planning report D&P/1995a/01 Heron Quays West 25 July 2013 in the Borough of Tower Hamlets planning application no.PA/13/01150

Strategic planning application stage 1 referral Town & Country Planning Act 1990 (as amended); Greater London Authority Acts 1999 and 2007; Town & Country Planning (Mayor of London) Order 2008.

The proposal Outline planning permission is sought with all matters reserved for the demolition of the existing buildings and structures, and construction of building of up to 130,642 sq.m. (GIA) comprising office (Use Class B1) and retail (Use Class A1-A5) uses along with a decked promenade to the West India Dock South, access and highways works, landscaping and other minor works. The applicant The applicant is South Quay Properties (wholly owned subsidiary of the Group) and the architect is Adamson.

Strategic issues The application raises strategic issues relating to town centre uses, tall buildings, heritage, urban design, access, blue ribbon network and transport. Recommendation That Tower Hamlets Council be advised that the application broadly complies with the London Plan, there are some outstanding issues that need to be resolved as set out in paragraph 66 of this report.

Context

1 On 17 June 2013 the Mayor of London received documents from Tower Hamlets Council notifying him of a planning application of potential strategic importance to develop the above site for the above uses. Under the provisions of The Town & Country Planning (Mayor of London) Order 2008 the Mayor has until 26 July 2013 to provide the Council with a statement setting out whether he considers that the application complies with the London Plan, and his reasons for taking that view. The Mayor may also provide other comments. This report sets out information for the Mayor’s use in deciding what decision to make.

2 The application is referable under Category 1B1c and 1C1c of the Schedule to the Order 2008:

“Category 1B1 Development (other than development which only comprises the provision of houses, flats, or

page 1 houses and flats) which comprises or includes the erection of a building or buildings— (c) outside Central London and with a total floorspace of more than 15,000 square metres.

Category 1C1 Development which comprises or includes the erection of a building of one or more of the following descriptions— (c) the building is more than 30 metres high and is outside the City of London.”

3 Once Tower Hamlets Council has resolved to determine the application, it is required to refer it back to the Mayor for his decision as to whether to direct refusal; take it over for his own determination; or allow the Council to determine it itself.

4 The environmental information for the purposes of the Town and Country Planning (Environmental Impact Assessment) Regulations 2011 has been taken into account in the consideration of this case.

5 The Mayor of London’s statement on this case will be made available on the GLA website www.london.gov.uk. Site description

6 The site is located in the northern part of the Isle of Dogs. West India Dock South is located to the south of the site and Heron Quays Road passes through the site. A canal is located at the eastern end of the application site, linking Middle Dock with South Dock.

7 The site was previously occupied by 11 buildings ranging from 3-4 storeys which were developed in 1987 (known as ‘the red sheds’). However, 9 of the 11 buildings were demolished in order to clear the site in preparation for the implementation of the 2008 planning permission on the site (see case history).

8 The remaining buildings on the site comprise office accommodation, including services/facilities provided by Skillsmatch, East London Business Place and UCATT (or the George Brumwell Learning Centre).

9 In terms of historic environment, the site does not fall within a conservation area but nearby conservation areas include Narrow Street, St Matthius Church, Poplar and All Saints Church. Part of the Grade I listed quay wall, copings and buttresses along the south edge of West India Middle Dock falls within the red line boundary of the site.

10 In land use policy terms the site is located in the preferred office location and the Canary Wharf Major Town Centre as designated in the Tower Hamlets Core Strategy.

11 The nearest section of the Transport for London Road Network (TLRN) is the A1203 Limehouse Link tunnel, approximately 550m northwest of the site.

12 Heron Quays Docklands Light Railway (DLR) station and Canary Wharf London Underground station (Jubilee line) are 190m and 300m to the east of the site respectively. Canary Wharf station, 450m to the northeast, is currently under construction, with services due to begin in 2019. Five bus routes (135, 277, D3, D7 and D8) operate within 450m of the site. The site is also accessible via the Thames Clipper service from the at .

