St Modwen Developments Limited

Land West of Junction 10 of the M42 Motorway, Tamworth

Report on Employment Land Issues

18 December 2013

St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Contents

1 Introduction ...... 2 2 Planning Policy Context ...... 4 3 Employment Land Evidence Base ...... 9 4 National and Regional Market Trends ...... 19 5 Local Market Trends ...... 23 6 Site Characteristics and Proposals ...... 28 7 Conclusions and Recommendations ...... 30 Appendix 1 – Illustrative Masterplan of the Proposed Development ...... 32 Appendix 2 – Appendix 1 to Tamworth Borough Council Employment Land Review, January 2012 ...... 33 Appendix 3 –Table 28 & Appendix 5 to Tamworth Borough Council Employment Land Review, January 2012…34 Appendix 4 – Report to Officers to Tamworth Borough Council’s Planning Committee of 12 November 2013 concerning Road, Stonydelph ...... 35 Appendix 5 – UK Big Box Industrial and Logistics Market Survey, Jones Lang LaSalle, July 2013 ...... 36 Appendix 6 – Marketing Particulars of Birch Coppice ...... 37 Appendix 7 – Schedule of Vacant Industrial and Warehouse premises in Tamworth ...... 38 Appendix 8 – Marketing Particulars of Apollo, Lichfield Road Industrial Estate ...... 39 Appendix 9 – Schedule of Marketed Employment Land in Tamworth ...... 40 Appendix 10 – Location Plan ...... 41 Appendix 11 – Situation Plan ...... 42 Appendix 12 – Site Plan ...... 43

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

1 Introduction

1.1 St Modwen Developments Limited (SMDL) propose to develop an area of 8.49 ha of land west of Junction 10 of the M42 Motorway (referred to as the Site) for B Class employment development, principally for distribution. The Site straddles the administrative boundary of North Warwickshire Borough Council (NWBC) and Tamworth Borough Council (TBC). 1.2 An outline application has been submitted to NWBC which seeks outline planning permission for employment use within use class B1(c) – light industry, use class B2 – general industry, and use class B8 – storage or distribution. Approval is sought for access from Centurion Way, with all other matters to be reserved. 1.3 In addition, a full application has been submitted to TBC which seeks detailed consent for a new vehicular access as an extension of the existing Centurion Way, Tamworth in order to serve the outline application site within NWBC. This report has assessed the areas of land which fall within both planning application sites. 1.4 The Site adjoins existing industrial and warehouse development at Centurion Park, Tamworth and is well located in respect of Birmingham International Freight Terminal (BIFT), that is situated within Birch Coppice, the other side of the M42 motorway. The site lends itself naturally to employment uses. The proposed development will mirror other development in Centurion Park and act as a satellite site to Birch Coppice. The latter was identified by the Panel to the draft RSS as a means of exploiting the full potential of regional logistics sites, with specific reference to Birch Coppice. This is considered in greater detail in Section 3 to this report. 1.5 The proposals will comprise indicatively 19,562 sq.m in two buildings. The larger of these is 14,250 sq.m (153,387 sq.ft). At least 90% of the proposed floorspace will be for distribution. An illustrative masterplan of the proposed development forms Appendix 1. Purpose and Scope of Statement

1.6 This statement should be read in conjunction with the Planning Statement produced by RPS and other technical studies that support the planning applications. Specifically, this statement provides supporting information concerning the planning policy context, its evidence base and relevant market signals for industrial and distribution property. 1.7 As the proposals act as a satellite site to Birch Coppice (North Warwickshire) and as natural extension to Centurion Park (Tamworth), consideration is given to both the national and regional distribution market and the more local market for Tamworth. The proposed development will be attractive to both. 1.8 Section 2 provides a summary of the relevant planning policy context. This considers policy at a national, regional and local level. 1.9 Section 3 looks at the evidence base to relevant and evolving employment land policy. This considers regional, sub-regional and local employment land reviews. 1.10 Section 4 appraises the most recent market trends at a national and regional level. Particular consideration is given to the logistics sector, given the strength of this market at this location. 1.11 Section 5 considers market trends at a more local level. Particular consideration is given to the balance between supply and demand of industrial and distribution property serving Tamworth. In addition, the success of the nearby Birch Coppice scheme is analysed. 1.12 Section 6 considers the site characteristics and the proposals. Particular consideration is drawn to its appeal for both industrial and distribution companies and the likely employment that will be generated. 1.13 Section 7 draws conclusions and makes recommendations as to the development of this site.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

SMDL

1.14 SMDL is a regeneration specialist with a strong track record with industrial property. It has established joint ventures with large industrial companies such as Alstom, Corus, Goodyear and Ford. It currently has over 1,000 acres of brownfield industrial land it is seeking to reclaim and regenerate, including the former Llanwern Steel Works in South Wales, the Zinc Melting site in Avonmouth, and the former MG Rover Plant at Longbridge. 1.15 St Modwen has had significant success with industrial and distribution development schemes in the Midlands. These include:-  Barton Business Park, Centre 38, Burton  Pirelli Tyre Factory, Burton  Trentham Lakes, Stoke-on-Trent  Etruria Valley, Stoke-on-Trent  Heartlands Park, Washwood Heath, Birmingham. Jones Lang LaSalle 1.16 Jones Lang LaSalle, following the merger with King Sturge in May 2011, has become the leading agent in the UK industrial and distribution market. Current instructions includes:-  DP World – London Gateway  ProLogis – DIRFT Phases II and III  ProLogis – ProLogis Park, Ryton (Coventry)  Gazeley – G Park, Stoke-on-Trent  ProLogis – Mid Point, Minworth  Nurton Developments (Quintus) Limited – Branston Locks, Burton-upon-Trent  Wittingham Investments and ProLogis – ProLogis Park, Fradley. 1.17 In addition, Jones Lang LaSalle is retained as letting agent for a number of units in Centurion Park, Tamworth. This scheme abuts the application site. 1.18 Jones Lang LaSalle produces a bi-annual research report entitled the UK Big Box Industrial and Logistics Market. Jones Lang LaSalle also produces an annual report on the availability of industrial floorspace throughout the UK. Both are respected monitors within the property industry on the industrial and distribution sector. 1.19 Finally, the author of this report wrote the 2004 Stage 1 Regional Logistics Study for Advantage . This formed part of the evidence base to the last review to the Regional Spatial Strategy for the West Midlands. In addition, the author produced a Study of the Employment Land Markets for for Staffordshire County Council. This report, that was produced in 2010, informed the Staffordshire County Council’s Local Economic Assessment.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

2 Planning Policy Context

Local Planning Policy

2.1 The outline planning application site is located within the administrative boundary of NWBC. The Development Plan for this site comprises the saved policies of the North Warwickshire Local Plan adopted in July 2006. NWBC has prepared the emerging North Warwickshire Local Plan: Core Strategy for the period to 2028 which will replace the saved policies. The Examination into the emerging plan will commence in January 2014. 2.2 The full planning application site for a new vehicular access as an extension of Centurion Way is located within the administrative boundary of TBC. The Development Plan for this site comprises the saved policies of the Tamworth Local Plan 2001-2011 adopted in July 2006. TBC had progressed an emerging Tamworth Local Plan but in March 2013 the Local Plan was withdrawn at the recommendation of the Inspector and work has started on a revised Local Plan in order to address those concerns. 2.3 The North Warwickshire Local Plan 2006 notionally covers development up to 2011. The site is undesignated and located outside of the Green Belt. As the site falls outside the development boundaries of established settlements within North Warwickshire, Core Policy 2 requires that identified circumstances are needed to warrant new development in such a location. 2.4 NWBC published the submission version of its Core Strategy for Examination in February 2013. The Examination is now taking place in January 2014, having been deferred originally as the Inspector requested further work be undertaken by the Borough Council on its evidence base, with specific reference to the Employment Land Review and the emerging Strategic Housing Market Assessment. 2.5 The Submission version of the Core Strategy identifies a gross total employment land requirement of 68.5 ha. Once completions, outstanding planning permissions (but excluding those at Hams Halls and Birch Coppice), and Local Plan allocations are deducted, and an allowance made for the expiration of planning permissions, a remaining employment land requirement of 31.05 hectares is established. 2.6 Policy NW7 deals with employment. It states that between 2006 and 2028 68.5 ha of local employment land will be provided, of which 20 ha will be specifically for high density employment creating uses falling within Use Classes B1 (b and c), B2 and B8. It states further that employment land will be directed towards settlements appropriate to their size and position in the hierarchy. The settlement hierarchy is provided by Policy NW1. Category 1 refers to market towns outside of the Green Belt, with specific reference to Atherstone with Mancetter and Polesworth with Dordon. It notes that development for employment and housing will be permitted within the development boundaries of the market towns and it is expected that over the plan period more than 50% of the housing and employment land requirements will be provided in or adjacent to the market towns and their associated settlements. 2.7 The Inspector to the Core Strategy Examination has set a series of questions concerning employment provision within the Core Strategy, particularly Policy NW7. Specifically, the Inspector has questioned what changes are required to Policy NW7 following the production of the 2013 Employment Land Review and whether sufficient land is provided to meet objectively assessed needs. This is considered further in Section 3 of this statement. 2.8 NWBC published the Preferred Options to its Site Allocations Development Plan Document in February 2013 for consultation. However, we understand that this development plan document is now on hold until the results of the Strategic Housing Market Assessment update is completed and following the Examination of the Core Strategy. We understand further that a revised Preferred Options will be re-consulted in February/March 2014. 2.9 The current Preferred Options to the Site Allocations Development Plan Document allocates virtually all net employment land required to be allocated by Policy NW7 to the east of Birch Coppice. These sites, referred to as DOR8 and DOR11, total 31 ha.

