PLR.SL.1

PROOF OF EVIDENCE: BACKGROUND TO SCHEME AND FUNDING

STEPHEN LITTLER MRICS

(APP/H4315/V/20/3253230 - A49-A573 LINK ROAD (St Helens) APP/M0655/V/20/3253232 - A49-A573 LINK ROAD (Warrington))

CONTENTS

1.0 INTRODUCTION 1

2.0 HISTORY OF PROJECT 2 3.0 FUNDING 6 4.0 PRESENT STATUS OF THE PLR 9 5.0 SUMMARY AND CONCLUSIONS 11

APPENDICES (PRESENTED SEPARATELY)

Appendix 1: Parkside’s Strategic Location Drawing

Appendix 2: Letter Confirming Funding Commitment from Parkside Regeneration Limited

Appendix 3: Land Acquisition Drawing

Appendix 4: Letter Confirming Reprogramming of City Region Strategic Infrastructure Fund Award

Appendix 5: Letter from iSec Ltd

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1.0 Introduction

1.1 My name is Stephen Paul Littler. I am a Member of the Royal Institution of Chartered Surveyors (“RICS”) having qualified in 2000 and I am also an RICS Registered Valuer.

1.2 I am currently the Assistant Director for Property & Economy within Place Services at St. Helens Council with responsibility for major regeneration projects within the Borough and delivery of strategic infrastructure. I have 30 years’ experience within the public sector principally in property development, regeneration and infrastructure projects.

1.3 I have been involved in work on the feasibility and development of the Parkside Link Road on behalf of St Helens Council since September 2016.

1.4 My evidence addresses the history of the scheme; the Council’s promotion of the PLR; funding; and the present status of the project.

1.5 The evidence which I have prepared and provide for this public inquiry (References APP/H4315/V/20/3253230 and APP/H4315/V/20/3253232) in this proof of evidence is true and has been prepared and is given in accordance with guidance of my professional institution and I confirm the opinions expressed are my true and professional opinions.

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2.0 History of Project

2.1 The application site is 3.3km long and covers an area of approximately 37.7 hectares from the A49 in Newton-le-Willows to junction 22 of the M6 motorway.

2.2 The site benefits from a strategic location adjacent to the M6 and M62 midway between Liverpool and , with a strategic position at the heart of the North West. The site is adjacent and in close proximity to the West Coast Main Line (WCML) railway and also the Chat Moss Line (Liverpool-Manchester) as shown at Drawing AI6354.12.004 in PLR.SL.1.1 Appendix 1.

2.3 The previous land use as a colliery covers part of the site, with the remainder of the site greenfield. The Parkside Colliery was closed in March 1993, with mining having ceased the previous year. The previously developed site has not functioned as ‘countryside’ historically and the previous land use as a colliery and the close proximity of the M6 are evident in the landscape.

2.4 Parkside Colliery has a proud history, at its peak employing nearly 2,000 people and producing around 1 million tonnes of coal. Workers travelled from places such as St Helens, Wigan, Haydock, Golborne and Leigh. It was the last pit to survive in the Lancashire Coalfield, until mining ceased in October 1992.

2.5 Parkside is a key regeneration site which has a strategic nature given its proximity to the existing transport infrastructure and the potential employment opportunities, for the entire Liverpool City Region.

2.6 Within St. Helens and across the Liverpool City Region, there are a lack of employment sites of this scale which could support long term growth.

2.7 The evidence base for the emerging Local Plan has identified increased demand for

employment land (requirement of 190 - 239ha) and Mr ’s evidence addresses this in detail.

2.8 St Helens has lower levels of employment in comparison to the wider Liverpool City Region, with a key aim of the emerging Local Plan to have 'a strong and stable economy … ensuring an adequate supply of employment land and premises' and using

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'the Borough's strategic location in relation to the rail network by facilitating rail-enabled employment development.'

2.9 There has been historic interest in bringing the Parkside site forward for a Strategic Rail Freight Interchange (SRFI).

2.10 There were two planning applications made in 1997 by British Coal as part of a proposal for employment development on the former colliery, part of which was to be a distribution warehouse to be operated by Wm Morrisons supermarkets. Unfortunately, Morrisons withdrew its element of the application following which British Coal sought to sell the site.

2.11 Railtrack tried to progress a hybrid scheme (Ref. P2001/0902) and submitted an application for outline planning permission for a rail freight facility comprising some 188,000 sqm of warehouse distribution units. The application also sought full planning permission comprising construction of the M6 link road, infrastructure and service works, earthworks, flood attenuation, connecting track work into rail terminal, rail terminal, warehousing, office space and car parking. This proved ultimately unsuccessful and the application was withdrawn.

