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Cambrian Marina and Land Adjoining Watkiss

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Cambrian Marina and Land Adjoining Watkiss COMMITTEE DATE: 12/03/2014 APPLICATION No. 13/310/DCI APPLICATION DATE: 04/03/2013 ED: GRANGETOWN APP: TYPE: Section 73 APPLICANT: Bayscape Limited LOCATION: CAMBRIAN MARINA AND ADJOINING LAND, WATKISS WAY PROPOSAL: VARIATION OF CONDITIONS 1, 2, 9, 13, 15, 17, 25, 26, 30, & 31 OF OUTLINE PERMISSION 08/2191/C TO ALLOW FOR PHASED IMPLEMENTATION AND AN INCREASE IN THE AMOUNT OF DEVELOPMENT. ______________________________________________________________________ RECOMMENDATION 1: That, subject to relevant parties entering into a binding legal agreement with the Council under the provisions of SECTION 106 of the Town and Country Planning Act 1990, within 6 months of the date of this Resolution unless otherwise agreed by the Council in writing, in respect of matters referred to in Section 4 of this report, planning permission be GRANTED subject to all the conditions specified in the report on application no. 13/310/DCI considered at Planning Committee of 12th June 2013 except for Condition 1 which shall be varied to read as follows: 1. Outline permission A. Approval of the details of the siting, design and external appearance of the building(s), the means of access thereto and the landscaping of the site (hereinafter called "the reserved matters"), shall be obtained from the Local Planning Authority in writing before each phase of development is commenced. B. Plans and particulars of the reserved matters referred to in condition 1A above, relating to the siting, design and external appearance of any buildings to be erected, the means of access to the site and the landscaping of the site, shall be submitted in writing to the local planning authority and shall be carried out as approved. C. Application for approval of the Phase 1 reserved matters shall be made to the Local Planning Authority before the expiration of eighteen months from the date of this permission. Application for approval of the Phase 2 reserved matters shall be made to the Local Planning Authority before the expiration of five years from the date of this permission. D. The development hereby permitted shall be begun either before the expiration of five years from the date of this permission or before the expiration of two years from the date of the last of the reserved matters to be approved, whichever is the later. E. The development may be implemented in two phases as shown on the diagram at page 12 of the Design and Access Statement 2 (dated Feb 2013). Reasons: A. In accordance with the provisions of Article (3)1 of the Town and Country Planning (General Procedure) Order 1995. B, C and D. In accordance with the provisions of Section 92 of the Town and Country Planning Act 1990. 1. BACKGROUND 1.1 The above application was considered by the Planning Committee on 12th June 2013, when it was resolved to grant permission subject to the signing of a legal agreement under Section 106 of the Town & Country Planning Act (see Appendix 1. for 13/310/DCI report to Planning Committee). 1.2 The agreement has not been signed and in the interests of seeing an important residential site developed as soon as possible this supplementary report seeks approval for a further variation of condition 1 requiring application for approval of reserved matters for Phase 1 of the works to be made within 18 months of the granting of permission, and a modified legal agreement that reduces the s106 financial contributions for Phase 1 of the works (residential element) provided that: • A building works contract for Phase 1 of the works is let within 6 months of approval of reserved matters. • On practical completion of the residential component a further viability assessment is undertaken to establish the level of financial contributions payable up to the maximum agreed at the time the committee resolved to grant outline consent. • Phase 2 of the works (hotel development) is subject to a further viability assessment to establish the level of transportation-related and other relevant s106 obligations up to the maximum agreed at the time the committee resolved to grant outline consent. 1.3 Resolution to grant planning permission is subject to a legal agreement is to secure the following: (i) An off site open space contribution which accords with the formulae in the Council’s Open Space SPG (March 2008). (ii) A community facilities contribution which accords with the formula in the Community Facilities and Residential Development SPG (March 2007). (iii) An affordable housing contribution at a rate of 20% for the first 103 units (as secured in the s106 agreement dated 29 September 2010) and 40% for the additional 22 units. This amounts to the following number of affordable housing units: 20% x 103 = 21 units; 40% x 22 = 9 units; Total – 30 units. To be provided as units located offsite within the Grangetown Ward or as a financial contribution in lieu of part or all of the 30 units calculated in line with the formula in the