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2.10 The future passage of the draft development plan documents for North Warwickshire and Tamworth will depend on being found sound by an independent Inspector. In turn, this will depend largely on the draft plans being found to be consistent with relevant planning policy at a national level. In addition, consideration needs to be given to any policy and evidence base at a regional or sub-regional level. This is now considered in turn. National Planning Policy

National Planning Policy Framework

2.11 The National Planning Policy Framework (NPPF) was published in March 2012. Paragraph 14 confirms that the presumption in favour of sustainable development lies at the heart of the NPPF. For both plan-making and decision-taking, this means that local planning authorities should positively seek opportunities to meet the development needs of their area. Moreover, local planning authorities should meet objectively assessed needs, with sufficient flexibility to adapt to rapid change. 2.12 Paragraph 17 refers to 12 core planning principles. These include guidance to local planning authorities to:-  proactively drive support for sustainable economic development, with plans taking account of market signals and setting out a clear strategy for allocating sufficient land which is suitable for development in their area;  protect the Green Belt; and  support the transition to a low carbon economy. 2.13 Paragraphs 18 to 22 consider how a strong competitive economy can be built. In Paragraph 19, it states that significant weight should be placed on the need to support economic growth through the planning system. In Paragraph 20, to help achieve economic growth, local planning authorities are advised to plan proactively to meet the development needs of business and support an economy fit for the 21st Century. 2.14 In Paragraph 21, advice is provided to local planning authorities on what they should take account of in drawing up local plans. This includes:-  setting out a clear economic vision and strategy;  setting criteria, or identifying strategic sites for local and inwards investments;  supporting existing business sectors, with policies flexible enough to accommodate needs not anticipated in the plan and to allow rapid response to changes in economic circumstances; and  plan positively for the location, promotion and expansion of cluster sectors. 2.15 Decision-taking is considered later on in the NPPF, from Paragraphs 186 to 207. In Paragraph 187, local planning authorities are urged to look for solutions, rather than problems, with decision takers at every level seeking to approve applications for sustainable development where possible. It adds that local planning authorities should work pro-actively with applicants to secure developments that improve the economic, social and environmental conditions of the area. 2.16 Paragraph 197 goes further. It advises that in assessing and determining development proposals, local planning authorities should apply the presumption in favour or sustainable development. Rail Freight

2.17 As referred to in Section 1, the site is located in close proximity to the Birmingham International Freight Terminal (BIFT) at Birch Coppice. This is one of only three intermodal rail freight terminals located within the West Midlands. As such, any policy issued by Central Government, and related bodies on rail freight, is of relevance. 2.18 The importance of conveying greater volumes of freight by rail has been recognised by Central Government with the publication of a series of documents, studies and guidance notes. These include:-

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

 Strategic Rail Freight Network; the Longer Term Vision – DfT, September 2009;  Value and Importance of Rail Freight – Network Rail, July 2010;  Rail Freight Demand Forecast 2030 – MDS Transmodal, October 2011;  The Logistics Growth Review – Connecting People with Goods – DfT, November 2011;  Statement on Strategic Rail Freight Interchanges – Secretary of State for Transport, November 2011. 2.19 These reports advise on the increasing use and importance of rail freight and the projected significant investment being required in terminals and supporting warehousing. The MDS Transmodal report calculates that 7.2 million sq.m of warehousing needs to be built at rail linked or connected sites over the next 20 years. 2.20 The Statement by the Secretary of State for Transport stresses the importance of rail freight and the need for a network or strategic rail freight interchanges to support growth and create employment. It acknowledges that expansion in rail freight will be very difficult to deliver unless the industry is able to build modern distribution centres linked into both the rail and trunk road system at appropriate locations to serve major conurbations. 2.21 The statement advises further that an expanded network of strategic rail freight interchanges is needed to support longer term development of efficient rail freight distribution logistics. Specifically, it identifies four main objectives. These are to:-  Reduce road congestion.  Reduce carbon omissions.  Support long term development of efficient rail freight distribution logistics.  Support growth and create employment. 2.22 The statement confirms that the Government aims to meet these objectives by encouraging the development of a robust network of strategic rail freight interchanges and it notes that it is important that these are located near the business markets that they will service – i.e. major urban centres or groups of centres – and are linked to key supply chain links. Moreover, the statement accepts the need for effective connections for both rail and road means that the number of locations suitable will be limited. Regional Planning Policy

Relevance

2.23 In June 2010, the Coalition Government announced that it would be abolishing Regional Spatial Strategies through new legislation. This has now been enacted (through the Localism Act 2011) and, following a Sustainability Appraisal, the Regional Spatial Strategy for the West Midlands was formally revoked on 20 May 2013. However, as has been recognised by the Borough Council in resolving to grant planning permission for Phase 3 of Birch Coppice, draft regional policy and it associated evidence base still holds relevance in determining the strategy for logistics and any planning applications covering this sector. 2.24 Its relevance is also expressly allowed by the NPPF. Paragraph 2.18 of Annex 1 advises that regional strategy policies can be reflected in local plans where it would be appropriate and assist the process of preparing or amending local plans. Similar advice is provided in respect of its evidence base. 2.25 A draft Phase 2 review of the approved Regional Spatial Strategy, concerning primarily housing and employment land provision, was published in January 2008 for consultation (as the Preferred Options). The plan period ran from 2006 to 2026. A Panel appointed by the Secretary of State held an Examination in Spring 2009 and published its report in September 2009.

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Employment Land Provision

2.26 Policy PA6a – Employment Land Provision – of the draft RSS Phase 2 Revision requires local planning authorities to make provision for a continuing five year reservoir of readily available employment land outside town centres through the plan period. A site was defined by the draft RSS Phase 2 Revision as being “readily available” if all the following conditions were met:  The site either has planning permission and/or is allocated for economic development in the development plan and/or is committed by an appropriate council resolution.  No major problems of physical condition.  No major infrastructure problems in relation to the scale of development/activity proposed.  The site is being actively marketed. 2.27 The draft RSS rolling five year targets for readily available land for North Warwickshire and Tamworth were 11 ha and 14 ha respectively. In addition, following a recommendation from the appointed Panel, the draft RSS identified an indicative long term requirement of 44 ha for North Warwickshire and 56 ha for Tamworth. With regards to Tamworth, the Panel recommended that a footnote be added to the effect that if there was insufficient land within Tamworth to accommodate the full 56 ha then consideration should be given to suitable land closely related to Tamworth but lying within the jurisdiction of NWBC and/or Lichfield Borough Council. Logistics

2.28 Regional logistics sites are dealt with by Policy PA9 of the draft Regional Spatial Strategy. This policy explains that the principal purpose will be to provide opportunities for the concentrated development of warehousing and distribution uses. Part B to the policy sets out the principal criteria for regional logistics sites. It reads (as recommended to be amended by the Panel):- “RLS with existing or potential dedicated rail access to freight routes with at least W8 loading gauge and close proximity of a junction that can provide access to the strategic road network or other principal roads should be identified in Core Strategy DPD. The RPB should be consulted on such proposals. Sites should also:

i. ideally be in the order of 50 hectares or more but smaller intermodal sites may be appropriate for consideration as RLS if they can be closely associated with substantial warehousing on adjacent or closely related land;

ii. possess good quality public transport links, or be capable of having such links provided;

iii. be served or proposed to be served by multi modal transport facilities and broadband IT infrastructure;

iv. have easy access to appropriate labour supply and education and training opportunities;

v. aim to minimise environmental impact;

vi. have a suitable configuration which allows large scale high bay warehousing, intermodal terminal facilities, appropriate railway wagon reception facilities and secure parking facilities for all goods vehicles; and

vii. be located away from incompatible neighbours allowing 24 hour operations and no restrictions on vehicle movements” (Our emphasis).

