SCG 7 – North SUE Position and Delivery Statement

North JCS Examination

Position and Delivery Statement

On behalf of

North Northamptonshire Joint Planning Unit

&

Northants LLP

North Wellingborough SUE

SCG 7

November 2015

SCG 7 – North Wellingborough SUE Position and Delivery Statement

1. Introduction

1.1 This Statement has been prepared jointly by the North Northamptonshire Joint Planning Unit (‘NNJPU’) and Northants LLP (‘NLLP’). Its purpose is to provide the Inspector with an update on progress with development proposals for the SUE at Wellingborough North and the programme of delivery for the scheme in order to help demonstrate the viability and deliverability of the project.

2. Overview of the Scheme

2.1 The North Wellingborough urban extension is located to the north of the main Wellingborough urban area which is generally defined by the A509 Niort Way and A510 Northern Way. There are two existing built areas north of these roads – Redhill Grange housing estate, and the Road industrial estate, which extend northwards from the main urban area. There is also development to the west of the A509 at Park Farm.

2.2 The site has an attractive landscape setting sloping southwards towards the town, including Landscape features such as the Blackberry Fox Covert, the Brook and the Harrowden Ridge. Great Harrowden village is located to the north and further to the north-west. The town of is approximately 11.3km (7 miles) north.

2.3 Wellingborough North was confirmed as the broad location for a Sustainable Urban Extension (SUE) in the adopted 2008 Core Spatial Strategy (CSS). An outline planning application was granted planning permission on appeal in February 2010. This consent incorporated provision for 3,000 new homes and associated uses (albeit the JCS assumes that only the first 1,500 dwellings will be completed by 2031 (JCS para 9.16)). The scheme is to be delivered over 3 phases with the initial phase consisting of 1,500 units. The remaining 2 phases are approximately of equal size.

2.4 The planning permission was extended in 2013 and remains live following the submission of a reserved matters application in January 2015. The scheme is now at the point of implementation following the receipt of detailed approval for the initial infrastructure works in order to access the initial development parcels – see Section 4 below.

3. Land Uses

3.1 The North Wellingborough scheme is located on c. 620 acres to the north of Wellingborough. The consent comprises 3,000 new homes and c. 40,000 sq m of mixed use space. The specifics of the scheme are set out in Table 1 below with details of the consented masterplan available at Appendix 1:

Land Use Size Dwellings Non-Resi Floor Space (sqm) (Ha) Residential Areas 77.83 3,000 Employment Areas 6.69 42,400 Local/Other Centres comprising: 3.01 Retail/other commercial space 4,000 Hotel and Leisure 4,100 Community Facilities 3,300 Health Clinic 2,050 Primary Schools 4.15 Formal Open Space 13.65 Informal Open Space 111.00 Primary Infrastructure 36.17 Total 252.50 3,000 39,570 SCG 7 – North Wellingborough SUE Position and Delivery Statement

4. Implementation and Delivery

4.1 Planning / Technical

 The North Wellingborough development received outline planning approval in 2010 and the consent remains live as outlined in Section 2 above;

 The phase 1 design code was approved in 2013;

 All pre commencement conditions have been submitted and approved. See the attached planning condition tracker schedule prepared by David Lock Associates on behalf of Northants LLP at Appendix 2;

 A restructured s106 is in final agreed draft form and will be completed in November 2015;

 Reserved matters applications under the outline consent for the initial infrastructure (road, drainage and landscaping) to serve c. 800 units, the local centre and the phase 1 primary school were approved in January 2015;

 A reserved matters application for the initial development parcels (c. 200 units) in the scheme was submitted in January 2015 with approval pending the completion of the restructured s106 agreement;

 Applications for the roads and drainage that were approved via the reserved matters applications were submitted earlier this year with technical approval from Northamptonshire County Council anticipated in November.

4.2 Funding

 Loans of c. £9m for the initial infrastructure works required to service Phase 1A (up to c. 800 units and a primary school) have been approved with the HCA. The diligence on these loans is progressing with facilities to be agreed by November / December.

4.3 Delivery Programme

 Based on the detailed design progress outlined above in the planning / technical section above the initial infrastructure works are being tendered. The 1st stage tender has been completed with revised tender submissions from a shortlist of contractors under the 2nd stage tender due on 12th October. This will enable pricing to be agreed by end of October and contracts to be placed by end of November – see pre-contract procurement programme at Appendix 3.

