THE COUNCIL OF THE BOROUGH OF (BARRINGTON STREET, CORONATION STREET, EAST STREET, KEPPEL STREET AND KING STREET) COMPULSORY PURCHASE ORDER 2016

SECTION 226(1)(a) OF THE TOWN AND COUNTRY PLANNING ACT 1990

SECTION 13 OF THE LOCAL GOVERNMENT (MISCELLANEOUS PROVISIONS) ACT 1976 AND

THE ACQUISITION OF LAND ACT 1981

STATEMENT OF REASONS

of

THE COUNCIL OF THE BOROUGH OF SOUTH TYNESIDE

71160982.4\SW37

CONTENTS

Page

1 INTRODUCTION 1

2 THE ENABLING POWERS FOR THE CPO 2

3 INCORPORATION OF THE MINING CODE 3

4 THE ORDER LAND 3

5 DESCRIPTION OF THE NEW RIGHTS 5

6 BACKGROUND TO SCHEME 5

7 DESCRIPTION OF THE SCHEME 7

8 THE COUNCIL'S JUSTIFICATION IN MAKING THE ORDER 10

9 SPECIAL CONSIDERATIONS AFFECTING THE ORDER LAND 20

10 EQUALITY 22

11 CONTACT INFORMATION 23

12 INSPECTION OF DOCUMENTS 23

13 INQUIRY PROCEDURE RULES 23

14 INQUIRY DOCUMENTS 24

APPENDIX 1 – PLANNING POLICY 26

71160982.4\SW37 1. INTRODUCTION

1.1 On 23 March 2016 the Council of the Borough of South Tyneside (the "Council") resolved to make the Council of the Borough of South Tyneside (Barrington Street, Coronation Street, East Street, Keppel Street and King Street) Compulsory Purchase Order 2016 (the "Order").

1.2 The Order has been made under section 226(1)(a) of the Town and Country Planning Act 1990 ("1990 Act"), as the Council considers that there is a compelling case in the public interest to acquire land to facilitate development, redevelopment or improvement within Town Centre, comprising a new integrated transport interchange, retail and leisure development and associated works including highway works, car parking, public realm improvements and landscaping ("the Scheme") and that the proposed acquisition is likely to contribute to the achievement of the promotion or improvement of the economic, social and/or environmental well- being of South Shields Town Centre.

1.3 Planning permission has been granted for the Scheme which comprises three components; the Masterplan Development, Transport Interchange Development and Highway Works, as detailed in Section 7 below.

1.4 The Order is also made under section 13 of the Local Government (Miscellaneous Provisions) Act 1976 to enable the Council to acquire new rights over land in order to enable the proposed works to be carried out and brought into beneficial use and maintained thereafter ("New Rights"), as detailed in Section 5 below.

1.5 The land proposed to be compulsorily acquired and/or used pursuant to the Order comprises land, premises, car parks, public roads and footways at: East Street, East Smithy Street, King Street, Chapter Row, Barrington Street, Cornwallis Street, Wallis Street, Nelson Street, Coronation Street, Waterloo Square, Keppel Street, Albemarle Street, William Street, Burrow Street and South Shields Metro Station (the "Order Land"), as detailed in Section 4 below.

1.6 The Scheme will provide the comprehensive enhancement of the retail and leisure offer in South Shields Town Centre, integrating and improving its public transport facilities, improving pedestrian flow, and improving the urban fabric of the Town Centre. The Scheme will bring significant economic benefits to the town by attracting more people into the town's retail and leisure core. The purpose of the Order is to secure the acquisition of all relevant interests in the Order Land to facilitate delivery of the Scheme.

1.7 The Scheme is being promoted by the Council, Muse Developments Limited ("Muse") and Nexus, the trading name of the Passenger Transport Executive. Muse are highly experienced developers of large-scale regeneration schemes and have entered into a Development Agreement with the Council for the delivery of the Masterplan Development and Transport Interchange Development. Nexus has responsibilities for Metro services, bus services, and the Shields Ferry within Tyne and Wear and has agreed heads of terms for a Partnership Agreement with the Council for delivery of the Transport Interchange Development. Further information on Muse and Nexus is contained in Section 8 below.

1.8 The schedule to the Order (the "Schedule") lists owners, lessees, tenants and occupiers of the Order Land. In addition, it also lists other parties with a qualifying interest in the Order Land as defined by section 12(2) of the Acquisition of Land Act 1981 including those with the benefit of rights within the Order Land or restrictive covenants that affect titles that make up the Order Land. Where appropriate and reasonably practicable, the Council will consider the grant of equivalent or alternative rights to the current beneficiaries of rights if reasonably required for the continued enjoyment of the property benefitting from the right.

1.9 The Schedule has been based on information gathered through site inspections and enquiries, responses to notices issued under section 16 of the Local Government (Miscellaneous Provisions) Act 1976 and inspection of Land Registry documents. There has been an extensive enquiry to identify land interests, but it is recognised that currently unknown interests may emerge in the course of proceeding with the compulsory purchase process.