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2.29 Part C to Policy PA9 identifies the likely level of land that could be required to serve regional logistics sites for the period up to 2026. The Preferred Options refer to 150 ha. On the recommendation of the Panel, this was increased to 200 to 250 ha. 2.30 Part D advises that the region should have a choice of RLS available to any point in time. The sequential preference for locations, as recommended to be amended by the Panel, was as follows:-  Utilising the full potential for the expansion of the existing RLS at Hams Hall, Birch Coppice and Hortonwood  Securing provision of new rail facilities to serve:- a) the needs of the Black County located in South Staffordshire; and b) to serve the Northern Staffordshire Conurbation. (Our emphasis). 2.31 The evidence base that supported this policy approach, with specific reference to the Regional Logistics Study, is considered in the next section. Summary

2.32 The site is undesignated and located outside the Green Belt. As the site falls outside the development boundaries of established settlements within North Warwickshire, adopted plan policy recognises that identified circumstances are needed to warrant development. 2.33 The evolving development plans for both North Warwickshire and Tamworth are not advanced and have yet to be tested at Examination. Their adoption will depend on their consistency with planning policy at a national level and where, still relevant, regional planning policy and its associated evidence base. 2.34 The NPPF places significant weight on the need to support economic growth with the economy considered to be an important dimension to achieving sustainable development. Local planning authorities are urged to proactively meet the development needs of business. 2.35 Central Government has encouraged the development of a robust network of strategic rail freight interchanges and associated development of distribution warehouses. This is to increase the volume of rail freight, help to reduce road congestion and carbon omissions, and support growth and create employment. 2.36 Draft regional planning policy is still relevant and referred to by both NWBC and TBC in plan-making and decision-taking. The draft RSS seeks to ensure local planning authorities make provision for a minimum reservoir of readily available land and a long term requirement. In the case of Tamworth, the Panel to the draft RSS recommended a long term requirement of 56 hectares, but noted that some of this may need to be provided for in neighbouring North Warwickshire or Lichfield due to a constrained supply in Tamworth. It is also recommended a minimum reservoir of 11 ha of “readily available” development land. 2.37 Draft regional planning policy constructively sought to address the need for strategic logistics land, particularly that well served by both road and rail. Other criteria required sites to be located away from incompatible neighbours such as housing.

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3 Employment Land Evidence Base

Regional

3.1 The Examination conducted into the draft Regional Spatial Strategy was informed by the Stage 2 Regional Logistics Study Update, prepared for the West Midlands Employment Land Advisory Group by MDS Transmodal and Savills in May 2009. The principal remit of this study was to identify the likely quantum of land required to serve regional logistics sites. However, the study also provided an update on recent trends. Specifically, in terms of all distribution space built (in excess of 100,000 sq.ft) three key locations or areas were identified. These were:- 1. M42/A5

2. M6/M69 Coventry/Nuneaton/Rugby

3. M6 Birmingham and Solihull. (Our emphasis)

3.2 The report noted that the respective percentages in each of these three locations had decreased since the original study was carried out. The original study had outlined that the cumulative total of the three areas represented 64% of take up in excess of 100,000 sq.ft and 60% of total take up in excess of 250,000 sq.ft. The updated take up figures, at the time of the 2009 update, had reduced to 51% and 43% respectively. However, the report emphasised that:- “These areas have not become less preferable in terms of location, the lower proportion of take up in fact highlights the depleting land availability in these key areas.”

3.3 The 2009 update concluded that the total gross warehouse new build which could be expected up to 2026 across the West Midlands region was in the region of 3.2 million sq.m. Assuming a development plot ratio of 40%, this implied a requirement of 811 ha across the region in the period up to 2026. 3.4 This figure was then refined, with specific reference to the likely size of warehouses. Specifically, the 2009 update considered that large scale warehouses greater than 25,000 sq.m will require the large plot sizes offered at regional logistics sites. Based on the existing warehouse stock in the region, the 2009 update calculated that around 1.46 million sq.m of new large scale warehousing could be expected in units greater than 25,000 sq.m. This equates to a land requirement of 365 ha. 3.5 However, the 2009 update considered that new build trends were a more accurate guide on future trends. On the basis of new build trends over the past decade, the 2009 update calculated that 1.7 million sq.m of new large scale warehousing could be expected in units greater than 25,000 sq.m, with this equating to a land requirement of 438 ha. 3.6 A final qualification was to assume that not all of these large units (i.e. greater than 25,000 sq.m) would locate to regional logistics sites. Instead, it was assumed that 70% of future demand for units greater than 25,000 sq.m could be expected to locate on regional logistics site, taking into account the policy need for new large scale warehousing to be located at more sustainable locations. This would require 1.23 million sq.m of new large scale warehousing at regional logistics sites, equating to a gross land requirement of 307 ha. 3.7 Taking this into account, the 2009 update recommended a gross land requirement at regional logistics sites of between 307 ha and 430 ha being promoted up to 2026. 3.8 The 2009 update also considered supply. It noted that at the time of writing (i.e. May 2009) that there were no sites in the pipeline with planning permission which fully met the recommended site selection and criteria for regional logistics sites, most notably a site size of at least 50 ha and good rail connections.

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3.9 Analysis were undertaken of the region’s most significant large sites. Specific reference was made to:-  Prime Point (Junction 14, M6)  Fradley Park, Lichfield  Birch Coppice, North Warwickshire (Junction 10, M42)  Meaford Power Station, Stafford  Hams Hall (Junction 9, M42). 3.10 For Birch Coppice, the remaining land of 7.42 ha of Phase 1 was identified. In addition, there was reference to 48.6 ha of adjoining land in the same ownership, but without planning permission. This is a reference to Phase 2 to Birch Coppice that has subsequently been granted planning permission by the Borough Council in August 2010. In explanatory text, it was noted that Birch Coppice has a dedicated rail link and a rail freight terminal, but the land supply at this location has depleted further and available plots restrict development potential. 3.11 In summary, the 2009 update identified only 24.7 ha of land available with consent at existing regional logistics sites (Hams Hall, Birch Coppice and Hortonwood (Telford)). This resulted in a shortfall of between 282 and 430 ha of land required at regional logistics sites for the period to 2026. 3.12 The report of the Panel was published in September 2009. In Paragraph 5.25, the Panel stated:- “It seems to us that it is axiomatic that an RLS should be rail served if such facilities are to be encouraged in the interest of sustainable transport and that in relation to off-site road movements the key point to recognise is the relative length of travel by the different modes.”

3.13 Further on in Paragraph 5.25, the Panel noted:- “Clearly, the closer to any satellite or related warehousing or industry can be to the intermodal terminal the better. From what we saw and heard in relation to both Hams Hall and DIRFT as well as Birch Coppice, all operate to a degree with related or satellite facilities nearby…. In such a context, we consider that the expectation of the full suggested 50 or more ha should be on a single site is both unnecessary and unrealistic and would inhibit the proper recognition of the Hortonwood site at Telford and potential elsewhere.”

3.14 In Paragraph 5.26, specific reference is made to Birch Coppice. It stated:- “As for the references to avoidance of over concentration in particular localities, these seem mostly concerned with attempts to obstruct realisation of the full potential of Hams Hall and Birch Coppice which we do not accept as justifiable.”(Our emphasis)

3.15 In Paragraph 5.28, reference is made for the potential of further allocations at Birch Coppice and other sites. It states:- “We are quite clear that whatever deficiencies there may be in terms of access, layout or space at Hams Halls and Birch Coppice that at least some are capable of being sufficiently rectified, as for example in the enhancements to the terminal layout at Hams Hall subject to a current application at the time of the examination and the intended completion of a full W10 rail gauge access to both sites. Therefore we regard the additional 20 ha on the B Side to Hams Hall and the full potential of a further 40 ha to complete Phases 1 and 2 at Birch Coppice to be part of the RSS baseline together with Hortonwood.”

3.16 The Panel Report then goes on to endorse largely the findings of the 2009 update to the Regional Logistics Study, with specific reference to the recommendation that at least four additional regional logistics sites or intermodal terminals may be required during the plan period. Particular attention is directed towards securing

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provision to the north of the conurbation of Birmingham to service the Black Country and Southern Staffordshire. Reference is made to the following opportunities:-  Four Ashes  Brinsford  Cannock  Lichfield 3.17 In addition, reference is also drawn to North Staffordshire, specifically in regard to the potential at the 43 ha former Meaford Power Station, just north of Stone on the West Coast Mainline. It is to be noted, that whilst a number of these sites and locations have been promoted, none have secured planning permission and come forward for development. Sub Regional

3.18 The Black Country and Southern Staffordshire Regional Logistics Site Study was published in April 2013. It was prepared for the four Black Country planning authorities, Staffordshire County Council, a number of Staffordshire local planning authorities (including TBC) and CENTRO. The authors of the report were URS Scott Wilson, The Logistics Business and CBRE. 3.19 The principal purpose of the study was to consider the need for regional logistics provision or a regional logistics site to serve the Black Country and Southern Staffordshire and, based on findings, make recommendations for a suitable location. 3.20 The study concluded that there was a need for a regional logistics site facility that can serve the Black Country and Southern Staffordshire. However, this was only in so far as this area formed part of the West Midlands, taken as a whole. Essentially, it concluded that it would be impractical to separate the needs of the Black Country from those of the wider West Midlands. As such, a key finding of the study was that an regional logistics site development to serve the Black Country and Southern Staffordshire did not actually need to be located there as it would be a regional facility serving a regional catchment. 3.21 The study concluded that the findings of the Regional Logistics Study Update 2009 and the RSS Panel Report 2009 remain valid for a number of reasons. The study supported the view that there was a continuing need and demand for regional logistics space and endorsed the overall requirement to find 200 to 250 ha of new land as previously identified by the RSS Phase 2 Panel Report. In addition, it noted that no new regional logistics site had been brought forward other than the expansion of Birch Coppice. It also concluded that Hortonwood was unlikely to play a meaningful role in meeting forecast demand because of its peripheral location. 3.22 The study noted further that although there were a number of large scale distribution sites in and adjacent to the Midlands being brought forward, the logistics property market review undertaken found that there was only limited current or planned supply of large scale distribution floorspace. Overall, it considered that there was a mismatch between demand and supply in the West Midlands. 3.23 The study recommended that a Stage 2 be undertaken. This second stage should consider a wider search area, embracing the whole of the West Midlands, to consider appropriate potential locations and sequencing of provision. Local

North Warwickshire

3.24 An Employment Land Review Update was commissioned by North Warwickshire Borough Council in Summer 2013. G L Hearn were appointed and a draft report was issued in September 2013.