2.12 This application was followed by a more significant application (Ref P/2006/1296) by Astral (subsequently taken over by Prologis) for a strategic rail freight interchange of up to 715,000 sqm of rail served warehouse, distribution buildings, assembly areas and depots, waste recycling centre, power generating facilities, relocation of substation and rerouting of underground cables. It should be noted that the facility was also heavily dependent on road logistics detailing the construction of dedicated motorway access. This application was formally withdrawn in July 2010 due to the economic climate and adverse market conditions during the global economic downturn.

2.13 An application was made in 2005 (Ref P/2005/1251) to facilitate the redevelopment of the site, by carrying out remediation works, undertake site clearance works, excavate, segregate and engineer the soils on the site to form a development platform. This would then facilitate the future construction of a link road. This application included works to generate electricity from mine gas and was approved in May 2006 however the development was not implemented and the time lapsed.

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2.14 The site has been promoted by various parties (Railtrack and Prologis) for 15 years and the upfront capital cost to deliver the site has been a major stumbling block. Past development at the site has been limited due to the infrastructure and land requirements clearly indicating that public sector intervention is required.

2.15 The need for the road, to bring forward the site is clearly outlined in the Parkside Logistics and Rail Freight Interchange Study (August, 2016) (CD 5.54). The Study concludes by confirming that the market attractiveness of the site for logistics activity “remains as strong and is arguably stronger than in 2006 when a previous application for the site was put forward" (CD 5.54 page 125). It confirms that one of the principal reasons for the site not coming forward was "the issue concerning achieving a sustainable access option to the site. The provision of the eastern access road to the A579 and the connection of the west and the east side of the development site, along with enabling rail connection work for the construction phase allows the development to take place. This could initially be with an A49 link but which commits to the development of the eastern access and implementation of the required rail connections and terminal in a later phase of development" (CD 5.54 page 125).

2.16 The St Helens Local Plan Core Strategy (2012) (CD 2.2) contains planning policies relevant to the application which Mr Grimshaw addresses in his evidence.

2.17 Policy CAS 3.2 (Development of a Strategic Rail Freight Interchange) is a key policy in the adopted Core Strategy which identifies part of the Parkside site for a Strategic Location for the Strategic Rail Freight Interchange (SRFI) and was formulated when a planning application for such development was being considered by SHMBC.

2.18 The Submission Draft of the St Helens Borough Local Plan 2020-2035 (CD 3.18) was published on 17th January 2019 and has been subject to consultation. The Council resolved in September 2020 to submit the plan for examination. This has since been submitted to the Planning Inspectorate and an Inspector has been appointed for the Examination in Public during 2021. The plan proposes to allocate 265 hectares of employment use up to 2035 with an additional 85.88 hectares of land safeguarded for employment use beyond the plan period.

2.19 The Plan proposes to remove the area of the application site which lies in St Helens from the Green Belt and allocate the land on the west of the M6 as employment land appropriate for general industrial (B2) and storage or distribution (B8) uses; and land

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on the east of the M6 for an SRFI and B2/B8 employment uses that are rail served or would not prejudice the delivery of an SRFI.

2.20 Following the decommissioning of Parkside Colliery, there has been significant interest from both the private and public sector in bringing the site and neighbouring land forward for logistics and distribution use, including a Strategic Rail Freight Interchange (SRFI).

2.21 The PLR is the single most important, facilitating factor to bring forward the Parkside development including SRFI. The PLR is addressing the previous market failures by removing the high cost infrastructure work that is required in order to render a development a viable proposition.

2.22 There is demonstrable market interest in employment development at Parkside as Mr Sandwell addresses in his evidence. This includes Parkside Regeneration LLP which is a joint venture between St Helens Council and Langtree with interest in developing Parkside Phase 2 and interest from iSec in developing the SRFI and related development. iSec has stated its intention to submit an application under the Planning

Act 2008 for the SRFI commencing preparatory work in late 2020.

Decision of St Helens Council to Promote the Road as Developer

2.23 Recognising the importance of the Parkside Link Road to future release of employment land and the repeated failures of the market to deliver this infrastructure, the Council investigated how it could promote the development of the Parkside Link Road as an enabler of growth in the Borough.

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3.0 Funding

3.1 The redevelopment of the Former Parkside Colliery site as an employment and logistics hub, together with the potential to bring forward strategic rail enabled development, is currently undermined by the lack of appropriate highway accesss to either of these opportunities.

3.2 St Helens Borough Council recognised this deficiency and has taken appropriate steps in collaboration with the Liverpool City Region Combined Authority (LCRCA) to address this through direct investment and in proposing the Parkside Link Road scheme. The cost of bringing forward this major infrastructure project could not be borne by the private sector in its entirety and this public sector intervention is therefore necessary.