13 The Public Transport Accessibility Level (PTAL) of the site is good and estimated at 5 out of a range of 1-6 (where 1 represents the lowest accessibility level and 6 the highest).

page 2 Details of the proposal

14 Outline planning permission for the demolition of existing buildings and the redevelopment of the site to provide a new office building rising up to 191.5 m AOD. The building will be predominantly for office use (Use Class B1) but will potentially include some retail floorspace (Use Class A1 – A5) at ground floor level. It will also have the potential to provide basement car parking, on-site servicing and a decked promenade to the South Dock, as well as works to Bank Street.

15 All matters are reserved for future determination. This approach has been adopted in order to gain maximum flexibility by allowing a framework to allow the applicant to respond quickly to the needs of prospective future tenants without the need to obtain a new planning permission.

16 The application does however establish parameters for the scheme and sets design guidelines for the future development to comply with. In order to test the parameters an indicative scheme has been prepared and is set out in the design and access statement.

17 The floorspace parameters seek commercial floorspace of a minimum 82,761 sq.m. GEA and maximum 136,606 sq.m. GEA. Case history

18 In April 1992 a planning application (ref. T/92/0010) was granted for the redevelopment of the site (referred to as the Tarmac site) together with part of the South Dock comprising 134,705 sq.m. gross floorspace, consisting of 121,000 sq.m. office, 5,000 sq.m. retail and a new park. This application included 32 meter extension into the Dock.

19 More recently in April 2008 the former Mayor considered a planning application (PDU/1995/02) for redevelopment of the site for part-12, part-21 and part 33-storey office building, with three basement levels of retail floorspace and a subterranean pedestrian link to Jubilee Place retail mall and Canary Wharf underground station incorporating further retail accommodation, together with a 4-storey building for food and drink and education and training uses.

20 This application was broadly supported by the former Mayor and covered a wider area, and included the land to the west of this site. It remains extant as it was granted for a period of five years and expires on 17 December 2013. Strategic planning issues and relevant policies and guidance

21 The relevant issues and corresponding policies are as follows:

 Economic development London Plan; the Mayor’s Economic Development Strategy; Employment Action Plan  Urban design London Plan; Shaping Neighbourhoods: Character and Context, draft SPG; Housing SPG; London Housing Design Guide; Shaping Neighbourhoods: Play and Informal Recreation SPG  Mix of uses London Plan  Regeneration London Plan; the Mayor’s Economic Development Strategy  Transport London Plan; the Mayor’s Transport Strategy  Crossrail London Plan; Mayoral Community Infrastructure Levy  Parking London Plan; the Mayor’s Transport Strategy  Retail/town centre uses London Plan; draft Town Centres SPG

page 3  Access London Plan; Accessible London: achieving an inclusive environment SPG; Planning and Access for Disabled People: a good practice guide (ODPM)  Equal opportunities London Plan; Planning for Equality and Diversity in London SPG; Equal Life Chances for All (Mayor’s Equalities Framework); Equalities Act 2010  Tall buildings/views London Plan, London View Management Framework SPG  Historic Environment London Plan; World Heritage Sites SPG; Circular 07/09  Sustainable development London Plan; Sustainable Design and Construction SPG; Mayor’s Climate Change Adaptation Strategy; Mayor’s Climate Change Mitigation and Energy Strategy; Mayor’s Water Strategy  Blue Ribbon Network London Plan

22 For the purposes of Section 38(6) of the Planning and Compulsory Purchase Act 2004, the development plan in force for the area is Tower Hamlets Core Strategy 2010, the saved policies of the Tower Hamlets Unitary Development Plan 1998 and the 2011 London Plan.

23 The following are also relevant material considerations:

 The National Planning Policy Framework and Technical Guide to the National Planning Policy Framework.  The Tower Hamlets Managing Development Development Plan Document which has been agreed for publication by the Council.

 The Early Minor Alteration to the London Plan.

Principal of development

24 The site falls within the Isle of Dogs Opportunity Area designated in the London Plan (Annex 1, Table A1.1, ref 14) which seeks an indicative employment capacity of an additional 110,000 jobs and 10,000 homes over the plan period. It is also within the Canary Wharf Major Town Centre and falls within Central Activities Zone (CAZ) policy objectives given it is recognised as a strategically significant part of London’s world city offer for financial media and business services.

