Employment Sites Study

Saltash

July 2012

Cornwall Development Company Tyncroft House Station Road Pool TR15 3QG Cornwall Employment Sites Study July 2012

Contents

1. Introduction...... 3 1.1 Objectives...... 3 1.2 Methodology...... 4 2 Site Identification...... 5 2.1 Saltash Draft Town Framework Plan...... 5 2.2 ELR (Employment Land Review) ...... 5 2.3 Strategic Housing Land Availability Assessment (SHLAA) ...... 6 2.4 Planning Context ...... 6 2.5 Saltash Site Visits...... 7 2.6 Saltash Site List...... 7 3 Public and Private Sector Engagement...... 8 3.1 Barriers to Development and Investment ...... 8 3.2 Unlocking Cornwall’s Market ...... 12 4 Saltash ...... 17 4.1 SWOT Analysis for Saltash ...... 18 4.2 Snapshot of Viability...... 22 5 Summary of Organisations’ Feedback ...... 23 6 Assessment and Reporting ...... 28 6.1 Matrix Assessment ...... 28 7 Conclusion/Recommendations...... 30 8 Appendices...... 35 8.1 Appendix 1 ...... 35 8.2 Appendix 2 ...... 37 8.3 Appendix 3 ...... 40 8.4 Appendix 4 ...... 42 8.5 Appendix 5 ...... 45 8.6 Appendix 6 ...... 48 8.7 Appendix 7 ...... 52 8.8 Appendix 8 ...... 53 8.9 Appendix 9 ...... 55 8.10 Appendix 10 ...... 56 8.11 Appendix 11 ...... 59 8.12 Appendix 12 ...... 67

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1. Introduction

Cornwall Council (CC) commissioned Cornwall Development Company (CDC) to report on the deliverability of potential employment sites1 within thirteen towns across Cornwall: Launceston, , Saltash, , CPR (, Pool and Redruth), Falmouth/Penryn, , , , , , and . This report focuses on Saltash.

The overall aim of this study is to list specific sites, within the Optional Growth Areas (OGAs) of ’s Draft Core Strategy2 and within the town boundaries, and to research and record factors affecting their deliverability. The assessment of sites does not prioritise any site/s to be developed but does indicate sites within a timescale that could come forward with the right intervention, for example, developer commitment to delivering a site or public sector intervention.

CC identified this study as necessary to support the Economic Papers that are being produced for the Town Framework Plans (TFPs)3. Although CC commissioned an Employment Land Review (ELR) in 2010, as part of the evidence base to inform the preparation of the Local Development Frameworks (LDF) and the allocation of land for employment uses, this did not go into depth regarding the availability, deliverability and ultimately the suitability of the land supply sites it identified.

Engagement with the private sector has been an important part of this assessment, enabling evidence about owner and developer interest, as well as demand and barriers to development, to be collated. This study will identify sites with the greatest potential for bringing forward for employment use. The report will also recommend schemes which have the potential to obtain Priority 2 European Regional Development Fund (ERDF) funding.

1.1 Objectives The objectives for the Cornwall Employment Sites Study are to identify:

1 Employment sites has been defined for the purpose of the project as land with potential for B1 (offices/light industry), B2 (general industrial), B8 (storage or distribution) and some A2 (financial and professional services) use development. 2 The Core Strategy will be a lead document in Cornwall’s Local Development Framework – a suite of planning documents outlining the planning policy for Cornwall for the next 20 years. 3 Town Framework Plans are being produced for Launceston, Liskeard, Saltash, Hayle, Camborne, Pool and Redruth

(CPR), Falmouth/Penryn, Truro, , Penzance, , St Ives and Carbis Bay, St Austell and

Bude/Stratton/Flexbury/. The Framework for each town provides a spatial strategy for the future growth/enhancement/protection of a Town for the next 20+ years, linked to an overall vision for the town. They provide an additional layer of evidence for the Core Strategy.

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 Sites most likely to be deliverable for employment space;  Sites with the greatest potential for accessing European Regional Development Fund (Convergence Priority 24) within the timescale of the Programme;5  Current market evidence to support the Core Strategy;  Demand for employment space;

1.2 Methodology This report has used a three stage methodology to report on the deliverability of potential employment sites within the town; initial site identification, followed by engagement with the private sector to understand barriers to development and investment, and finally, assessment of the sites identified and reporting of conclusions.

1.2.1 Site Identification The ELR6 and Strategic Housing Land Availability Assessment7 (SHLAA) were reviewed to identify existing allocated sites which could potentially deliver employment space.

CC planning officers identified specific sites, within the OGAs and the town boundaries, which they were aware that the private sector was actively pursuing for employment space development. They also identified employment sites with extant or expired planning permission.

Contact was made with the TFP Officers to discuss potential employment sites. CDC undertook a ‘drive round’ of the towns to familiarise themselves with sites and to identify any additional sites with potential for employment space development.

CDC/CC identified recent applications (or pre-applications) for large housing schemes that had not included employment provision as part of a mixed-use sustainable development.

1.2.2 Private/Public Sector Engagement Commercial Property Agents who are active in the local market were commissioned to identify local demand and supply, potential sites CDC had overlooked, barriers to development and investment and factors constraining the property market.

CDC also made contact with the following parties:

4 Enterprise and Innovation. 5 The deadline for applications is mid 2013 to enable final contracts for the schemes to be signed off by December 2013. Final payment to the contractor must be by 30 June 2015. Final claim needs to be with Department for Communities and Local Government (DCLG) by end of August 2015.

6 Nathaniel Lichfield and Partners, 2010, Cornwall Employment Land Review. 7 Strategic Housing Land Availability Assessment (Identifying sites with potential for housing).

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 Saltash and District Chamber of Commerce and Industry  Federation of Small Businesses (FSB)  Invest in Cornwall  Local Enterprise Partnership (LEP)  CC in relation to the Core Strategy, and  Developers

In addition, CC wrote to owners of land within the OGAs as part of the public consultation on the Draft Core Strategy. See Appendix 1 for a copy of the letter sent to landowners.

1.2.3 Assessment and Reporting A ‘Deliverability Assessment’ of the sites identified in Saltash was undertaken by a multi-disciplined team from within CDC; this team has development surveying, master-planning, design, planning, and ERDF funding experience. The key criteria for the assessment included:

 Planning  Constraints  Financial Viability  Control of land and developer role  Established business location, and  Accessibility

Assessment of the feedback from the commercial agents, Town Council, developers and landowners of the sites was undertaken.

Barriers to specific sites and the actions and/or the investment required to overcome them were identified.

Key issues and opportunities relating to each town were summarised.

Please see Appendix 2 for a copy of CDC’s Brief for this study.

2 Saltash Site Identification

To ensure a robust and complete site identification process, CDC undertook a review of the following evidence to identify potential employment or mixed-use development sites:

2.1 Saltash Draft Town Framework Plan The Saltash Draft TFP seeks to identify potential growth options around the town of Saltash which may be suitable to accommodate the projected growth of the town over the next 20 years (as forecast by Cornwall Council’s Core Strategy). The site options presented for public consultation (January 2012) were included in this investigation.

2.2 ELR (Employment Land Review) The ELR is a technical report undertaken on behalf of CC by Nathaniel Lichfield. It informed the preparation of Cornwall’s Core Strategy Development Plan and forms part of its evidence base. The principal

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focus of the ELR is upon ‘B class’ employment uses, namely office, light industrial, general industrial and storage and distribution uses.

The ELR broke down land/supply assessments to Travel to Work Areas (TTWA) however it did not go as far as breaking this down per settlement. Therefore, the conclusions of the demand/supply for each TTWA do require deeper analysis to determine the specific land/supply requirements for each settlement, hence this work being undertaken by CDC for Saltash.

2.3 Strategic Housing Land Availability Assessment (SHLAA) The SHLAA is a similar technical document to the ELR, but relates to potential housing sites rather than employment. Cornwall’s SHLAA was completed in November 2010 and was undertaken by Entec on behalf of the Council.

The document is used to identify any sites that have been assessed for housing potential, but which ultimately could be acceptable for employment or mixed-use purposes. There are also similar issues as with the ELR, in terms of how the document assesses the deliverability of sites. For example, it states that legal and ownership problems did not form part of the assessment, only an assumption on these was made. Nevertheless, the SHLAA does differ from the ELR in the sense that the process was publicised and developer/ land owner interest was invited, which goes someway to identifying land owner aspirations/ constraints – the ELR did not undertake such a process.

Reviewing the SHLAA in relation to this study has helped to inform the site assessments for Saltash.

2.4 Planning Context

‘The Government is committed to ensuring that the planning system does everything it can to support sustainable economic growth …….. significant weight should be placed on the need to support economic growth through the planning system.’ 8

In order to achieve the Government’s objective, local planning authorities should have a clear understanding of business needs in their area. To achieve this, they should:

 work together with county and neighbouring authorities and with LEPs to prepare and maintain a robust evidence base to understand both existing business needs and likely changes in the market; and

8 National Planning Policy Framework (NPPF) March 2012.

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 work closely with the business community to understand their changing needs and identify and address barriers to investment, including a lack of housing, infrastructure or viability.

The recent Planning for Growth Ministerial Statement, in early 2011, highlights that the planning system has failed to deliver economic growth, for example through enabling development.

Evidence suggests that there has been a tendency towards single-use allocations, e.g. solely residential developments, and this has led to missed opportunities for employment space. A more cohesive approach for mixed-use allocations would enable employment space to be brought forward alongside residential developments, providing opportunities for subsidisation, leading to sustainable development within Cornwall’s towns.

CDC has reviewed planning decisions in the town over the last five years and planning officers have provided details of any relevant pre- application discussions that have been undertaken in the recent past.

2.5 Saltash Site Visits CDC visited the town to familiarise the team with the proposed OGAs and ELR sites. This process enabled the team to identify additional sites which were not otherwise included e.g. some infill sites within Saltash’s industrial areas.

2.6 Saltash Site List In total, CDC identified twenty-two sites in Saltash; this total consisted of sites from Saltash’s OGAs, presented in the Draft TFP, and sites identified by CDC’s team on their drive-rounds.

A list was produced, identifying each site and providing a detailed overview. Additional information included the Saltash TFP Potential Development Options map, ELR site proformas (for sites assessed during the ELR study) and a link to a Google Map identifying each individual site boundary. This information was sent to the following organisations:

 Saltash and District Chamber of Commerce and Industry – for comments/identification of other potential sites not yet identified.

 Federation of Small Businesses (FSB) - for comments/identification of other potential sites not yet identified.

 Commercial Agents – for comments/identification of other potential sites not yet identified.

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Please see Appendix 3 for copies of the letters sent to Saltash and District Chamber of Commerce and Industry and the Federation of Small Businesses.