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3.25 The ELR contains a number of references that illustrate the importance of the logistics sector to the local economy and job market. In addition, it accepts that this sector had enabled the local economy to make a successful transition from declining industries that previously had predominated, such as coal mining. 3.26 The ELR considers future land requirements for the Borough by the use of two models – labour demand and historic trends. The results of this modelling is set out in Tables 19 and 21 of the ELR. These tables have been extracted from the report and are set out below.

3.27 It is clear that the need for B8 warehouse and distribution land is the key driver for all employment land. It generates an overall need of between 190.8 ha and 340.9 ha, depending on the model user. This equates to between 83% and 90% of the total employment land required for the Borough.. 3.28 However, the ELR considers that between 164 ha and 330 ha, depending on the model used, of this need arises regionally rather than locally. This is based on the assumption that all take up of warehousing greater than 1,850 sq.m serves a regional, rather than local, market. On this basis, G L Hearn consider it appropriate to disaggregate local needs, particularly from B8 warehouse and distribution. Table 22 identifies the locally arising needs from the two models used, that range from 47.9 ha to 96.3ha. This table is extracted and provided below.

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3.29 Based on this assumption, G L Hearn recommends in Table 23 the land requirements for the three principal use classes (B1a offices and R&D, B1c/B2 industrial and B8 warehousing and distribution) should total 70 ha, of which 40 ha is for B8 warehousing and distribution. This table is also extracted and provided below.

3.30 In essence, the recommendation of G L Hearn has ignored between 77.3% and 80.5% of the total identified land requirement for North Warwickshire, as it is considered that this need arises regionally, rather than locally. The soundness of this approach is the subject of specific questions by the Inspector with regard to employment policy in the Examination to the Core Strategy that is schedule for early January. Notwithstanding this, the forecasts of future land required for the Borough contained within the G L Hearn report do emphasise the potential growth of the logistics sector in this location. 3.31 Table 24 of the G L Hearn report considers the balance between demand and supply for local employment land. This table is extracted and provided below.

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3.32 It is to be noted that the “extant permissions and allocations” do not include any development land at Birch Coppice or Hams Hall, as this is considered to fulfil a regional need. As things stand, there is a current net shortfall of 24 ha of local employment land. 3.33 Paragraph 7.70 of the ELR makes reference to an emerging sub-regional focus on the advanced engineering and manufacturing sectors and the growing future need for modern, high tech industrial space in North Warwickshire. It notes further that the extent to which proposals for Phase 3 at Birch Coppice, that have recently been granted planning permission, can be managed to meet local needs will be an important consideration in future allocations. 3.34 As far as we are aware, any planning permission granted for Phase 3 of Birch Coppice is unrestricted and could be developed for national and regional distributions centres in a similar fashion to Phases 1 and 2. Phase 3 has been identified also by the Preferred Options to the Site Allocations DPD to provide 30 ha to essentially meet the identified local shortfall. There is an obvious tension here between meeting regional and local needs and other sites may need to be identified to meet this shortfall. We expect this to be addressed at the forthcoming Examination. Tamworth

3.35 Tamworth Borough Council has conducted its own Employment Land Review internally. This was produced and published in January 2012. It covers essentially Stage 1 (assessment of existing situation) and Stage 3 (identification of suitable portfolio of sites) of the DCLG’s Guidance Note on the production of Employment Land Reviews. 3.36 Table 2 of the ELR provides a summary of the employment land availability within the context of Regional Spatial Strategy Guidance. Relevant information is extracted and provided below in Table 1. Table 1 – Employment Land Availability in Tamworth as at March 2011

Land (ha)

Completions (2006 to 2011) 1.55

New Premises under Construction as at March 2011 0.97

Existing commitments (i.e. sites with planning 14.17 permission) on new land

Existing Commitments (planning permissions) for 0.69 redevelopment land

Local Plan Allocations 0

Total 17.38

Source: Table 2 of Tamworth ELR, January 2012

3.37 Schedules of commitments for both new land and redevelopment land are provided in Appendix 1 to the Employment Land Review. For ease of reference, these are provided in Appendix 2 to this report. 3.38 It is to be noted that the commitments (totally 14.83 ha) rely largely on the 11.8 ha remaining land adjoining Dunstall Lane at Bonehill Road. This site is located on the very western edge of Tamworth and was granted outline planning permission back in 1996. Planning permission has been renewed on a number of occasions, and reserved matters approval and discharge of certain conditions (but not access) was granted in November

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2002. The planning permission was deemed to be implemented through the construction of a noise barrier. A separate application concerning access was submitted in 2002 and approved in February 2009. It was renewed again on 21 December 2012. 3.39 Whilst the extant planning permission has been kept alive through renewal, the site has not been actively marketed for sometime. Indeed, as will be seen in Section 5, there is very little employment development land in Tamworth that is currently being marketed. On this basis, it cannot be considered to be “readily available” by the terms of Policy PA6 of the draft Regional Spatial Strategy. 3.40 The remaining plots of land that have the benefit of planning permission are mostly small, all being less than a hectare with the exception of land off Sandy Way, Sandy Hill Business Park, . This business park has been built out for two storey offices and has plots of 1.22 ha and 0.47 ha remaining of land consented for B1 and B2 (but not B8) uses and B1 (a,b and c) (but not B2 and B8 uses) respectively. The next largest plot with consent is 0.68 hectares of extension land to the former Britvic unit at Centurion Park. Jones Lang LaSalle has very recently let this unit to Speedy Hire and are not aware of any plans of this operator to extend the unit. In addition, this land is not being marketed. 3.41 We consider the extent of marketed premises and land in Tamworth in more detail in Section 5. However, it is worth noting at this point that only 1.69 ha of consented land is currently being marketed (i.e. Sandy Hill Business Park) and that none of this is permitted for distribution and logistics. 3.42 The ELR does give consideration to potential employment sites. The potential sites – both greenfield and brownfield – are itemised in Table 28 and depicted on a plan in Appendix 5. This table and the plan form Appendix 3 to this report. 3.43 51.97 ha is considered to be developable within the short term (0 to 5 years), the medium term (6 to 10 years) and the long term (11 to 15 years). However, this figure includes the existing commitments referred to above (totalling 15.39 ha). As such, it provides a gross land supply. 3.44 Of the sites that do not have planning permission, Site EMP 1 (land south of the A5, Bitterscote South) is the biggest at 9.7 ha. Outline planning permission for this site expired in July 2009 and a new application has been submitted. The application does not specify the level of proposed floorspace or its split between B1 (c), B2 and B8 uses. The application is subject to an HA holding direction and we understand that a number of highway improvement works are required to various junctions to the A5 in order to enable this development to proceed. 3.45 In addition, as with the existing planning permission for land off Dunstall Lane, this site is not being currently/actively marketed. On this basis, we would question whether it is realistic for this site to come through in a short term timescale as indicated. Certainly, it would not fall within the definition of “readily available land” as required by Policy PA6 to the draft Regional Spatial Strategy. 3.46 Seven of the sites (EMP8,17,18,20,22,24 and 25) are referred to in Table 28 as either being occupied or partly occupied. These total 13.75 ha. Similarly, through an inspection of sites we have identified a further four sites (EMP 11, 12, 27 and 28) totalling 4.94 ha that are used and occupied. Clearly, there is no certainty that these sites will come forward for development, whether in the short, medium or longer term. A summary of the supply is provided below.

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Table 2 – Supply of Land for Tamworth

Land (ha)

Employment Land Requirement for 2006 to 2026 56 recommended by the Panel to the RSS

Gross Land Supply 51.97

Sites referred to in Table 28 as being occupied (EMP 13.75 8,17,18,20,22,24 and 25)

Other sites currently occupied (EMP 11,12,27 and 28) 4.94

Net Land Supply 33.28

Shortfall against Recommended Land Requirement 22.72

3.47 This suggests that, at best, 33.28 ha out of the 51.97 has can be considered to be deliverable during the plan period. This is a significant shortfall when compared against the indicative long term requirement of 56 ha recommended by the Panel to the draft RSS. 3.48 Table 28 identifies sites EMP 1,2,10,25,26,27,30 and 31 as being deliverable in the short term (i.e. next 5 years). These total notionally 29.17 ha. However, sites EMP 25 and 27 are not vacant or available being occupied by companies. Sites 10 and 30 have been sold as one plot to Precast Solutions and are no longer available. Sites EMP 1 and 31 are not being marketed and Site EMP 1 has no planning certainty. This leaves just Sites EMP 2 (Cardinal Point) and 26 (Sandy Hill Business Park), that fulfil all the requirements of the definition of “readily available” land. The short term land supply is summarised below in Table 3. Table 3 – Short Term Land Supply in Tamworth Land (ha)

Sites indentified by Table 28 as being deliverable in the 29.17 short term (EMP 1,2,10,25,26,27,30 and 31)

Sites currently occupied (EMP 25 and 27) 2.50

Sites sold and no longer available (EMP 10 and 30) 1.15

Sites not being relatively marketed (EMP 1 and 31) 21.50

Sites that are being marketed and are “readily 4.02 available” (EMP 2 and 26)

Only two sites fall within the definition of “readily available”. They total 4.02 ha. This is a long way short of the minimum 5 year rolling reservoir of 14 ha of “readily available” land required by Policy PA6 of the draft RSS.