25 The principle of an office use on this site has been established under the previous permission and the location is consistent with the Plan objectives to promote CAZ functions in this location. Under the previous permission an office led scheme with no housing was considered appropriate given the site’s location in a major business centre, and the desire to promote and coordinate the development of this part of the Isle of Dogs to provide a competitive, integrated and varied global business location, and the associated economic and employment benefits. Under the previous scheme the former Mayor had requested a contribution to affordable housing and therefore Officers would welcome discussion with the applicant and the Council regarding the scope for contribution to be included within the overall section 106 package. Notwithstanding, the rationale of securing permission with the maximum flexibility possible is understood and is supported to encourage early delivery of the site. As set out in the pre-application advice, generally applicants would be expected to submit detailed material as part of the illustrative scheme with an outline application. Design guidance has been provided with the application to supplement the consideration of the proposal; the testing however within the ES is based on the maximum parameters of development. Given the context

page 4 which is within the Canary Wharf commercial core and within the cluster in terms of townscape views, the form of the application is supported as is the principle of an office led redevelopment.

Construction into the water

26 The London Plan identifies the ‘Blue Ribbon Network’ as London’s strategic network of water spaces, including the River Thames, canals, tributary rivers, lakes, reservoirs and docks; alongside smaller water bodies. It recognises the strategic and multi-functional role of the network as a transport corridor; for drainage and flood management; as a source of water; for the discharge of treated effluent; and in providing a series of diverse and important habitats, green infrastructure, heritage value, recreational opportunities, important landscapes and views.

27 Thus, from a strategic land use perspective, the principle of constructing out into the Dock should be assessed against London Plan policies 7.24 to 7.30 on the Blue Ribbon Network

28 Policy 7.24A Blue Ribbon Network seeks to “prioritise uses of the waterspace and land alongside it safely for water related purposes”. Policy 7.27A point b) notes that “proposals should protect and improve existing access points”. Policy 7.28A Restoration of the Blue Ribbon Network’ specifically states that: “Development proposals should restore and enhance the Blue Ribbon Network by.. c) preventing development and structures into the water space unless it serves a water related purpose.”

29 London Plan Policy 7.30 makes specific reference to development alongside London’s docks, and requires such development to “protect and promote the vitality, attractiveness and historical interest of London’s remaining dock areas by:

a) preventing their partial or complete infilling b) promoting their use for mooring visiting cruise ships and other vessels c) encouraging the sensitive use of natural landscaping and materials in and around dock areas d) promoting their use for water recreation e) promoting their use for transport.

30 Paragraph 7.84 notes that “The BRN should not be used as an extension of the developable land in London nor should parts of it be a continuous line of moored craft”

31 Policy 2.18Eb Green infrastructure: the network of open and green spaces, also notes that development proposals should “encourage the linkage of green infrastructure, including the Blue Ribbon Network, to the wider public realm to improve accessibility for all and develop new links, utilising green chains, street trees, and other components of urban greening (Policy 5.10)

32 The proposal involves the partial infilling of South Dock and as such is raises potential conflicts with a number of the BRN policies and objectives in the London Plan. There is however an extant planning permission which includes the same infilling approach but on a lesser scale which is material in the consideration of this case. The applicant relies on the extant approach already approved and the fact that the permission would provide a significant contribution to maintaining and enhancing Canary Wharf’s role as a leading centre of international finance and commerce and in turn London’s world city status. It is agreed that the building allows flexibility to provide high quality office accommodation with large trading floors which meet the requirements of modern financial institution which could not be achieved without the partial infilling of the dock.

33 Whilst these matters alone would not necessarily outweigh the potential harm to the policy objectives of the Plan the extant permission should be given considerable weight. The main policy

page 5 objectives for the BRN remain from that considered under the former Mayor for the extant scheme and therefore, it would not be reasonable, nor would it be in the interests of good strategic planning, to object to the current scheme on the basis of the infilling of the dock, particularly given the extant permission. Based on the previous approval, an approach which dates back pre-London Plan, this is a unique case which does not establish a precedent for future proposals which fail to comply with Blue Ribbon Network policies relating to the infilling of docks. As an exception therefore the latest proposals are acceptable.

