planning report D&P/2211b/01 21 November 2016 87 in the Borough of planning application no. 16/AP/3144

Strategic planning application stage 1 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 Redevelopment of the site for a mixed use development comprising a basement/mezzanine basement, ground plus twenty-three floors to accommodate a 140 room hotel (levels 1-11), 48 residential units (levels 12-24), a retail unit (at ground floor), associated cycle parking, servicing and refuse and recycling, landscaping and private and communal residential amenity space (including at roof top level), external refurbishment to the front of the railway arches, and a new pedestrian route through the site linking Newington Causeway with Tiverton Street

The applicant The applicant is Neobrand Ltd, the architects are SPPARC, and the agent is Brunel Planning.

Strategic issues Land-use: The site is located within the Elephant & Castle Opportunity Area and the Central Activities Zone. The proposed hotel and residential uses are supported.(paras 15-19); Housing: The delivery of 48 new homes is supported. The current proposed level of affordable housing is 31.25% by unit or 35% by habitable room (based on the application of local policy). A viability appraisal has been undertaken and is currently being assessed to ensure this the maximum reasonable amount as per London Plan policy 3.12. (20-31); Urban design: The broad design principles are supported. The height and massing is proportionate with that emerging within the Elephant & Castle Opportunity Area. (32 -38)

Recommendation That Southwark Council is advised that whilst the scheme is broadly acceptable in strategic planning terms, the application does not fully comply with the London Plan, with the reasons and remedies set out in paragraph 62 of this report.

page 1 Context

1 On 17 October 2016 the Mayor of London received documents from Southwark Council notifying him of a planning application of potential strategic importance to develop the above site for the above uses. Under the provisions of The Town & Country Planning (Mayor of London) Order 2008 the Mayor has until 25 November 2016 to provide the Council with a statement setting out whether he considers that the application complies with the London Plan, and his reasons for taking that view. The Mayor may also provide other comments. This report sets out information for the Mayor’s use in deciding what decision to make.

2 The application is referable under Category 1C of the Schedule to the Order 2008:

 1C 1. “Development which comprises or includes the erection of a building of one or more of the following descriptions— (c) the building is more than 30 metres high and is outside the City of London”.

3 Once the Council has resolved to determine the application, it is required to refer it back to the Mayor for his decision as to whether to direct refusal; take it over for his own determination; or allow the Council to determine it itself.

4 The Mayor of London’s statement on this case will be made available on the GLA website www.london.gov.uk. Site description

5 The 0.11ha site is bounded to the north by Newington Causeway, to the south by the Rockingham Estate, to the east by commercial and retail units on Newington Causeway, including the Southwark Playhouse, and to the west by the railway viaduct, beyond which is the new 22- storey residential-led development at 89-93 Newington Causeway (D&P Ref/2270). The surrounding area is a mix of commercial and residential.

6 The site is located within the Opportunity Area, in the enterprise quarter and is identified as a development site. It is also within the Central Activities Zone. The site is currently vacant, having been previously occupied by a four storey commercial building which sold car parts and accessories, which has since been demolished. The frontage of the building onto Newington Causeway is very constrained, and is immediately adjacent to the railway viaducts and the neighbouring commercial building. The back of the site, accessed from Tiverton Street has a larger frontage.

7 The buildings at the site are neither Listed nor within a Conservation Area, however, there are a number of designated heritage assets in the vicinity including (Grade II), Michael Faraday Memorial (Grade II), Inner London Sessions Court (Grade II), St George’s Circus Conservation Area and Trinity Church Square Conservation Area. The site is adjacent to, but not within, the background consultation area of London View Management Framework (LVMF) SPG view 23A.1 from Serpentine Bridge to Palace of Westminster.

8 The site has a Public Transport Accessibility level (PTAL) of 6b, with 1 being the least accessible by public transport and 6b being the most accessible. The nearest underground station is Elephant and Castle (Bakerloo and Northern lines), which is approximately 250 metres from the site, and Borough (Northern line) is also in walking distance. Elephant and Castle also has a station served by national rail, and there are a number of bus stops approximately 75 metres south of the site. The nearest Transport for London Road Network (TLRN) is the junction between Newington Causeway and Keyworth Street approximately 150 metres to the south of the site. A Cycle Super

page 2 Highway, Route 7 (CSH7), passes close to the site along to the east and Newington Causeway to the south.