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3.49 Whilst not purporting to undertake a Stage 2 assessment, the ELR does predict that 36 ha of employment land is required. This prediction seems to be based on very limited information and evidence, concerning principally a continuation of the past trends for the last 10 years and an adjusted labour demand model. For this reason, Tamworth Borough Council has recently commissioned Nathaniel Lichfield & Partners to undertake a Stage 2 Review, the principal requirement of which is to forecast the quantum and quality of employment land required going forward to cover the period from 2006 to 2028. This assessment has yet to be published. 3.50 For reasons that are not made clear, the ELR makes very little reference to the long term requirement of the draft Regional Spatial Strategy, as recommended to be revised by the Panel, to provide 56 ha over the period from 2006 to 2026. Nevertheless, it is clear that officers at the Borough Council do hold a concern about the level of employment land that is coming forward for development. This is apparent from the consideration of a planning application to construct 12 light industrial units at land off Glascote Road, Stonydelph at the Brough Council’s Planning Committee meeting of 12 November 2013. 3.51 A copy of the planning officers’ report to this Committee forms Appendix 4. In this report, an update on the employment land availability is provided. The report states:- “The Employment Land Review 2012 (ELR 2012) identifies a broad range of employment land requirements and establishes the need for 36 ha of new employment land within the Borough up to 2028. Employment monitoring records as of 31 March 2013, show that 15.62 ha of the 36 ha need has either been completed, has permission or is under construction. However the rate of new employment development completing in Tamworth has slowed significantly in recent years, with only 2.51 ha having been completed since April 2006.”

3.52 Earlier in the report, the consultation responses from various consultees is reported. Under the heading of Tamworth Borough Council – Development Plans, it is stated:- “Considering the employment needs set out in the evidence base for the withdrawn local plan and the most up to date monitoring records, it is evident that there is still a high need for new employment land across the Borough. Because of the lower amount of suitable brownfield sites for employment development and the constrained nature of the Borough, Greenfield sites will still be required.” (Our emphasis).

3.53 Despite these findings, the overall recommendation of officers was for refusal. However, this reason for refusal did not concern any issues concerning employment need or supply, but was solely due to the potential impact upon protected trees. Summary

3.54 The Regional Logistics Study 2009 Update identified a significant need for new warehousing land (between 307 and 430 ha) and noted the paucity of options for rail connected sites. The Panel to the RSS endorsed the Study’s main findings and encouraged realisation of the full potential of Birch Coppice. The Panel also recognised that regional logistics sites could be disaggregated and made up of satellite sites, that are close or well related to intermodal terminals. 3.55 The need for significantly more new warehousing land, as identified by the Regional Logistics Study, has been endorsed recently by the Black Country and Southern Staffordshire Regional Logistics Site Study (April 2013). It recognises the mismatch between supply and demand for warehousing land in the West Midlands. 3.56 The North Warwickshire ELR identifies a very significant need for additional warehousing land for the Borough (between 190 ha and 340 ha). This requirement is significantly greater than current supply. Given the regional attraction of Birch Coppice, there may also be a need to identify further employment land to serve local demand. 3.57 There is real shortage of employment development land serving Tamworth, particularly large sites suitable for warehousing. Much of the identified supply is occupied and/or not being marketed. The supply of land is significantly less than the indicative long term requirement of 56 ha recommended by the Panel to the RSS. The

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true level of “readily available” land is less than 5 ha and significantly less than the minimum 5 year reservoir of 14 ha of “readily available” land of 14 ha required by Policy PA6 of the draft RSS.

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4 National and Regional Market Trends

4.1 The market for large logistics and distribution warehouses is now quite mature, going back at least 25 years. As a company, Jones Lang LaSalle has plotted the take up of large distribution units (i.e. over 100,000 sq.ft) since 1995. A copy of our latest UK Big Box Industrial and Logistics Market Survey (July 2013) is provided as Appendix 5. 4.2 The annual average take up over the period from 1995 is 12.6 million sq.ft in the UK. This level of take up has increased generally over the last 18 years. Paradoxically, the last four years (2009 to 2012), which has witnessed the economic downturn, has seen the largest level of take up at 15.2 million sq.ft per year. Partly, this is due to opportunistic deals by operators taking advantage of a large stock of speculative units. However, it also illustrates the strength and resilience of this market sector. 4.3 After 9 months, 2013 looks likely to be better than 2011 and 2012 in terms of take-up and above the average for the last 4 years. By the end of Quarter 3, 13.4 million sq.ft had been transacted. Currently, the market is seeing heightened take-up and enquiry levels. 4.4 The overall level of take up shows the maturity, depth and continuing dynamism of logistics. Whilst economic activity is a key factor, the continuing changes in the market place (e.g. growth in online sales), and continuing attempts to find competitive advantage have maintained and increased demand levels over a sustained period. 4.5 Similarly, we have monitored the supply of large Grade A distribution floorspace over the last few years. In under 3 years, the supply of available and vacant floorspace has reduced by just under a third. Moreover, the level of available and vacant grade A new floorspace has diminished significantly over the last 5 years, from a high of 28 million sq.ft in the first half of 2008 to 6.8 million sq.ft in the first half of 2013. 4.6 Over the last 5 years, with a dearth of speculative development (until very recently – see below for details), the supply of new floorspace (particularly Grade A floorspace) has relied on built to suit buildings. However, many companies ideally require facilities faster than built to suit buildings can be delivered and do not like the risk associated with a built to suit development. As new supply continues to decline, and market conditions strengthen, we expect a much greater return to speculative big box development. 4.7 Beyond the improving state of the current UK economy, there are a number of other factors that are driving demand in the logistics sector. These factors will affect the longer term development market for large space distribution. First, and possibly most significant, is the growth of online retail sales. This growth will drive significantly demand for logistics real estate in both the short and medium term. 4.8 This demand will require a variety of different types of logistics facilities. This will include fulfilment centres, sortation centres, cross dock facilities and processing centres for returned items. There will also be a growing demand for collection points, including lockers, to service click and collect. 4.9 Traditional bricks and mortar retail will remain a more significant driver of aggregate logistics real estate demand. However, in the medium term, online will be a more dynamic driver of change. Increasingly, multi channel retail will evolve into ommi-channel retail in order to provide a fully integrated seamless customer shopping experience. With ommi-channel, the role of shops and warehouses will become blurred. 4.10 A second factor is the growth of port centre logistics. This is likely to grow further as global sourcing leads to further growth in containerised imports. However, the availability of land at many ports is constrained and some ports are clearly better located than others in terms of access to markets. 4.11 Thirdly, and partly related to the growth of container traffic to UK ports, is the predicted growth of rail freight. MDS Transmodal, experts in the rail logistics market, have assessed that at existing levels of productivity that intermodal freight will grow from 16 million tons in 2011 to 73 million tons in 2030. This is an annualised growth

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of 7.6%. These particular rates of growth are key drivers for significant expansions in strategic rail freight interchanges and associated development. 4.12 In summary, Jones Lang LaSalle remains confident that the big box industrial logistics market is supported by strong fundamentals in the strong, medium and long term. However, it appears clear that a number of factors are changing locational drivers. One of these is access to rail. Regional Market Trends

4.13 The Midlands has become the key distribution hub for the UK. Distribution functions dominate the industrial market in this location. 4.14 The area bound by the M1, M6 and M42 has become known as the Golden Triangle due to the ease of national distribution for this location along the UK’s motorway network. It is an established location for national and regional high bay warehousing due to its centrality in terms of the UK. A large portion of the UK’s population is within fours drive time. This is the yardstick employed by logistics companies due to regulations governing the drive time for HGV drivers. 4.15 Much of the Golden Triangle falls within the West Midlands, particularly Warwickshire. However, over recent years, activity has spread to Staffordshire and the conurbation of Birmingham due to the shortage of suitable land in the prime Golden Triangle area. 4.16 In the first half of 2013, Jones Lang LaSalle has recorded eight new deals in the West Midlands over 100,000 sq.ft, totalling 1.6 million sq.ft. This level of floorspace represents 16.4% of the total take up in the UK for the first half of the year. The East Midlands accounts for 17.1%. There are no fundamental reasons, apart from a lack of supply of suitable sites or premises, why the dominance for the Midlands will not continue. 4.17 The importance of the West Midlands has been demonstrated recently by two speculative developments. The first comprises 225,000 sq.ft of new build at ProLogis Park, Ryton. The second comprises the development of Plot 4 at Birch Coppice by IM Properties of two units totalling 334,500 sq.ft. One of these buildings, sized 160,000 sq.ft, has already been let to Bunzel. These two speculative developments are the first in the West Midlands and the UK since 2008. 4.18 The automotive sector has been an increasing factor driving large floorplate requirement for both manufacturing and warehousing in the West Midlands. Much of this is due to the success of Jaguar Land Rover (JLR) in emerging overseas markets, such as China. This has resulted in activity from both JLR and its component supply chain. Occupier Requirements

4.19 The three basic criteria requirements for logistic operators for high bay warehousing are as follows:-  Location  Land  Labour 4.20 Quick access to the national motorway network is fundamental. This is just not to save time, but also for certainty. Just in time logistics needs to be as risk averse as possible in order to function properly. Congested A or minor roads are to be avoided. 4.21 Land that can accommodate large distribution warehouses (i.e. 100,000 sq.ft plus) and can operate without any restrictions is in demand. This requires flat or level sites in excess of 5 ha (12.5 acres), although much larger sites (25 ha (60 acres plus)) are often demanded to accommodate property requirements in excess of 500,000 sq.ft or a number of different operators.