Existing occupiers

34 The applicant should provide details regarding the relocation opportunities for the existing occupiers, Skillsmatch, East London Business Place and UCATT (or the George Brumwell Learning Centre).

Urban design

35 The design of the proposed scheme is limited to key parameters defining a massing envelope and an access strategy for the site. An indicative layout of the ground floor has also been provided along with design guidance which provides detail regarding the form of the tower, and ground floor arrangements and key principles.

36 The massing envelope is 64 by 73 metres in footprint for the main tower, with the lower base set at 64 by 84. The height of the tower would be up to 185 metres. At ground floor the footprint envelope of the building allows for public access on all four sides of the building which is welcomed, in particular along the Dockside. The indicative ground floor plan on page 33 of the design and access statement shows the western frontage of the building now including retail active ground floor uses. This is fully supported and represents an improvement from the pre- application layout which was previously taken up by service access the whole way along the western frontage.

37 The pre-application concern with the suggestion that a separate access is created for the servicing and car parking has also been addressed and provides a much more pedestrian scale entrance point into the building for vehicles and services.

38 The design and access statement demonstrates that the proposal would not prejudice the development of the site next door. Block layouts show how future relationship to a proposed scheme could work. The overall approach to the layout of the site is supported.

Tall buildings views and heritage

39 The principle of a tall building is established in this case through the extant permission. The massing images have been tested in local townscape and strategic views. The Townscape Visual and Built Heritage Assessment demonstrates that the proposal will appear as part of the existing and consented schemes that fall within Canary Wharf cluster. In particular the proposals preserve the Outstanding Universal Value of the Maritime Greenwich World Heritage Site. Any works to the Grade 1 listed West India Middle Dock wall would require separate consent and are currently not proposed as part of this scheme.

Architecture and appearance

40 The outline nature of the submission means that there is no definitive scheme presented at this stage. The applicant has however provided a set of design guidelines which provide key principles of form, elevation treatment, materials and ground floor principles. The guidelines are supported and reflect the aspirations of the London Plan to design high quality buildings.

page 6 Climate change mitigation

41 Overall, the applicant has approached the energy strategy in a satisfactory manner in relation to an outline application for a development of this type. Building regulations modelling from a similar type of development has been used to provide regulated carbon dioxide emissions and savings. A high level of energy efficiency is proposed with a good range of passive and active measures. The heat demand is proportionally low in relation to other energy end uses. However, provision will be made for connection to a future district heating network to supply the heat load. 700 sq.m. of photovoltaic panels will be incorporated, along with a heat pump.

42 As stated at pre application stage, the information suggests a very high level of savings from energy efficiency alone (28.9%). This is due to the savings from the heat pump being included in the energy efficiency savings. These should be correctly disaggregated into the third element of the energy hierarchy i.e. be green.

Climate change adaptation

43 Adaptation measures regarding the provision of green and brown roofs and flooding can be dealt with by condition by Tower Hamlets Council and do not raise strategic issues

Transport for London’s comments

Parking

44 The development proposes 107 car parking spaces for the illustrative scheme, although it is unclear whether this will be shared across all uses or purely associated with the office element. On the basis of the latter, such provision would equate to one space per 1,259 sqm. Whilst TfL would encourage a car-free development in recognition of the site’s accessibility and the congested nature of the surrounding highway network, it is acknowledged that the proposals are well within the standards set by the London Plan policy 6.13. Subject to confirmation of how the spaces will be allocated, TfL expects any outline planning permission to permit a maximum ratio of car parking per use, rather than a maximum number of spaces. TfL welcomes further discussion in this respect.

45 The applicant’s commitments to ensuring that London Plan standards for blue-badge holder parking and electric vehicle charging points are met through the development are welcomed, and TfL expects these to be secured through planning condition.

