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Corby Borough Council Local Brownfield Strategy

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Corby Borough Council Local Brownfield Strategy CORBY BOROUGH COUNCIL LOCAL BROWNFIELD STRATEGY Date: February 2012 CONTENTS Page No. 1.0 INTRODUCTION 2. 2.0 POLICY AND ECONOMIC CONTEXT 4. 3.0 EVIDENCE BASE REVIEW 11. 4.0 PROPERTY MARKET REVIEW 13. 5.0 REVIEW OF IDENTIFIED SITES 18. 6.0 FINANCIAL ANALYSIS 22. 7.0 POTENTIAL MEASURES TO SUPPORT SITE DELIVERY 24. 8.0 APPROACH TO DELIVERY OF THE DEVELOPMENT ON BROWNFIELD SITES 31. 9.0 MONITORING AND EVALUATION 42. 10.0 CONCLUSIONS 43. ANNEXES I MARKET ASSESSMENT II APPENDIX D PROFORMA III SITE EVALUATION PROFORMA IV DELIVERY PERIOD FOR THE SITES V PLANS IDENTIFYING VARIOUS CLUSTERS VI PRELIMINARY VIABILITY ASSESSMENTS 2 1.0 INTRODUCTION The purpose of the Local Brownfield Strategy (LBS) is to provide a better understanding of a sample stock of brownfield sites taken from NLUD within Corby and identify those sites that can be returned to beneficial use, for hard and soft end uses, the timescales against which this can be achieved and the actions needed to achieve site specific goals. For the purposes of this Strategy, brownfield land is defined in accordance with Planning Policy Statement 3 (PPS3) as being sites “that which is or was occupied by a permanent structure, including the curtilage of the developed land and any fixed surface infrastructure”. The Strategy makes specific reference to a total of 21 separate sites comprising 16 Essential Sites of which 15 fall within a further five Desirable Sites. This sample of brownfield sites have been identified by the Borough Council and provide a total gross development area of 235 hectares and estimated net developable area of 181 hectares. An inspection of each of these sites has been undertaken and consideration given to their development potential. This report considers the potential future uses of these sites for a range of uses, the existing barriers to development and recommendations as to the steps which may be necessary to overcome these barriers in the context of current market conditions and the existing public sector funding environment. The Strategy seeks to identify a potential level of development on the identified brownfield sites for uses including residential, industrial/warehousing and office uses in the short (0-5 years), medium (6-10 years) and longer (11 years and beyond) term. It is noted that the Local Brownfield Strategy will potentially be used by Corby Borough Council to deliver the following objectives; To inform the review of the Core Strategy. To support the Site Specific Allocations DPD 2009 approach to guide future development across the Borough in a sustainable manner. To respond to national guidance in PPS3 requiring Local Authorities to undertake strategies and interventions to bring previously developed land back into use in line with local and national targets. To inform a planning policy context to bring brownfield land back into use. To improve the understanding of the supply of brownfield land across the Borough and factors affecting the delivery of these sites. To inform policies and strategies relating to bringing brownfield sites into reuse. To consider an approach to funding where required to support the development of brownfield sites. To prioritise key opportunities and early wins in the development of brownfield sites across the Borough. The Strategy is set out within the following sections; 1.0 Introduction 2.0 Policy and Economic Context – Commenting on national, regional and local policies. 3.0 Evidence Base Review – Considering previous relevant studies and research and their impact on the subject strategy. 4.0 Market Review – A review of current market conditions including commentary on supply and demand related issues within the Borough. The section considers factors affecting the supply side including development viability, site constraints such as site conditions, availability of finance and developer confidence. ___________________________________________________________________________ Corby Borough Council Local Brownfield Strategy – February 2012 3 5.0 Review of Identified Sites – An analysis of the 21 sites is undertaken, including an assessment of the more appropriate future use for each site and anticipated timescale for bringing forward individual development projects. 6.0 Financial Analysis – To consider the preliminary assessment of viability of the development proposals for each site and deliverability of sites on this basis. 7.0 Potential Measures to Support Brownfield Site Development – To consider the various funding opportunities and delivery mechanisms which are available at the current time to support the development of brownfield sites. 