Details of the proposal

9 The site is currently vacant following the demolition of the previous part two/part three storey buildings used for motor vehicle repairs and storage (Class B2/Class B8). The proposal is for the erection of a twenty four storey tower (82.3m AOD) for a mix of uses including a 140 bedroom hotel (Class C1), 48 flats (Class C3) and retail unit on the ground floor (Class A1). A basement is proposed to accommodate cycle parking and refuse/recycling storage.

10 The proposals also include the creation of a new pedestrian route linking Newington Causeway and Tiverton Street, alongside associated public realm enhancements. Case history

11 A pre-planning application meeting was held on 2 September 2014 with a written advice report issued on 14 October 2014 respectively. In summary, GLA officers were supportive of the principle of the proposed development, subject to further detail on the proposed design to ensure that the building is high quality, and on affordable housing. Strategic planning issues and relevant policies and guidance

12 The relevant issues and corresponding policies are as follows:

 Opportunity Area London Plan  Central Activities Zone London Plan; CAZ SPG;  Hotel London Plan; CAZ SPG;  Housing London Plan; Housing SPG; Housing Strategy; Shaping Neighbourhoods: Play and Informal Recreation SPG; Shaping Neighbourhoods: Character and Context SPG;  Affordable housing London Plan; Housing SPG; Housing Strategy;  Density London Plan; Housing SPG;  Urban design London Plan; Shaping Neighbourhoods: Character and Context SPG; Housing SPG; Shaping Neighbourhoods: Play and Informal Recreation SPG;  Strategic views London Plan, London View Management Framework SPG;  Inclusive access London Plan; Accessible London: achieving an inclusive environment SPG;  Sustainable development London Plan; Sustainable Design and Construction SPG; Mayor’s Climate Change Adaptation Strategy; Mayor’s Climate Change Mitigation and Energy Strategy; Mayor’s Water Strategy; Mayor’s Ambient Noise Strategy;  Transport and parking London Plan; the Mayor’s Transport Strategy;  Crossrail London Plan; and, Mayoral Community Infrastructure Levy.

13 For the purposes of Section 38(6) of the Planning and Compulsory Purchase Act 2004, the development plan in force for the area is the 2011 Southwark Core Strategy; saved policies of the 2007 Southwark Plan; and the London Plan 2016 (Consolidated with Alterations since 2011).

14 The following are also relevant material considerations:

page 3  National Planning Policy Framework, Technical Guide to the National Planning Policy Framework and National Planning Practice Guidance;  Elephant and Castle Opportunity Area Planning Framework (OAPF) (March 2012)  Central Activities Zone Supplementary Planning Guidance (CAZ SPG) (March 2016)

Principle of development

15 The site is located within the CAZ and Elephant and Castle Opportunity Area as defined by the London Plan. Table A1.1 (in support of London Plan Policy 2.13) identifies that the Opportunity Area is undergoing major transformation, and is capable of accommodating a minimum of 5,000 new homes and 5,000 new jobs. Moreover, the Southwark Local Plan identifies Elephant and Castle as a key regeneration area, and includes this site within the boundary of Elephant and Castle (major) town centre.

16 The applicant proposes a comprehensive redevelopment of the site to deliver 48 units of new housing and employment-generating uses in the form of a new 140 bedroom hotel and a small retail unit (100 sq.m).

17 Accordingly, having regard to the context discussed above (and the consideration of existing and proposed uses set out below), the principle of the proposed comprehensive mixed use redevelopment of this Opportunity Area site is strongly supported in strategic planning terms.

Hotel

18 London Plan policy 4.5 London’s Visitor Infrastructure seeks to achieve 40,000 net additional hotel bedrooms by 2031, of which at least 10 per cent should be wheelchair accessible, and seeks to ensure that new visitor accommodation is in appropriate locations. Within the Central Activities Zone (CAZ), strategically important hotel provision should be focussed on the opportunity areas. The proposed scheme is located within the CAZ’s Elephant & Castle Opportunity Area, would deliver 140 hotel rooms towards the strategic target and the applicant has confirmed that 10% of the hotel rooms will be wheelchair accessible.