 The initial works to be performed in phase 1 are identified in the attached infrastructure Plan at Appendix 4.

 Following the completion of contractual formalities with the preferred contractor a start on site is anticipated in late 2015, see summary infrastructure programme. This is subject to the resolution of all technical approvals with NCC (as outlined above).

SCG 7 – North Wellingborough SUE Position and Delivery Statement

4.4 Sales & Marketing

 Terms have been agreed with developers for the initial parcels in the scheme. These parcels will provide c. 550 new homes and a local centre to service the development. Various pre- application meetings have been scheduled for 28th October to progress the detailed design.

5. Viability

5.1 Phase 1 of the scheme has been fully costed (initial works via a competitive tender process) with sales evidence based on agreed terms with developers. Based on these agreed positions Phase 1 is financially viable with a profit on cost of c. 23%. The initial infrastructure elements will therefore be commenced in late 2015 / early 2016.

5.2 The headline financial details of Phase 1 on a serviced land sales model basis are as follows:

Total Net Serviced Land Revenue: £75,000,000* (* includes a deduction for S106 obligations to be payable by house builders)

Less: Total Land Costs: £37,000,000 Total Primary Infrastructure Servicing Costs (including contingency): £16,000,000 Other Costs (funding costs, overheads, fees etc.): £8,000,000 Total Project Costs: £61,000,000

Profit: £14,000,000 Profit on cost: 23%

6. Housing Trajectory

6.1 Midtown Capital’s anticipated housing trajectory for North Wellingborough is found at Appendix 6 (‘Scenario 1’). This is based on provision of 3,000 dwellings to 2031 (consistent with the extant permission) and has been based on “take up” evidence provided by David Lock Associates from similar schemes that they have been involved with over the past 10 – 15 years in comparable geographical locations. This is considered a ‘best case’ delivery scenario.

6.2 Notwithstanding this, however, the JCS has taken a precautionary approach to delivery at the site given the uncertainties that currently exist over provision of a link road and concerns expressed by Inspectors in recent appeals over rates of delivery. Appendix 6 therefore contains an additional (revised) trajectory for plan making purposes. (‘Scenario 2’). This is because the current consent requires a link road to be in place before phases 2 and 3 are occupied, effectively limiting the scheme at the present time to 1,500 dwellings. Should the future of the link road be clarified then the 3,000 dwelling trajectory could be achieved as per Midtown Capital’s trajectory at Scenario 1.

7. Summary

7.1 The development at Wellingborough North is anticipated to commence in late 2015 / early 2016 with the initial infrastructure works to service the initial residential parcels, the local centre and the phase 1 primary school. Funding has been secured for these infrastructure works and the construction of the primary school via the Homes & Communities Agency. Following an extensive marketing process sales have been agreed with residential developers for the initial residential parcels which comprises c. 550 new homes. Construction of these SCG 7 – North Wellingborough SUE Position and Delivery Statement

new homes is anticipated to commence in Q2 2016 following the completion of the first section of the infrastructure work.

Appendix 2 - North Wellingorough Phase 1a Programme

2014 2015

Condition Per Phase / Whole Discharge of Submission Type Condition Subject Completed July August September October November December January February March April May June July August September October November December No. Development Condition Coverage Outline Planning 5 Design Code Whole Development Site Wide Application Outline Planning 5a Phasing Plan Whole Development Site Wide Application Phase 1A Infrastructure and 4 Reserved Matters Approval of Reserved Matters Whole Development Open Space area / 16/07/2014 19/11/2014 12/01/2015** Potential approval** Phase 1A Residential area Phase 1A Approval of Reserved Matters 4a Reserved Matters Phase Infrastructure and 16/07/2014 19/11/2014 (Phase specific) Open Space area Phase 1A Statement of Design Code 6 Reserved Matters Each RMA Infrastructure and 16/07/2014* 19/11/2014* 12/01/2015** Potential approval** Compliance Open Space area Existing Landscape Features Phase 1A 11 Reserved Matters (Landscaping and Tree Phase Infrastructure and 16/07/2014 19/11/2014 Survey Information) Open Space area Harrowden Brook Modelling Phase 1A 17 Reserved Matters (for pre-commencement Whole Development Infrastructure and 16/07/2014 19/11/2014 works) Open Space area Stage 2 Flood Risk Phase 1A 18 Reserved Matters Assessment (excluding Whole Development Infrastructure and 16/07/2014 19/11/2014 preliminary works) Open Space area Phase 1A Highway and Access works 29 Reserved Matters Phase Infrastructure and 16/07/2014 19/11/2014 (Phase) Open Space area Variation of 1 Condition Phase 1 Expiration dates Whole Development Site Wide 01/09/2014 19/11/2014 Application Public Right of Ways 9 Pre-Com Condition Whole Development Site Wide 05/01/2015 21/04/2015 protected / diverted

