Cornwall Site Allocations Viability Study · EXECUTIVE SUMMARY 1. This briefing considers the...

CORNWALL COUNCIL

SITE ALLOCATIONS VIABILITY BRIEFING – PART 1 REPORT

• PENZANCE

• CPIR

• FALMOUTH &PENRYN, NEWQUAY

• BODMIN• LAUNCESTON

Three Dragons

March 2018

F.23

Cornwall Site Allocations Viability Briefing

March 2018 – Three Dragons

No responsibility whatsoever is accepted to any third party who may seek to rely on the content of the report unless previously agreed.


March 2018 – Three Dragons

CONTENTS EXECUTIVE SUMMARY ................................................................................................................................................1

1 Introduction ........................................................................................................................................................2

2 Commentary .......................................................................................................................................................5


March 2018 – Three Dragons Page 1

EXECUTIVE SUMMARY

1. This briefing considers the viability implications for the allocated sites in the Site Allocations DPD. This part one report covers the sites in Penzance, CPIR, Falmouth & Penryn, Newquay, Bodmin and Launceston. The remaining sites (apart from Helston and Saltash) will be in the Part 2 report.

2. The review of the sites shows that in most cases the policies in the DPD do not go beyond what was included in the evidence base for the Local Plan Strategic Policies examination. Individual sites will have specific issues, but it is considered that these mainly relate to characteristics that would arise irrespective of DPD policies:

• Employment space may require public sector intervention to bring development forward, but this has not changed since the Local Plan Strategic Policies examination.

• SAC mitigation requirements will have been apparent over the long term and would be

factored into land value considerations and also represent a small sum per dwelling.

• A minority of sites include requirements for community facilities, but these are limited in scale and the Council’s contact with the relevant developers suggests that the requirement

is not a barrier to bringing the development forward.

• The ownership of some sites by the public sector allows the opportunity for flexibility over

site values, which can strengthen viability.



1 INTRODUCTION

1.1 The Cornwall Site Allocations DPD was published in March 2017, following the adoption of the Cornwall Local Plan Strategic Policies in November 2017. The DPD sets out the strategy for the future growth of 10 settlements in Cornwall, as well as policies for the delivery of two Eco-community sites. The housing and economic targets for these locations were set by the Cornwall Local Plan Strategic Policies, while the Allocations DPD addresses how and where these targets will be delivered.

1.2 This Viability Briefing provides commentary on allocations contained in the Site Allocations DPD. This commentary is based upon the 2015 viability testing undertaken as part of the evidence base for the adopted Local Plan Strategic Policies (submitted evidence document E8). When tested as part of the examination, this evidence base was found sound, and the basis of the commentary in this briefing is to determine whether the policy requirements for the allocations will change the overall viability of the allocated site compared to the assumptions made in the 2015 viability testing.

1.3 The commentary also draws upon subsequent viability testing undertaken to inform the Council’s draft Community Infrastructure Levy Charging Schedule, which was examined in January 2018. This testing was undertaken on the same basis as the 2015 testing but using updated values and costs (SADPD submission evidence document E8 and F.7).

1.4 The Cornwall Local Plan Strategic Policies was supported by viability evidence (Viability Study – Refresh, March 2015, Three Dragons with ORS on behalf of Cornwall Council), and this provided the viability evidence base used in the examination of the Local Plan. The March 2015 viability study was used by the Local Plan Strategic Policies examiner as the basis for amending the policy on affordable housing to ensure that the proportion of such housing sought from market developments was consistent with the viability evidence1. The March 2015 viability study included viability testing of a set of strategic allocation sites which were chosen in discussion with Council officers as representative of the sites planned to be included in the Site Allocations DPD. The viability testing of these sites included allowances for provision of infrastructure through s106, with costs advised by Cornwall Council. Testing of these strategic allocation sites showed a mixed viability picture, with sites affected by the market values and site-specific factors. However, through the examination it was established that allocated sites as tested were deliverable with the appropriate Zone’s affordable housing targets.

1.5 Subsequently, Cornwall Council has pursued the adoption of CIL. This has included an updated area-wide viability study (Residential and Non-residential Community Infrastructure Levy Viability Report, December 2016, Three Dragons with ORS and Alder King on behalf of Cornwall Council), which was examined in January 2018. At the time of writing, the examination report is awaited. This December 2016 report (Doc ref.F.7) also included viability testing of a set of strategic allocation sites which were chosen in discussion with Council officers as representative of the sites planned to be included in the Site Allocations DPD. Most of these sites were the

1 https://www.cornwall.gov.uk/media/21914730/cornwall-inspectors-report-final-23-september.pdf



same as the ones in the March 2015 viability study, and again, the viability testing of these sites included allowances for provision of infrastructure through s106, with updated costs advised by Cornwall Council. As this study was to support the introduction of CIL, it was made clear in the draft charging schedule that the treatment of strategic allocated sites would be different, with infrastructure to be delivered through s106 rather than being on the r123 list for delivery by CIL. Again, testing of these strategic allocation sites showed a mixed viability picture, with sites affected by the market values and site-specific factors.