19 The proposed hotel is therefore fully supported in strategic planning terms.

Housing

20 London Plan Policy 3.3 confirms the pressing need for more homes and seeks to increase supply setting an annual monitoring target for London Borough of Southwark of 2736 additional homes per year between 2015 and 2025 with a ten year target of 27,362 new homes. The proposed scheme will deliver 48 new homes which equates to 2% of the Borough’s annual monitoring target.

21 London Plan Policy 3.8 requires new developments to offer a range of housing choices, in terms of sizes and types, taking account of the housing requirements of different groups and the challenging roles of different sectors, including the private rented sector. London Plan Policy 3.11 accord a priority to family sized affordable housing. Noting the central location and the high density nature of the scheme would provide a balanced mix of residential units as shown in the table below:

page 4 1B2P 2B3P 2B4P 3B4P 3B5P 3B6P Total

Affordable 7 3 2 1 2 - 15 (31.25%)

Market 12 - 17 - 1 3 33 (68.75%)

Total 19 22 7 48 Table 1: Proposed unit and tenure mix

Affordable housing

22 London Plan Policies 3.11 and 3.12 seek to maximise the delivery of affordable housing. Southwark’s Core Strategy Policy 6 seeks to ensure that at least 35% of dwellings within the Elephant & Castle Opportunity Area should be affordable.

23 The proposed development will deliver 15 affordable homes (31.25% by unit, 32.5% by habitable room). The 15 units would be split 50:50 between social rented and intermediate housing, The applicant states that 4 of the units are oversized wheelchair accessible units and , in line, with Southwark’s Residential Design SPD, which seeks to incentivise the delivery of affordable wheelchair units, should be counted as two habitable rooms. This would take the affordable housing provision to 35%, by habitable room.

24 The applicant advises the social rent units will be at target rent levels and the intermediate housing has been based on Southwark’s affordability levels for intermediate housing (January 2016):

Unit size: Income: 1-bed £42,918 2-bed £50,710 3-bed £58,866 Table 2: Intermediate unit affordability

25 The applicant has not confirmed how the affordable units will be split in terms of their unit sizes, and this should be confirmed ahead of any Stage 2 referral. GLA officers consider that the larger affordable units should be at social rent, particularly the wheelchair units, given they will respond better to a recognised strategic need larger affordable family units (London Plan policy 3.11) and a localised need for wheelchair accessible units.

26 Both the applicant’s viability appraisal and the independent assessment should be shared with GLA officers before the Mayor considers this application again, in order to assess compliance with London Plan policy 3.12, notably that the maximum reasonable amount of affordable housing is being achieved.

Housing mix

27 London Plan Policies 3.8, 3.9 and 3.11 and the Mayor’s Housing SPG all seek to ensure that mixed and balanced communities are created in new development through, for example, the provision of a mix of tenures and unit sizes across the development, including the priority need for family sized units.

28 Table one provides the indicative unit mix, which shows that the development will provide a mix of units from one to three bedrooms. 7 of the proposed homes would be three-bedrooms or more, which equates to 15% across the proposed development and the proposed mix is supported in strategic planning terms.

page 5 Residential quality

29 All dwellings would exceed the minimum space standards established by London Plan Policy 3.5, and the residential quality of the scheme is considered high - with the scheme generally responding well to the design quality benchmarks established within the Mayor’s Housing SPG. In particular, all units exceed the minimum floorspace standards, minimum ceiling heights are at least 2.5m, all units are dual aspect and a generous core to unit ratio of 1:4 on each floor.

Children’s play space

30 The play space requirements for the development have been calculated using the guidance contained in the Mayor’s Shaping Neighbourhoods: Play and Informal Recreation SPG. The estimated child yield is up to 16 children, which generates a requirement of approximately 155.8 sq.m of playspace. The proposed development currently provides 113.2 sq.m children’s play area at roof level. The applicant should note that the level of child playspace is dependent on the detailed tenure split of the affordable units, which has not been confirmed at this stage. Once the applicant has confirmed the tenure of each affordable unit, the playspace calculation should be applied using the spreadsheet at https://www.london.gov.uk/what-we- do/planning/implementing-london-plan/supplementary-planning-guidance/play-and-informal and the Council should secure the design and delivery of the required quantity of on-site play space to ensure compliance with London Plan Policy 3.6 and the SPG.