Affordable Housing SPG (2007). (iv) The sum of £450,000 which shall be used to subsidise bus services to / from the vicinity of application site, to fund cycle and pedestrian path improvements in Dunleavy Drive, and telematics which are related to the proposed development. (v) The delivery of a water bus commuter service and point to point service, as described in the water shuttle service proposal document forwarded by st the agent as part of the original outline application on 1 September 2009 or, failing that, the contribution of money to secure the provision of such a service by others. (vi) A Travel Plan which sets out proposals and targets designed to minimise single occupancy car journeys to and from the site, and to promote sustainable travel behaviour, shall have been submitted to and approved by the Local Planning Authority, prior to any part of the proposed development being brought into beneficial use. The plan shall include a timetable, which shall be adhered to, unless otherwise agreed by the Local Planning Authority. 1.4 A viability statement (Bayscape Ltd – Application references 08/02191/C & 13/310/DCI Viability Statement) was submitted on behalf of the applicant in October 2013. 1.5 It concludes that the project is not viable in the current economic climate for the following reasons: • downturn in the market for new apartments • costs of financing a high rise apartment scheme • abnormal development costs (piling, flood storage, revetment works) • additional land costs, and • proposed level of Section 106 obligations, particularly the affordable housing element. 1.6 The Statement demonstrates a sum of £400,000 is the maximum commitment that can be made under current market conditions. 1.7 An assessment was carried out by the Council’s Strategic Estates Valuer (Bayscape – Planning Viability Report - 17.2.14). 1.8 The assessment concludes that the scheme is of borderline viability and advises acceptance of the £400,000 offered as the s106 contribution, subject to a review of the scheme receipts and costs at final completion. 1.9 The agent, in an email dated 25.2.14, provided more detail on the factors that render the scheme unviable with the current level of S106 contributions (approx. £2,400,000), as follows: • Housing Market: Since the financial crisis residential sales prices have fallen significantly which, in turn, has reduced the Gross Development Value of the project. In addition, there is a large stock of existing apartments in Cardiff Bay and a significant number of new apartments either built or in the pipeline. These factors also suppress sales prices and lead to a slower rate of sales. It will be necessary, therefore, to use discounts and incentives to achieve apartment sales. Inevitably these impact on viability. • Funding costs: Another consequence of the financial crisis is the difficulty in funding development projects. Bayscape Ltd has spent a considerable amount of time and effort to secure an innovative funding package. This involves funders and guarantors as well as materials suppliers and Willmott Dixon as main contractor. The extraordinary costs associated with this package are included in the viability appraisal and total £3m. • Abnormal Costs: The revetment, flood compensation storage and riverside walk add to the cost of the scheme compared with sites at other locations. • Land acquisition costs: Bayscape is paying the Council a relatively high price, pro rata, for the slivers of land necessary to complete the development site. 2. INTERNAL CONSULTATION RESPONSES 2.1 Housing Development: Suggest that a review mechanism is included within the s106 agreement, which would mean that the applicant/developer will have to submit another viability assessment upon either practical completion of all the residential units, or when sales of all the units are completed, as this would give a true viability figure. 2.2 If Phase 2 materialises then the viability needs to be re-assessed. From an affordable housing perspective we will need to ascertain if any of the units within the hotel complex are ‘serviced apartments’ because if they are, we could be seeking to negotiate a contribution. In addition if Phase 1 & Phase 2 form part of the same planning application we need to consider whether an overarching viability should be undertaken for both the phases. 2.3 In terms of the financial contribution in lieu of on-site affordable housing this is calculated as £1,755,834. There are high levels of housing need in this ward and across the City, with 3,763 applicants seeking/prepared to accept properties in this ward. On a scheme of this size, over 100 units, we need to be maximising an affordable housing contribution from a policy perspective. 2.4 Parks Services: The reduction in the POS off-site calculation from the modified figure of £135,000 to £20,000 does seem a large one but given the restrictions on finance available it is understood that this has been calculated on a pro rata basis based on the original figures in order to remain within the £400,000 budget.
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