71160982.4\SW37 1 1.10 The map to the Order (the "Order Map") identifies the Order Land and highlights the land proposed to be acquired in pink and the land on, over or under which the New Rights are to be acquired in blue. Individual plot boundaries and numbers on the Order Map correspond with the Schedule.

1.11 The Order has been submitted to the Secretary of State for Communities and Local Government for confirmation pursuant to the Acquisition of Land Act 1981. If confirmed by the Secretary of State, the Order will enable the Council to acquire compulsorily the land and the New Rights included in the Order.

1.12 This Statement of Reasons has been prepared pursuant to and in accordance with the "Guidance on Compulsory purchase process and the Crichel Down Rules for the disposal of surplus land acquired by, or under the threat of, compulsion" prepared by the Department for Communities and Local Government, October 2015 (the "CPO Guidance").

2. THE ENABLING POWERS FOR THE CPO

2.1 Section 226(1)(a) of the 1990 Act enables the compulsory acquisition of land where an acquiring authority considers the acquisition will facilitate the carrying out of development, redevelopment, or improvement on or in relation to land and where the acquiring authority considers the development, redevelopment or improvement is likely to contribute to the achievement of the promotion or improvement of the economic, social, and/or environmental well-being of the authority's area.

2.2 Section 13 of the Local Government (Miscellaneous Provisions) Act 1976 enables the Council to acquire new rights, which are not in existence when the Order is made and are specified in the Order.

2.3 The Council has made the Order pursuant to its powers under section 226(1)(a) of the Town and Country Planning Act 1990 and section 13 of the Local Government (Miscellaneous Provisions) Act 1976 for the following reasons:

2.3.1 it has not been possible to acquire by agreement all interests that are required for the Scheme and it is unlikely it will be able to acquire the remaining interests by agreement within reasonable timescales to enable comprehensive delivery of the Scheme; and

2.3.2 the New Rights are required to enable the proposed works to be carried out and brought into beneficial use and maintained thereafter.

2.4 The purpose of the Order is therefore to secure the acquisition of all relevant interests in the Order Land to facilitate delivery of the Scheme.

2.5 Section 10 of the Transport Act 1968 enables Nexus (the trading name of the Tyne and Wear Passenger Transport Executive), to purchase compulsorily any land which the Executive requires for the purposes of their business. However, Nexus does not propose to use those powers in relation to the Transport Interchange Development, as both it and the Masterplan Development are integral and inter-locking components of the wider comprehensive Scheme. The Council is therefore satisfied that section 226(1)(a) is not being "used in place of other more appropriate enabling powers” pursuant to paragraphs 66 and 67 of the CPO Guidance.

2.6 The Council recognises that a compulsory purchase order can only be made if there is a compelling case in the public interest (paragraph 12 of the CPO Guidance) which justifies the overriding of private rights in the land sought to be acquired.

2.7 The Council is satisfied that it may lawfully exercise its powers of compulsory purchase under the powers set out above and, for the reasons set out in Section 8 below, that there is a clear and compelling case in the public interest for such exercise and that the public interest is sufficiently important to justify the interference with private rights. The Council is satisfied that the Order may lawfully be made.

71160982.4\SW37 2 3. INCORPORATION OF THE MINING CODE

3.1 The Order incorporates the mining code, also known as the minerals code, contained in Schedule 2 of the Acquisition of Land Act 1981 and applied by section 3 of that Act. Paragraphs 159 and 160 of the CPO Guidance provide advice on the code and its application in a compulsory purchase order. The CPO Guidance states that the code should not be incorporated automatically or indiscriminately, as this may lead to the sterilisation of minerals, including coal reserves. The definition of mines and minerals includes coal, ironstone, slate and other minerals. Acquiring authorities are asked to consider the matter carefully before including the code having regard to the existence of statutory rights of compensation or whether repair of damage might provide an adequate remedy in the event of damage to land, buildings or works occasioned by mining subsidence. If the code is not applied by an order, mines and minerals within the land will be acquired by the acquiring authority upon acquisition.

3.2 Incorporation of the code within an Order can provide for the purchase of the surface land subject of the Order without the underlying minerals, avoiding sterilisation of the minerals whilst providing a degree of protection for the authority and the development to be taken forward. Acquiring authorities are also advised, in areas of coal working notified to the local planning authority by the Coal Authority, to advise the Coal Authority and any relevant licensed mine operator if an Order is made which incorporates the code.

3.3 Under Part II of the Acquisition of Land Act 1981, the code enables an acquiring authority to purchase the surface land without purchase of the underlying mines and minerals, other than those necessarily extracted or used for the purposes of construction of the Scheme. Incorporation of the code does not of itself prevent the working of mines and minerals within a specified distance of the Order Land but Part III of the code enables an acquiring authority, if the Order is confirmed, to take steps to prevent the working of minerals within a specified distance of the surface, provided compensation is paid.

