Flitwick Station Site and Car Park

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Flitwick Station Site and Car Park Central Bedfordshire Council EXECUTIVE 5 December 2017 Flitwick Station Site and Car Park Report of Cllr Nigel Young, Executive Member for Regeneration ([email protected]) and Cllr Steven Dixon, Executive Member for Education and Skills ([email protected]). Advising Officers: Jason Longhurst, Director of Regeneration and Business ([email protected]) and Marcel Coiffait, Director of Community Services ([email protected]). This report relates to a Key Decision Purpose of this report 1. To seek Executive agreement on the recommended delivery approach for the regeneration of Flitwick station site and car park with approval to undertake the required procurement process to identify and secure a development partner on the best financial terms possible. RECOMMENDATIONS The Executive is asked: 1. to note the progress made towards enabling the regeneration of Flitwick Station site and car park since this matter was last considered by the Executive in April 2017, including: Preparation of provisional Heads of Terms with a major retail anchor for the scheme. The completion of a public consultation exercise between the 31st July and the 13th September which has demonstrated broad support for the scheme objectives and priorities as set out in the April 2017 Executive report. The preparation of a Memorandum of Understanding with Network Rail and Govia Thameslink Railways Ltd for the purpose of supporting partnership work towards scheme delivery. Commencement of detailed design work for the Transport Interchange as funded by Network Rail’s National Station Improvement Programme (NSIP). The further refinement and improvement of the draft concept scheme based on the market view of proposed uses including testing of likely construction costs and revenue generating potential. 2. to consider and support the recommended mechanism as outlined in Part 5 (B), paragraph 57 for delivering the scheme and its benefits, namely a development partnership. To note that Executive approval will be sought in future on key decisions in line with the Council’s standing orders; 3. to note the Council’s bids to the Government’s competitive Housing Infrastructure Fund (HIF) for £5.3M and Accelerated Construction Fund for £0.8M. The purpose of these bids is to support housing provision within the scheme through the delivery of site infrastructure. This may include the funding of new access roads, junction improvements, public transport interchange and potentially step free access to all station platforms. A decision on which funding bids will be supported is expected in early 2018; and 4. to note that the Council will be lobbying Government for additional financial support via Network Rail’s next investment plan (2019 to 2024) for the purpose of providing step free access at Flitwick station. Overview and Scrutiny Comments 2. A report concerning this project and progression of recommended delivery approach will be submitted to the Overview and Scrutiny committee for review prior to final consideration by the Executive. Report structure 3. This main body of this report is structured into the sections listed and summarised below. Part 1: Report objectives - a summary of the specific objectives for this report as approved by the Council Executive in April 2017. Part 2: Background, effective place making for Flitwick and West Mid Beds - a description of the project, it’s origin, key drivers and importance in the context of effective place making and the development of this location as an increasingly important and strategic transport hub. Part 3: Public consultation and engagement - a summary of the results of a public consultation exercise undertaken to inform the development of the scheme. Part 4: Partnership working - a summary of the heads of terms agreed with the key rail and commercial partners. Part 5 (A): Development brief testing - a summary of the commercial risks, challenges and opportunities arising from the concept scheme, as identified by external property advisors. Together with results from soft market testing undertaken with potential mixed use developer partners. Part 5 (B): Delivery and route to market- analysis of the different delivery routes for the Council, identifying a preferred route for further development. Part 6(A): Financial considerations (revenue) - the financial considerations relating to the impact on existing and future revenue flows from the site, including car parking, NNDR and Council tax. Part 6(B): Financial considerations (capital) - an overview of the current capital allocation that the Council has available to support this scheme. Part 1: Report objectives 4. In April 2017, the Executive asked that officers continue to develop a mixed use regeneration scheme for the site as the Council’s preferred option, specifically, Executive asked officers to: negotiate provisional heads of terms with the potential retail anchor in order to urgently secure their participation in the scheme; negotiate provisional heads of terms as required with the Homes and Communities Agency (subject to due diligence) in order to secure time limited investment funding; undertake a local consultation on the proposal and the mix of uses; prepare an outline development brief; undertake an options appraisal of the delivery options available to the Council, and take appropriate market soundings to assess market interest in the options; further refine the financial appraisal, including specific consideration of the implications for the Council in terms of income generated from the interim car parking on the site; review, consider and cost any further remedial works required to ensure safe operation of the temporary car park in the period up to construction commencing; and undertake a lessons learned exercise of other similar mixed-use schemes which have been successfully implemented. 5. This report sets out how this work has been taken forward and is informed by a third party assessment undertaken by commercial and development specialists. Part 2: Background: Effective Place Making for Flitwick and West Mid Beds 6. The purpose of this project is to deliver a transformational project in Flitwick that will underpin sustainable and long term economic growth. This will lead to a more attractive and successful town centre better capable of supporting the needs of Flitwick and West Mid Beds as a strategically important transport gateway and hub. 7. A full summary of Flitwick today and in the future was provided in the April 2017 Executive report. In summary, the settlement of Flitwick is located in the West Mid Beds quadrant and has a population of 13,180 residents. It is well connected by road and rail with easy access to J13 of the M1 and the A507. 8. Flitwick Railway Station acts as an important transport hub and gateway for a wider area than the town itself serving other settlements and major employment locations such as Cranfield, Marston Vale, Millbrook and Center Parcs. The station supports over 1.5 million passenger journeys per year with this figure forecast by Network Rail to continue growing substantially over the next 15 years. 9. The station is based within the heart of the town centre and acts as both a positive and negative attribute of the town. It is positive in terms of providing important transport infrastructure however it also serves to physically divide the town centre into two poorly connected parts. This division limits the land and space available for providing appropriate levels of town centre retail and services and an acceptable overall experience for those living, working and visiting Flitwick. 10. The Flitwick Station site and car park concept scheme is the first regeneration proposal to come forward from the Council’s town centre property portfolio that incorporates multiple uses including car parking, residential, retail, environmental and transport infrastructure improvements. The objectives of the regeneration scheme are to address the aforementioned issues and to develop a much enhanced town centre fully capable of acting as a strategic gateway into central Bedfordshire. It will support sustainable economic development in Flitwick and wider West Mid Beds locality. 11. The proposed regeneration scheme is complex in nature due to many moving parts, relationships and inter-dependencies. It encompasses third party land ownership in relation to Network Rail’s ownership of parts of the proposed development area and also Govia Thameslink Railway’s Ltd lease of this same area as part of the Thameslink Rail franchise. 12. The scheme will physically link to major improvements being made to the High Street / Kings Road / Station Road areas of the town centre that are being delivered as part of the Council’s Market Town Regeneration Fund (MTRF) programme and are being delivered in partnership with Flitwick Town Council. Improvements include the creation of new public spaces capable of being used to deliver commercial activities including specialist and regular town markets and new community facilities and the development of apartments for older residents will also be provided. Central Bedfordshire Council and Flitwick Town Council are investing circa £1M each. 13. Proposals for the regeneration of the station area site have been in development for over a decade with the first substantial scheme plans being consulted on during 2007. These plans were produced by a private sector partnership led by the supermarket chain Tesco and involved the redevelopment of the station area site and also the existing Tesco store. The proposals did not progress due to Tesco withdrawing from the scheme during 2010. 14. At this point, the Council took on a greater leadership role beyond that of the Planning and Highways Authority. The Council acquired its first landholding within the redevelopment area in 2011 utilising a Government regeneration grant of £3.6M. This grant from the Growth Area Fund round 3 (GAF3) was provided to the Council for the specific purpose of enabling a significant regeneration of Flitwick town centre to proceed. Since 2013 this site (site A as shown in appendix B) has been used as a temporary car park.
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