3 Public and Private Sector Engagement

CDC appointed the following Commercial Property Agents in December 2011:

 Alder King  Vickery Holman  Jones Lang LaSalle  Miller Commercial  Charterwood  Stratton Creber Commercial

The above Agents were selected to assist with this study as they are active across Cornwall, have a strong market presence, good knowledge of the development, office and industrial sectors, and, between them, they have a large market share.

Upon appointment, the Agents were provided with a brief that had been agreed between CC and CDC. A copy of the brief is attached in Appendix 4.

The information provided by the Agents has been collated and assimilated by CDC and the key findings are reported below, under the following sections:

 Barriers to Development and Investment  Unlocking Cornwall’s Market

3.1 Barriers to Development and Investment

The two key barriers identified by the Agents were:

 Weak Economic Climate – this was highlighted as currently the most significant barrier to development and investment. As such, a comprehensive overview of the recent Budget and current economic position has been provided as part of this report. However, as the state of the economy has been well documented, this has been included in Appendix 5.

 Commercial Property Market - the Agents participating in this study highlighted that the recession has had a detrimental effect on the commercial property market in Cornwall and across the UK. Both the historic and current conditions in the commercial property market play a major role in constraining the market. Further information about the state of the market is provided below.

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3.1.1 Commercial Property Market Activity Since its peak in July 2007, the commercial property market has experienced a prolonged period of downturn, largely mirroring the trends in the wider economy.

Generally, the UK commercial property market has been adversely affected by:

 Increases in supply/ availability and falling occupier demand/ take up resulting in supply outstripping demand especially for secondary9 stock;  Lower levels of transactions due to purchasers/ tenants being risk-averse;  Falling rental levels;  Depressed capital values;  High levels of distressed sales10 dampening the market further;  Longer void periods of vacant properties resulting in higher holding costs for freeholders making investment and development higher risk;  Occupiers negotiating more flexible lease terms e.g. more break options and seeking better incentives e.g. longer rent free periods which often adversely affects income and investment value;  Reduced levels of speculative development due to viability issues, poor demand and difficulties in securing bank funding;  Reduction in public sector spending which has exacerbated the weak market conditions.

In general, the office and industrial markets in London have fared better than in the rest of the UK.

Across the UK, take up of space has dramatically reduced since the peak of the market. Jones Lang LaSalle recently reported that total industrial market take up in 2011 is likely to be circa 10% lower than in 201011 . However, nationally, in the office sector, take up for 2011 should be similar to 201012 .

Agents seem to be reporting an increasingly negative rental outlook13 with few locations outside London and the Western Corridor likely to experience rental growth in 2012.

Significantly, London no longer seems immune to the downward trends seen elsewhere in the UK. The Central London office market performed

9 Commercial property can be classified as primary, secondary or tertiary. Primary being the best quality and well located with tertiary being older stock situated in a poor location. 10 Distressed sales are the sale of property by Administrators or Receivers acting for a lending institution or who have repossessed the property direct and have put it on the market to receive the money owed to them. 11 Jones Lang LaSalle, On Point, December 2011 12 Jones Lang LaSalle, On Point, Q3 2011 13 RICS Market Report, Q4 2011

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relatively well during Quarter 1 (Q1) and Q2 of 2011, but has subsequently witnessed a decline in occupier demand for the first time in 18 months. Alongside this, available space is now rising for the first time since Q3 2009, though rental expectations remain broadly stable14.

It has been reported that speculative development under construction as at September 2011 stood at just 92,900 sq m (999,976 sq ft) across the UK. This is well down on the pre-recession peak level recorded in mid 2007 when speculative development was circa 1,439,950 sq m (15,499,621 sq ft).

The dramatic fall in development will help compensate for the weak levels of demand as 2012 progresses. However, the supply of secondary space could increase due to business failure and increasingly weak take up. As such, we could therefore see a widening of the two- tier marketplace in 2012.

3.1.2 Cornwall Overview Activity in the Cornish commercial property market has largely mirrored the trends we have witnessed in the UK commercial property market.

The commercial property market in Cornwall has traditionally been characterised by:

 Truro being the administrative centre for the county, a popular location, traditionally attracting higher values than other settlements;  Industrial estates, business parks and employment land with good access to the A30 attracting higher values;  A diverse market with the towns having widely varying fortunes;  Strong owner occupier market compared to its investment market;  Few national covenants;  The market being constrained due to poor infrastructure;  Industrial sector being stronger than the office sector;  Lack of supply of high specification new build development due to schemes often being unviable, even at the peak of the market;  Market activity dominated by one or two Cornish based developers/ investors with relatively limited inward investment from out of county;  History of latent demand.

The market has undergone a sustained period of adjustment over the last four years, with a realignment of expectations and falling property values resulting in the market establishing a new trading level.

14 RICS Market Report, Q4 2011

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Most agents have reported that conditions in 2011 were marginally better than in 2010, with an increase in the number of transactions taking place as a modest amount of confidence returned to the market. Agents seem to be cautious about the rate of recovery and believe it’s likely to take several years for the market to recover to pre-recession levels.

Failure to deliver employment space development is currently a problem across the UK, with allocated employment land not being brought forward for development. In a recent survey15, local authorities across reported that employment sites are not being developed because of various factors, which included:

 Land owners having different aspirations for the site (69% of respondents);  Higher development risk in more marginal property markets (63%);  Site infrastructure costs (59%);  Uncertain viability in areas with lower rents (53%); and  Dealing with other abnormal costs (41%).

All of these barriers are an issue in Cornwall. The Agents highlighted that the key factors currently constraining development and investment in Cornwall are:

 Low confidence and high levels of uncertainty due to the economic outlook and weak conditions in the property market;  Businesses, developers and investors struggling to secure bank finance;  High quality commercial development historically being unviable due to low property values, poor infrastructure and high abnormal costs16 – this has been compounded by the downturn in the property market;  Lack of supply of development land due to poor planning allocation, developers land banking and infrastructure constraints;  Risks associated with potential void costs17;  Perceived lack of demand for commercial property, despite some evidence of latent demand creating uncertainty;  High quality premises often being unaffordable for local businesses;  Insufficient supply of high quality accommodation to stimulate the marketplace;  Fragmented ownership of sites and growth areas resulting in piecemeal development and difficulties with site assembly;

15 Nathaniel Lichfield and Partners, March 2012, Realising the Potential 16 For example, County’s mining heritage, flooding issues etc 17 Void costs are costs such as empty business rates and maintenance costs that an owner of a building has to pay when a building they own as an investor sits empty.

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 Securing planning permission for development is often challenging, time consuming and involves investing in a scheme at risk;  The public sector is contracting, resulting in less development, occupier demand and support for economic development and infrastructure projects;  Poor awareness of Convergence Funding opportunities and reluctance to utilise funding due to the application process being perceived as bureaucratic18;  Closure of the South West Regional Development Agency (RDA) reducing the opportunities to secure public funding for upfront development costs;

“In the past, RDAs were instrumental in funding infrastructure, such as access and spine roads, to open up large employment sites which were failing to be developed.”19

3.2 Unlocking Cornwall’s Market As part of this study, each of the Agents was asked to list factors they considered pertinent to unlocking the commercial property market in Cornwall.

We have grouped the responses under the headings Economic Recovery, Reducing Risk and Stimulating the Market, as summarised below.

18 Cornwall and the Isles of Scilly are currently receiving European Structural Funds through the ERDF Convergence Programme in recognition of Cornwall and the Isles of Scilly’s status as one of the poorest regions of Europe 19 Nathaniel Lichfield and Partners, March 2012, Realising the Potential

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3.2.1 Summary of Agents’ Responses

Economic Recovery

 Improved global and UK economic climate. A return growth and investor confidence

 Increased availability of bank funding in particular for speculative development and small businesses

 Better commercial property market conditions

 Stronger evidence of increased demand for office and industrial workspace

 More confidence in the economy and property market

 Increased availability of bank funding in particular for speculative development and small businesses.

Reducing Risk Stimulating the Market

 Wider availability of public gap  Increased supply of high quality funding for development, better commercial space to kick start the market awareness of the funding available and a less onerous application  Relaxation of empty business rates relief process or more areas being allocated Enterprise Zone status  Availability of public funding for rental guarantees and/ or to  Reduce the burden of planning gain subsidise rent free periods for requirements (e.g. Section 106, speculative development Community Infrastructure Levy) on applications providing employment  Preparation of strategy documents such as Local Development Orders,  Individual towns building on their Area Action Plans and Development strengths, skill base and targeting a Briefs which help to de-risk growth sector development land by securing planning permission and  Developers and investors offering more infrastructure being put in place flexible lease terms to attract small businesses  Better cross subsidisation from non B class development through  Using Community Infrastructure Levy to planning gain. enable development.

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3.2.2 Economic Recovery Cornwall has, historically, had a weak economy resulting in relatively low property values. This, combined with often high site abnormal costs (predominantly related to the county’s mining heritage and flooding issues), along with the history of poor infrastructure provision, has resulted in high quality commercial property development often being unviable without public funding.

Cornwall and the Isles of Scilly benefits from ERDF funding aimed at plugging the funding gap, enabling more development and investment to improve the local economy.

However, the recession has resulted in a decline in property values and many high quality developments are now facing a funding deficit, even with the benefit of ERDF funding. In addition, for speculative development, most developers are struggling to secure bank funding to match the ERDF funding.

Many occupiers have shelved expansion or relocation plans. Those that are seeking new premises are often unable to afford the rents associated with high quality modern space.

Lack of demand has been highlighted as a key constraint by the commercial property agents. Clearly developers will not build out employment space if there is no indication of demand.

Economic recovery in Cornwall is clearly dependent not only on improvements in the wider UK economy but also on global recovery. In turn, the performance of the commercial property market, availability of bank funding and investor confidence is largely reliant on the economic outlook.

“The road to recovery will be long, painful and growth is not guaranteed. The nation will be paying for the crisis for a generation.”20

3.2.3 Reducing Risk To unlock the market, investment needs to be de-risked. This could take the form of various types of intervention and funding mechanisms. Every development site is likely to need its own tailored approach and there is unlikely to be a “one size fits all” solution.

The public sector has a vital role to play in helping to unlock the market by providing funding and a robust strategy to help de-risk development.

20 Mervyn King, Governor of the Bank of England, 2009

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ERDF funding has gap funded workspace schemes, which has helped stimulate the market by providing bespoke space, allowing Cornish businesses to expand. It has also funded a number of high quality speculative schemes, which should help provide space for latent demand and inward investment. It has been used to de-risk development land by funding infrastructure and servicing, enabling high quality schemes to come forward in the future without public funding. It has funded key infrastructure projects which should also de-risk investment and stimulate the market.