3.4 The Council has had regard to the advice contained in the CPO Guidance in preparing the Order and considers that in the circumstances of this case it is appropriate to incorporate the mining code.

4. THE ORDER LAND

4.1 Topography and use

Existing Metro station and walkway between King Street and Fowler Street

4.2 The existing Metro station is currently accessed from an alley that runs between King Street and Keppel Street. The platform is raised above ground level, with the Metro tracks running north to south above the Town Centre. At ground-floor level, the area contains a newsagent, sandwich shop and grocer’s stall.

Existing Metro track and buildings to the West of Fowler Street, including sections of Albermarle Street, William Street and Burrow Street

4.3 This is the site of the proposed Transport Interchange and separate retail/office unit. It includes the existing above-ground railway tracks, the existing Royal Mail sorting office and the Post Office building between Albemarle Street and Keppel Street, together with properties on William Street, Burrow Street and Albemarle Street. It also comprises the recently-cleared site of former car showroom premises between Burrow Street and Albemarle Street, which is now vacant, levelled and fenced off (plot 84). The cleared site is not open space for the purposes of section 19 of the Acquisition of Land Act 1981. This section of land incorporates a bellmouth from the proposed Transport Interchange onto Keppel Street to the north.

Land along King Street and around Barrington Street and Chapter Row

4.4 A roughly square area of land, including properties along King Street, East Street, Chapter Row, Barrington Street, Cornwallis Street and Coronation Street, which are to be demolished as part of

71160982.4\SW37 3 the Scheme proposals. The buildings on Barrington Street are 2-3 storeys in height. One of the buildings on Barrington Street (no.16) is listed; this is specifically excluded from the Scheme and Order Land. The building on the corner of Barrington Street (no.18) is also excluded from the Scheme and Order Land, but is not a listed building.

4.5 On the northern side of Barrington Street is the Job Centre Plus, which fronts onto Chapter Row. The adjacent plot of land in between Barrington Street and Chapter Row has recently been cleared of buildings (previously the Shields Gazette building) and is now vacant, grassed and fenced off (plot 29). The cleared site is not open space for the purposes of section 19 of the Acquisition of Land Act 1981. Along the western side of Barrington Street and the eastern side of Cornwallis Street is a public house and office uses. The ownership of the public house (the former Cross Arms and plot 32) is currently unknown but it is understood the Durham Diocesan Board of Finance may hold the freehold interest. The property is not understood to be ecclesiastical property for the purposes of section 12(3) of the Acquisition of Land Act 1981.

4.6 The properties along Chapter Row and East Street are commercial in nature and are between 2 and 3 storeys in height. The section of Chapter Row is restricted to bus access only, and a row of bus stands exists on the north side of the road. East Street provides vehicular access to a small surface car park and the rear of a limited number of properties along King Street.

The existing surface car park at Oyston Street

This existing car park is accessed from Garden Lane to the east. The site is generally level, hard- surfaced and with boundary planting. It lies immediately to the north of a gas holder, east of the Asda supermarket and west of Waterloo Square.

4.7 The Pink Land

4.8 Those parts of the Order Land proposed to be acquired are shown coloured pink on the Order Map and set out in detail in the Schedule and summarised as follows:

4.8.1 Land and premises at 61 and 79-99 (odd) King Street; Job Centre Plus on Chapter Row; 14, 18 and the Cross Arms Barrington Street; 5-11 (odd) Cornwallis Street; 6-8 (even) Wallis Street; 2-10 (even) Coronation Street; 20-22 (even) Waterloo Square; 13-15 East Street, 3-7 (odd) Keppel Street, the Royal Mail Delivery Office and the Post Office on Keppel Street; 8-12 (even) William Street; and 25 East Smithy Street;

4.8.2 Land at William Street;

4.8.3 Public roads at East Street, King Street, Chapter Row, Barrington Street, Cornwallis Street, Wallis Street, Nelson Street, Coronation Street, Waterloo Square, Keppel Street, Albemarle Street, William Street and Burrow Street;

4.8.4 Public footways between Keppel Street and Albemarle Street;

4.8.5 South Shields Metro Station and Metro line;

4.8.6 Works and land to the south of Keppel Street;

4.8.7 Car parks at East Street, Wallis Street and William Street; and

4.8.8 Parts of the subsoil beneath the highway (required to facilitate the construction of "ground anchors" that will extend out from the foundations of the Scheme), including subsoil beneath East Street, Albemarle Street and Burrow Street.

4.9 The Council is seeking the power to acquire all interests in the pink land, unless expressly stated otherwise in the Schedule.

4.10 Those parts of the Order Land over which the New Rights are sought are summarised at Section 5 below.

71160982.4\SW37 4 5. DESCRIPTION OF THE NEW RIGHTS

5.1 The Blue Land

5.2 The New Rights are being acquired pursuant to section 13 of the Local Government (Miscellaneous Provisions) Act 1976.

5.3 The New Rights are required to enable the proposed works to be carried out and brought into beneficial use and maintained thereafter.