8.0 Consideration of Potential Interventions – To consider the specific measures which will support the delivery of the development of brownfield sites across the Borough. 9.0 Monitoring and Evaluation – This section considers the requirement for ongoing update of the strategy to ensure that it may be maintained as a “live” document. 10.0 Conclusions The Local Brownfield Strategy is set out as follows; ___________________________________________________________________________ Corby Borough Council Local Brownfield Strategy – February 2012 4 2.0 POLICY AND ECONOMIC CONTEXT 2.1 Introduction The past 18 months have seen major changes within the political landscape and economic structure, which have resulted from changes within the economic climate post recession and also following the election of the Coalition Government, which has seen implementation of radical reform to the public sector and funding regimes. Subsequently, extensive cuts to budgets have been implemented in seeking to address the £156 billion budget deficit. In addition, the Coalition have introduced the new “localism” agenda – the full impact of which is difficult to assess at the current time. Consequently, the existing structure of Regional Development Agencies including East Midlands Development Agency (emda) who have taken a key role in the funding of economic regeneration within the East Midlands is disappearing (together with the emda investment budget of around £155 million per annum). The Homes & Communities Agency (HCA) which supported the delivery of market and affordable housing has seen its budget cut by over 40% with its role proposing to be reduced from that of landowner, development partner and grant provider to that of development enabler and investor, who would be seeking longer term financial returns in relation to investment made. Many of the functions of the Regional Development Agencies have now been passed to the recently created Local Enterprise Partnerships (LEPs) and the Northamptonshire LEP comprises one of the 38 LEPs approved by Central Government. However, the new LEPs have not had any allocated revenue or capital budgets until recently, when, we understand the under spend on RGF Round 1 has been allocated to a number of LEPs as the new Growing Places Fund. Ultimately however as private sector led organisations, the LEPs future role is likely to be the coordination and prioritisation of investment within the LEP boundary. Although not specifically determined at this stage, it is clear that Central Government regard the LEP as a key consultee in new policy within this area. The various LEPs are currently seeking to establish individual business plans and working structures. The March 2011 Budget announced the creation of 21 Enterprise Zones (EZs) across the Country, with similar range of measures as the 1980s models with simplified planning policies, capital allowances and occupiers benefiting from business rate exemption for up to 5 years and capital allowances relief of up to 100% in six of the zones and 18% in the remaining zones. It is noted that EZs are to be identified by the various LEPs and proposals may be made for an EZ within the Northamptonshire LEP area. The Coalition Government has sought to replace the investment provided by Regional Development Agencies and Central Government Agencies including Business Innovation and Skills (BIS), Constitution and Local Government (CLG) and Department for Transport (DfT) into projects on a national basis such as the Regional Growth Fund (RGF), with a first round of bids received in January 2011. Preferred schemes for RGF were announced in March 2011, with a second round of bids announced in April 2011 with applications invited for July 2011. The announcement of selected projects from the July bidding round was confirmed in October 2011 A total of 119 bids were approved with seven in the East Midlands. The first round of bids were made against an allocation of £150 million while the second round of bids was against an allocation to be around £250 million. The above changes are made in the context of a reduction in the Central Government funding of Local Authorities which typically provides for a 20-25% reduction in the budget of individual Local Authorities phased over a three year period. ___________________________________________________________________________ Corby Borough Council Local Brownfield Strategy – February 2012 5 The potential ramifications of the severity of funding cuts and radical reform imposed upon an economy beginning to recover from economic recession has raised concerns for the economy to slide into a “double dip recession”. The spending cuts come at a time when private sector activity is hampered through limited availability of private/bank investment thus curtailing private sector operations and growth. The Coalition Government have introduced new measures and programmes to replace some public
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