ERDF funding is only available for commitment to projects until 31 December 2013 and few high quality schemes will come forward without some form of public support21. It is currently unknown whether Cornwall will benefit from a further European funding programme. Further information relating to the availability and work of ERDF funding is included within Appendix 6.

Other sources of public funding, such as the Growing Places Fund (GPF)22 and Regional Growth Fund (RGF)23, need to be used to kick- start development by de-risking schemes whenever possible.

The public sector also has an important role to play in increasing planning certainty. Ensuring planning policy allocates the right sites for employment development and preparing planning documents to support the delivery of these sites is essential. This can take the form of Area Action Plans, Town Frameworks or a Development Brief.

The Government’s overarching objective is sustainable economic growth.24

“The Government's top priority in reforming the planning system is to promote sustainable economic growth and jobs.” 25

Promoting mixed-use development so that higher value development (for example, residential, retail or hotel uses) can secure the implementation of key infrastructure and/or cross-subsidise the development of employment space can ensure further development.

In collating evidence for this study, CDC has identified that opportunities to provide for and deliver employment space through a wider scheme have potentially been missed. This is predominantly as a

21 B8 use is not eligible for ERDF funding. 22 Government fund allocating £500 million to Local Enterprise Partnerships to help take forward a range of key infrastructure projects to enable the creation of new homes and jobs and get stalled projects moving again. 23 Regional Growth Fund is now a £2.4bn fund operating across England from 2011 to 2015. It supports projects and programmes that lever private sector investment to create economic growth and sustainable employment. 24 National Planning Policy Framework, March 2012. 25 Planning for Growth – March 2011.

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result of past policy having been based on single allocations i.e. housing, and not on the promotion of mixed development schemes to include housing and employment use.

Community Infrastructure Levy (CIL) is a new charge which local authorities can levy on new development in their area. CIL money can be pooled from a range of development schemes (for example residential development) and used for other purposes. Clearly this funding could be used to assist the delivery of employment schemes. CIL is a levy on development for the purpose of helping to fund infrastructure.

CC recently hosted a development industry workshop which highlighted that for CIL to be introduced by a local authority they must:

 Demonstrate that there are future infrastructure requirements and that these have a funding deficit associated with them;

 Undertake a viability assessment (and show that the proposed CIL rate would not be detrimental to overall development in the area).26

3.2.4 Stimulating Cornwall’s Market Cornwall is a diverse marketplace and its towns have widely varying fortunes. It is essential that each employment area maximises its strengths and skill base, and targets a certain growth sector, for example agriculture, food manufacturing or logistics. Developing a “brand” is likely to help attract inward investment and should help stimulate the market.

“Responding solely to the “perceived” or actual demand risks placing undue constraints on Cornwall’s economic prospect.”27

A reasonable level of supply of high quality space is required to kick- start the market. However, in the current climate, caution needs to be exercised to avoid flooding the market and depressing values further.

Developers and investors need to be realistic about returns. Offering more flexible lease terms, to attract small businesses, is likely to help stimulate the market in the longer term.

Changes to the empty business rates liabilities, effective from 1 April 2008, have resulted in office or industrial properties (with a Rateable Value of more than £2,600) being subject to full rates liability if the property is vacant for more than three or six months respectively. This has significantly increased the cost of holding vacant property and is acting as a deterrent to speculative development. There is increasing

26 CC CIL development industry workshop 7th March 2012 27 Nathaniel Lichfield and Partners, November 2010, Employment Land Review

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pressure for the government to relax empty rates liabilities in order to help stimulate market recovery.

Cornwall Council is currently calculating the level of CIL that should be implemented on different types of development. CDC would argue that the levy on office and industrial development should be set at zero to encourage more development.

4 Saltash

Saltash is part of the ‘Cornwall Gateway Community Network Area’, which covers the parishes of Antony, Botusfleming, Landrake with St Erney, Landulph, Maker-with-Rame, Millbrook, Saltash, Sheviock, St Germans, St John and Torpoint.

‘Saltash is the largest town within this area, with a population of 16,400, and acts as the main local service centre to the many smaller settlements surrounding it. Whilst the town dates back to a charter of the 12th century much of the centre had to be rebuilt after bombing during the Second World War.’28

The Saltash Draft TFP highlights the following local issues:

 ‘Difficulty in attracting investment into the town centre and problems with traffic and parking along Fore Street;  Limited employment opportunities and influence of Plymouth in the provision of jobs and services;  Regeneration of the waterfront;  Cost of car parking affecting the viability of the town centre;  Problems with the A38 - Carkeel junction and Stoketon crossroads; and  Future capacity of the Tamar Bridge.’29

The Draft TFP states that the ‘demand for employment in Saltash is heavily influenced by its proximity to Plymouth. Saltash experiences a large amount of out-commuting, with 43% of its working population working in Plymouth. This has led to an imbalance in the level of housing and number of jobs within Saltash. Whilst it is recognised that there will always be a significant pull from Plymouth, there is still the aspiration to start to reduce the level of out-commuting; as a result there is an aspiration for Saltash’s growth to be employment driven. This would help enable Saltash to become a more self sustaining and distinctive employment centre in its own right.’30

28 Page 116, Planning Future Cornwall, Community Network Areas, Core Strategy Area Based Discussion Paper, January 2012. 29 Page 122, Planning Future Cornwall, Community Network Areas, Core Strategy Area Based Discussion Paper, January 2012. 30 Page 122, Planning Future Cornwall, Community Network Areas, Core Strategy Area Based Discussion Paper, January 2012.

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The following section details the town-specific information provided by the Commercial Agents. This consists of a SWOT (strengths, weaknesses, opportunities and threats) Analysis and a Viability Assessment.

4.1 SWOT Analysis for Saltash The Agents have each commented on the strengths, weaknesses, opportunities and threats of Saltash from a development and commercial property perspective.

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Strengths Weakness

 Gateway to Cornwall  Proximity to Plymouth

“A strategic location for businesses “The market is dwarfed by total floor wanting to service Cornwall and Devon space and transactional activity in the from a single hub”31 neighbouring City of Plymouth”33

 Already home to a number of large “Plymouth offers sites which have employers including Appleby Westwood, better access to the motorway network Palmer and Harvey, Roger Young Land Rover and has a favoured retailing centre ” 34 and DX Network Services  Existing industrial estates are well located,  Poor accessibility & infrastructure - accessed straddling the A38 via a toll or ferry and high levels of  Established trading estates with critical mass congestion  New stock introduced by recent speculative development  Lack of office space  Consistent demand, particularly for larger units (500 to 1,500 sq m, 5,000 to 15,000 sq “The strong competition from Plymouth ft) makes it unlikely this will change in the short to medium term”35 “A population of 14,694 providing nearby labour and an even bigger  Low-grade stock workforce catchment area within the commutable distance of Plymouth”32

Opportunities Threats  Focus towards manufacturing and logistics  Topography - the majority of the remaining potential development sites require  Potential to build on clustering of maritime- significant ground works related industry if land with water access can be made available  Limited demand

 Eligible for Convergence funding unlike “The overhang of empty space within neighbouring Plymouth the Plymouth market coupled with general market conditions is constraining more development in Saltash ”36

 Viability

 Lack of bank finance

 Planning uncertainty

 Lack of land supply

“Landowners are holding land, waiting for values to return to make development attractive ”37

The key conclusions we have drawn from the above are:

31 Jones Lang LaSalle, Cornwall Employment Sites Study 32 Miller Commercial, Cornwall Employment Sites Study 33 Miller Commercial, Cornwall Employment Sites Study 34 Alder King, Cornwall Employments Site Study 35 Jones Lang LaSalle, Cornwall Employment Sites Study 36 Jones Lang LaSalle, Cornwall Employment Sites Study 37 Vickery Holman, Cornwall Employment Sites Study

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 Saltash benefits from its strategic location on the A38, but suffers from its proximity to Plymouth, which has an oversupply of property, particularly offices, as a result of the downturn.

 The commercial property stock in Saltash is dominated by industrial property, much of which is old low-grade secondary units which do not meet modern business requirements.

“The available space is of poor quality and older specification – whilst available at less cost, it does not meet modern business requirements”38

 Agents report that there is demand for modern accommodation and when such property becomes available, it is taken up quickly.

4.1.1 Supply & Demand This section provides a brief snapshot of the commercial property market in Saltash, summarising supply and demand, average rents and yields, enquiries for property, and the ratio of brand new to second-hand accommodation.

The data used has been compiled from the results of the Agents Survey commissioned as part of this report and includes agents’ comments

Office  No reported office market activity in the last six months.

Industrial  Demand outstripping supply  Take up dominated by the sale of one large modern industrial unit (1,491 sq m, 16,049 sq ft).

“The office market is very limited with little in the way of accommodation”39

38 Jones Lang LaSalle, Cornwall Employment Sites Study 39 Jones Lang LaSalle, Cornwall Employment Sites Study

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4.1.2 Enquiries for Commercial Property in the Last Six Months

 The agents reported no enquiries for office property in the last six months. However, this is likely to be due to a lack of office property on the market.  There may be some repetition in the number of enquiries as a result companies enquiring about more than one property.

4.1.3 Quantity of Available New and Second-Hand Accommodation

Despite a recent Priority Sites development, the market is dominated by low-grade stock and from the agents we surveyed there appears to currently be no new build space on the market.

“Historically the trading estates have poor stock with “dirty” business occupiers including the motor trade and engineering”40

4.1.4 Office Rental Levels and Yields

40 Jones Lang LaSalle, Cornwall Employment Sites Study

21 Cornwall Employment Sites Study July 2012

 Prime office rents of £97 per sq m (£9 per sq ft) and yields41 of just under 8.3 %

4.1.5 Industrial Rental Levels and Yields

 Prime industrial rents of £64 per sq m (£6 per sq ft) and yields of 8.4%

The data provided by the six Agents suggests that the Saltash office market is very weak. None of the Agents are currently marketing any office accommodation and have not received any enquiries for this type of accommodation. The Agents believe this is because of Saltash’s close proximity to the City of Plymouth.

The industrial market seems to be active and performing relatively well. New employment space should focus on industrial space or hybrid units rather than offices. Any scheme needs to be of a flexible design so that it can meet a wide range of requirements.

4.2 Snapshot of Viability A generic viability assessment has been carried out to show development viability for an office scheme and an industrial unit. The following assumptions were made:

 Office of 250 sq m  Industrial unit of 500 sq m  The property is built to a high design quality and BREEAM Excellent standard.  Values based on information obtained from Agent Survey

Cost assumptions:  Construction costs & inflation rates based on BCIS42

41 Yield is the rate of return on the investment expressed as a percent, calculated by dividing the capital value by the annual rent figure. The lower the yield, the higher the capital value of the property. The agents’ surveys highlight that Truro would achieve a yield of circa 7.75%. As this is the primary location for Cornwall, a yield of less than 1% above this, for any other town, would be considered to be appropriate. Saltash, for example, would want to be close to the Truro yield to demonstrate that it could produce a return.