5.4 Those parts of the Order Land where New Rights are sought are shown coloured blue on the Order Map and set out in detail in the Schedule and include the right to carry out such works as are required to permanently close the existing access and provide a replacement access from the loading bay and premises south of 49-61 (odd) East Street to the highway and right to carry out works related to the closure and decommissioning of the existing Metro station and provision of a new transport interchange south of Keppel Street.

6. BACKGROUND TO SCHEME

6.1 The Council has a clear set of planning policies which support the revival of the Town Centre as set out in the Core Strategy (2007) and the South Shields Town Centre and Waterfront Area Action Plan (2008). A detailed consideration of relevant planning policy is contained at Section 8 below.

6.2 South Shields Town Centre has been in economic decline for some years. It does not retain enough retail spend: people prefer to shop elsewhere. In particular, South Shields does not retain potential disposable spend from its residents with spend leaking to neighbouring retail centres at Sunderland, Newcastle and Gateshead. South Shields' retail offer has diminished, with a number of major retailers exiting the town in recent years. The Town Centre has very little in the way of family orientated mid market restaurants or other leisure opportunities.

6.3 South Shields has also been impacted by national trends including a significant reduction in spend caused by the 2008/2009 recession and reduced retail spend on the high street through the growth of internet shopping. Since the start of 2013, several nationwide store operators have closed their units in the Town Centre (e.g. Marks & Spencer, Woolworths, HMV, Mothercare and Game).

6.4 South Shields' retail core is principally made up of Victorian buildings that have received limited investment or modification. Such buildings have, by modern standards, small footplates with limited plot depths that do not meet the requirements of national retail brands or independents. This has been the principle reason for a number of tenants leaving the Town Centre, including Marks and Spencer in 2014 which had a detrimental knock on effect in terms of reduced footfall, as the Marks and Spencer store was a destination retail store, and for many, a reason to visit South Shields. National retail brands require larger footplates and therefore the existing offering is a key barrier to investment confidence. New retail space is required to give national retail brands and independents confidence to invest and open new premises in South Shields. This is evident from the opening of Waterloo Square in the Town Centre in 2006, with large retail units that attracted Debenhams, BHS, Next and River Island. Waterloo Square is fully occupied.

6.5 The Town Centre currently has 18.7% of vacant units. This is above the GOAD national average of 12.37%.

6.6 Whilst there has been growth in economic activity in recent years at South Shields Foreshore (increased tourism) and Riverside (increased commercial, residential and cultural uses), the limited retail and leisure offer available means the Town Centre does not and cannot benefit from the related footfall from those areas.

6.7 There is currently no bus station within the Town Centre, only a collection of bus shelters. The existing bus stands and Metro station are out-dated, lack essential facilities and impractical in layout and location. The facilities are below the standards of current best practice in accessibility terms. Their independence from one another and general lack of cohesion is impractical and together give a poor sense of arrival into the Town Centre.

71160982.4\SW37 5 6.8 In order to arrest the economic decline of the Town Centre by reducing the leakage of expenditure, an enhanced retail and leisure offer needs to be provided to attract visitors and increase spend within the Town Centre.

6.9 Without investment South Shields is unlikely to provide a competitive and attractive retail offer and experience for residents and visitors. It will cease to be a destination of choice for shopping and other Town Centre activities. Significant intervention is therefore required if South Shields is to thrive and grow. The Masterplan Development will improve the Town Centre's retail and leisure offer, increasing visitor numbers, dwell time and retained spend. The Transport Interchange Development will provide much needed modernisation and significant investment to provide an attractive point of arrival to the Town Centre. The Scheme will bring more visitors to South Shields Town Centre, who will stay longer and spend more money.

6.10 In January 2013, the Council launched the South Shields 365 Town Centre Vision (the "365 Vision"). The 365 Vision acted as a prospectus for potential development partners. It also continues to serve as a guide for residents and businesses, explaining how the Council intends to deliver the regeneration of South Shields Town Centre. The vision is to:

6.10.1 help create new opportunities for residents, businesses and visitors and reduce expenditure leaving South Shields and the borough to other centres;

6.10.2 create an expanded retail and leisure offer which ensures that a greater amount of spend is retained in the borough;

6.10.3 create a vibrant Town Centre which will be a place of all year round cultural, leisure and retail activity for residents, businesses and visitors;

6.10.4 transform the town and provide lasting improvements to the way the town functions, from the shopping and leisure offer to the way people travel to, from and around the Town Centre, making it easy for all visitors to enjoy the Foreshore and Riverside as well; and

6.10.5 give confidence and confirm that South Shields is 'open for business' to residents, visitors and the private sector as a place to invest and generate wealth and opportunity.

6.11 Significant progress has already been made in delivering the 365 Vision in accordance with the development plan. The new central library and digital media centre and the remodelling of the Market Place received planning permission on 2 October 2014 (references ST/0649/14/LAA and ST/0651/14/LAA). Works on this phase commenced in April 2015. The car park works have been completed, the Market Place is due to complete in March 2016 with the remainder of the works due to complete in July 2016. The new central library and digital media centre are due to open in autumn 2016.