Context

1.6 The March 2015 and December 2016 viability studies set out the national and local policy basis and guidance for the two viability studies, and this is not repeated in full here. However, the basic principles are that:

• The testing in the 2015 and 2016 reports is based on the standard residual value method, where a scheme is considered viable if after all of the development costs are deducted from the total value of the completed scheme there is enough money left to incentivise a landowner to sell the site.

• A set of benchmark land values are used for different types of site and different value areas

in Cornwall, and these are the estimates of what a landowner might sell a clean ‘standard’

site for. An important part of this assumption is that where a site is subject to specific constraints (i.e. not a clean ‘standard’ site), then the land value will flex to accommodate the costs of addressing the constraint. In this context, constraints will include site characteristics such as flood risk, contamination, topology etc., as well as abnormal mitigation requirements as well as clearly signposted policy requirements2. Within this approach there is recognition that there remains the need for some incentive above the current use value in order that the site is released for development.

1.7 The Site Allocations DPD includes a strategic approach to transport, green infrastructure and design quality, as well as settlement specific strategic objectives and infrastructure. The strategic approach to these issues reference the adopted Local Plan Strategic Policies and the Council has confirmed that there are no policy implications in the DPD beyond those already forming the adopted Strategic Policies. The estimated costs of delivering the settlement infrastructure were included in the viability testing for the strategic allocations in the 2015 and 2016 viability testing. Both the 2015 and 2016 viability testing included allowances for a proportion of housing to have higher accessibility standards, with the 2015 testing including allowances for 10% of affordable housing to be to Lifetime Homes and the 2016 testing for 25% of all dwellings to be to Part M(4)2.

Structure

1.8 This briefing note provides commentary in a tabular form for site allocations, grouped by settlement. Helston and Saltash are not included within this review as the strategic housing

2 This approach is in line with the current National Planning Practice Guidance as well as the proposed changes in the consultation draft of the NPPG and PPG published in March 2018.



development sites for these towns are already permitted, so issues of viability would have been considered through the planning application process.

1.9 The report is divided into two parts, reflecting the examination process. This report is Part 1 and has a subset of the settlements. Part 2 (to follow) will cover the full set of settlements listed below.

1.10 The settlements are:

Settlement Part 1 or Part 2Report

Penzance Part 1 report

Hayle Part 2 report

Camborne/Pool/Illogan/Redruth (CPIR) Part 1 report

Falmouth & Penryn Part 1 report

Newquay Part 1 report

St Austell Part 2 report

Bodmin Part 1 report

Launceston Part 1 report

1.11 The intention of the assessment is to understand whether there are any policy requirements that would materially affect viability beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

1.12 Please note that the information in this report has not involved specific new viability modelling. Instead it relies on previous studies and professional judgement based on the available information.



2 COMMENTARY

Background Info Site Size

Affordable Housing

Land Uses

Town DPD Ref

Site Name Uses Housing sqm employment space

Other Uses

Density % of site developable for housing

Total Dwellings

Penzance PZ-H1 Long Rock 7.0 30% Housing 35dph 60% (4.2ha) 150

Longrock was one of the sites included in the 2015 and 2016 viability testing, although at the time the capacity was estimated at 170 dwellings and testing was at 40% affordable housing. The policy requirements in the DPD relate to mitigation of impacts on the SPA, open space, access, noise mitigation and a community hall. Commentary

• The SPA and the requirement to mitigate impacts will have been apparent over the long term and will have been factored into site purchase negotiations.

• The 2015 and 2016 viability testing included allowances for green space and transport infrastructure and the specific requirements here are standard costs to development. It also made allowances for education (not specified in the DPD requirements, but implicit for housing sites).

• The noise impacts from the A30 will have been apparent in the long term and in order that the houses are saleable the cost of mitigation will have been factored into site purchase negotiations.

• The requirement for a community hall was not part of the 2015 or 2016 testing. However, a rough estimate suggests that the lower proportion of affordable housing (30% required rather than 40%) will cover the cost of this requirement.

Summary The DPD policies for Longrock do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Penzance PZ-H2 Posses Lane 0.8 30% Housing 35dph 100% 30

The policy requirements in the DPD relate to offsite open space and access. Commentary

• The requirements for offsite open space are part of the costs allowed for in the viability testing case studies.

• The requirements for access are standard costs to development. Summary The DPD policies for Posses Lane do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Penzance PZ-H3 Gulval Central 2.3 30% Housing 40dph 70% (1.61ha) 68

The policy requirements in the DPD relate to pedestrian connectivity, open space, access and sustainable drainage. Commentary

• The requirements for pedestrian connectivity are predominantly related to site design and will be covered by standard allowance for external works.