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 Includes cost of land  Marketing costs of 4% on cost  Professional fees of 12% on construction cost

Disregards:  Demolition  Major external works  Major remediation works

4.2.1 Office Development (250 sq m)

Total Development Costs £599,126 Gross Development Value43 £292,521 Funding Gap £ £306,605 Funding Gap % 51%

The funding gap of 51% demonstrates that a typical office development in Saltash would not be viable without grant funding, and is marginal with a grant of 50% of the cost.

4.2.2 Industrial Development (500 sq m)

Total Development Costs £726,264 Gross Development Value £381,862 Funding Gap £ £344,402 Funding Gap % 47%

The funding gap of 47% demonstrates that the development of a typical industrial unit is only viable with grant funding of up to 50% in current market conditions.

The above snapshot suggests that high quality development of office and industrial space in Saltash is unviable without Convergence Funding.

5 Summary of Organisations’ Feedback

5.1.1 East Cornwall Federation of Small Businesses (FSB) Contact was made with the East Cornwall FSB, who confirmed that members’ feedback is concerned with the affordability of space, business rates, utilities and waste collection. CDC were directed to a number of recent FSB reports, Small Business and Infrastructure – Planning 2011 and A New Approach to the Rural Economy – July 2009 to view the feedback.

42 BCIS is the Building Cost Information Service of RICS (Royal Institute of Chartered Surveyors). 43 Gross Development Value (GDV) is the value of the completed development if the property is sold in the open market.

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The ‘Small Business and Infrastructure: Planning (July 2011),’ report argues that there is a need for ‘a more streamlined, user-friendly and cost-effective planning system to promote small business growth’.

‘Just over half (53%) of small businesses that have applied for planning permission in the last two years say that they found the rules and processes attached to the planning application overly complex. Forty-six per cent say the planning process was overly protracted, 38 per cent say the planning process had higher than expected costs, and the same proportion say that they experienced difficulty in obtaining advice from planning officers’44

The ‘New Approach To the Rural Economy’ (July 2009) highlights that ‘Business rate relief on empty properties was removed on 1 April 2008. Before then, empty retail and office space received full relief for three months and 50 per cent thereafter, while industrial space (warehouses and factories) received full relief permanently’. The FSB is asking for this to be reviewed.

5.1.2 Saltash and District Chamber of Commerce and Industry Saltash & District Chamber of Commerce and Industry confirmed that, in their opinion, ‘there is a shortfall of employment land within Saltash which has resulted in manufacturing/service industries relocating to Plymouth where there is available space. Saltash therefore needs an employment land allocation for the development of small/medium/large space manufacturing/office/distribution occupiers. The Chamber recognises that such an allocation will only work to the benefit of Saltash if:

 There is sufficient allocation of land for residential purposes to create the homes for employees (including a need for social housing), and  Any new development has integrated transport links with the town and does not create unconnected satellites.’

The Chamber notes that Carkeel roundabout is the bottleneck for all traffic and any future major development will have to resolve this issue. One suggestion is that development in growth areas A1 and A2 could raise the necessary levels of monies for this. Please see Appendix 7 for Saltash Optional Growth Areas.

The Chamber’s comments in respect of other Potential Development Options are as follows:

 Site A3 – The topography of this land would restrict the size of units, additional development would create traffic congestion. The Chamber would not be in favour of this allocation.

44 ‘Small Business and Infrastructure: Planning (July 2011), page 8.

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 Site A4 & A5 – difficulties with access and topography. The Chamber would not be in favour of this allocation.  A6 – relates better to the existing community but would cause transport issues due to poor access.  A7 – area of land has topographical constricts however links better to the existing community.

Please see Appendix 8 for Saltash and District Chamber of Commerce and Industry full response.

5.1.3 Local Enterprise Partnership (LEP) Cornwall and Isles of Scilly LEP is one of 38 LEPs across England set up following the Coalition Government’s new approach to economic development. This new approach puts businesses in the driving seat and empowers the private sector to determine their own priorities.

The LEP is private sector led; it is a partnership between the private and public sectors, and is driving the economic strategy for the area, determining local priorities and undertaking activities to drive growth and the creation of local jobs.

More recently The Cornwall and Isles of Scilly LEP launched a series of road shows called ‘Tell Us’ across Cornwall and the Isles of Scilly to give businesses a real say in the development of the new economic strategy. The 15 road shows challenge businesses of all sizes to take the driving seat and set the priorities for the recently formed Local Enterprise Partnership.

The LEP road show, held in Saltash on the 10 January 2012, raised the following key concerns voiced by the local private sector:

 Access to sales/marketing skills training  Business support for small business growth  Practical advice for business start-ups  Skills and training – government restrictions on curriculum development  Business placements for students  Food industry should feature in LEP strategy  Getting people used to success (and used to sending students to top universities)  Using the expertise of retired business people in Cornwall  Access to Finance  Lack of employment land  Risks taken by the LEP  Public sector procurement – needs to be more accessible for small firms  Tamar bridge is viewed as a restriction by some road distributors

Overall 300 people participated from the private, voluntary and public sector at the LEP road shows. Many businesses also completed feedback forms, via the LEP website. All of these views have been summarised, the key themes arising from the road shows are:

25 Cornwall Employment Sites Study July 2012

 Business support  Sectors  Grants  Skills  Finance  Transport infrastructure  Strategic planning

“We are short of B1 and B2 serviced building plots and short of good quality bigger units – some of the small scale private developers are scared to take the plunge and develop units even though they own the land, have planning consent and could get Convergence grant.”45

The LEP has recently secured funding for businesses under the RGF (to create economic growth and sustainable employment) and GPF (to help take forward a range of key infrastructure projects). These will be launched in May 2012.

As part of the RGF contribution, the Improvements in Business Productivity fund will provide £5 million. This fund is for capital or revenue projects which create jobs and increase productivity, such as the purchase of plant or machinery or development of land and buildings.

The GPF, provided by the Department for Communities and Local Government (DCLG) and the Department for Transport (DfT), will provide £6.4 million. The aim of the fund is to support key infrastructure projects that help generate economic activity by unlocking development, with an emphasis on creating new houses and jobs.

5.1.4 Invest in Cornwall Information from CDC’s Invest in Cornwall team has confirmed that during the period of January 2011 – December 2011, 25 enquiries were received regarding locating to Cornwall. 24 of these enquiries were from outside of Cornwall, 6 of these were outside of the UK and 1 enquiry was from a business already located in Cornwall.

The business type ranged from ICT to Food manufacturing, Engineering and Health.

13 businesses were looking for office/light industrial space, 7 were looking for manufacturing, 3 for land and 2 for large hangar space. The space required ranges from 7 sq m to 9290 sq m (75 sq ft to 100,000 sq ft). The majority are looking for sites that are in St Austell,

45 Stephen Vinson 2012 - Business Investor Support Advisor, CC

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Falmouth, Truro, Newquay Airport and CPR (with a particular focus on Pool Innovation Centre in the latter).

Current enquiries require:

 Factory of 9290 sq m (100,000 sq ft), with 21ft eaves, surround land of 2 acres anywhere near the A30 (modular unit manufacturing);  Light industrial unit of 929 sq m (10,000 sq ft) in and around Bodmin/Launceston, and  Office space of 37-46 sq m (400-500sq ft) in Saltash.

Invest in Cornwall has confirmed that enquiries for the first half of the last financial year were frequent, but the last six months have been especially quiet.

5.1.5 Response to Cornwall Council Core Strategy Consultation – February 2012 Between January and March 2012, Cornwall Council presented Planning Future Cornwall: Our Preferred Approach for a Core Strategy for public consultation. Alongside this, CNA papers were also prepared to help explain what the options could mean at the local level. These covered all 19 CNAs and included work carried out to date on each of the TFPs - the TFPs form part of the evidence base of Planning Future Cornwall and seek to identify areas of future growth around the towns, in doing so providing an interpretation of the Core Strategy at a more local level. An important aspect of the consultation on Saltash’s TFP was consideration of potential areas to accommodate future growth (see Appendix 7 for map of the OGAs).

Area A3 was identified as a potential area for employment development. The public consultation resulted in mainly positive feedback on this area.

Generally, there was a presumption in favour of developing existing brownfield sites within the town before taking up greenfield sites for development - specifically the disused Focus site.

Landowner support for employment development was restricted to parts of A1/A2 and the northern element of A7. Support is registered for a mixed-use scheme at A1/A2 but A7 received a lot of negative comments with regards to its development.

5.1.6 Summary of Developers’ Feedback CDC wrote to a number of developers that are active across Cornwall to establish if they had an interest in any sites for the 13 towns being covered by this study with potential for employment development. Developers were also asked for their views on barriers to deliverability and any ideas for incentives to facilitate more development of employment space.

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As highlighted above, very few developers are currently active as the property market conditions are very weak and securing bank funding is very difficult.

With regards to Saltash, no developer feedback was received for interest on sites.

Please see Appendix 9 for the letter sent to developers.

5.1.7 Landowner responses CC wrote to landowners whose land is indicated for potential development sites within the Draft TFPs. Landowners were initially asked for their views on the TFP. And secondly, landowners were specifically asked if they would be interested in putting forward their land for employment use.

CC received a number of responses from owners of land within the Growth Areas for Saltash as indicated in the Consultation Draft of the Core Strategy. The feedback from landowners confirmed their interest in land being put forward for employment use or not. These responses have been reflected in the site assessment, as described in the following section.

6 Assessment and Reporting

6.1 Matrix Assessment The matrix assessment was based on a standard format used to monitor projects in the Priority 4 Convergence pipeline. The criteria of assessment have been established to address the objectives of the brief and are based on the experience of a multi-disciplined team from within CDC with development surveying, master-planning, design, planning, and ERDF funding experience. The assessment of sites does not prioritise any site/s to be developed but does indicate sites within a timescale that could come forward with the right intervention, for example, developer commitment to delivering a site or public sector intervention. The criteria for assessment are as follows:

 Level of planning certainty  Impact of statutory or physical constraints  Level of certainty of financial viability  Level of control of whole site and engagement of developer  How well established the business location is  Accessibility of the site and potential impact of additional infrastructure costs.

These criteria have been shown to be key indicators of deliverability and are assessed with a range of scores from 1-5 (with 1 being the poorest score and 5 being the best). Notes are included to clarify any specific issues or comments. [N.B. They do not assess potential outcomes or outputs.]. Please see Appendix 10 for the Matrix criteria.