46 The proposed 1,223 cycle parking spaces for the office element of the illustrative scheme is similarly considered to be in line with London Plan policy 6.13 and the draft revised standards contained in the Revised Early Minor Alterations to the London Plan (June 2012). As above, a minimum cycle parking ratio, in line with the London Plan, should be agreed as part of any outline planning permission, for each use, and this should be secured through planning condition.

Bus Network

47 As demonstrated in the applicant’s transport assessment, the proposed development is likely to generate additional demand on the bus network in peak hours, particularly along the Westferry Road corridor, which currently operates in excess of its planned capacity. Without appropriate mitigation, capacity constraints on this key corridor are expected to increase in the context of the cumulative impact of future development on the Isle of Dogs. TfL therefore requests that the applicant contributes towards such mitigation, in line with Policy 6.1. The cost

page 7 of providing an additional journey in the peak hour equates to £90,000 per year, and TfL would expect this to be pump-primed for 5 years (or a total of £450,000). TfL therefore requests this funding to be secured through the section 106 agreement.

Docklands Light Railway (DLR)

48 TfL does not consider the applicant’s assessment of the impact of the development on the DLR to be sufficiently robust and has already written to Tower Hamlets Council on 26 June 2013 in this regard. TfL requests that the assessment is revised in this respect to ensure any impact is identified and properly mitigated.

49 To accommodate the cumulative increase in trips arising from the proposed development alongside others in the vicinity, and to improve accessibility, TfL considers that the facilities at Heron Quays station require upgrading. The cost of these works, which include upgrading the current hydraulically powered lifts to faster, more reliable electric traction; increasing the provision of Oyster validators; and providing additional ticket vending machines, is expected to be around £550,000, and a contribution towards this is requested to be secured as part of this application, informed by the above revised impact assessment.

Taxis

50 No firm commitment to providing a layby for taxis is made, although reference to possible provision is included in both the design guidelines and the transport assessment. TfL considers it important that a designated space where taxis are able to set down is provided as part of the development, and that this should be embedded into the approved design guidelines.

Cycle Hire

51 The area is well served by Cycle Hire docking stations, including those at Heron Quays station, Jubilee Place and Upper Bank Street. These are currently operating close to capacity. Office workers account for a large proportion of the scheme’s users, and the proposed development is likely to bring a high number of potential users to the area. TfL continues to develop the network where possible, and considers that there is a need for a new 24-point docking station in the vicinity of the site, at a cost of £185,000. Consistent with London Plan policy 6.9, TfL requests a contribution from the applicant towards such a facility, and welcomes further discussion in this respect.

Travel plan, servicing & construction

52 TfL welcomes the submission of a framework travel plan which is in accordance with TfL’s guidance. A full travel plan, specific to future occupiers, should be secured through the planning permission and agreed with Tower Hamlets Council, in accordance with London Plan policy 6.3.

53 To assist in encouraging the use of sustainable forms of transport, TfL requests that the applicant commits to installing real-time public transport information screens in the communal areas of the development. This should be secured through a section 106 agreement.

54 The draft delivery & servicing plan and construction logistics plan prepared by the applicant are welcomed. The provision of the final versions of these documents, and their implementation thereafter, should be secured through condition. Construction activity arising

page 8 from the proposed development should not impact on activity associated with the construction of Crossrail.

Crossrail SPG

55 In view of the strategic regional importance of Crossrail to London’s economic regeneration and development, and in order to bring the project to fruition in a suitably timely and economic manner, contributions will be sought from development likely to add to or create congestion on London’s rail network that Crossrail is intended to mitigate. This will be through planning obligations, arrangements for the use of which are established at strategic level in accordance with relevant legislation and policy guidance (London Plan Policy 6.5).

56 The approach for collecting contributions towards Crossrail is set out in the Mayor’s ‘Use of Planning Obligations in the Funding of Crossrail and the Mayoral Community Infrastructure Levy’ Supplementary Planning Guidance’ (SPG). This states that contributions should be sought in respect of hotel development which involves a net increase in floorspace of more than 500sqm (Gross Internal Area – GIA). For office floorspace the charge is £190 per sqm and for retail £121 per sqm.