• The requirements for open space, access and sustainable drainage are standard costs to development. Summary The DPD policies for Gulval Central do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Penzance PZ-H4 Trannack 14.5 30% Housing 33dph 60% (8.7ha) 290

The policy requirements in the DPD relate to open space, site layout, access, pedestrian links (including a crossing on the A30), and sustainable drainage. In addition, this site includes an area with an incline. Commentary

• The requirements for on-site pedestrian connectivity are predominantly related to site design and will be covered by standard allowance for external works.

• The A30 pedestrian crossing will be a site-specific cost (Estimated by the Council at approximately £150,000 – c. £500/dwelling). As this is addressing the specific impacts from this site it will need to be reflected in an adjustment to the site value.

• The requirements for open space, access and sustainable drainage are standard costs to development.

• The site layout and topographical issues will need to be reflected in site design and resulting non-developable area will result in an adjustment to the site value. Cornwall Council has stated that the reduced housing numbers expected from this site mean that expensive measures to address topography/flooding and facilitate higher dwelling numbers can be avoided. There is the opportunity to provide split level housing which could allow some of the sloped area to be developed.

Summary The DPD policies for Trannack do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document, although mitigating impacts in terms of the pedestrian crossing and addressing physical site characteristics may require an adjustment in site value (although the pedestrian crossing is a very limited cost on a per dwelling basis) and the site characteristics do not relate to DPD requirements.

Penzance PZ-H5 Polmennor Road 1.4 30% Housing 30dph 80% (1.10) 33

The policy requirements in the DPD relate to off-site open space, sustainable drainage and access. In addition, this site includes an area with an incline.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Commentary

• The requirements for access and sustainable drainage are standard costs to development.


• The topographical issues will need to be reflected in site design and resulting non-developable area will result in an adjustment to the site value. Cornwall Council has stated that the reduced housing numbers expected from this site mean that expensive measures to address topography and facilitate higher dwelling numbers can be avoided. There is the opportunity to provide split level housing which could allow some of the sloped area to be developed.

Summary The DPD policies for Polmennor Road do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document, although addressing physical site characteristics may require an adjustment in site value (but addressing topography does not relate to DPD requirements).

Penzance PZ-H6 Josephs Lane 0.6 30% Housing 30dph 80% (0.46) 16

The policy requirements in the DPD relate to off-site open space. In addition, this site includes an area with an incline. Commentary


• The topographical issues will need to be reflected in site design and resulting non-developable area will result in an adjustment to the site value. Cornwall Council has stated that the reduced housing numbers expected from this site mean that expensive measures to address topography and facilitate higher dwelling numbers can be avoided. There is the opportunity to provide split level housing which could allow some of the sloped area to be developed.

Summary The DPD policies for Josephs Lane do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document, although addressing physical site characteristics may require an adjustment in site value(but addressing topography does not relate to DPD requirements).

Penzance PZ-H7 Poltair 1.3 30% Housing 25dph 100% 30

The policy requirements in the DPD relate to off-site open space (for the adjacent area) and access. Commentary

• The requirements for offsite open space are part of the costs allowed for in the viability testing case studies (and offsite provision allows more of the site to be developed).

• The requirements for access are standard costs to development.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Summary The DPD policies for Poltair do not include requirements that will materially affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Penzance PZ-H8 Heamoor 13.0 30% Housing 35 77% (10ha) 350

Heamoor was one of the sites included in the 2015 and 2016 viability testing, although the 2015 testing was at 40% affordable housing. The policy requirements in the DPD relate to access (including a bus route through the site), pedestrian links, community facilities, open space and tree planting. Commentary

• The requirements for access including a bus route will be within the standard costs to development, as it is anticipated that the route will be little more than a standard estate road.

• The requirements for on-site pedestrian connectivity are predominantly related to site design and will be covered by standard allowance for external works.

• The requirement for a community hall was not part of the 2015 testing although it was included in 2016. However, a rough estimate suggests that the lower proportion of affordable housing (30% required rather than 40%) will cover the cost of this requirement.

• The requirements for open space will be within the standard costs to development, although depending on the extent, the additional tree planting may be a minor additional cost.

Summary The DPD policies for Heamoor do not include requirements that will significantly affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Penzance PZ-H11

Barn Site, Gulval 0.4 30% Housing 35 100% 13

The policy requirements in the DPD relate to pedestrian pathways and off-site open space. Development on this site will require demolition. Commentary

• The requirements for on-site pedestrian pathways are predominantly related to site design and should be covered by standard allowance for external works.


• The costs of demolition will be reflected in the site value. Summary The DPD policies for Barn Site, Gulval do not include requirements that will significantly affect the viability of development in this location beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document. The requirement for demolition would arise irrespective of any DPD requirements, and is a pre-requisite of any development.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Penzance PZ-H12

Gurnick 1.2 30%+ Housing 35 70% 30

The policy requirements in the DPD relate to higher proportions of affordable housing, access, parking, contribution to off-site transport infrastructure, sustainable drainage and offsite green space. The Council has separately submitted commentary on sales values in a position statement for the DPD examination and has undertaken a separate viability appraisal for this site. Commentary

• The requirements for additional affordable housing relate to higher localised sales values in this location.