A scored site falls into one of the following ranked categories:

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 6 to 12 - Very unlikely to be brought forward for employment use within a 10 year timescale.

 13 to 19 - Some long-term prospects for employment use within a 3 - 10 year timescale. Delivery is likely to require public sector intervention.

 20 to 30 - Potential for employment use to come forward within a 1 - 3 year timescale if a developer is committed to delivering the site. Delivery may still be reliant on public sector intervention.

The scores give a high level indication of the length of time required for each site to be brought forward for employment use. Importantly, they can also indicate a particular barrier which could become the focus of future pro-active work. It is important to understand that this matrix is a ‘snapshot in time’, based on the information made available to CDC. The matrix assessment should be seen as a live document that could be updated as new information becomes available.

22 sites were identified; these were made up of sites from Saltash’s Draft TFP OGAs and infill sites identified by CDC. Following assessment the sites were ranked into the following categories:

Sites Category 7 sites 6-12 (red) - Very unlikely to be brought forward for employment use within a 10 year timescale.

5 sites 13-19 (amber) - Some long-term prospects for employment use within a 3 - 10 year timescale. Delivery is likely to require public sector intervention.

10 sites 20-30 (green) - Potential for employment use to come forward within a 1 - 3 year timescale if a developer is committed to delivering the site. Delivery may still be reliant on public sector intervention.

Please see Appendix 11 for the assessment matrix and Appendix 12 for the site location map.

Of the 10 identified sites which have potential to come forward within a 1 – 3 year period (labelled ‘green’), 8 are based in existing industrial estates, 1 has a town centre location, and the remaining site is on the edge of West Carkeel Services. These sites are as follows:

Site Location Site Map Hectare (ha) Reference Broadmoor Farm - West Carkeel Services A2b 11 ha

Land At Avery Way Edgcumbe Road A9 0.38 ha

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Carkeel

Saltash Parkway Industrial Estate A10 1.03 ha Burraton Road Carkeel

Plot 5 Moorlands Lane Trading Estate A11 0.62 ha

Plot 6 Moorlands Lane Trading Estate A12 0.24 ha

Plot 12, unit 1 Moorlands Lane Trading A13 0.32 ha Estate

Plot 13, Saltash DAF Moorlands Lane A14 0.67 ha Trading Estate

Building R/O 23-29 Fore Street A15 0.14 ha

Plot 2 and 3B at Saltash Parkway A17 1.9 ha Industrial Estate

Plot 11b at Saltash Parkway Industrial A18 0.38 ha Estate Total 17 ha

7 Conclusion/Recommendations

The aim of the study was to report on sites in Saltash and record any factors affecting their deliverability. Commercial Agents’ feedback and further consultation with other public and private sector organisations/individuals has provided current market evidence, which has informed our conclusions with regard to the demand for employment space and methods of delivery. The assessment of sites does not prioritise any site/s to be developed but does indicate sites within a timescale that could come forward with the right intervention, for example, developer commitment to delivering a site or public sector intervention.

The findings from the assessment undertaken identifies that infill developments, located in existing industrial areas, are most likely to deliver employment space within a 1-3 year period, A9 (Land at Avery Way), A10 (Saltash Parkway Industrial Estate), A11 (Plot 5 Moorlands Lane Trading Estate (MLTE)), A12 (Plot 6, MLTE), A13 (Plot 12, MLTE), A14 (Plot 13, MLTE), A17 (Plot 2 and 3B Saltash Parkway Industrial Estate) and A18 (Plot 11b, Saltash Parkway Industrial Estate). Of these infill sites, some could possibly come forward within the Convergence timescale, but would need to come forward without delay. The assessment has identified that the majority of these sites have infrastructure in place, planning certainty, an established business location and are often in single-ownership.

30 Cornwall Employment Sites Study July 2012

In addition to the infill development sites, A2b and A15 could also deliver employment space within a 1-3 year period.

A2b is part of Saltash’s OGA for mixed-development. The site provides a good location for the development of new employment space is located opposite Tamar View Industrial Estate and, whilst infrastructure improvements would be required to unlock this site, it is felt that this is a promising site for growth.

A15 is a town centre location with recent planning permission for commercial use (A1, A2, A3 and B1).

With regards to the OGAs that have been identified as being deliverable in the longer term, our observations are as follows:

OGAs A1 and A2a (Broadmoor Farm) sited to the North West of Saltash are viewed as long term. Significant offsite junction improvements are required to unlock the sites for mixed-use development. The assessment has identified that if A2b proposals are delivered within a 1-3 year period, this is very likely to improve the deliverability of site A2a as access would have been improved.

A3 (Tamar View) has been indicated for Employment Development within the Saltash Draft Town Framework. This is well located to the A38 and is in close proximity to existing employment areas. Agents surveyed indicated that the existing industrial estate is a popular location and believe that an extension of this estate would be well received for B1, B2 and B8 uses.

OGAs to the North East and South of Saltash, A4 (Pill Lane), A5 (Land adjacent to Salt Mill) and A6 (Land adjacent to Wearde Road), are proposed for Housing Development only. CDC’s assessment agrees with this approach. Access would be through existing residential areas and Agents have confirmed that these sites are unsuitable for commercial development due to poor access to the A30.

The OGA to the West of Saltash, A7 (Latchbrook), is proposed as mixed development, offering a natural extension to the town. The assessment identifies that the northern part of A7 (A7a) could be delivered as a first phase within the next 3-10 years. Any development in this area could unlock the southern site of A7b.

The assessment has identified that A16 (Moorlands Trading Estate) and A19 (Saltash Parkway Industrial Estate), both located in industrial estates, buck the trend for infill sites scoring well. Planning permission has been granted for alternative uses.

A8 (Saltash Station), a town centre location, previously had planning permission for B1 use but this has now expired. Current pre-application discussions indicate support for residential use.

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It is evident from the above, that the results of the assessment are not dissimilar with the feedback received from the public and private organisations that have been involved with this study.

“The provision of good quality modern workspace is vital to local economic development and to attracting and retaining local businesses.”46

A lack of demand to bring forward employment space has been highlighted as a key constraint by the commercial property agents during this study. Clearly developers will not build out employment space if there is no indication of demand, although there is evidence of latent demand. This has recently been evidenced by the take up of office space within the Pool and Tremough Innovation Centres. As such, whilst our assessment recommends sites which could be delivered within a 1 – 3 year period, we recognise that this would be dependent on an improved economic climate and resulting demand.

CDC is also mindful of the conclusions drawn from the ELR report in 2010. The ELR identified that across Cornwall there is ‘forecast to be an oversupply of employment land in many TTWA, particularly for industrial space, which could indicate scope to release some existing employment land to other uses or reduce undeveloped allocations.’47 Given the current economic climate and the feedback from the commercial agents, CDC recognises that Convergence Funding is required for many employment schemes, which would otherwise be unviable and possibly only low quality employment space would be provided. Any development should be phased to avoid flooding the market and for high quality development to be achieved.

The recent report ‘Realising the Potential’ highlights that ‘the fact that a large majority of local authorities experience problems in delivering employment sites suggests that there is no magic bullet.’ The study has identified that a variety of ‘Delivery Mechanisms’ should be considered to stimulate the delivery of employment sites, such as:

 Promote mixed-use schemes enabling development cross subsidisation from more viable land uses;  Public funding essential to assist with delivery due to viability issues;  Use public funding to de-risk speculative development – rental guarantees or incentives;  Partnership working between private sector developer, landowners and the local authority, particularly if the latter owns a site;

46 Nathaniel Lichfield and Partners, 2012, Releasing the Potential, Approaches for bringing forward employment space. 47 Nathaniel Lichfield and Partners, 2010, Employment Land Review

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 Development of Business Improvement District/s (BID) for existing industrial estates;  Funding key infrastructure through the use of Planning Gain for example through the Community Infrastructure Levy, Growing Places Fund (GPF) and the Regional Growth Fund (RGF), the latter administered by LEPs;  Increase planning certainty through the use of development briefs or Local Development Orders (LDOs) enabling specified development within defined employment areas without the need to obtain planning permission.

Way Forward

The current economic market brings significant challenges to a county that is one of the poorest regions in Europe. The private sector remains averse to speculative schemes outside proven areas of demand. However, it is evident from the study that there is a need for a proactive approach towards the delivery of employment space, both in the short and the medium to long term.

“The market will not always be able to deal with these types of problems, and without some form of intervention, an area’s employment land supply can form a barrier to economic growth and investment.” 48

The following highlights the various strategies and programmes that are being driven by CC, CDC, LEP and the Homes and Communities Agency (HCA) in Cornwall. It is evident that with the evolvement of these new strategies and programmes that there is an opportunity for these organisations to provide a robust and joined up approach to ensure towns such as Saltash deliver employment space.

 CC’s Draft Core Strategy recommends the promotion of mixed development sites, rather than single allocation sites, enabling mixed development to subsidise, for example, infrastructure; the Infrastructure Delivery Plan (IDP) identifies the infrastructure required to support and underpin the development strategy for Cornwall until 2030 as set out in the Core Strategy (Planning Future Cornwall), which forms part of the wider Cornwall Local Development Framework (LDF). As part of this work, delivery strategies will be developed for each Community Network Area.  The recent development of the LEP and the securing of the RGF and GPF need to be used to kick start development by de-risking schemes whenever possible. CDC, the Council’s arms length development company are responsible for managing these funds.  In September 2011, the Homes and Communities Agency (HCA) launched its newest delivery programme, the Economic Assets Programme (EAP), following the successful transfer of a significant

48 Nathaniel Lichfield and Partners, March 2012, Realising the Potential

33 Cornwall Employment Sites Study July 2012

portfolio of land, property and other assets from the Regional Development Agencies, which were wound down at the end of March 201249;  Post Convergence funding (essential to help achieve viable high spec’ employment space). For example the identified amber sites could be fed into the post 2013 funding considerations in order to provide both an evidence base and focus for future activity.  CC’s Capital Programme for Employment sites;

Our conclusions suggest that those sites that can be delivered within a 1 - 3 year (green) timescale (largely infill sites) could possibly come forward without intervention i.e. market forces will prevail. However, those sites falling into the 3 -10 year (amber) timescale, generally the larger growth areas, would possibly require intervention to provide/include employment space. There is the opportunity for a joined up approach within the Council, CDC, the HCA, the LEP and developers to prioritise sites for key towns and ensure resources are focussed, enabling the delivery of employment space across key towns in Cornwall. This will be the subject of further consideration.

49 Please note that there were no RDA assets within Saltash to transfer, however of the remaining 12 towns where the same study will be undertaken, some do have former RDA assets and therefore it is important that information is shared between organisations on how these sites are taken forward.

