the contribution that Crossrail will make to their area - it is just the bungled relocation process that is the problem, so this is not a debate between pro-Crossrail and anti-Crossrail people.
- Omar, London, 20/11/2009 14:24
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"a railway line that replicates the central line"
- Val Keller, London UK
Well yes. The Central line between Stratford and Holborn is the longest overcrowded stretch on London Underground. It's already had two big upgrades. All undeground and NXEA passengers east of Stratford will benfit the day Crossrail opens.
But there are benefits for other parts of London as well.
- Alan Griffiths, Forest Gate, LONDON, 18/11/2009 08:11
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"More than 80 got only three months' notice to vacate premises by tomorrow"
I worked in a building in Soho until recently and 10 years ago it was understood that it would be demolished as part of the crossrail project.
- Prj45, London, 18/11/2009 07:40
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The shopkeepers should have locked themselves in till the compensation was paid, do they really expect to get a reasonable deal for relocating. This is Rip Off Britain after all.
- Mr S.Port, London, 18/11/2009 00:51
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In reply to Jonb, I have supported Boris in promoting Crossrail because whatever decisions Boris takes on supporting or denouncing projects proposed by our previous mayor is the correct one. Ken supporting Crossrail was a mistake, because he was Ken, and Ken was a complete disaster. It's a simple concept that I presume you are unable to grasp because you are not a fan of Boris.
- Sarah, London, 17/11/2009 16:22
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Luke is very much alone in supporting Crossrail with the City. The rest of London does not want to bankroll the City banking failures unlike Boris and Ken and their parties. On top of this, the public are having to pay out most of the £16bn+ for a railway line that replicates the central line and destroys important residential areas and now small business areas of London unless that is you do not care for the social fabric of London. Crossrail is a financial, economic and environmental millstone for Londoners. It is odd that the City do not like paying for anything and yet they claim to be successful. Shambolic
- Val Keller, London UK, 17/11/2009 15:03
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Sarah, I am surprised you are blaming Ken - for all the comments on Crossrail you have left up to now, the credit for Crossrail is all with Boris!!
- Jonb, London, 17/11/2009 13:28
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And so thanks to Ken Livingstone's support for this monstrous railway ploughing its way through central London which caught the imagination of the government, we now have a situation where the historical fabric of this city is being ripped apart all in the name of helping a few bankrupt City workers get to their surburbia a little bit quicker. The legacy of Crossrail and Livingstone continues to ruin lives long after he has gone.
- Sarah, London, 17/11/2009 11:30
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If my memory serves me well Crossrail has ear marked a station ticket hall at Dean Street since the scheme began in the early 1990s. How anyone can say this is suprise is beyond me.
There is no "good time" for a CPO and I really feel sorry for owners who have to move out - (especially Spaccanapoli - I'll miss your brilliant pizzas!) but businesses really should have started making plans when the scheme got its green light for parliament in July last year.
Crossrail is coming and about time too!
- Luke, London, 17/11/2009 11:17
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