6.12 As described below, both the Transport Interchange Development and the Masterplan Development received planning permission at the end of 2015 (references ST/0660/15/FUL and ST/0664/15/OUT). Subject to site assembly by negotiation or by the Order (if confirmed), works on the Transport Interchange Development are anticipated to commence in spring 2017 and complete so that it is fully operational in spring/summer 2018. Similarly, the Masterplan Development is programmed to start on site in early 2019 and complete in early 2020.

6.13 Council planning policies and the 365 Vision anticipated the redevelopment of Fowler Street West for retail uses. The 15 December 2015 planning permission (reference ST/0664/15/OUT) includes the redevelopment of Fowler Street West to incorporate a foodstore and associated car park and petrol filling station. However, over the last few years the national food market for food retail has undergone significant change. As a result there is currently limited operator demand for a 6,000 sq m food store in South Shields. The Council does not believe that a smaller food store alone would deliver the transformational change to the Town Centre and therefore is not seeking to acquire any land required for the delivery of this foodstore as part of this Order. The Council and Muse remain committed to delivering the Transport Interchange Development, alongside the Masterplan Development around Barrington Street.

71160982.4\SW37 6 6.14 There is reference in the 365 Vision to a new hotel at Harton Quays Park. No planning application has been prepared as yet for this phase, which is a longer term objective of the Council.

7. DESCRIPTION OF THE SCHEME

7.1 The Transport Interchange Development

7.2 The Transport Interchange Development has been designed to meet the requirements of Nexus, who operate and manage the bus and rail infrastructure in South Tyneside. It will comprise:-

7.2.1 Demolition of the existing Metro station on King Street, Royal Mail Delivery Office and Post Office on Keppel Street, and properties on Keppel Street (nos. 3, 5 and 7) and William Street (nos. 8, 10 and 12); and

7.2.2 Erection of a new Transport Interchange to consolidate bus and Metro services, comprising:

(a) a new interchange building (up to 1,674 sq.m);

(b) a Metro station;

(c) a bus station with 14 bus bays, 1 coach bay, passenger drop off bus bay, 1 flexible coach/bus bay, 3 layover bus bays and 15 spaces of customer drop off parking;

(d) new vehicular crossover to Keppel Street; and

(e) separate class A1 retail units (x1 147 sq.m and x1 146 sq.m) on ground floor with class B1 office accommodation at first floor (310 sq.m) and second floor (306 sq.m).

7.3 The Transport Interchange Development will be carried out pursuant to a planning permission dated 23 November 2015 (reference ST/0660/15/FUL).

7.4 A modern public transport hub will be provided, integrating both bus and Metro public transport facilities, providing ease of access into and out of the Town Centre and ease of connecting from bus services to Metro services and vice versa. The new building will provide a landmark piece of architecture, giving a positive sense of arrival into the town.

7.5 The existing bus stands and shelters along Keppel Street will be removed, as they no longer meet passengers' needs. It is anticipated that with the exception of the rail tracks and associated structure (which will be retained by Nexus) the remainder of the station and upper platform will be demolished, leaving an open space. That open space will be incorporated into part of the Scheme's public realm proposals for Interchange Square and King Street. This will incorporate a paved area with raised landscape planters and seating, along with areas for market stalls. The current Metro station is already used as a public route through to/from King Street. The existing structure will be removed, enhancing the public realm, improving the route to King Street and permeability in the Town Centre generally.

7.6 The new transport hub will incorporate a new Metro station with new platform above at 'platform level' and new bus station, concourse and retail unit at ground level. There will also be ancillary office and store rooms, a travel shop, staff room and cycle parking at ground level. ATM machines will be positioned to the north of the concourse. Stairs and escalators will provide access from ground level to platform level, leading through an upper concourse to the Metro platform itself. Ancillary staff facilities are also proposed within the upper concourse area.

7.7 The new Transport Interchange will provide bays for 14 buses (as well as coach parking and overflow bus parking provision) and a re-aligned road network to enable legibility and ease of circulation of bus traffic entering from Fowler Street and Burrow Street, through the Interchange

71160982.4\SW37 7 and exiting onto Keppel Street. Visitor/short-stay parking provision within a passenger drop-off area will be provided to the south of the bus concourse, accessed separately from William Street.

7.8 To the east of the bus concourse on the corner of Fowler Street and Keppel Street, a new three- storey unit is proposed for retail and office accommodation. There will be two retail units at ground floor and office accommodation on the first and second floors.

7.9 Around the Transport Interchange, the public realm will be enhanced to improve pedestrian connectivity and create an environment integral to the wider Scheme, which will also benefit King Street and Fowler Street.