Density

31 London Plan Policy 3.4 Optimising housing potential requires development to optimise housing output for different locations taking into account local context and character, design principles set out in London Plan Chapter 7 and public transport capacity. Based on the characteristics of the site, it can be regarded as having a ‘central’ setting and with a PTAL rating of 6b the density matrix in the London Plan suggests an indicative range of 650-1100 habitable rooms per hectare. The residential density figure for the development, based on the net residential site area, is 2,666 habitable rooms per hectare, which exceeds London Plan Policy 3.4, however in this case, the figure has been skewed by the small site area and the applicant has sought to provide a high level of residential quality which address any symptoms of overdevelopment, and meets the criteria within the Housing SPG. Urban design

Layout

32 The podium and tower typology has allowed the designers to locate and orientate the tower to maximise the residential quality of the units, whilst the podium addresses the relationship with the street and encloses and defines the public realm.

33 The proposal has sought to facilitate a new pedestrian route between Newington Causeway and Tiverton Street, to be flanked by active uses on either side, with the proposed entrances to the hotel and residential units to the new building on one side, and new retail uses within the existing railway arches on the other. This is supported.

Height and massing

34 The approach to scale has been informed by the existing and emerging context of the Elephant and Castle Opportunity Area and mid to long-range townscape views. Having considered the submitted townscape and visual impact assessment GLA officers support the

page 6 response of the scheme to its immediate Opportunity Area setting, where it would relate well to other existing and emerging large-scale development (such as Eileen House, Skipton House, 89-93 Newington Causeway and Metro Central Heights (Grade II)). The visual impact assessment also demonstrates that the scheme would be visible in various longer townscape views (including from positions within the Trinity Square conservation area). However, having considered the proposed views (as well as cumulative scenarios including other large scale development such as Eileen House), GLA officers are of the view that the proposal would provide an appropriate response in townscape terms, and would not cause harm to designated heritage assets. Moreover, having regard to the impact on strategic views (set out within the corresponding section of this report), GLA officers are satisfied that the application accords with London Plan Policy 7.7.

Architecture and materials

35 It is noted that the applicant has explored a number of design iterations for the layout and form of the tower and the current version takes the form of a ‘kite shaped’ floorplate with four units on each level. This approach creates 100% dual aspect which is welcomed.

36 The intention to differentiate between hotel and residential uses is acknowledged and is achieved through the rhythm and spacing of openings and ceramic fins.

Response to historic environment

37 As discussed in paragraph 7 there are numerous heritage assets within the vicinity of the site (including Metro Central Heights (Grade II), Michael Faraday Memorial (Grade II), Inner London Sessions Court (Grade II), St George’s Circus Conservation Area and Trinity Church Square Conservation Area). The proposal would also feature in the context of various other heritage assets within mid to long range townscape views.

38 Further to the related consideration of urban design and townscape views within this report, and having had special regard to the desirability of preserving Listed Buildings, their settings and any features of special architectural or historic interest which they possess, GLA officers are of the view that the proposal would provide an appropriate response to context and would not harm the character or setting of the conservation areas or listed buildings identified within the applicant’s townscape and visual impact assessment. GLA officers are satisfied that the proposal would not harm the Outstanding Universal Value of the Palace of Westminster World Heritage Site when viewed from Serpentine Bridge. The application accords with London Plan policies 7.8 and 7.10. Strategic views

39 The site is adjacent to the background consultation area of LVMF SPG view 23A.1 from Serpentine Bridge to the Palace of Westminster. The submitted townscape and visual impact assessment includes a visualisation of the proposal from Serpentine Bridge and illustrates that the proposal will not be visible in this view, being obscured behind buildings in the middle-ground.

40 The proposal would not cause harm to the setting of the Palace of Westminster (Grade I); would preserve the viewer’s ability to recognise and appreciate the strategic landmark in this LVMF view; and, would not compromise the Outstanding Universal Value of the World Heritage Site. The application accords with London Plan policies 7.8, 7.10 and 7.12.

page 7

Inclusive design

41 London Plan Policy 7.2 seeks to ensure that new development achieves the highest standards of accessible and inclusive design. Five dwellings (10% of the total number of dwellings) have been designed to be wheelchair adaptable dwellings and meet the requirements set out in Part M4(3) ‘wheelchair user dwellings’. All other dwellings across the scheme have been designed to meet the requirements set out in Part M4(2) – ‘accessible and adaptable dwellings’. The quantity of wheelchair adaptable units proposed meets the requirements set out in London Plan Policy 3.8 and includes a selection of different unit sizes. Four of the wheelchair units are proposed as affordable to meet identified local needs, and this is welcomed.