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4.22 Operators require premises for large sites away from housing, with good access to the national motorway or trunk road network. Buildings require good eaves height, typically greater than 15m, but sometimes above 20m. Additional features sought are sufficient yard space, docking and circulation. 4.23 Access to rail, for the purposes of freight, has become an increasingly bigger issue in recent years. Developers are aware that good rail access is required to future proof their developments. As fuel prices and road congestion increases, and fewer HGV drivers get qualified, there will be greater economic pressure to use rail over road in the medium and long term. 4.24 This places sites that are well located to rail freight facilities at a premium in the future. This has become increasingly evident at schemes such as Castle Donington, Daventry International Rail Freight Terminal (DIRFT), both of which are located in the East Midlands, and Birch Coppice. Essentially, the level of development at both DIRFT and Birch Coppice has outstripped competing sites that do not have the advantage of a rail terminal or access point. This is considered in greater detail, with respect to Birch Coppice, in the next section. Supply of Rail Related Land

4.25 The West Midlands Regional Logistics Study May 2009 Update and subsequent Panel Report identified three existing rail freight interchanges in the West Midlands. These were:-  Birch Coppice  Hams Hall  Hortonwood, Telford. 4.26 The potential to extend Hams Hall is very limited due to its location within the designated Green Belt. In addition, there seems to be lack of appetite from the owner, Eon, to bring forward this land for development; hence, the reallocation of this land by the draft Core Strategy to Birch Coppice. 4.27 Hortonwood is supported by only a very small site of less than 10 ha. There is no further development land in its vicinity that could be brought forward easily to increase the level of development in this location. Instead, as the Panel Report to the Regional Spatial Strategy identifies, this rail freight terminal has a limited offer, serving primarily Telford. Given its peripheral location, this site will always struggle to compete with locations such as Birch Coppice that are much more centrally located within the West Midlands. 4.28 The Panel Report identified potential for new sites in Staffordshire and specific reference was made to Brinsford, Four Ashes, Cannock, Lichfield and Meaford. 4.29 Brinsford and Four Ashes both adjoin the West Coast Mainline and are located within South Staffordshire District. However, both sites are within the Green Belt and do not enjoy particular support from South Staffordshire District Council. In addition, the sites are not particularly well connected to the motorway network. The Panel Report concluded that both these sites should be explored further. However, it concluded also that it was not established that either site would prove to be acceptable in overall planning terms or be economically viable. Since publication of the Panel Report in September 2009, very real substantive progress has been made with either proposal. 4.30 The Panel Report made reference also to the Maersk site at Cannock. This site is operational, but is relatively small and restricted. There are no obvious landholdings that can be developed at the back of the existing terminal and no proposals have been forthcoming. 4.31 Fradley Park is already a large B8 distribution park, developed out over several years by Evans of Leeds. In addition, Wittington Investments and ProLogis have planning permission for a site for further expansion. The sites have good access to the A38 and are well located. However, Fradley Park is not rail connected nor particularly accessible to existing rail freight terminals. The Panel Report referred to a potential intermodal

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terminal on the Lichfield – Burton freight line in the Hillards Cross vicinity that could possibly serve existing warehousing at this location. However, it appears that no significant progress has been made in this respect. 4.32 Finally, the Panel Report referred to Meaford as a potential site to serve North Staffordshire, albeit referring to tis awkward shape and access. Meaford is a former power station site that is being promoted by SMDL. However, we understand that SMDL do not consider that logistics development of this site to be particularly attractive or feasible in the short term. 4.33 Over four years have now elapsed since the publication of the Panel Report to the Regional Spatial Strategy. However, with the exception of Birch Coppice, no real or substantial progress has been made in bringing forward regional logistics sites. Hopefully, this position will change and some new sites will come forward in new locations to service the increasing requirement for land. However, bringing forward a development of this scale can take a long time. This is due to the planning and operational procedures involved (including bodies such as Network Rail) and often the sheer scale of supporting infrastructure. 4.34 On this basis, and given the increasing demand for development land to serve the logistics sector in the West Midlands, it makes most sense to fully exploit the potential of existing facilities. This is particularly the case where existing facilities prove to be successful (as with Birch Coppice) and there is the potential for further extension that is sustainable, attractive in market terms, and in the hands of a competent developer. These points are now considered in turn in the next two sections of the report. Summary

4.35 Despite the economic downturn of the last 4/5 years, there has been significant take-up of large warehouses. This has led to a real shortage of supply of new facilities and the return of speculative development. 4.36 The West Midlands, along with the East Midlands, remains the dominant geographical area for distribution. The market has reverted particularly in recent years to the core area known as the Golden Triange. 4.37 Access to rail, for the purposes of freight, has become an increasingly important issue for developers and operators in order to future proof their investments. This has, and will, place sites that are well located to rail freight terminals, such as Birch Coppice, at a premium. 4.38 Apart from Birch Coppice, there are few development options in the West Midlands where there are deliverable sites to support rail freight. Over four years have elapsed since the Panel report was published but no real substantive progress has been made in bringing forward new intermodal sites. We consider it makes most sense to fully exploit the potential that exists around existing facilities.

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5 Local Market Trends

Birch Coppice

5.1 Birch Coppice has been a very successful distribution park developed by IM Properties. Its specific attributes includes its central location, its almost direct access to the national motorway network (Junction 10 of the M42), access to the Birmingham Intermodal Rail Freight Terminal (BIFT), available labour (historically used to working shift patterns) and an availability of land. A set of marketing particulars for this scheme can be found in Appendix 6. 5.2 Phase 1 and BIFT were allocated in the adopted 2006 Local Plan. Phase 1 was originally granted outline planning permission in August 2000, with an engineering works application approved in November 2004. In December 2004, full permission, subject to a S106 Legal Agreement, was granted for the establishment of a rail freight terminal, container goods yard and associated distribution warehouse. This permission covered the intermodal rail freight facility (i.e. BIFT), with this being developed and operational by the end of 2006. 5.3 With the exception of two plots, all of Phase 1 has now been developed. This phase accommodates 11 different operators and buildings ranging from 10,000 sq.ft to 733,000 sq.ft and totals 2.14 million sq.ft. 5.4 In August 2010, planning permission was granted for Phase 2. This comprised of development of up to 186,000 sq.m (2 million sq.ft) on 50 ha (120 acres) of land. This phase has been subsequently refined and comprises three particular elements:-  575,000 sq.ft distribution depot for Ocado (now operational);  Plot 3 – a site for a cross docked unit of 700,000 sq.ft; and  Plot 4 – a site for two units totalling 334,500 sq.ft. 5.5 In May 2013, IM Properties announced that Plot 4 would be speculatively built. As referred to in earlier sections, this is the first major speculative industrial development in the West Midlands and the UK since 2008. One of these buildings, sized 165,000 sq.ft, has been let to Bunzel. These two units will be completed by January 2014. 5.6 On 11 February 2013, the Planning and Development Board to North Warwickshire Borough Council resolved to grant planning permission to further planning applications submitted by IM Properties for Phase 3 to Birch Coppice. These two applications were for 13.6 ha (33.6 acres) and 28.6 ha (70.6 acres) of B1, B2 and B8 development respectively. The smaller site formed part of the large site. The larger site is considered capable of providing a further 99,695 sq.m (just over 1 million sq.ft). 5.7 A key aspect to Birch Coppice and its success has been BIFT. Since operations commenced in 2006, the number of train services to the site has steadily increased from two per day in 2007, to four per day in 2009, five per day in 2011 and 7 per day in 2013. Over the same period, the throughput of containers has risen from receipt of 26,000 containers in 2007 to 80,000 containers in 2011. 5.8 The freight terminal can be accessed by large containers on standard wagons via the West Coast Mainline and W10 gauge clearance is available from Southampton to the West Midlands via Birmingham and Nuneaton. Gauge cleared access is also available into Birch Coppice, therefore ensuring it remains economically competitive for the receipt of large containers by rail. 5.9 Growth of usage of the freight terminal by companies occupying premises at Birch Coppice has increased very considerably. It is now well established that virtually every company at Birch Coppice is using the intermodal rail freight facility. 5.10 It is considered that BIFT has significantly more potential capacity and discussions are ongoing with RCL, the operator of BIFT, as well as Network Rail and other relevant rail organisations, to increase operations. In

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addition, it is concluded that there is additional capacity in the existing rail network and that potentially 11 trains can run on the line from Kingsbury to Birch Coppice. 5.11 Since 2001, 14 companies have taken space at Birch Coppice. Details are provided below in Table 2 Table 4 – Schedule of Occupiers at Birch Coppice

Ref No: Occupier Floorspace (sq.ft)

1 Severn Trent 19,000 2 Petit Forestier 5,000 3 Instarmac Group Plc 120,000 4 PHS 40,000 5 UPS 390,000 6 Volkswagon/TNT 733,000 7 SS Gears Limited 30,000 8 Ceva Logistics 55,000 9 HIB 40,000 10 Bristan 230,000 11 Euro Car Parts 256,000 12 Ocado 575,000 13 Mobis 220,000 14 Bunzl 165,000 Total 2,878,000

5.12 Over 12 years, this equates to just under 240,000 sq.ft contracted and developed per annum. 5.13 With Phase 3 now having received planning permission, the availability of land is as follows.