• The access and parking arrangements are standard costs to development

• The requirements for offsite transport and offsite greenspace are part of the costs allowed for in the viability testing case studies. Summary The DPD policies for Gurnick will result in a different viability than many of the other sites in this value area but this is driven by separate evidence of localised higher values.

Penzance PZ-M1 Harbour Carpark 3.4 30% Mixed use 30

The Harbour Carpark is a Council owned site and the DPD summarises the regeneration proposals for this location. The policy requirements in the DPD relate to the provision of mixed use development, improved pedestrian access to the waterfront, a section of a wider cycle route with cycle storage, delivery of a decked car park, continued provision of boat storage either on or offsite, a bus facility and flood risk mitigation. Commentary

• The combined set of DPD requirements are in excess of those included in the standard residential viability testing.

• Where residential is provided in this location the proximity to the sea will provide the opportunity for premium values, likely to be significantly higher than inland development values around Penzance. This will help offset some of the costs that may be associated with development.

• The public ownership of the site will allow greater control over the form of development as well as more flexibility about the site value. Summary While the higher values may help to mitigate the requirements for this site, it is likely that intervention by the public sector will be required to fulfill the wider regeneration aims of development at this site (assisted by the potential for lower site value requirement).

Penzance PZ-M2 Coinagehall St 0.3 30% Mixed Use 10

Coinagehall Street is a publicly owned site. The policy requirements in the DPD relate to the provision of mixed use development and cycle facilities. Commentary

• Both the 2015 and 2016 viability studies note that speculative ‘B’ class development is generally not viable in Cornwall (as in many other locations in England). However, commercial development can come forward as Design and Build for specific occupiers, where the development




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

is cheaper (as only a contractor’s rather than a developer’s return is required); and the project provides accommodation for income generating commercial activities that cover the cost of the building.

• The provision of some housing on this site may be able to cross-subsidise some of the other elements.

• Cornwall has a good track record of securing public funding for employment space. In the past this has included Regional Development Agency and EU funding, and we are aware that the Council is now developing its own investment programme which will take advantage of lower costs of borrowing and will include provision of new workspace.

• The public ownership of the site will allow greater control over the form of development as well as more flexibility about the site value. Summary While the housing provision and the public ownership of the site may help to reduce the viability impacts of the DPD requirements, it is likely that some form of intervention will be required to bring the planned development forward on this site. However, the public ownership of the site allows the potential for a lower site cost and as a regeneration priority, the Council is keen to investigate opportunities that address any funding issues.

Penzance PZ-M3 Wherry Town 0.7 - Mixed Use

The policy requirements in the DPD relate to mixed use development, cycle facilities, flood risk mitigation and Western Promenade Road facade. Commentary

• Both the 2015 and 2016 viability studies note that speculative ‘B’ class development is generally not viable in Cornwall (as in many other locations in England). Furthermore, town centre retail is also not viable in most cases. However, commercial development can come forward as Design and Build for specific occupiers, where the development is cheaper (as only a contractor’s rather than a developer’s return is required); and the project provides accommodation for income generating commercial activities that cover the cost of the building.


Summary It is likely that some form of intervention will be required to bring the planned development forward on this site.

Penzance PZ-H3 Bellair 0.6 30% Housing 65dph 100% 40

This site is owned by the NHS. The policy requirements in the DPD relate to re-provision of health facilities and offsite open space. Commentary

• The requirement for the re-provision of the health facilities is outside the costs allowed for in the viability testing and the requirement to re-provide will need to be factored into the land value for the site.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

• The NHS site ownership provides more control over the form of development, the potential for health facilities funding, and the opportunity for flexibility about the site value.

• The requirements for offsite open space are part of the costs allowed for in the viability testing case studies. Summary The DPD requirement for development on this site may have an impact on the viability, although it is expected that this will be entirely or partially mitigated by NHS investment and an adjustment to the value of the site.

Penzance PZ-E2 Stable Hobba Extension

1.3 - Employment 5000

The policy requirements in the DPD relate to provision of employment space and site layout to avoid flood risk. Development is predicated upon improvements to Trereife crossroads although the cost of this is not borne by the development. Commentary

• Both the 2015 and 2016 viability studies note that speculative ‘B’ class development is generally not viable in Cornwall (as in many other locations in England). However, commercial development can come forward as Design and Build for specific occupiers, where the development is cheaper (as only a contractor’s rather than a developer’s return is required); and the project provides accommodation for income generating commercial activities that cover the cost of the building.


Summary It is likely that some form of intervention will be required to bring the planned development forward on this site.