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8 Appendices

8.1 Appendix 1

Copy of letter sent to landowners:

Date: January 2012

Dear Landowner

Planning Future Cornwall – Delivering Employment for the town of Saltash.

Cornwall Council is in the process of developing a Core Strategy, which will be the lead document in Cornwall’s Local Development Framework (a suite of planning documents outlining the planning policy for Cornwall for the next 20 years). The Core Strategy will determine a long term growth and distribution strategy for Cornwall up to 2030, as well as provide key policies for the determination of planning applications. The Council are currently at the second stage of public consultation on the emerging Core Strategy and we are seeking views on our ‘Planning Future Cornwall: Our Preferred Approach for a Core Strategy’, which outlines our preferred approach to our 20 year planning strategy and how it will help deliver the vision of Future Cornwall (our Community Strategy). The final version of ‘Planning Future Cornwall’ will be our Core Strategy (as it is known under current legislation) and contain our key planning policies.

As part of this work Community Network Area Discussion Papers have been produced which show how the growth and distribution options presented in our preferred approach relate to Cornwall's 19 Community Network Areas. In the main towns we are in the process of developing Town Framework Plans which identify sites around the town which we see as potentially suitable for delivery of the development required for the needs of those towns, including employment land. Within the Community Network Area Discussion Papers, details of these potential sites are presented for public comment.

The first reason I am writing to you is that land within these potential development sites in registered in your name and therefore we would welcome your views on these documents. Responses can also be submitted via the Council’s website (please see details below).

35 Cornwall Employment Sites Study July 2012

The second reason for this letter is that the Cornwall Council is proactively seeking to encourage and deliver land for employment uses. We would therefore particularly wish to speak directly with you should you be interested in working in conjunction with Cornwall Council to deliver employment land on one of these identified sites.

There are a number of ways which Cornwall Council could assist you with bringing forward such development and we would be willing to advise you of these and work with you should you be interested.

The consultation documents are available to download from the Council’s website www.cornwall.gov.uk/ldf. If you select the town in which your land is located you will be able to view the site options presented on a map. Hard copies are also available to view in Cornwall Council One Stop Shops and in public libraries.

If you have any questions regarding the above, trouble accessing the documents or map or you wish to express your interest in meeting to have a discussion with us please contact me before the end of February 2012.

Yours faithfully,

Ben Bassett Development Officer Planning & Regeneration

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8.2 Appendix 2

Copy of CDC’s Brief for the Cornwall Employment Sites Study:

CORNWALL EMPLOYMENT SITES STUDY

Project outline:

The aim of this project is to report on the deliverability of potential employment sites within the towns of Liskeard, Launceston and Saltash, including any identified potential within the optional growth areas.

The reports will list specific sites that have been identified and record any factors affecting their deliverability. Engagement with the private sector will be an important part of this assessment to collate some evidence about owner and developer interest, demand and barriers to development. Sites with the greatest potential for bringing forward for employment use should be highlighted. The reports will recommend schemes which have the potential of obtaining Priority 2 ERDF funding.

Separate reports will be prepared for each of the three towns.

Stage One: Briefing

Council to identify any specific sites within the optional growth areas or within the town boundary that have some private sector interest for economic development or planning history. Land owners details are to be provided. Ensure liaison between Planning Economic Development and Property sections to obtain all information.

CDC to undertake a review of the Town Framework ELR paper, CC 2010 ELR and SHLAA to identify existing/ allocated sites with economic development and deliverability potential assessing the demand/ supply analysis. Contact will be made with the Town Framework Managers.

CDC/CC to identify recent applications (or pre-applications) for large housing schemes that have missed the opportunity to include employment provision as part of a mixed-use sustainable development.

Stage Two: Private sector engagement

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Commission local agents to identify any local demand, potential sites and barriers to deliverability and preferred locations.

Agents are engaged to provide a summary of evidence from their recent property and client history. CDC will prepare a brief confirming the scope of works and the key questions to be addressed. One to one meetings with agent/s will take place if required.

Collate information from any local businesses about relevant experience related to relocation or expansion, business needs or barriers. Initial contacts may be made through informal enquiries with the relevant Chamber of Commerce.

Engage with developers to identify any interest in sites within the towns or growth areas, assessing what incentives are needed or barriers that affect deliverability. While developers may not be willing to share confidential information it is hoped that the incentive to provide evidence will reduce the risks of not getting planning support. Land owners identified through this process will also be asked to contribute. This will need to be through individual communications.

Council to write to individual land owners within the growth option areas as part of Town Framework consultations. CDC to input into any questions attached and follow up any direct enquiries or interest from landowners

Undertake a desktop assessment of all the above sites to identify any known constraints that affect deliverability. (Based on information collated for town frameworks and through the draft Infrastructure Delivery Plan).

Engage with developers of larger housing schemes, identified in stage 1 and above, to establish reasons for non inclusion of employment.

Stage Three: Assessment and reporting

Prepare matrix for assessment of sites – identify key criteria for assessment – identify scoring system to highlight the most deliverable sites (poss. convergence/ post convergence/ 10 years +).

Identify barriers related to specific sites and identify actions or investment that would be needed to bring some of these forward.

Prepare summary of key issues and opportunities related to each of the towns, focusing on - demand, developer/owner interest and deliverability issues.

Contact: Claire Tiffin - Senior Project Executive Project Services Cornwall Development Company Tyncroft House, Station Road Pool, Redruth

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TR15 3QG Mobile: 07891 840475

39 Cornwall Employment Sites Study July 2012

8.3 Appendix 3

Copies of letters sent to Saltash and District Chamber of Commerce and Industry and the FSB:

Saltash Chamber of Commerce Sent via email

05 January 2012

Dear Mr Dickerson,

Ref: Cornwall Employment Sites Study

Cornwall Development Company (CDC) has been commissioned by Cornwall Council (CC) to investigate the deliverability of office and industrial development sites within the town of Saltash.

The study will identify development sites within this town and report on deliverability and barriers to development/ investment. It should help establish if any schemes could come forward with the benefit of Convergence Funding and also help inform the future Core Strategy for Cornwall currently being drawn up by planning officers at CC.

Please find enclosed an initial list and accompanying plan of sites we have already identified for your consideration.

If you have any comments or are aware of any other sites with potential office and industrial development then we would be pleased to hear from you by 18 January 2012.

I would be grateful if you could contact my colleague Claire Tiffin in my team in the first instance. Claire can be contacted by telephoning 01209 611115.

Yours sincerely

Jeremy Dunn Project Services Manager

Project Services Team Cornwall Development Company

40 Cornwall Employment Sites Study July 2012

FSB Sent via email

05 January 2012

Dear Ms Vandermeulen,

Ref: Cornwall Employment Sites Study

Cornwall Development Company (CDC) has been commissioned by Cornwall Council (CC) to investigate the deliverability of office and industrial development sites within the towns of Launceston, Liskeard and Saltash.

The study will identify development sites within these towns and report on deliverability and barriers to development/ investment. It should help establish if any schemes could come forward with the benefit of Convergence Funding and also help inform the future Core Strategy for Cornwall currently being drawn up by planning officers at CC.

Please find enclosed an initial list and accompanying plan of sites we have already identified for your consideration.

If you have any comments or are aware of any other sites with potential office and industrial development then we would be pleased to hear from you by 18 January 2012.

I would be grateful if you could contact my colleague Claire Tiffin in my team in the first instance. Claire can be contacted by telephoning 01209 611115.

Yours Sincerely,

Jeremy Dunn Project Services Manager

Project Services Team Cornwall Development Company

41 Cornwall Employment Sites Study July 2012

8.4 Appendix 4

Commercial Agents’ Brief:

Cornwall Employment Sites Study

Commercial Property Agents Brief

Please make us aware of any information that you provide which you need to remain confidential. Where possible, we will extract headline information from the data provided and only utilise this in our final report. If requested we will send you a copy of our draft report so that you can check the content before it is finalised.

In respect of Launceston, Saltash and Liskeard, Hayle, CPR, Falmouth/ Penryn, Penzance, Truro (including Threemilestone), St Austell, Torpoint, Looe, Wadebridge and Callington please provide a brief report incorporating the following information:

Demand and Supply

For the office, industrial and development properties you have marketed during the last six months and/ or are currently marketing, please provide the following information to help us gauge demand and supply levels:

 Set of marketing details;  The date on which marketing commenced;  Number of enquiries you have had;  Number of offers received;  Status of the instruction i.e. available, under offer, exchanged, sold;  Details of any incentives being offered;  Details of any issues you believe are constraining the successful disposal of the property.

Development Sites

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 Please find attached a map identifying the growth area options in the emerging Town Frameworks and a number of additional potential development sites we have already identified. Are you aware of any interest in these sites? Where do you believe further employment space development in the town would be best placed and why?

 Are you aware of any additional development sites within the town, which could be brought forward for employment use? If so please provide details. Are you aware of any reasons sites have not been developed or brought to the market?

 Are you aware of any active developers in the town or surrounding area? If so, please where possible provide details.

Barriers to Development and Investment

Overview

Please provide details of your view on the following:

 What you consider to be the main barriers to investment in this town;  Do you consider there to be specific infrastructure barriers to investment in this town;  What you consider to be the main weaknesses of the town;  What you consider to be the main strengths of the town;  In your opinion does the town as having a particular industry focus and/ or does the town have the assets/ characteristics to potentially develop clusters within certain industries e.g. food manufacturing.

Factors constraining the market

What do you consider is constraining the market and preventing more development? For example, poor infrastructure, viability, lack of bank funding, lack of supply, lack of available/appropriate buildings/ land, expensive and lengthy planning process, wider economic factors.

Please provide comments, justifying the constraints you outline and ranking them in order of descending importance.

Unlocking the market

What do you believe may help unlock the market? For example, rental guarantees, more public funding for small businesses, changes to empty rates.

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Please provide comments, justifying the ideas you outline and ranking them in order of descending importance.

Market Conditions

Please provide us with a brief overview of market conditions in the town.

Please populate the following table, using a range of values if preferable, for each town:

Office Sector Prime Secondary Tertiary Prime Secondary Tertiary Development Rent psf Rent psf Rent psf Yield Yield Yield Land Value Per Acre

Industrial Sector Prime Secondary Tertiary Prime Secondary Tertiary Development Rent psf Rent psf Rent psf Yield Yield Yield Land Value Per Acre

Further Comments

Please provide any additional comments or ideas that you have regarding this study, as well as any further detail that you think may be of use to us when completing study.