Table 5 – Supply of Development Land at Birch Coppice

Plot Level of Floorspace (sq.ft) Plot 1 Phase 1 47,250 Plot 2 Phase 1 131,250 Plot 3 Phase 2 700,000 Phase 3 1,073,000 Total 1,951,500 5.14 Assuming development of Birch Coppice continues at the same rate as before (i.e. 240,000 sq.ft per year), the remaining land equates to just over 8.1 years supply. This will not cover the full plan period to 2028, that is 15 years away. In reality, we expect the remaining land in Phases 1,2 and 3 of Birch Coppice to be taken up in a much quicker timescale than 8.1 years. This is for a number of reasons, as follows:-

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

 Birch Coppice has become an established and successful park.  Birch Coppice is able to accommodate very large floorspace buildings (including a unit of 700,000 sq.ft).  The relationship of Birch Coppice to BIFT will become increasingly attractive to the market.  The development is being promoted by a competent developer, IM Properties, that is well versed in bringing forward these types of development and delivering a product required and demanded by the market place. 5.15 In reality, we consider that the remaining land in Phases 1, 2 and 3 will be developed out over the next 5 years. Tamworth 5.16 As referred to in a previous section, there has been very limited development of industrial and distribution premises in Tamworth since 2006. This is not a function of demand specifically. Instead, it is a function of a lack of deliverable sites coming forward. 5.17 However, there has been lots of recent activity, particularly with larger premises, in the letting of secondhand stock. Recent significant deals are summarised below in Table 4. Table 6 – Recent Significant Occupations of Industrial and Distribution Premises in Tamworth Ref No Site Occupier Floorspace (sq.ft) Emperior Point, Centurion 1 Speedy Hire 180,000 sq.ft Park 2 Centurion Park Royal Mail 120,000 sq.ft Former Do-it-All 3 Hermes Parcel Net 350,000 sq.ft Warehouse, Bonehill Former Do-it-All 4 Euro Car Parks 240,000 sq.ft Warehouse, Bonehill

5.18 We have analysed the current level of vacant and available industrial and distribution property over 5,000 sq.ft has been marketed in Tamworth. A schedule is provided in Appendix 7. This schedule has been produced by reference to the EGi website, the websites of local agents (Calders, Kingstons and Peter J Hicks), an inspection of the principal industrial locations and then crossed checked through contact with local agents. 5.19 We have identified just 20 industrial and warehouse units that are currently on the market in Tamworth. These total 477,437 sq.ft. 5.20 Of the 20 units we have identified, all bar one are less than 50,000 sq.ft. There is only one large unit. This is Apollo, that is located in the Lichfield Road Industrial Estate and measures 191,981 sq.ft. This is an old unit, tucked away at the back of the large Lichfield Industrial Estate. It does not provide the type of logistics accommodation sought by most operators. Specifically, it has a low eaves height of less than 6m. These premises would not be considered to be competitive against modern premises provided in Centurion Park and Birch Coppice. A copy of the details for this unit are provided in Appendix 8. 5.21 None of the existing vacant and available premises in Tamworth are new. Instead, all of them are secondhand. This is a direct consequence of the lack of development of new industrial and distribution premises in Tamworth since 2006. 5.22 It is obvious that there is a real shortage of new large industrial and warehouse premises serving Tamworth. There is a real gap in the market for new premises above 50,000 sq.ft. The proposed development, comprising buildings of 57,183 sq.ft and 153,387 sq.ft, will help to close this gap and offer something to the Tamworth employment premises and land portfolio that is badly missing.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

5.23 We have also appraised development land for employment that is currently on the market in Tamworth. We have been only able to identify only 3 sites. A schedule of these sites is provided in Appendix 9. The three sites total 7.15 acres (2.9 ha). The largest site is expansion land at Sandy Hill Business Park, measuring 4.18 acres (1.69 ha). Jones Lang LaSalle is marketing this land. The land has consent for B1 and B2 uses (and not B8) with plans for future development restricted to offices. 5.24 1.83 acres of land has just come to the market that adjoins the application site. Jones Lang LaSalle is marketing this land also, following the release of the adjoining office building by Ocean Finance. Again, the aspiration of the owner is for an office development to mirror the two blocks accessed off the same spur from Centurion Way. 5.25 The lack of readily available industrial and warehouse development land and premises is demonstrable. It is clear that further development land needs to be brought forward in the short term in order to support the economic objectives and aims of TBC. Enquiries 5.26 From our involvement in the regional and logistics market, and particularly off the back of acting as marketing agents in respect of Emperior Point, Centurion Park, we are aware of a number of large live enquiries that take in Tamworth. These include:-  DHV – 45 acres  DSV – 2 units of up to 200,000 sq.ft each  A private and confidential requirement of 120,000 sq.ft  Royal Mail – 150,000 sq.ft  UK Mail – 25 acres  Three separate requirements from retail operators for between 100,000 sq.ft and 300,000 sq.ft for “dark stores”  Norbert Dentressangle – 200,000 sq.ft  B & M Stores – 30 acres. 5.27 A number of these enquiries could be satisfied by the proposed development. 5.28 It is clear that current demand for large distribution units is very high for this location. In addition, it is to be noted that Jaguar Land Rover (JLR) have a number of requirements between 100,000 and 300,000 sq.ft to accommodate their growing business. Their search area requires good accessibility to existing plant at Solihull and Castle Bromwich and this location would be considered ideal. 5.29 Finally, the success of JLR has spread to its components suppliers, many of whom are still based in the West Midlands. This has led to a number of enquiries for new premises in the 50,000 to 250,000 sq.ft range. Summary 5.30 Birch Coppice has become a very successful scheme. It has managed to develop out at 240,000 sq.ft per year. The level of remaining consented land (including Phase 3) equates to 8.1 years supply at this rate of development. However, as Birch Coppice is so well established, can accommodate very large floorspace buildings, is accessible to BIFT, and in the hands of a competent developer, we consider the remaining land will be developed out over the next 5 years. 5.31 Tamworth has witnessed recently significant letting activity in its built stock, particularly in neighbouring Centurion Park. There is no available competing industrial and distribution stock that is modern and greater than 50,000 sq.ft. In addition, there is no available marketed development land that can provide for this sector of the market.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

5.32 Enquiry levels for the distribution and automotive sectors for premises greater than 50,000 sq.ft are very good. However, there is a real gap in the market in Tamworth for this type of accommodation. The proposed development, comprising buildings of 57,183 sq.ft and 153,387 sq.ft, will help to close this gap and offer something to the Tamworth employment premises and land portfolio that is badly missing.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

6 Site Characteristics and Proposals

Site Characteristics

6.1 The site is located directly to the west of Junction 10 of the M42 motorway within the Golden Triangle. A location plan is provided in Appendix 10. 6.2 The site is located close to Birch Coppice and BIFT. A situation plan is provided in Appendix 11. 6.3 The site adjoins existing modern industrial and warehousing at Centurion Park. A site plan is provided in Appendix 12. 6.4 The site is not close to existing or proposed housing or other sensitive uses. However, the site is well located in relation to existing and potential labour in both Tamworth and North Warwickshire. 6.5 The site enjoys an existing access from Centurion Way, the principal estate road to Centurion Park. This gives direct access to the Stonydelph junction to the A5 and almost direct access to Junction 10 of the M42 motorway. 6.6 The site is of a sufficient size (8.49 ha) and shape to accommodate over 210,000 sq.ft and large floorplate buildings. The site is relatively flat and easy to develop. 6.7 The site is in the full control of St Modwen Developments Ltd who are anxious to bring this site to the market as soon as possible. Proposals

6.8 The proposals are shown indicatively on the illustrative masterplan found in Appendix 1. Two buildings are proposed as follows:- Table 7 – Development Proposals