Penzance PZ-E3 Sandy Cove 1.6 - Employment 6000 marine related

The site is owned by the Newlyn Pier and Harbour Commissioners. The policy requirements in the DPD relate to provision of marine employment space, access and flood risk mitigation. Commentary





Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings


• The site ownership by the Pier and Harbour Commissioners will increase the control over the form of development and the opportunity for a longer-term view about how the development on this site will fit within the Commissioners’ longer-term view of marine activities in Penzance/Newlyn.

Summary It is likely that some form of intervention will be required to bring the planned development forward on this site, although delivery of marine related employment space will be facilitated by the longer-term objectives of the site owners.

Penzance PZ-E4 Long Rock East 3.2 - Employment 9400

The policy requirements in the DPD relate to provision of employment space, access and SPA mitigation. Commentary



Summary There are no DPD policy requirements that materially affect the viability on this site beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document, although it is likely that some form of intervention will be required to bring the planned development forward.

CPIR CPIR-UE1

Tolgus Urban Extension

10.6 25% Mixed Use 38dph 70% (7.42) 280 3000

Tolgus was one of the sites included in the 2015 and 2016 viability testing. The policy requirements in the DPD relate to employment space as well as residential, improvements to the A3047, permeability, green space, frontage requirements and sewage capacity requirements. Commentary

• Within the DPD requirements, the improvements to the A3047 have already been funded through Growth Deal and s106, and the road improvements completed, so there is no further cost.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings



• The requirements for open space will be within the standard costs to development

• Permeability and frontage requirements are design issues that do not directly result in viability implications.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure. Summary Some of the major hurdles have been overcome on this site (A3047 improvements) and this should allow the housing to proceed. However, it is likely that some form of intervention will be required to bring forward the planned employment space development on this site.

CPIR CPIR-E1

Tolvaddon Energy Park


Tolvaddon is in Council ownership and the proposed development makes use of the existing site servicing delivered through earlier phases. The policy requirements in the DPD relate to employment space and sustainable drainage, as well as sewage capacity requirements. Commentary



• The Council ownership of the site means that there is greater control over development and the opportunity for a flexible approach to site value.

• The requirements for open space and sustainable drainage are standard costs to development.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Summary The existing servicing and the Council ownership will help to facilitate development. However, it is still likely that some form of intervention will be required to bring forward the planned employment space development on this site.

CPIR CPIR-E5

Dudnance Lane 6.9 - Mixed Use 6000

Part of the Dudnance site is Council owned. The policy requirements in the DPD relate to mixed use development with employment space, retention of heritage features, green space, quality of design, retention/re-provision of recycling centre, protection of adjacent environment, land allowance for road widening and sewage capacity requirements. Commentary



• The heritage features will have an impact on the developable area, although the prominence of this feature and the site location within the WHS will have been considered in the site value expectations. The partial public ownership will also give some opportunity for site value flexibility.

• The requirements for open space are standard costs to development.

• There is no direct cost associated with good design.

• The requirement for retention/re-provision of the recycling centre will have an impact on viability.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure. Summary It is likely that some form of intervention will be required to bring forward the planned employment space development and (re-provided) recycling centre on this site, although the DPD policy requirements will not materially affect the viability.

CPIR CPIR-E7

Station Road 5.1 - Employment 15000 D1 Health Centre

The policy requirements in the DPD relate to mixed use development with employment space and provision of a new health centre, as well as the opportunity to provide other uses for cross subsidy, access, facade, retention of parking for Heartlands and sewage capacity requirements. This development follows on from previous adjacent development.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Commentary



• The ability to provide housing or other uses will enable some cross subsidy for other uses.

• The requirements for access are standard costs to development.

• The façade requirement is a design issue that does not directly result in viability implications.

• The parking requirement will have an impact on the land available for development although as a current and future requirement it will have been factored into the landowner expectations for the site.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure.

• The development is able to benefit from servicing provided by earlier phases of development. Summary It is likely that some form of intervention will be required to bring forward the planned employment space development, although this may be mitigated by cross subsidy from other uses. The parking requirement may have an impact.

CPIR CPIR-ED1

Tuckingmill 1.7 - Education

The policy requirements in the DPD relate to a new primary school, access, re-provision of the Pavilion and sewage capacity requirements Commentary

• New schools will be provided either through Cornwall Council (using its own funds or developer contributions) or central government (free schools programme). The development has no commercial aspects.

Summary The DPD requirements do not affect the viability of this scheme, which will be wholly dependent on the public sector.

CPIR CPIR-R1

Fair Meadow 0.3 - Retail

The policy requirements in the DPD relate to retail development (with other uses on upper floors), pedestrian connections, façade and sewage capacity requirements.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Commentary

• The 2016 viability study included retail uses, and found that while some retail was viable, town centre and smaller retail developments were not viable. However smaller retail uses did produce a positive residual albeit less than the benchmark.

• The ability to provide housing or other uses will enable some cross subsidy for other uses and may be sufficient to incentivise development, particularly if there is some landowner flexibility about site value.