Phase 1A 10 Pre-Com Condition Structural Landscape Scheme Whole Development Infrastructure and 03/02/2015 03/06/2015 Open Space area

Phase 1A 12 Pre-Com Condition Landscape Management Plan Phase Infrastructure and 05/01/2015 21/04/2015 Open Space area

Phase 1A 16 Pre-Com Condition Lighting Strategy Phase Infrastructure and 06/05/2015 29/06/2015 Open Space area

Phase 1A 19 Pre-Com Condition Foul Water Drainage Scheme Whole Development Infrastructure and 03/02/2015 03/06/2015 Open Space area

Phase 1A 20 Pre-Com Condition Surface Water Disposal Phase Infrastructure and 16/07/2014 19/11/2014 Open Space area

Phase 1A Highway and Access works 28 Pre-Com Condition Whole Development Infrastructure and 03/02/2015 03/06/2015 (site wide) Open Space area

Low / Zero Carbon (LZC) 25 Pre-Com Condition Whole Development Site Wide 05/01/2015 21/04/2015 Feasibility Study

32 Pre-Com Condition Walking and Cycling Audit Whole Development Site Wide 05/01/2015 21/04/2015

Submitted Phase 1A 11/05/2015 13 Pre-Com Condition Archaeological Investigation Phase Infrastructure and Approved Open Space area 21/05/2015 Phase 1A Construction Management 15 Pre-Com Condition Phase Infrastructure and 28/08/2015 Potential approval Plan Open Space area First Residential Parcel Reserved Matters Application (Phase Phase 1A Phase 12/01/2015 Potential approval 1a) Residential Area

KEY: Potential Submission * Infrastructure RMA Phase 1A Infrastructure and Open Space area Phase 1A Residential Area Application submitted ** Residential RMA Application vailidated by BCW Application not submitted Potential Approval Application Approved Condition not discharged Contractor selection & appointment - Rev J - HCA funding constraint SOS end Nov ID Task Mode Task Name Duration Start Finish Predecessors M B E M B E 17 Aug '1524 Aug '1531 Aug '1507 Sep '15 14 Sep '15 21 Sep '15 28 Sep '15 05 Oct '15 12 Oct '15 19 Oct '15 26 Oct '15 02 Nov '1509 Nov '1516 Nov '1523 Nov '15 M T S W S T F M T S W S T F M T S W S T F M T S W S T F M T S W S T F 1 Pre - Construction Phase 64 days Mon 24/08/15Thu 19/11/15 2 Stage 1 Tender 13 days Wed 09/09/15Fri 25/09/15 3 Stage 1 Tender return 0 days Wed Wed 09/09/15 09/09 09/09/15 4 High level Tender analysis 6 days Fri 11/09/15 Fri 18/09/15 5 Initial figures to MB 0 days Tue 15/09/15 Tue 15/09/15 15/09 6 Post (stage 1) Tender queries to PBA 1 day Mon Mon 21/09/15 4 21/09/15 7 Initial high level tender report to MB 0 days Mon Mon 21/09/15 4 21/09 21/09/15 8 PBA review & return post tender query 4 days Tue 22/09/15 Fri 25/09/15 6 responses 9 Downselect to 3 contractors 0 days Wed 23/09/15Wed 23/09/15 23/09 10 Stage 2 Tender / contract award 64 days Mon 24/08/15Thu 19/11/15 11 Prepare additional information for stage 2 25 days Mon Fri 25/09/15 tender 24/08/15 12 Prepare tender addendum (stage 2) 2 days Mon Tue 29/09/15 11 28/09/15 13 Issue tender addendum to contractors 0 days Thu 01/10/15 Thu 01/10/15 12 01/10 14 Pricing by contractors 7 days Thu 01/10/15 Fri 09/10/15 13 15 Tender return 0 days Fri 09/10/15 Fri 09/10/15 14 09/10 16 Scoring meeting 0 days Wed 14/10/15Wed 14/10/15 14/10 17 Tender analysis 7 days Mon 12/10/15Tue 20/10/15 15 18 Client/Virtus Internal review 0 days Wed 14/10/15Wed 14/10/15 14/10 19 Meet Mark - review tenders (2pm) 0 days Tue 20/10/15 Tue 20/10/15 20/10 20 Full Tender Report 4 days Tue 20/10/15 Fri 23/10/15 15 21 MB approval 5 days Mon 26/10/15Fri 30/10/15 20 22 Notify unsuccessful contractors 0 days Fri 30/10/15 Fri 30/10/15 21 30/10 23 Notify successful contractor 0 days Fri 30/10/15 Fri 30/10/15 22 30/10 24 Letter of Intent subject to contract 0 days Fri 30/10/15 Fri 30/10/15 30/10 25 Negotiations with Successful 10 days Fri 30/10/15 Thu 12/11/15 24 contractor 26 Contract signing ( during mobilisation 0 days Wed Wed 18/11/15 24FS+14 days 18/11 period ) 18/11/15 27 Mobilisation 20 days Fri 23/10/15 Thu 19/11/15 28 Mobilisation period 10 days Fri 30/10/15 Thu 12/11/15 24 29 Condition 15 discharged 0 days Fri 23/10/15 Fri 23/10/15 23/10 30 Pre start meeting 0 days Thu 19/11/15 Thu 19/11/15 28FS+5 days 19/11 31 Construction Phase Health and Safety 0 days Thu 19/11/15 Thu 19/11/15 28FS+5 days 19/11 plan 32 Start on site. 0 days Thu 19/11/15 Thu 19/11/15 31,30,26,29 19/11