Floorspace Height

Sq.m (sq.ft) m

Building 1 14,250 (153,387 12

Building 2 5,312.5 (57,183) 10

Total 19,562.5 (210,570) -

6.9 At least 90% of the floorspace will be for B8 distribution. The size of the units will be attractive to the local Tamworth market and for operators looking for a satellite site to Birch Coppice. 6.10 The two units have generous loading and circulation. This is very important for distribution. 6.11 The development could generate a significant number of jobs. The September 2013 ELR by G L Hearn made assumptions on job density for B Class uses by reference to the HCA Employment Densities Guide 2nd Edition (Drivers Jonas Deloitte, 2010). It assumed employment densities for gross external floor areas on the following basis:-  Industrial – B1 (c)/B2 – 45 sq.m GEA per employee

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

 Warehouse/Distribution – B8 – 80 sq.m GEA per employee. 6.12 Based on a total floorspace of 19,562 sq.m of which 90% is B8 and 10% is B1 (c)/B2, 256 jobs would be generated. However, evidence of the number of jobs generated at Birch Coppice suggests strongly that B8 development in this location will employ a greater level. 6.13 Evidence on the numbers of jobs and associated job density is presented in the officer’s report for the Phase 3 proposals of Birch Coppice to the 11 February 2013 Planning and Development Board to NWBC. This referred to over 5,000 being employed at Birch Coppice by the time Ocado becomes fully operational (i.e. 2/3 years after opening). The job density equates to 0.002 jobs per sq.ft. At this density, the proposed development would generate 421 jobs. 6.14 Generally, larger distribution units work on a 24/7 basis, with 3 shifts. The shift patterns tends to be 6am to 2pm, 2pm to 10pm and 10pm to 6am and avoid the normal peak hours for traffic. Summary

6.15 The land being promoted by St Modwen holds an almost unique set of characteristics to make it particularly attractive to the logistics and automotive sectors. The principal characteristics that make it so attractive are as follows:-  Located in a logistics hot spot in the West Midlands.  Almost direct access to Junction 10 of the M42 and associated road infrastructure.  Good access to BIFT.  A national extension to Centurion Park.  Satellite site to Birch Coppice.  Sufficient size to accommodate large floorplate buildings of up to 150,000 sq.ft..  The principal land holding is flat.  The land is in the full control of a competent and experienced developer of industrial and distribution property (namely St Modwens). 6.16 The proposals should generate around 421 jobs, based on similar development at Birch Coppice, with shift patterns avoiding the normal peak hours. 6.17 These characteristics,and the real shortage of development land serving both the sub-regional distribution market and Tamworth, are strong circumstances that warrant new development at this location.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

7 Conclusions and Recommendations

7.1 The site is undesignated and located outside the Green Belt. As the site falls outside the development boundaries of established settlements within North Warwickshire, adopted plan policy recognises that identified circumstances are needed to warrant development. 7.2 The evolving development plans for both North Warwickshire and Tamworth are not advanced and have yet to be tested at Examination. Their adoption will depend on their consistency with planning policy at a national level and where, still relevant, regional planning policy and its associated evidence base. 7.3 The NPPF places significant weight on the need to support economic growth with the economy considered to be an important dimension to achieving sustainable development. Local planning authorities are urged to proactively meet the development needs of business. 7.4 Central Government has encouraged the development of a robust network of strategic rail freight interchanges and associated development of distribution warehouses. This is to increase the volume of rail freight, help reduce road congestion and carbon omissions, and support growth and create employment. 7.5 Draft regional planning policy is still relevant and referred to by both NWBC and TBC in plan-making and decision-taking. The draft RSS seeks to ensure local planning authorities make provision for a minimum reservoir of readily available land and a long term requirement. In the case of Tamworth, the Panel to the draft RSS recommended a long term requirement of 56 hectares, but noted that some of this may need to be provided for in neighbouring North Warwickshire or Lichfield due to a constrained supply in Tamworth. It is also recommended a minimum reservoir of 11 ha of “readily available” development land. 7.6 Draft regional planning policy constructively sought to address the need for strategic logistics land, particularly that well served by both road and rail. Other criteria required sites to be located away from incompatible neighbours such as housing. 7.7 The Regional Logistics Study 2009 Update identified a significant need for new warehousing land (between 307 and 430 ha) and noted the paucity of options for rail connected sites. The Panel to the RSS endorsed the Study’s main findings and encouraged realisation of the full potential of Birch Coppice. The Panel also recognised that regional logistics sites could be disaggregated and made up of satellite sites, that are close or well related to intermodal terminals. 7.8 The need for significantly more new warehousing land, as identified by the Regional Logistics Study, has been endorsed recently by the Black Country and Southern Staffordshire Regional Logistics Site Study (April 2013). It recognises the mismatch between supply and demand for warehousing land in the West Midlands. 7.9 The North Warwickshire ELR identifies a very significant need for additional warehousing land for the Borough (between 190 ha and 340 ha). This requirement is significantly greater than current supply. Given the regional attraction of Birch Coppice, there may also be a need to identify further employment land to serve local demand. 7.10 There is real shortage of employment development land serving Tamworth, particularly large sites suitable for warehousing. Much of the identified supply is occupied and/or not being marketed. The supply of land is significantly less than the indicative long term requirement of 56 ha recommended by the Panel to the RSS. The true level of “readily available” land is less than 5 ha and significantly less than the minimum 5 year reservoir of 14 ha of “readily available” land of 14 ha required by Policy PA6 of the draft RSS. 7.11 Despite the economic downturn of the last 4/5 years, there has been significant take-up of large warehouses. This has led to a real shortage of supply of new facilities and the return of speculative development. 7.12 The West Midlands, along with the East Midlands, remains the dominant geographical area for distribution. The market has reverted particularly in recent years to the core area known as the Golden Triange.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

7.13 Access to rail, for the purposes of freight, has become an increasingly important issue for developers and operators in order to future proof their investments. This has, and will, place sites that are well located to rail freight terminals, such as Birch Coppice, at a premium. 7.14 Apart from Birch Coppice, there are few development options in the West Midlands where there are deliverable sites to support rail freight. Over four years have elapsed since the Panel report was published but no real substantive progress has been made in bringing forward new intermodal sites. We consider it makes most sense to fully exploit the potential that exists around existing facilities. 7.15 Birch Coppice has become a very successful scheme. It has managed to develop out at 240,000 sq.ft per year. The level of remaining consented land (including Phase 3) equates to 8.1 years supply at this rate of development. However, as Birch Coppice is so well established, can accommodate very large floorspace buildings, is accessible to BIFT, and in the hands of a competent developer, we consider the remaining land will be developed out over the next 5 years. 7.16 Tamworth has witnessed recently significant letting activity in its built stock, particularly in neighbouring Centurion Park. There is no available competing industrial and distribution stock that is modern and greater than 50,000 sq.ft. In addition, there is no available marketed development land that can provide for this sector of the market. 7.17 Enquiry levels for the distribution and automotive sectors for premises greater than 50,000 sq.ft are very good. However, there is a real gap in the market in Tamworth for this type of accommodation. The proposed development, comprising buildings of 57,183 sq.ft and 153,387 sq.ft, will help to close this gap and offer something to the Tamworth employment premises and land portfolio that is badly missing. 7.18 The land being promoted by St Modwen holds an almost unique set of characteristics to make it particularly attractive to the logistics and automotive sectors. The principal characteristics that make it so attractive are as follows:-  Located in a logistics hot spot in the West Midlands.  Almost direct access to Junction 10 of the M42 and associated road infrastructure.  Good access to BIFT.  A national extension to Centurion Park.  Satellite site to Birch Coppice.  Sufficient size to accommodate large floorplate buildings of up to 150,000 sq.ft.  The principal land holding is flat.  The land is in the full control of a competent and experienced developer of industrial and distribution property (namely St Modwens). 7.19 The proposals should generate around 421 jobs, based on similar development at Birch Coppice, with shift patterns avoiding the normal peak hours. 7.20 These characteristics,and the real shortage of development land serving both the sub-regional distribution market and Tamworth, are strong circumstances that warrant new development at this location.

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 1 – Illustrative Masterplan of the Proposed Development

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 2 – Appendix 1 to Tamworth Borough Council Employment Land Review, January 2012

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 3 – Table 28 and Appendix 5 to Tamworth Borough Council Employment Land Review,January 2012

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 4 – Report to Officers to Tamworth Borough Council’s Planning Committee of 12 November 2013 concerning Glascote Road, Stonydelph

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 5 – UK Big Box Industrial and Logistics Market Survey, Jones Lang LaSalle, July 2013

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 6 – Marketing Particulars of Birch Coppice

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 7 – Schedule of Vacant Industrial and Warehouse premises in Tamworth

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 8 – Marketing Particulars of Apollo, Lichfield Road Industrial Estate

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 9 – Schedule of Marketed Employment Land in Tamworth

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 10 – Location Plan

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 11 – Situation Plan

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St Modwen Developments Limited – Land West of Junction 10 of the M42 Motorway, Tamworth – Employment Land Issues

Appendix 12 – Site Plan

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Peter Leaver Richard Sykes Director Planner & Surveyor Jones Lang LaSalle Jones Lang LaSalle 45 Church Street 45 Church Street Birmingham B3 2RT Birmingham B3 2RT + 44 (0)121 214 9970 + 44 (0)121 214 9973 [email protected] [email protected]

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