• Pedestrian connections and façade are design issues that do not directly result in viability implications.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure. Summary The DPD requirements do not affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document. While there may be other scheme specific issues relating to the value of this type of development, the opportunity for ancillary uses may hep to close the gap.

Falmouth & Penryn

FP-H1 College/ Hillhead 6.7 35% Housing 37dph 60% (4.02) 150

The policy requirements in the DPD relate to layout, green buffer, access, pedestrian linkages, community facilities (but only if required), green space, sustainable drainage and SAC mitigation. The majority of the site is permitted. Commentary

• Pedestrian connections and layout are design issues that do not directly result in viability implications.

• The additional planting and buffer along the southern boundary may reduce developable area slightly, although this site-specific constraint will have been factored into land values for this site. The buffer may also form the green space requirement.

• The policy requirement for community facilities is unclear, both in terms of commitment and scale. However, the Council has stated that initial discussion with the developer suggests that provision will be limited in scale and will consist of a facility incorporated into a building with residential development above.

• The requirements for green space and sustainable drainage are standard costs to development.

• The SAC and the requirement to mitigate impacts will have been apparent over the long term and will have been factored into site purchase negotiations.

Summary The DPD requirements do not affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document. The potential exception is the community facilities requirement although the plans being discussed suggest that this is limited in scale.

Falmouth & Penryn

FP-H2 Falmouth North 14.0 35% Housing 35dph 60% (8.4) 300




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

The policy requirements in the DPD relate to access, a railway bridge, pedestrian link, frontage, community facilities (but only if required), sustainable drainage, green screening, green space and SAC mitigation. An application has been submitted for 315 dwellings on this site, with c. 250 sq m of community facilities as part of a mixed use building. Commentary

• The requirements for access, green space and sustainable drainage are standard costs to development.

• The requirement for a buffer along the northern boundary may reduce developable area slightly although this site-specific constraint will have been factored into land values for this site. The buffer may also form the green space requirement.

• The railway bridge is estimated by the developer to cost £1.4m. Given the highways requirement to access the site from the west, approximately half the area can only be developed without the bridge, and the value of the site will adjust to take account of these costs.

• Pedestrian connections and frontage are design issues that do not directly result in viability implications.

• The requirement for community facilities is unclear, both in terms of commitment and scale, but the facility in the planning application is limited in scale.


• There is a live planning application for this scheme, which includes the access and bridge requirements. Summary Although the site is subject to constraints, these will adjust the land value compared to a similar area without these issues. The DPD requirements do not affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document, with the potential exception of the community facilities requirement. The live application supports the view that the scheme is deliverable.

Falmouth & Penryn

FP-H3 Kergilliack (Phase 2) 8.8 35% Housing 33dph 70% (6.2) 200

The policy requirements in the DPD relate to access, landscaping, pedestrian links, green space, sustainable drainage and SAC mitigation. Commentary


• Pedestrian connections are design issues that do not directly result in viability implications.

• The requirement for landscaping may reduce developable area slightly although this site-specific constraint will have been factored into land values for this site (as well as the capacity considerations). The landscaping may also form the green space requirement.


• 50% of this scheme is already consented.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Summary The DPD requirements do not affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Falmouth & Penryn

FP-M1 Kernick 3.3 35% Mixed Use 45dph 70% (2.31) 100 2000

The policy requirements in the DPD relate to employment space, access, pedestrian links, green space, sustainable drainage and SAC mitigation. There is a current application to provide the housing part of this scheme. Commentary



• The ability to provide housing or other uses will enable some cross subsidy for the employment space.


• Pedestrian connections and frontage are design issues that do not directly result in viability implications.


• The housing application would provide the servicing for the employment uses. Summary There may need to be some intervention to deliver the employment space (although the housing value/site servicing may help to mitigate this). The specific DPD requirements do not affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Falmouth & Penryn

FP-E4 Ponshardon - Safeguarded Marine Employment

The policy requirements in the DPD relate to safeguarding for marine employment use.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Commentary



• The DPD does not require new employment space to be delivered to meet its employment targets. Summary There may need to be some intervention to deliver any new employment space but there are no DPD requirements that affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document. However, the DPD does not require new employment space to be delivered to meet its employment targets.

Falmouth & Penryn

FP-E5 Falmouth Wharf - Safeguarded Marine Employment

The policy requirements in the DPD relate to safeguarding for strategic employment use. Commentary



• The DPD does not require new employment space to be delivered to meet its employment targets. Summary There may need to be some intervention to deliver any new employment space but there are no DPD requirements that affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document. However, the DPD does not require new employment space to be delivered to meet its employment targets.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Falmouth & Penryn

FP-E6 Falmouth Docks - Safeguarded Marine Employment

The policy requirements in the DPD relate to safeguarding for marine employment use. Commentary



Summary There may need to be some intervention to deliver the employment space but there are no DPD requirements that affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Newquay NQ-H1

Riel: Nansledean 13.3 35% Mixed Use 45dph 70% (9.2) 420

The policy requirements in the DPD relate to green space, SAC mitigation, as well as provision of part of the Newquay Strategic Route. Commentary



• The third-party funding for the Newquay Strategic Route has been confirmed (s106, central government and Cornwall Council), so the development will now only have to provide land for the road alignment. It is likely that this will form part of the estate road system.