42 The layout of the site has been designed to be accessible and easy to navigate for all new residents and hotel guests, as well as the general public, with a legible route through the site and visible entrances to buildings. Detailed design of the public realm should ensure materiality to enable blind and partially sighted residents to be aided with their navigation. Climate change mitigation

Energy efficiency

43 A range of passive design features and demand reduction measures are proposed to reduce the carbon emissions of the proposed development. The demand for cooling will be minimised through a high performance curtain wall system, dual aspect units promoting cross ventilation and mechanical ventilation heat recovery. An Overheating Analysis using thermal dynamic modelling has been undertaken to assess the overheating risk within the conditioned areas of the building; its results demonstrate that the modelled units comply with the current weather scenario and this is welcomed. Further investigation should be undertaken for future weather scenarios, as per the CIBSE TM49 guidance. Moreover, the actual and notional building cooling demands have been provided demonstrating that the actual building demand is higher than the notional. The applicant should investigate further design measures in order to reduce the unwanted solar gains entering the building.

District heating

44 The applicant has carried out an investigation and there are no existing or planned district heating networks within the vicinity of the proposed development. According to the London Heat Map though, the development is located within a district heating opportunity area. The applicant should therefore contact the local borough energy officer to determine the current situation of this opportunity area; evidence of any correspondence should be provided to demonstrate that this has been fully investigated. The applicant has, however, provided a commitment to ensuring that the development is designed to allow future connection to a district heating network should the network become available.

45 The applicant has provided a schematic indicating that all uses on site will be connected to the same heating network. A single energy centre is being proposed; information on its location and area has been provided.

page 8 Combined heat and power

46 The applicant is proposing to install a 210 kWe / 269 kWth gas fired CHP unit as the lead heat source for the site heat network. The CHP is sized to provide the hot water load, as well as a proportion of the space heating.

Renewable energy technology

47 The applicant has investigated the feasibility of a range of renewable energy technologies but is not proposing to install any renewable energy technology for the development due to the proposed strategy achieving the carbon target requirements.

48 Regardless of the London Plan target having been met, the applicant should aim to maximise on-site savings and should therefore consider the implementation of Photovoltaic (PV) technology on the roof of the development. A detailed roof layout should be provided assessing this potential.

Overall carbon savings

49 Based on the submitted energy assessment the development can be expected to achieve a reduction of 186 tonnes of CO2 per year in regulated emissions compared to a 2013 Building Regulations compliant development, equivalent to an overall saving of 43%. The carbon dioxide savings exceed the target set within Policy 5.2 of the London Plan. However, the comments above should be addressed before compliance with London Plan energy policy can be verified. Transport

Network impact

50 TfL is satisfied that the development proposals are unlikely to have a negative impact on the capacity of either public transport or the TLRN or on TfL infrastructure. The site does however adjoin Network Rail lines who should advise on their infrastructure protection requirements.

Road network

51 All servicing will be on street, with the majority on Tiverton Street thus limiting impact on the bus lane on Newington Causeway. Subject to Southwark’s consideration as highway authority, in principle these arrangements are acceptable to TfL given site constraints on off- highway servicing and existing access arrangements.

52 TfL would expect a Delivery and Service Plan (DSP) and a Construction Logistics Plan (CLP) to be secured by condition to appropriately manage any potential adverse effects on the local road network, the bus lane, and pedestrians’ and cyclists’ safety.

53 Taxis are an important mode of travel for hotels and the need for ranks is detailed in TfL’s Taxi Ranks Action Plan (2015). Whilst TfL recognises that the Tiverton Street frontage is constrained, TfL requests that consideration is given to a rank (with capacity for at least one taxi) being designated on Tiverton Street additional to on street drop off and pick up. The location and design would need to not compromise the servicing arrangements and be agreed with TfL and Southwark as the highways authority and then secured in the s106 agreement.

page 9 Car Parking

54 The development is car free, which is supported by TfL. It is understood that there will be on street Blue Badge parking. Other than Blue Badge holders, residents and commercial occupiers should be exempt from parking permits and this should be secured in the S106 agreement.