57 The final contribution required will be determined by the total scale of development approved at reserved matters stage. The section 106 agreement should however be worded to reflect the requirement for a Crossrail contribution to be paid, on commencement of development, based on the methodology outlined in the SPG.

58 The applicant’s planning statement states that the illustrative maximum scheme would attract a contribution of £24,767,815. This is only correct if the existing office on site (1,676sqm) will not have been in lawful use for a continuous period of six months within the twelve months ending on the day planning permission is granted (paragraph 5.11 of the SPG). This should be clarified.

Community Infrastructure Levy (CIL)

59 In accordance with London Plan policy 8.3, the Mayor has introduced a London-wide Community Infrastructure Levy (CIL) that will be paid on commencement of most new development in Greater London. The Mayor’s CIL will contribute towards the funding of Crossrail.

60 The Mayor has arranged boroughs into three charging bands. The rate for Tower Hamlets is £35 per sqm. The required CIL should be confirmed by the applicant and council once the components of the development have themselves been finalised.

61 Please note that the CIL payment will be treated as a credit towards the final figure required through section 106 under the Crossrail SPG. The legal agreement accompanying any planning permission should be worded appropriately in this respect.

Summary

62 TfL notes that the application is made in outline, with all matters reserved for future determination. The transport assessment has been based on the maximum parameters sought, and this is welcomed by TfL as it represents a worst case scenario in terms of transport impact. Further discussion is needed, however, to ensure that the overall package of mitigation agreed at outline stage is suitably tailored to the exact quantum of development ultimately

page 9 implemented on site agreed at reserved matters stage. This may influence the wording of any section 106 agreement.

Local planning authority’s position

63 The officer recommendation is currently unknown. Legal considerations

64 Under the arrangements set out in Article 4 of the Town and Country Planning (Mayor of London) Order 2008 the Mayor is required to provide the local planning authority with a statement setting out whether he considers that the application complies with the London Plan, and his reasons for taking that view. Unless notified otherwise by the Mayor, the Council must consult the Mayor again under Article 5 of the Order if it subsequently resolves to make a draft decision on the application, in order that the Mayor may decide whether to allow the draft decision to proceed unchanged, or direct the Council under Article 6 of the Order to refuse the application, or issue a direction under Article 7 of the Order that he is to act as the local planning authority for the purpose of determining the application and any connected application. There is no obligation at this present stage for the Mayor to indicate his intentions regarding a possible direction, and no such decision should be inferred from the Mayor’s statement and comments. Financial considerations

65 There are no financial considerations at this stage. Conclusion

66 London Plan policies on town centres, CAZ, urban design, access, climate change and transport are relevant to this application. The application is broadly consistent with the London Plan, there are some outstanding issues that need to be resolved as set out below.

 Section 106 agreement: Officers would welcome discussion regarding the provision of affordable housing in line with London Plan policy 2.11Aa and 4.3.  Transport: TfL raises the following matters, which should be addressed prior to determination for the proposals to be considered compliant with the transport policies of the London Plan:

 Appropriate ratios for car parking (maximum) and cycle parking (minimum) should be agreed and embedded into any planning decision;

 Necessary planning conditions should ensure the provision of blue-badge parking bays and electric vehicle charging points;

 Further assessment is required regarding the impact of the proposed development on the DLR network;

 Contributions are requested to mitigate the impact of development on the bus and DLR networks

 The confirmed provision of an area for taxis to drop-off/pick-up should be embedded into the design guidelines;

page 10  A contribution towards the Cycle Hire scheme is requested

 A travel plan, DSP and CLP should all be secured

 A Crossrail contribution is required

 The Mayor’s Community Infrastructure Levy should be paid

for further information, contact Planning Decisions Unit: Stewart Murray, Assistant Director - Planning 020 7983 4271 email [email protected] Justin Carr, Strategic Planning Manager (Development Decisions) 020 7983 4895 email [email protected] Matthew Carpen, Case Officer 020 7983 4272 email [email protected]

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