44 Cornwall Employment Sites Study July 2012

8.5 Appendix 5

Comprehensive overview of the recent Budget and current economic position:

Economic Climate

Budget 2012 – HM Treasury’s Economic Assessment

Although the situation has stabilised, three challenges continue to be the major factors influencing UK growth prospects:

 the euro area crisis has created increasing instability and uncertainty, undermining confidence and feeding through to tighter credit conditions for households and firms;  higher inflation associated with the 40 per cent rise in the oil price between 2010 and 2011 has reduced real incomes, increased business costs and weighed on growth around the world; and  the Office for Budget Responsibility (OBR) judges that the lasting impact of the financial crisis has left the economy significantly smaller than its pre-crisis trend. This is consistent with evidence from previous financial crises.

The UK economy grew by 0.8 per cent in 2011 according to the Office for National Statistics (ONS). Manufacturing output grew more strongly, by 2.0 per cent in 2011. The ONS estimates that GDP fell by 0.2 per cent in the final quarter of 2011, broadly consistent with the OBR’s November 2011 forecast. Many countries, particularly in Europe, also experienced negative growth at the end of 2011.

The latest private sector business surveys point to a pick-up in UK output at the beginning of 2012. Both the OBR and the Bank of England expect growth to resume in the first quarter of this year, but to remain uneven through 2012.

While the OBR has revised UK growth up slightly in 2012, reflecting evidence of slightly more momentum at the beginning of the year, its forecast for euro area growth has been revised down significantly since Autumn Statement 2011. Many forecasters now expect the euro area to experience a shallow recession. A number of euro area countries have already entered recession following two negative quarters of growth.

Some risks have receded following the European Central Bank’s exceptional three-year liquidity operations in December 2011 and February 2012. The final agreement on the second financial assistance programme for Greece further reduced a key source of uncertainty. The successful implementation of a comprehensive resolution to this crisis remains the immediate priority for the global economy.

45 Cornwall Employment Sites Study July 2012

Global oil prices rose sharply from the middle of 2010. Food prices also increased substantially. These inflationary pressures, which the OBR considers to have been the main drag on UK growth over the past 18 months, have started to abate, easing the pressure on household incomes and improving the outlook for consumers.

Oil prices have, however, recently risen to record levels in sterling terms, reflecting the impact of ongoing tensions in the Middle East. If sustained this could renew upward pressure on inflation and dampen recovery in the UK and globally.

Investment and confidence Business investment in the UK fell sharply during the recession and remains at historically low levels. The ONS estimates that business investment fell 5.6 per cent in the last quarter of 2011. The OBR attributes the majority of the downward revision to its business investment forecast for 2012 to that weakness, but notes that initial estimates of business investment are prone to significant revision. Recent investment conditions have been challenging and weaker investment could reflect the temporary postponement of projects due to the damage to confidence caused by the euro area crisis.

At the aggregate level, company finances remain strong. In the year to the third quarter of 2011, UK private non-financial corporations ran a financial surplus equivalent to 5 per cent of GDP. These are resources available for companies to invest as confidence builds.

Economy Forecast

Determinants of OBR Central Fiscal Forecast* 2011 2012 2013 2014 2015 2016 UK GDP 0.8 0.8 2.0 2.7 3.0 3.0 Residential Property Prices -0.7 -1.5 0.5 3.3 4.5 4.5 Residential Property 1.5 -1.5 18.8 15.6 7.4 6.2 Transactions Commercial Property Prices 2.9 0.9 4.5 5.5 5.1 4.1 Commercial Property -3.3 -0.8 1.8 4.7 5.9 5.9 Transactions Percentage change on previous year

The OBR’s forecast for UK growth and inflation is broadly unchanged from its November 2011 forecast. It continues to forecast subdued but positive growth, consistent with experience from past financial crises, with the recovery likely to be particularly uneven this year. The OBR forecasts that the economy will avoid recession, as does the Bank of England’s February Inflation Report. It forecasts that quarterly growth will be affected by the additional bank holiday in June 2012 and the Olympic Games later this summer.

46 Cornwall Employment Sites Study July 2012

The OBR expects CPI inflation to continue to fall back sharply through the remainder of 2012 and fall further to be close to the 2 per cent target from early 2013, as the upward pressure from commodity prices fades and spare capacity weighs on inflation. This forecast is consistent with those of the Bank of England and other external forecasters.

Unemployment has risen in recent months, following the euro area crisis and resulting economic slowdown, with labour market conditions particularly challenging for younger people. But the claimant count is now forecast to peak at around 1.67 million by the end of 2012, compared with the peak of 1.8 million in the OBR’s November 2011 forecast, in part following better than expected data. Consistent with the OBR’s November 2011 assessment, ILO unemployment is forecast to peak at 8.7 per cent in 2012 and fall back to around 6.3 per cent by 2016. The OBR’s assumption of a structural unemployment rate of around 5¼ per cent throughout the forecast remains unchanged.

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8.6 Appendix 6

Further information regarding the availability and work of ERDF funding:

How does the funding work?

ERDF funding for Priority 2 and Priority 4 workspace projects tends to be granted on a gap funding basis as demonstrated by the diagram below.

Applicants fall into one of three funding bands depending on whether they are classed as small, medium or large enterprises. This is determined by their number of employees and annual turnover/ balance sheet total.

48 Cornwall Employment Sites Study July 2012

Large enterprises can get up to 30% of the total eligible project cost, medium enterprises up to 40% of the total eligible project cost and micro and small enterprises up to 50% of the total eligible project cost.

The amount of ERDF granted can never exceed the funding gap.

At no stage can funding be guaranteed. All costs associated with the preparation of funding applications are incurred at applicants own risk.

Project planning has to be at an advanced stage to minimise risks to the ERDF Convergence Programme. As such, as a minimum, the following needs to be in place before a funding application can be formally appraised by CLG:

• Match funding – robust evidence of the match funding being in place for full amount.

• Cashflow – ability to bankroll the scheme and withstand ‘spikes’ in the cashflow.

• Detailed planning permission – must be in place & implications of any conditions attached to the decision notice must be assessed and mitigated.

• Procurement – evidence that all procurement meets EU requirements and the spirit of the Programme.

• Cost Certainty – the project should be demonstrably at RIBA Stage D or above.

• Outputs – the project must represent good value for money for the Programme and an applicant will contract with the Programme to deliver a specified number outputs such as high quality jobs.

• Costs and values independently assessed – CDC or CLG will commission an independent surveyor to provide advice on the application to the appraisal team at CLG.

• Financial information – 3 years accounts & latest management accounts relating to the applicant.

• Evidence of demand – commentary within independent valuation and evidence within business plan that there will be demand for the end scheme.

• BREEAM or CEEQUAL Excellent Accreditation – a pre assessment must be provided along with details of how Excellent will be achieved.

• SME Declaration Form – confirmation of the applicant’s status and the funding intervention band they qualify for.

Example ERDF Project

49 Cornwall Employment Sites Study July 2012

The St Austell Printing Company Project is an exciting scheme worth more than £6 million to create ‘flagship’ workspace for an expanding Cornish company and speculative workspace for other businesses.

It is estimated that by 2015 the development at St Austell Enterprise Park will create more than 60 jobs. The development will provide over 5,000 sqm of workspace housed in two imaginatively-designed buildings, both constructed to a BREEAM Excellent standard. The bespoke printing company premises will be complemented by speculative workspace which is aimed at small to medium sized professional businesses, incorporating design flexibility with options to change internal layouts and configurations in response to the market.

Insert Picture/ Photo of Scheme

Peter Moody, Managing Director of SAPC and driving force behind the project says that his vision was to "construct the most sustainable, economical, high quality building we can, with outstanding design and landscaping in sympathy with the area. Not a soulless industrial unit but one with a heart. A place that is healthy, safe, productive and inspiring to our employees, a build we can be proud of".

Insert Picture/ Photo of Scheme

Further information

Further information about Convergence can be found at

www.convergencecornwall.com

Alternatively if you have a potentially eligible project in Truro, Falmouth/ Penryn, CPR area, St Austell and Clay area, Newquay, Bodmin or Penzance please contact:

Iain Mackelworth Acting Delivery Manager Place & Sites Delivery Team Cornwall Development Company Telephone: 01209 611113

Or if you have a potentially eligible project in Cornwall but outside the above towns please contact:

John Burton or Ian Whale European Regional Development Fund Programme Delivery Team: South West Local Economies, Regeneration and European Programmes

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Department for Communities and Local Government Telephone: 0303 4446549/ 0303 444 6550

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8.7 Appendix 7

Map of Saltash Optional Growth Areas:

52 Cornwall Employment Sites Study July 2012

8.8 Appendix 8

Saltash and District Chamber of Commerce and Industry full response:

53 Cornwall Employment Sites Study July 2012

54 Cornwall Employment Sites Study July 2012

8.9 Appendix 9

Letter sent to developers:

[Address]

January 2012

Dear

Ref: Cornwall Employment Sites Study

Cornwall Council (CC) is proactively seeking to encourage the delivery of land for employment uses.

To assist with this Cornwall Development Company (CDC) has been commissioned by CC to investigate the deliverability of office and industrial development sites within the towns of Launceston, Saltash and Liskeard, Hayle, CPR, Falmouth/ Penryn, Penzance, Truro, St Austell, Torpoint, Looe, Wadebridge and Callington.

The study will identify/ review development sites within these towns and report on deliverability and barriers to development/ investment. It should help establish if any schemes could come forward with the benefit of Convergence Funding and will inform the future Core Strategy for Cornwall which is currently being drawn up by planning officers at CC.

I would be grateful if you could contact my team if you have an interest in any sites in the above towns with potential for employment development. We would also be keen to hear your views on barriers to deliverability and any ideas for possible incentives to help facilitate more development of employment space.

In the first instance please contact Beth Taylor-Stubbs, Development Surveyor on 01209 611113.

Yours sincerely

Jeremy Dunn Project Services Manager

Project Services Team Cornwall Development Company

55 Cornwall Employment Sites Study July 2012

8.10 Appendix 10

Matrix Criteria:

Score 1 2 3 4 5 Deliverability Planning Planning No planning in Located within No planning in Planning permission place – site is Draft Town place for main permission in extremely has had little Framework coverage of site – place for unlikely for or no pre growth option but site is in an employment or employment application area for existing mixed-use uses and/ or discussions. employment or employment area, development. planning Some mixed-use, or is allocated for permission potential for within town employment recently employment boundary. purposes or granted for or mixed-use extensive pre none because of application employment relationship discussions have uses with existing taken place town. indicating likely acceptability Constraints Site has Site has Site has limited Only limited Site conditions, significant identified identified investigation has constraints and constraints [or constraints constraints that been carried out, impact of potential for] that could are unlikely to early indications designations have that are likely challenge challenge suggest no major been assessed to prevent deliverability deliverability constraints, and no significant development E.g. HSE, but no site detailed barriers have been opportunity Statutory investigations investigation yet to identified E.g. Flood designations, undertaken be undertaken or plain. topography, Site investigations contamination, undertaken, minor landscape. issues identified, viability yet to be confirmed. Financial Costings and No evidence Costings and Costings and Costings and Viability valuations of costings or valuations valuations valuations undertaken valuations at undertaken. undertaken. undertaken. showing this stage. Indications of Evidence that Funding confirmed scheme to be Some private sector project could be (either public or unviable and potential for delivery and viable as part of a private). Low risk no evidence site to be funding. large mixed-use that funding will be of private brought Potential development OR withdrawn. sector forward and eligibility for eligible for P2 or funding. access gap funding. P4 match funding.. Scheme funding. Funding identified unlikely to through potential secure public investors/ bank sector but not fully funding. confirmed. Landowner confirmed no

56 Cornwall Employment Sites Study July 2012

interest in investing in site.