Summary There are no DPD requirements that affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Newquay NQ-H2

Trevenson & Kosti Veur: Nansledan

47.8 35% Housing 35dph 70% (33.46) 1170

The policy requirements in the DPD relate to green space, SAC mitigation, as well as provision of part of the Newquay Strategic Route. Part of the site is subject to flooding and is not developable.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Commentary



• The third-party funding for the Newquay Strategic Route has been confirmed (s106, central government and Cornwall Council), so the development will now only have to provide land for the road alignment. It is likely that this will form part of the estate road system.

• The flooding issue will is a site specific constraint and will have ben a factor in determining an adjusted land value. Summary There are no DPD requirements that affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Newquay NQ-M1

Station Quarter 3.5 35% Mixed Use 42dph 100 150

The policy requirements in the DPD relate to public realm, land safeguarding for the railway station, off-site green space and SAC mitigation. The site is part owned by the Council. Commentary

• The requirements for public realm are standard costs to development and part of external works.

• The safeguarding of land for the railway will reduce the developable land but the Council ownership provides more control over development as well as the opportunity for flexibility about site value. The longstanding nature of this requirement will have affected landowner expectations.

• The 2015 and 2016 viability testing included allowances for green and the specific requirements here are standard costs to development.


Summary While the DPD policies will have an impact on viability (in terms of the land for the station), this is mitigated by the Council ownership and the impact on site value expectations.

Newquay NQ-M2

Hendra - Nansledan 12.5 35% Mixed Use 43dph 70% (8.75) 375 8000

The policy requirements in the DPD relate to a recycling centre, employment space, green space, SAC mitigation land safeguarding for railway facilities/park and ride and provision of part of the Newquay Strategic Route. Commentary

• The requirements for green space are standard costs to development.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

• Cornwall Council has stated that there is notionally no cost to the developer for the recycling centre. Delivery will be through a a land swop and cost of construction is borne by a PFI contract and topped up by the Waste Budget.



• The inclusion of housing provides the opportunity to cross subsidise the other uses and this may mitigate the need for funding.


• The third-party funding for the Newquay Strategic Route has been confirmed (s106, central government and Cornwall Council), so the development will now only have to provide land for the road alignment. It is likely that this will form part of the development road system.

Summary It is likely that there will need to be public sector intervention to deliver the employment uses, although this may be mitigated by cross subsidy. The remainder of the DPD policies will not materially affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Bodmin Bd-UE2

Halgavor 37.0 30% Housing 35dph 60% (22.2) 770

The policy requirements in the DPD relate to access (including a railway crossing and road junction), pedestrian/cycling links, green space, education contribution, site flood issues and sewage capacity. The access arrangements are significant (£1.5m-£2m), and the Council has indicated that these are a priority for public sector intervention in order to unlock development on the site. Part of the site is owned by the Council. Commentary

• While the access arrangements have an impact on viability this is mitigated by the commitment by the Council to seek public sector funding. Even without this funding, this site-specific constraint should be reflected in an adjustment to the land value.

• Pedestrian/cycle connections are design issues that do not directly result in viability implications.


• The 2015 and 2016 viability studies included an allowance for education contributions in line with the DPD policies for this site.

• The 2015 and 2016 viability studies included an allowance for transport contributions, which would be put towards the access costs noted above. The figure in the 2015 modelling for transport would have been equivalent to £2.4m for this site.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

• The Council ownership provides more control over development as well as the opportunity for flexibility about site value.

• The flood issues are a site-specific constraint that would be taken into account when considering the land value.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure. Summary Public sector intervention will be used to open up this site for development, although this would have been within the transport costs already included in the strategic site viability modelling. The other DPD policies will not materially affect the viability of this site beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Bodmin Bd-UE3

St Lawrence's UE 32.0 30% Housing 35dph 70% (22.4) 780

This site was included in the 2015 and 2016 viability assessments. The policy requirements in the DPD relate to access, green space, land for a primary school plus a contribution to construction and lower density/planting on western side. Employment uses can be included but are not obligatory. Commentary

• The requirements for green space and access are standard costs to development.

• The requirement for land for primary school was not specifically included in the testing undertaken for the 2015 and 216 viability assessments although the requirement (2ha) is a small proportion of the overall site area (6%) and less than the allowance for non-developable area in the 2015 testing (30%). It is common for developments of this scale to provide on-site education facilities and it is arguable that the land value expectations would include the likelihood that a school site would be required. On this basis the site value would be adjusted to take account of this.

