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I suppose it comes down to whether or not you think by giving this building an award you are saying that the local governments plan/approach to the area is also sound/good...

In my opinion the RIBA should give a little bit more thought to the awards it runs or how they are presented - by apparently celebrating the great design of just the building it is encouraging the local government/developers to focus on building these 'iconic' pieces of architecture and not nescessrily creating great places to live/work.