Control of Land-owner No information Developer or Site under full Site under full land and has declared on land landowner with control of single control of single developer they have no ownership or majority control developer or developer or role. intention to developer OR of site identified landowner/s [with landowner [with release land land owner AND not options/ownership] options/ownership] for not currently seeking to AND agent who has employment promoting actively bring employed in pre- experience of this use. development. forward app discussions. type and scale of OR multiple employment development land developments including ownership at this time due employment AND with no to economic/ developer consensus or funding/ market landowner agreement. uncertainty OR actively pursuing ransom/tenancy funding/planning issues applications or planning application Established Not part of Site close to Site within Within existing Site within business established other business existing business location, established location business location but business but site is hidden business area with location. Site not directly location but away. Location good profile and lacking connected or with some may have some identity. Area identity or associated. issues - poor issues - varying includes good existing infrastructure / quality. quality infrastructure. vacancies / development and Site with poor few vacancies. potential environmental constraints quality / poor with adjoining building quality. uses. Or site is adjacent to established and significant business location.

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Accessibility Site isolated. Site isolated Some Site located along Site located with Links to until improvements good access road good business existing main significant needed on local but major junction access without road network infrastructure network. Or just scheme required major not adequate. in place. Local site entrance to provide access infrastructure Local workforce not required but into site. Walking investment. workforce is within walking workforce is links possible to Adequate access distant. Major distance. distant. local workforce. into site exists. off site Existing or improvements planned future required to workforce within road network. walking distance and good public transport links.

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8.11 Appendix 11 Site Assessment Matrix: SALTASH - 11/06/12 Deliverability Size of site Constraints Constraints Growth Area Site Reference Other reference

Site Location Comments Accessibility Deliverability Subtotal out Deliverability Subtotal out of 30 Planning Planning Financial Viability Developer role Established business location

59 Cornwall Employment Sites Study July 2012

Broadmoor Farm - Bounded by two A roads and isolated from town; whole site development would require situated to the major junctions. Likelihood of significant offsite junction improvements needed on A38. North West of Critical drainage area, gas pipeline running through the site. This is a large, long-term Saltash and are growth area, with potential for mixed-use development. This site has been assessed segregated from independently and therefore scores low, assuming adjacent sites have not come forward the town by the e.g. A2a and A2b. If A2a and A2b are delivered then this is very likely to change the A38. deliverability of this site/current score as access would have been significantly improved.

A1 A1 142 ha 2 2 2 3 1 1 11

Tamar View - north Site runs parallel to A388. Likelihood of significant offsite junction improvements needed on east of Broadmoor A38. Landowner has indicated land for employment use. Farm. A1a A1 2 3 2 3 2 2 14

Broadmoor Farm - Isolated from the town, bounded by two A roads, would therefore need major junction Sites A1 and A2 infrastructure to provide adequate access. This is a large, long-term growth area, with are situated to the potential for mixed-use development. This site has been assessed independently, North West of assuming adjacent sites (e.g. A2b) have not come forward. Likelihood of significant off-site Saltash and are junction improvements needed on A38. We have been informed that technical studies have segregated from been undertaken for this site but are unaware of the results. the town by the Part of a A38. West Carkeel A2 part of 67 ha A2a 3 3 2 3 2 2 15 Services, Saltash A1 Growth Area

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Broadmoor Farm - Private sector owner has appointed planning consultants and is currently discussing West Carkeel employment space B1 and B8 with Planning and Highways. Contact has been made with Services the Convergence team. This land is in the ELR. We are not aware that any viability testing has been undertaken. A2 part of A2b 11 ha 4 4 2 4 3 3 20 ELR A1

Tamar View - Forms possible extension of Tamar View Industrial Estate. Poor pedestrian links. Better adjacent to the A38 access than site A2b. Extension land has to be accessed via existing estate, which is tired and A388 in places. Agents surveyed have indicated that the existing industrial estate is a popular location and they believe an extension of this estate would be well received for B1, B2 and B8 uses. Site has scored poorly for Constraints, Financial Viability and Developer Role, this is somewhat due to lack of information on this site. A3 A3 11 ha 3 2 2 3 4 4 18

Pill Lane Access to site from A38 is difficult. Some infrastructure works may be necessary outside the site. Access through residential area. NOTE site is identified for housing only. Agents consider that the site is unsuitable for commercial development due to poor access to A30.

A4 A4 6 ha 1 3 2 2 1 1 10

Land adjacent to Site proposed for housing only in Core Strategy - CDC agree with this. It has very limited Salt Mill potential for employment due to access and location. A5 A5 5 ha 2 3 2 2 1 1 11

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Land adjacent to Complicated access through residential areas. NOTE site is identified for housing only. Wearde Road Agents consider that the site is unsuitable for commercial development due to poor access to A30. SHLAA* A6 A6 7 ha 1 3 2 2 1 2 11 9

Latchbrook North Potentially good access to A roads and B roads into town centre. This is part of a large growth area not a specific development site. Potential new configuration of A38/ B271 junctions could create good access, possible off-site works required, also good potential for access into town centre and housing area. Flood zone runs along the eastern boundary, topography is steep in places. CDC has been informed of a Commercial agent representing a landowner who owns the majority of this site and is possibly interested in mixed development. Part of 66 A7a A7 ha Growth 3 3 2 3 2 3 16 Area

Latchbrook Planning history not known. Off-site works required to get good access to A38, potentially Part of 66 good pedestrian links into town. Multiple landowners for this site. Site currently scores low A7b A7 ha Growth 2 2 2 2 1 2 11 but if Latchbrook North was developed this site could come forward in the future. Area

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Saltash Station, Very small site in town centre. Planning expired through E2/08/02056/FUL for ‘Renovation Albert Road and conversion of existing railway station to form two offices and provision of parking area.’ Current pre-application in (PRE/APP11/634), planning officers have indicated support for residential re-use hence this is reflected in the scoring. Small Site A8 on Albert 1 2 1 1 2 4 11 Road.

Land At Avery Way Planning permission for 7 units with B1, B2 and B8 use in place. (7 purpose built buildings; Edgcumbe Road 6 units with use class B2 and 1 unit for use class B1, B2 and B8.) There is an extension of Carkeel time for this site with regard to the planning permission - PA11/02979

A9 0.38 ha 5 4 2 5 5 5 26

Saltash Parkway Planning permission (08/00643/FUL) granted for extension to existing factory and Industrial Estate associated alterations. Burraton Road A10 1.03 ha 5 4 2 5 5 5 26 ELR Carkeel Plot 5 Moorlands Potential infill site. Site is within an established business location. Access is readily Lane Trading available via existing estate. Unaware of major constraints. Site may be serviced. Estate A11 0.62 ha 4 3 2 2 5 5 21 ELR

Plot 6 Moorlands Potential infill site. Site is within an established business location. Access is readily Lane Trading available via existing estate. Unaware of major constraints. Site may be serviced. Estate A12 0.24 ha 4 3 2 3 5 4 21 ELR

63 Cornwall Employment Sites Study July 2012

Plot 12, unit 1 Existing business - potential for minor extension only. Uncommenced planning application Moorlands Lane for new storage buildings and offices - Planning E2/09/01363/FUL. Trading Estate A13 0.32 ha 5 5 2 5 3 5 25

Plot 13, Saltash Existing business - potential for minor extension only. Uncommenced planning application DAF Moorlands for new storage buildings and offices - Planning 08/01002/FUL. Lane Trading Estate A14 0.67 ha 5 5 2 5 3 5 25

Building R/O 23-29 Town centre location, but does not have a main street frontage. Planning in place with Fore Street commercial use on ground floor, following previous refusal for residential on basis of loss of employment uses - Planning online link: http://planning.cornwall.gov.uk:8181/rpp/index.asp?caseref=E2/09/01894/FUL - note pre- commencement conditions regarding site investigations. The conditions on application restrict commercial use to: A1, A2, A3 and B1 . A15 0.14 ha 5 4 3 5 5 4 26

Cornwall Council Size and shape of site not suitable for development. Pre app for change of use to taxi Land company and cleaning of vehicles advised that no planning permission is needed. Part of existing A16 industrial 1 2 1 1 3 4 12 area at Moorlands

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Plot 2 and 3B at Potential infill site. Site has a complicated recent planning history but there appears to be a Saltash Parkway desire from the landowner to proceed with business use - note pre-application discussions Industrial Estate in 2011 following previous refusal - also note that whilst a number of site constraints identified the majority of these have been resolved through planning decisions.

A17 1.88 ha 4 4 3 5 5 5 26 ELR

Plot 11b at Saltash Potential infill site - assumed one owner. Site is within an established business location. Parkway Industrial Access is readily available via existing estate. Unaware of major constraints. Site may be Estate serviced. A18 0.38 ha 4 3 2 3 5 5 22 ELR

Saltash Parkway Part of Construction of car parking area for use strictly in conjunction with the adjacent car auction Industrial Estate existing premises. Application 06/00989/FUL. Scores reflect this use as direct employment space is Burraton Road industrial not being provided. Carkeel Saltash area at A19 1 3 1 1 3 5 14 Cornwall Saltash Parkway Industrial Estate

Colour Code Score 6 to 12 Very unlikely to be brought forward for employment use within a 10 year timescale. 13 to 19 Some long-term prospects for employment use within a 3 - 10 year timescale. Delivery is likely to require public sector intervention. 20 to 30 Potential for employment use within a 1-3 year timescale if a developer is committed to delivering the site. Delivery may still be reliant on public sector intervention.

A1 (Shops), A2 (Financial and Professional Services) and A3 (Food and Drink) B1 (Offices/Light Industry), B2 (General Industrial), B8 (Storage or Distribution)

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* SHLAA sites that have been assessed for housing potential

66 Cornwall Employment Sites Study – Saltash July 2012

8.12 Appendix 12 Site Location Map:

67