• The 2015 and 2016 viability studies included an allowance for education contributions in line with the DPD policies for this site.

• The requirement for lower density/planting on the western side may be addressed through siting the larger market houses in this location.

• If employment uses are included there may need to be some public-sector intervention as in most locations in Cornwall this type of development is not viable. However, there is no firm obligation to deliver this.

Summary The DPD policies will not materially affect the viability of this site beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Bodmin Bd-UE4

Callywith Urban Village

38.0 30% Mixed Use 30dph 70% (21.7) 650 26000

The policy requirements in the DPD relate to employment uses, green space, access (including junction improvements) and sewage capacity.




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Commentary



• The inclusion of housing provides the opportunity to cross subsidise the other uses and this may mitigate the need for funding. The housing could provide the main access to the site, which the employment land could also make use of.


• The junction improvement has already been delivered by the public sector.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure. Summary It is likely that there will need to be public sector intervention to deliver the employment uses, although this may be mitigated by cross subsidy and site opening up by the housing component. Given the junction improvements have already been delivered by the public sector, the remainder of the DPD policies will not materially affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Bodmin Bd-M1

Castle Street 7.6 30% Mixed Use 35dph 70% (4.27) 150 6000




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

The policy requirements in the DPD relate to safeguard land for a education, access, location of on-site green space, employment uses and sewage capacity. Commentary

• The requirement for land for education is was not specifically included in the testing undertaken for the 2015 and 216 viability assessments, although there was an allowance for 30% non-developable area.

• The requirements for access and green space are standard costs to development, and the green space location does not have direct viability impacts.



• The inclusion of housing provides the opportunity to cross subsidise the other uses and this may mitigate the need for funding.

• The sewage requirement is confirmation of capacity rather than an identified need to provide more sewage infrastructure. Summary It is likely that there will need to be public sector intervention to deliver the employment uses, although this may be mitigated by cross subsidy. The remainder of the DPD policies will not materially affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Bodmin Bd-E1 Beacon Technology Park


The policy requirements in the DPD relate to employment uses and access. The site is owned by Cornwall Council. Commentary






Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

• The Council ownership provides more control over development as well as the opportunity for flexibility about site value.

• The requirements for access are standard costs to development. Summary It is likely that there will need to be public sector intervention to deliver the employment uses, although this may be mitigated by Council ownership.

Launceston LAU-H1

Withnoe Urban Extension

11.9 30% Housing 35dph 70% (8.33) 300

This site was included in the 2015 and 2016 viability assessments. The policy requirements in the DPD relate to provision of part of the Southern Loop Road, other access points, off-site education contributions, green space and sustainable drainage. Commentary

• Cornwall Council has indicated that the access junction with the A388 will be costly and the public sector will need to intervene to enable it to come forward. The remainder of the Loop Road will form little more than part of the estate road network, due to the aspiration to keep it to a 20-30mph road that is appropriate for a residential setting.

• The other requirements for access and for green space and sustainable drainage are standard costs to development.

• The 2015 and 2016 viability studies included an allowance for education contributions in line with the DPD policies for this site. Summary The junction improvements at the A388 are costly and would have an impact on viability. However, the public-sector commitment to supporting the developers to find the right funding solution for the junction mitigates the impact. The remainder of the DPD policies will not materially affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Launceston LAU-H3

Kensey Valley 3.6 30% Housing 30dph 70% (2.52) 75

The policy requirements in the DPD relate to a link road to the industrial estate, traffic impact restrictions, green space and sustainable drainage. The site has some topographical issues. Commentary

• Cornwall Council has advised that the delivery of the link road (i.e. connecting the two elements either side of Ridgegrovehill) is now no longer required (and the traffic impact restrictions no longer apply) although some land will need to be safeguarded for future public-sector delivery. The other roads will be the standard estate roads.

• The requirements for green space and sustainable drainage are standard costs to development.

• The Council has restricted the site area to exclude the most challenging topography




Affordable Housing

Land Uses

Town DPD Ref


Other Uses


Total Dwellings

Summary The DPD policies will not materially affect the viability of this scheme beyond what was already considered by the inspector for the Cornwall Local Plan Strategic Policies document.

Launceston LAU-E2

Badash 5.8 - Employment 24000

The policy requirements in the DPD relate to employment uses, delivery of part of the Southern Loop Road, other access, sustainable drainage and layout. Commentary



• Cornwall Council has advised that this section of the Southern Loop Road will be part of the site road network.

• The requirements for other access and sustainable drainage are standard costs to development. Summary It is likely that there will need to be public sector intervention to deliver the employment uses.

Cornwall Site Allocations Viability Study · EXECUTIVE SUMMARY 1. This briefing considers the...

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Transcript of Cornwall Site Allocations Viability Study · EXECUTIVE SUMMARY 1. This briefing considers the...