Cycling and walking

55 The level of cycle parking proposed is complaint with London plan policy standards. Cyclist facilities (showers, lockers and changing areas) are proposed which is welcomed by TfL. Cyclists’ facilities and parking should be secured by condition. Given the close proximity of TfL’s cycle hire scheme to the site, funding for cycle hire membership for residents and staff should be provided for a period of at least five years in the Section 106 agreement.

56 A s106 contribution payable to Southwark for new or updated Legible London signs should be secured to assist wayfinding. It is also suggested that public realm improvements to the street frontages are delivered through a s278 agreement with the Council.

Travel planning

57 The travel plan for each element of the scheme should contain ambitious targets and be secured, enforced, monitored and reviewed as part of the s106 agreement.

Community Infrastructure Levy (CIL)

58 In accordance with London Plan policy 8.3, the Mayor has agreed a CIL Charging Schedule which came into operation on 1 April 2012 The Mayoral CIL rate for the London Borough of Southwark is £35 per sqm. Local planning authority’s position

59 Southwark are looking to take the application to their Committee in early 2017. Legal considerations

60 Under the arrangements set out in Article 4 of the Town and Country Planning (Mayor of London) Order 2008 the Mayor is required to provide the local planning authority with a statement setting out whether he considers that the application complies with the London Plan, and his reasons for taking that view. Unless notified otherwise by the Mayor, the Council must consult the Mayor again under Article 5 of the Order if it subsequently resolves to make a draft decision on the application, in order that the Mayor may decide whether to allow the draft decision to proceed unchanged, or direct the Council under Article 6 of the Order to refuse the application, or issue a direction under Article 7 of the Order that he is to act as the local planning authority for the purpose of determining the application and any connected application. There is no obligation at this present stage for the Mayor to indicate his intentions regarding a possible direction, and no such decision should be inferred from the Mayor’s statement and comments. Financial considerations

61 There are no financial considerations at this stage.

page 10 Conclusion

62 London Plan policies on housing, health/social infrastructure, design, inclusive access, flood risk, sustainable drainage, climate change and transport are relevant to this application. The application broadly complies with the London Plan however, further information and/or confirmation, as detailed below is required to comply fully.  Principle of development: The proposed development of the site for a hotel and residential uses with the Elephant & Castle Opportunity Area and Central Activities Zone is supported.  Housing: The delivery of 48 new homes is supported. Both the applicant’s viability appraisal and the independent assessment should be shared with GLA officers before the Mayor considers this application again, in order to assess compliance with London Plan policy 3.12, notably that the maximum reasonable amount of affordable housing is being achieved.  Urban design: The design is broadly welcomed. The proposed height is compatible with the location and meets London Plan policy 7.7. No concerns are raised in relation to strategic views and historic environment and accords with London Plan policies 7.8, 7.10 and 7.12.  Inclusive access: The scheme complies with London Plan policies 3.8 and 7.2. The affordable wheelchair units should be secured as social rent.  Climate change: The carbon dioxide savings exceed the target set within Policy 5.2 of the London Plan. However, the comments in this report should be addressed before compliance with London Plan energy policy can be verified.

 Transport: Cyclist shower changing facilities for employees should be provided and secured by condition. Residents should be exempt from applying for parking permits and this should be secured via condition/section 106 agreement. A delivery and service plan and a construction logistics plan should be secured by condition. A travel plan should be secured via condition/section 106 agreements. Funding for cycle hire membership for residents and staff should be provided for a period of at least five years and there shall be consideration given to a taxi rank and funding for upgraded Legible London signage.

for further information, contact GLA Planning Unit (Development & Projects Team): Colin Wilson, Senior Manager – Development & Projects 020 7983 4783 email: [email protected] Sarah Considine, Strategic Planning Manager – Development & Projects 020 7983 5751 email: [email protected] Jon Sheldon, Senior Strategic Planner (Case Officer) 020 7983 5852 email: [email protected]

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