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Sectional Completions - Rev C ID Task Mode Task Name Duration Start Finish 13 Jul '1531 Aug '1519 Oct '1507 Dec '1525 Jan '1614 Mar '1602 May '1620 Jun '1608 Aug '1626 Sep '1614 Nov '1602 Jan '1720 Feb '17 1

2 Sectional Completions 287 days Thu 19/11/15 Fri 23/12/16

3 Start on site Sections 1 to 6 inclusive 0 days Thu 19/11/15 Thu 19/11/15 19/11

4 Section 1 - Junction A S278 works 0 days Thu 31/03/16 Thu 31/03/16 31/03

5 Section 2 - Road 2 S38 works 0 days Thu 31/03/16 Thu 31/03/16 31/03

6 Section 3 - Junction B S278 works 0 days Fri 29/04/16 Fri 29/04/16 29/04

7 Section 4 - Rd 1 & Rd 3 to School 0 days Fri 29/04/16 Fri 29/04/16 29/04

8 Section 5 - Plots R1 & R2 0 days Tue 31/05/16 Tue 31/05/16 31/05

9 Section 6 - Borrowpit area 0 days Tue 31/05/16 Tue 31/05/16 31/05

10 Section 7 - North of the brook 171 days Fri 29/04/16 Fri 23/12/16

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Project: North Wellingborough Milestone Inactive Summary Start-only Progress

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Page 1 SCG 7 – North Wellingborough SUE Position and Delivery Statement

Appendix 6: Housing Trajectories

 Scenario 1: Midtown Capital ‘Best Case’ Delivery Trajectory (after para 6.1):

2

31

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Site

2016/17 2017/18 2018/19 2019/20 2020/21 2021/2 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31

2016-21 2021-26 2026-31 2011 Total North 25 240 280 280 280 280 280 280 280 280 280 215 0 0 0 3,000 Wellingborough Cumulative 25 265 545 825 1,105 1,385 1,665 1,945 2,225 2,505 2,785 3,000 3,000 3,000 3,000 3,000 Totals

 Scenario 2: Borough Council of Wellingborough ‘Cautious’ Delivery Trajectory (after para 6.2):

2

31

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Site

2016/17 2017/18 2018/19 2019/20 2020/21 2021/2 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29 2029/30 2030/31

2016-21 2021-26 2026-31 2011 Total North 25 200 250 250 250 250 250 25 0 0 0 0 0 0 0 1,500 Wellingborough Cumulative 25 225 475 725 975 1,225 1,475 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 Totals