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planning report D&P/3788/02 6 June 2016 Ilona Rose House, 111-119 Charing Cross Road in the City of Westminster planning application no. 15/11234/FULL Strategic planning application stage II referral Town & Country Planning Act 1990 (as amended); Greater London Authority Acts 1999 and 2007; Town & Country Planning (Mayor of London) Order 2008. The proposal Substantial demolition of existing buildings and redevelopment to provide a mixed use scheme of basement, ground and part eight upper storeys plus rooftop plant with frontages to Charing Cross Road and Manette Street; refurbishment of buildings on Greek Street, in connection with use of the buildings for offices, retail restaurants, art gallery/art education use, nightclub and eight residential dwellings; new public realm and pedestrian route through the site from Manette Street to Greek Street. The applicant The applicant is Soho Estates, and the agent is Gerald Eve LLP. Strategic issues summary Affordable housing: 8 residential units are to be provided on site as intermediate rent. A payment in lieu of £2.3m to Westminster City Councils affordable housing fund has also been secured. Heritage: The public benefit of the scheme is considered to outweigh the harm to the Soho conservation area. Transport: The applicant has confirmed that a cycle hire contribution of £100,000 will be secured. A Crossrail contribution of £2,179,800 will also be secured via the s106 agreement. The Council’s decision In this instance Westminster City Council has resolved to grant permission. Recommendation That Westminster City Council be advised that the Mayor is content for it to determine the case itself, subject to any action the Secretary of State may take and does not therefore wish to direct refusal or direct that he is to be the local planning authority. page 1 Context 1 On 21 December 2015 the former Mayor of London received documents from Westminster City Council notifying him of a planning application of potential strategic importance to develop the above site for the above uses. This was referred to the Mayor under Categories 1B and 1C of the Schedule to the Order 2008: 1B “Development (other than development which only comprises the provision of houses, flats, or houses and flats) which comprises or includes the erection of a building or buildings (b) in Central London and with a total floorspace of more than 20,000 square metres.” 1C “Development which comprises or includes the erection of a building of (c) more than 30 metres high and is outside the City of London.” 2 On 28 January 2016 the previous Mayor considered planning report D&P/3788/01, and subsequently advised Westminster City Council that the application did not comply with the London Plan, for the reasons set out in paragraph 110 of the above-mentioned report. 3 A copy of the above-mentioned report is attached. The essentials of the case with regard to the proposal, the site, case history, strategic planning issues and relevant policies and guidance are as set out therein, unless otherwise stated in this report. On 17 May 2016, Westminster City Council decided that it was minded to grant planning permission subject to the views of the Mayor of London and a s106 legal agreement, and on 24 May 2016 it advised the Mayor of this decision. Under the provisions of Article 5 of the Town & Country Planning (Mayor of London) Order 2008 the Mayor may allow the draft decision to proceed unchanged, direct Westminster City Council under Article 6 to refuse the application or issue a direction to the Council under Article 7 that he is to act as the Local Planning Authority for the purposes of determining the application and any connected application. The Mayor has until 6 June 2016 to notify the Council of his decision and to issue any direction. 4 The decision on this case, and the reasons will be made available on the GLA’s website www.london.gov.uk. Update 5 At the consultation stage Westminster City Council was advised that the application did not comply with the London Plan, for the reasons set out in paragraph 110 of the above-mentioned report: Principle of development: The principle of office-led, mixed-use development on this site is supported in strategic planning terms. The provision of a mix of uses including residential, retail, leisure and cultural facilities on this site is welcome. Affordable housing: Further details are required regarding the proposed donor site for the affordable housing provision. Westminster City Council should undertake an independent assessment of the applicant’s viability appraisal, the results of which should be shared with GLA officers prior to the application being referred back to the Mayor. Historic environment: The restoration of 14 Greek Street is supported. Further consideration should be given to ‘Option 4- Facade Retention’ development strategy of the applicant’s Design and Access Statement. GLA officers are of the view that