7.10 The Masterplan Development

7.11 The Masterplan Development will comprise:-

7.11.1 Demolition of properties on King Street (nos. 83 to 99), Barrington Street (nos. 14 and the Cross Arms public house), Cornwallis Street (nos. 5 to 11), Coronation Street (nos. 2 to 10), Waterloo Square (nos. 20 and 22), East Street (no. 15), Chapter Row (Job Centre Plus); and

7.11.2 Erection of class A1 retail units (up to 7,028 sq.m), comprising:

(a) retail unit (up to 4,083 sq.m) to the South of King Street/north of Chapter Row;

(b) two retail units (up to 1,082 sq.m and up to 971 sq.m) to the north of Chapter Row;

(c) two retail units (up to 367 sq.m and up to 525 sq.m) to the north of Coronation Street;

7.11.3 Erection of class A3 restaurants and cafes (up to 2,060 sq.m), comprising:

(a) café (up to 139 sq.m) to the north of Church Way/Chapter Row;

(b) café (up to 186 sq.m) to the south of Chapter Row;

(c) restaurants (up to 1,603 sq.m) within the leisure site to the north of Coronation Street and east of Cornwallis Street;

7.11.4 Erection of a class D2 cinema (5 screens, approx. 890 seats) (up to 2,745 sq.m) at leisure site to the north of Coronation Street and east of Cornwallis Street;

7.11.5 Multi-storey car park (300 spaces over 4 floors) (up to 10,000 sq.m) at the site of the existing Oyston Street car park; and

7.11.6 Public realm improvements adjacent to the new buildings with landscape treatments.

7.12 The Masterplan Development will be carried out pursuant to an outline planning permission dated 15 December 2015 (reference ST/0664/15/OUT).

7.13 The Masterplan Development seeks to demolish several buildings along King Street, Chapter Row and Barrington Street, close Barrington Street and East Street and pedestrianize Chapter Row. Heavy traffic will be removed, with vehicular access for servicing only. This will allow Barrington Street to be realigned and provide a walkway from King Street to a redeveloped Barrington Street area and further on to Waterloo Square, improving connectivity and pedestrian flow between the northern and southern sections of the Town Centre.

7.14 The closures of Barrington Street and East Street and pedestrianisation of Chapter Row will make this environment safer and more pleasant. The demolitions and realignment of streets provides space for a new public square at the south side of Chapter Row (opposite the retained grade II

71160982.4\SW37 8 listed building, no. 16 Barrington Street), further improving the environment and public realm of this area. The new public square will allow the listed building to become a key part of the Town Centre environment. It will also act as a strategic urban space helping connect the Town Centre.

7.15 Around the new public square will be new retail units providing up to 7,028 sq m of class A1 retail space. The new retail units will provide the modern and flexible floor space required, complementing Waterloo Square. In the same vicinity, there will also be a new leisure block containing a five screen cinema and restaurants.

7.16 The existing surface car park at Oyston Street will be replaced with a multi-storey car park over four floors to provide 300 car parking spaces with surrounding landscaping. This new car park will provide some townscape interest to an area which is currently dominated by surface car parking. It will also provide safe and secure car parking for visitors to Barrington Street's new retail and leisure offer and the rest of the Town Centre.

7.17 The Highways Works

7.18 The Transport Interchange Development and Masterplan Development require substantial reconfiguration to the existing public highway. The Highway Works will comprise:-

7.18.1 Closure of the existing Keppel Street / Church Way vehicular route;

7.18.2 Realignment of Keppel Street and reduction to a single carriageway;

7.18.3 Redirection of buses to flow anti-clockwise through the town centre accessing the Transport Interchange via Fowler Street and egressing via Keppel Street and Coronation Street;

7.18.4 Removal of the vehicular carriageway on Chapter Row;

7.18.5 Creation of a new Interchange Square;

7.18.6 Creation of a public drop off and short stay parking area to the south of the Transport Interchange;

7.18.7 Creation of new taxi ranks and new service laybys along the northern edge of Keppel Street (replacing the Smithy Street service zone to the rear of the Argos and Boots buildings fronting King Street);

7.18.8 Removal of carriageway associated with William Street to facilitate development;

7.18.9 Upgrade to Cornwallis Street / Coronation Street junction;

7.18.10 Provision of five new bus bays and associated infrastructure to the south of Coronation Street;

7.18.11 Extensive public realm works including wider and improved pedestrian facilities; and

7.18.12 Improvements to key junctions on the wider network:

(a) provision of southbound bus lane on approach to Station Road / Crossgate / A194 roundabout;

(b) signalisation of Station Road / Coronation Street roundabout;

(c) alterations to junction layout at Crossgate / Westoe Road / Beach Road;

(d) removal of Station Road / Church Way roundabout and replacement with priority junction; and

71160982.4\SW37 9 (e) introduction of signals at Garden Lane bridge to facilitate pedestrian improvements.

7.19 The Highway Works are within the limits of adopted highway and will be carried out pursuant to an agreement or agreements under section 278 of the Highways Act 1980.