3.3 This strategic approach includes the investment in Liverpool2 port which intrinsically links to Parkside and the delivery of SRFI and rail linked employment development supporting the City Region's economic development aspirations. The Liverpool City Region’s Long Term Rail Strategy 2018 (CD.5.153.1) highlights the impact the developments at the port are likely to have on the rail network, with the greatest increase in demand for paths expected on the Bootle Branch Line, the Chat Moss route and its connections northbound and southbound onto the WCML and eastbound beyond Earlestown to Manchester. In general terms, in addition to the existing hourly freight path from the Port of Liverpool, another hourly intermodal rail freight path would be required to Earlestown and then south down the WCML towards the Northampton area; this is likely to be required quite rapidly to allow the port to develop services that are associated with the Liverpool2 terminal.

3.4 Parkside is identified as a key piece of port and logistics infrastructure in the City Region as also evidenced in the Combined Authority Transport Plan (June 2019) (CD.5.153.2) which highlights that growth in the Liverpool 2 deep sea terminal will require more paths on the adjacent rail network and enhancing the local freight infrastructure is essential to complement a shift in tonnage of freight carried by road. The PLR is the facilitating, upfront infrastructure that is required for both the Parkside Phase 2 development and SRFI.

3.5 On the 3rd Feb 2017, St Helens Council received notification from Liverpool City Region Combined Authority that the Strategic Outline Business Case approach for

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Single Investment Fund (SIF) allocation for the construction of Parkside Link Road had been approved and that St. Helens Council be invited to proceed with the Outline Business Case submission.

3.6 On the 12th Sept 2017, St Helens Council received notification from the LCRCA that its Outline Business Case application had been approved and that the Council was invited to proceed to a Full Business Case Submission.

3.7 The Liverpool City Region’s Strategic Investment Fund Strategy – July 2018 (CD.5.153.3, page 9) states that “The core objective of the Strategic Investment Fund (SIF) is to ensure that investment is most effectively targeted at interventions and opportunities that deliver the wider strategic aims of the Combined Authority and to do so in a way that drives inclusive growth and social value, tackles market failure and maximises value for money.” It further states in its Principles that “projects should either demonstrate a clear strategic case for public investment, for example to address market failure, create public good and value or provide enabling infrastructure for growth and/or represent an opportunity for the Combined Authority to achieve a financial return on any SIF investment”.

3.8 In advance of a Full Business Case application to the LCRCA, on 20th June 2018, St. Helens Council approved funding a total contribution of £6.14 million towards the acquisition of land required for the purposes of delivering the proposed link road.

3.9 At its meeting on 19th October 2018, the Liverpool City Region Combined Authority approved the award of a maximum grant of £23,790,786 to the Parkside Link Road project to be funded from the Strategic Investment Fund. This figure represents 16% of the total funding available to the region which further recognises the significance of this project. In reaching this position the LCRCA was satisfied that the Link Road had met the objectives of the Strategic Investment Fund and that all the necessary appraisals, validation and due diligence, including compliance with State Aid rules, had been undertaken.

3.10 State Aid law regulates the award of subsidies. The award of State Aid is unlawful unless approved through the notification process by the European Commission or provided under the cover of one of the European Commission's published Block Exemption Regulations.

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3.11 The spending of public funds on delivering and modifying general public roads, public realm and ancillary utilities for the benefit of the general public only is normally not State aid. Public roads are normally considered non-commercial general infrastructure that is open to the public on a free and non-discriminatory basis, and is therefore for the benefit of the general public rather than a specific undertaking or undertakings. The PLR will constitute such general infrastructure, will be maintainable at public expense and openly accessible to all modes of transport.

3.12 The Parkside Joint Venture will support the PLR given Phase 1 will require an access road as part of the development in any event. This is a contribution to the PLR development, but does not go beyond what would be needed for Phase 1 in isolation. However for consistency, the Joint Venture have aligned the road design to the PLR to not preclude either development. The Joint Venture’s commitment to the delivery of the PLR, in so far as it enables future phases of the Parkside development, together with approval to their funding contribution to its delivery are set out in the letter at PLR.SL.1.1 Appendix 2

3.13 The Full Business Case (CD 5.53) sets out the funding allocations and requirements. This is summarised below: • Parkside Link Road:

o SIF ask - £23,790,786.28 o Public sector input – £1,447,000.00 o Private sector input - £9,852,000.00 o Total - £35, 087, 786, 28. • Land Acquisition:

o Public sector input - £4,723,000.00 o Total - £4,723,000.00

3.14 The funding approval from the Liverpool City Region includes for inflationary increases.

3.15 Any additional funding required will need to be through the local authority who are committed to the project. St Helens Council will review the funding requirements when necessary should any specific funding requirements become clear.

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4.0 Present Status of the PLR

4.1 The Parkside Link Road has been procured through the National Scape Framework. Scape is a public sector owned built environment specialist. It offers a suite of OJEU compliant frameworks and innovative design solutions that are available to public bodies in the United Kingdom.