the proposal would cause significant harm to the Soho Conservation Area and the public benefit of the scheme does not outweigh this harm. Given this, the proposal does not comply with London Plan policies or the NPPF. page 2 Urban design: The residential quality of the proposal is high, which is welcome. However GLA officers request further work and information with regards to the layout; height, massing and appearance; and strategic views. This should be supplied prior to the application being referred back to the Mayor. Inclusive access: The applicant’s Access Statement demonstrates that the proposals generally reflect the principles of inclusive design, which is welcome. The Council should secure compliance with Building Regulations M4(2) and M4(3) via condition. In order to ensure compliance with London Plan Policy 3.8, the applicant should provide one wheelchair accessible or easily adaptable unit. Sustainable development: Whilst the proposals are compliant with London Plan Policy 5.12 ‘Flood Risk’, they are not yet compliant with Policy 5.13 ‘Sustainable Drainage’. The proposal therefore requires more detailed consideration of sustainable drainage techniques. Further information and discussion are required before the proposals can be considered acceptable and the carbon dioxide savings verified. This should be submitted for assessment before the application is referred back to the Mayor. The applicant should ensure the short fall in carbon dioxide reductions is met off-site. Conditions securing commitment for climate change adaptation should be included when the application is referred back to the Mayor. Transport: Further information and discussion is required regarding transport matters prior to the application being referred back to the Mayor. TfL requests a s106 contribution of £100,000 in order to accommodate the additional operational and maintenance demands of the local stations that are part of the Mayor’s Cycle Hire Scheme. Principle of Development 6 The scheme would provide new office floorspace which could help anchor existing and expanding media related businesses within Soho. This would add to the vitality of the Central Activities Zone, build on the investment in Crossrail and maintain London’s international position and reputation as a leading provider of media services and skills. The development would therefore provide a significant contribution to the London economy in line with the policies of the London Plan. Affordable housing 7 At the consultation stage, GLA officers were advised that the applicant would be providing an off-site affordable housing provision. The identified ‘donor’ site was located at Dean Street. The applicant was intending to deliver 31 affordable units at this site. 8 The applicant’s viability report has since been independently assessed on behalf of Westminster City Council. This independent assessment concluded that the proposed ‘donor’ site affordable housing provision was not viable in development terms. The independent assessment also considered a payment in-lieu option; and to provide the eight residential units as part of the Ilona Rose House scheme as affordable units. The Council has since advised that its preference would be for the residential units at Ilona Rose House to be provided as affordable accommodation. Further viability work undertaken has indicated that the scheme could also support a payment in lieu of £2.3m towards the Westminster City Council’s affordable housing fund. 9 London Plan Policy 3.11 includes the strategic target that 60% of new affordable housing to be provided for social rent and 40% for intermediate rent or sale. The applicant is intending to deliver all units on site as intermediate rent. Westminster City Council’s Committee Report states that the proposed tenure is appropriate for the proposed unit sizes as there is a demand for smaller page 3 units in this tenure, and the layout and location is not considered particularly suited to family living. The intermediate provision would meet the definitions of affordability set out in the Mayors Annual Monitoring Report (AMR). In this instance, and given the Council’s support, the provision of all units as intermediate rent is considered to be acceptable. 10 The provision of affordable housing on-site is supported and in accordance with London Plan policies 3.11 and 3.12. Historic environment 11 At stage 1, it was acknowledged that the proposed buildings of merit would cause harm to the Soho Conservation Area, in respect of the undesignated heritage assets, and the proposed development would impact upon the setting of the listed House of Barnabas from Soho Square. Paragraph 132 of the NPPF states that ‘when considering the impact of a proposed development on the significance of a designated asset, great weight should be given to the asset's conservation.’ In this case, the proposed development would impact the setting of the Soho Conservation Area and the surrounding listed buildings.