7.20 The Transport Interchange Development and consolidated bus services will allow for the closure of the existing Keppel Street / Church Row vehicular route through the Town Centre. This existing route and the associated bus infrastructure severs the Town Centre limiting north/south connectivity.

7.21 The new Keppel Street alignment will be reduced to a single carriageway, and the associated infrastructure of Keppel Street and Smithy Street removed. This enables the central space to be reconfigured to provide a new public square at the Transport Interchange Development providing a new pedestrian link through to King Street and also a new public square at the new retail and leisure development at Barrington Street accessed via a new pedestrian link from King Street. These new links and squares will provide strategic urban spaces, improving pedestrian connectivity and permeability across the Town Centre.

7.22 The realigned Barrington Street and Keppel Street will be designed as a shared space providing an improved pedestrian environment for travelling along and crossing the vehicular route.

7.23 The reduction in available carriageway space within the Town Centre will reduce traffic within the central area, provide road safety benefits for users and promote more sustainable forms of transport.

7.24 In order to improve existing transport links, buses will be redirected to flow anti-clockwise through the Town Centre accessing the Transport Interchange via Fowler Street and egressing via Keppel Street and Coronation Street. The existing bus provision on Coronation Street will be upgraded by providing improved lay-by and stopping facilities.

7.25 The access arrangement to utilise the service area associated with the rear of Argos and Boots will be altered to facilitate the Scheme. Access to the service area will be achieved via the realigned Barrington Street and a new shared space square will allow for large vehicles to undertake turning manoeuvres to access service points.

7.26 The highway works include substantial measures to facilitate inclusive access, including a high proportion of well located disabled parking bays; raised crossings with tactile paving; contrasting materials between highway uses; benches and seating within bus shelters; and a new street lighting scheme. Improvements such as dropped kerbs and wide pedestrian areas will enhance accessibility for all road users, particularly for people with mobility impairments or pushchairs.

7.27 The use of quality materials and high construction standards will improve pedestrian areas, reducing the demand for regular maintenance in the future.

8. THE COUNCIL'S JUSTIFICATION IN MAKING THE ORDER

8.1 Paragraph 76, CPO Guidance – What factors will the Secretary of State take into account in deciding whether to confirm an order under section 226(1)(a)?

"Any decision about whether to confirm an order made under section 226(1)(a) will be made on its own merits, but the factors which the Secretary of State can be expected to consider include:

 whether the purpose for which the land is being acquired fits in with the adopted Local Plan for the area or, where no such up to date Local Plan exists, with the draft Local Plan and the National Planning Policy Framework

 the extent to which the proposed purpose will contribute to the achievement of the promotion or improvement of the economic, social or environmental wellbeing of the area

71160982.4\SW37 10  whether the purpose for which the acquiring authority is proposing to acquire the land could be achieved by any other means. This may include considering the appropriateness of any alternative proposals put forward by the owners of the land, or any other persons, for its reuse. It may also involve examining the suitability of any alternative locations for the purpose for which the land is being acquired."

8.2 These factors are considered in turn as follows:-

Whether the purpose for which the land is being acquired fits in with the adopted Local Plan for the area or, where no such up to date Local Plan exists, with the draft Local Plan and the National Planning Policy Framework

8.2.1 The land is being acquired for the Scheme, which fits in with the adopted local plan for the area, as evidenced by the granting of planning permission for the Masterplan Development and Transport Interchange Development in late 2015.

8.2.2 In particular, the Scheme fits in with the Council's planning policies for the revival of the Town Centre, as set out in the Core Strategy1 and the South Shields Town Centre and Waterfront Area Action Plan 2008 ("AAP"). Delivery of the Scheme would fulfil key planning policy objectives, regenerating and transforming South Shields Town Centre.

8.2.3 Whilst some site-specific elements of the Masterplan and Transport Interchange Developments are not in complete conformity with existing development plan allocations, given the changing circumstances within the town since the AAP was adopted in 2008 and the updated evidence base provided by the Retail Health and Capacity Study2, when determining the applications for planning permission for the Masterplan Development and the Transport Interchange Development, the Council considered that the proposed development is acceptable and in accordance with the provisions of the National Planning Policy Framework ("NPPF") and overall strategic objectives of the adopted Local Development Framework for South Shields Town Centre and South Tyneside as a whole.

8.2.4 Further details of the compliance with planning policy of the development for which planning permission has been obtained are set out below.

Retail and leisure development around Barrington Street

8.2.5 The majority of the Barrington Street area is allocated within Policy SS2 (Avi) of the AAP for class A1 and A2 retail uses. Those parts which are not within the area covered by SS2 (Avi) comprise existing shop units on King Street and access roads. Therefore, the proposed class A1 retail uses in the Scheme are in conformity with the development plan.

8.2.6 Those class A1 retail uses that are proposed on the periphery of the Barrington Street site allocation are within the Primary Shopping Area and on the Primary Shopping Frontage, so conform to Policy SS7 of the AAP as well as Policy SS2.