4.2 It is a public sector organisation and can support the entire lifecycle of a project. It removes the need to go out to full tender. It encourages collaborative working and early contractor involvement (ECI) so that project design and delivery can be influenced, progressing rapidly to the construction stage.

4.3 Currently the scheme is in “Stage 3 – Pre-Construction”. “Stage 4 – Construction” will be implemented following a “Notice to proceed”, which will be issued upon agreement of the Target cost. The forms of tender for the “Stage 4 – Construction Contract” will be New Engineering Contract Option C Target Price (with Pain/Gain share).

4.4 The scheme detailed design was completed prior to the Local Authority Planning Decisions and an agreed Target cost was reached on 26th May 2020, with selected sub-contractors.

4.5 Following determination of the optimum route for the PLR scheme, negotiations were initially entered into with 3 principal landowners who are identified as (MS638843 & MS660447; Cooper Land), (MS592919; Legh Estates Trustees Land) and (MS150730 and MS116891; Rough Cottage) on the plan in PLR.SL.1.1 Appendix 3. A purchase by agreement with each of these owners has prevented the need for any lengthy negotiations or a possible Compulsory Purchase Order.

4.6 In relation to (MS638843 & MS660447; Cooper Land), negotiations have been concluded with the Landowner and a maximum purchase price, plus legal costs and stamp duty associated with the purchase, has been agreed. Solicitors have been instructed to proceed to an exchange of contracts subject to receiving satisfactory planning permission and Strategic Investment Fund approval.

4.7 In respect of (MS592919; Legh Estates Trustees Land), negotiations have again been concluded with the Landowner and a maximum purchase price, plus legal costs and stamp duty associated with the purchase, has been agreed. Solicitors have been

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instructed to proceed to an exchange of contracts subject to receiving satisfactory planning permission and funding.

4.8 (MS150730 and MS116891; Rough Cottage) Negotiations have been entered into with the owners and a maximum purchase price has been agreed plus disturbance and legal and surveyors costs associated with the purchase. Solicitors have been instructed to proceed with a purchase of this property.

4.9 All land required for the purposes of delivering Parkside Link Road has been identified and secured subject to receiving satisfactory planning permission and funding.

4.10 The LCRCA has provided an assurance that the SIF funding allocation will be reprogrammed to align with a revised delivery programme in the event of a favourable planning outcome. A copy of the LCRCA confirmation letter is in PLR.SL.1.1 Appendix 4.

4.11 Whilst assurances have been provided by the LCRCA to the reprofiling on the SIF allocation, there is no guarantee of this funding being ring fenced indefinitely. The LCRCA funding can only be drawn down in the event of a planning permission being secured. All approved SIF projects must be able to demonstrate delivery capability which would not be possible without a planning consent for this project.

4.12 This scheme could not be brought forward without this significant public sector intervention and if this funding allocation where lost, it is highly unlikely that the wider economic benefits derived from the delivery of the Link Road would be achievable.

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5.0 Summary and Conclusions

5.1 My name is Stephen Paul Littler. I am a Member of the Royal Institution of Chartered Surveyors having qualified in 2000 and I am also an RICS Registered Valuer.

5.2 I am currently the Assistant Director for Property & Economy within Place Services at St. Helens Council with responsibility for major regeneration projects within the Borough and delivery of strategic infrastructure. I have 30 years’ experience within the public sector principally in property development, regeneration and infrastructure projects.

5.3 The evidence provided demonstrates that there is a well-balanced case of the delivery of this vital infrastructure project and that without it, the identified market demand could not be brought forward. It is further evidenced that this is a well-developed scheme with funding approved and with preparation to proceed quickly to start on site and completion. It is essentially “shovel ready” with the real prospect of delivery if planning permission is forthcoming.

5.4 The Parkside Link Road is significantly more than enabling the development of the former Parkside Colliery site as it is also the key to unlocking the demonstrable demand for Strategic Rail Freight in this uniquely positioned location. The role of the PLR in facilitating SRFI at the site is acknowledged in iSec Ltd’s supporting letter in PLR.SL.1.1 Appendix 5 which also references iSec’s Delivery Statement in Appendix 2 of CD 5.90.

5.5 It has been demonstrated that funding for the project is not at risk at this stage and that subject to planning permission being granted the significant element of the Strategic Investment Fund allocation will be reprogrammed in line with the delivery timetable. However, funding of this project could not be guaranteed indefinitely if a planning approval were not secured.

5.6 At both Planning Committee meetings, I described this project as a “game changer” for the Borough of St Helens and I maintain that the Parkside Link Road is the enabling infrastructure that will allow for future growth and support the wider economic prosperity in the region and at a national level.

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