8.2.7 The proposed class D2 cinema, A3 restaurant and A1 retail uses are based on an identified need within the Retail Health and Capacity Study3.

8.2.8 The Council considered that there were a number of ‘material considerations’ why the proposals are acceptable from a planning policy perspective although Policy SS2 (Avi) of the AAP does not provide for D2 or A3 uses:-

(a) The proposed class D2 cinema and A3 restaurant uses are defined as ‘town centre’ uses within the NPPF. The Barrington Street area is clearly within the

1 The Core Strategy 2007 2 The South Tyneside Retail, Health and Capacity Study (GVA, October 2012) 3 The South Tyneside Retail, Health and Capacity Study (GVA, October 2012)

71160982.4\SW37 11 defined South Shields town centre boundary. The uses also conform to local spatial planning Policies ST1, SC1, SC2 of the Core Strategy and SS1 in the AAP which seek to support and focus development and high trip-generating uses within the Town Centre;

(b) The proposed class D2 cinema and A3 restaurant uses provide a comprehensive leisure offer in one location, which will largely be located on pedestrianised areas, conforming to the spatial strategy within Policy SS8, as well as providing new and enhanced links in conformity with Policy SS3 in the AAP; and

(c) It is considered there is insufficient capacity on existing site allocations within Policies SS9 and SS2 in the AAP to provide for this land-use need.

8.2.9 In conclusion, the proposed class D2, A3 and A1 uses in the Barrington Street area fit in with planning policy as they would comply with national and local planning policy by locating town-centre uses within a Town Centre and primary shopping area that is deemed sequentially preferable with no suitable alternative sites available. The proposals would also meet a land-use need as identified in the Retail Health and Capacity Study4 and significantly support economic growth and town centre regeneration.

Multi storey car park at the existing Oyston Street car park

8.2.10 The site is allocated within AAP Policy SS2 (Aiv), for class A1 retail and D2 leisure uses. The class A1 retail element was based on a proposed Asda superstore development which was subsequently carried out and completed to the west of this land. With regard to the class D2 leisure element of the allocation, paragraph 5.13 of the AAP clarifies that this was based on a previous permission for a swimming pool and leisure centre proposal. However, subsequent funding bids for that pool were unsuccessful. Since the adoption of the AAP the new Haven Point public swimming pool has been completed at the South Shields Foreshore. Accordingly, it is not considered appropriate to require the retention of the site for the A1 and D2 purposes referred to in the allocation.

8.2.11 Policy SS3 of the AAP identifies that the level of car parking provision should be sufficient to serve the needs of the Town Centre without adversely impacting on the viability of public transport or other sustainable travel initiatives. The proposal will increase the car parking capacity at this site and support the needs of the surrounding regeneration activity. Importantly, it is considered that this will not have an adverse impact on public transport services, which will be significantly improved as part of the Transport Interchange Development. The car park proposal is considered to be in general conformity with planning policy for South Shields Town Centre, because it would provide surface car parking in accordance with Policy SS3 of the AAP and would contribute to the vitality and viability of the Town Centre, in accordance with the policies of the Core Strategy and the AAP and guidance within the NPPF.

8.2.12 The Council-owned part of this site is predominantly within a Health and Safety Executive control of major accident hazards (COMAH) inner zone, associated with the gas holder on Oyston Street, and therefore given the subsequent HSE development restrictions, the proposed car park is considered to be a more acceptable use than any retail or leisure use5.

New Transport Interchange

8.2.13 The majority of this area is allocated within AAP Policy SS2 (Aiii) as a mixed use allocation for class A1 and A2 (retail), B1 and B2 (business), C3 (residential) and D2 (leisure) uses.

4 The South Tyneside Retail, Health and Capacity Study (GVA, October 2012) 5 For information, the Barrington Street area proposals are partly in the less sensitive middle and outer COMAH zones and are considered acceptable when taking into account Health and Safety Executive guidelines.

71160982.4\SW37 12 8.2.14 The AAP clarifies that uses may be permitted in any combination provided the combination is appropriate and compatible with neighbouring uses and that where more than one or two uses cannot be physically accommodated, the policy provides an element of flexibility (paragraph 2.6). It also advises that any ‘sui generis’ uses with similar characteristics to those listed, will be considered on their own merits provided that they genuinely complement the other proposed uses, and assist in creating sustainable communities (paragraph 2.7).

8.2.15 Whilst the Transport Interchange would be classed as ‘sui generis’ (and therefore fall outside of the allocation) and would be located partly on a mixed-use allocated site, it is considered to fit with AAP Policy SS2 and paragraph 2.7, as it would clearly complement and support surrounding and proposed uses, and assist in creating sustainable communities. It is also in conformity with Core Strategy Policy A1 and AAP Policy SS3 that seek to improve transport and accessibility within the Town Centre. Policy SS3 specifically encourages improvements at the Metro station and bus stands along Keppel Street. It would significantly support economic growth and town centre regeneration in accordance with policies within the Core Strategy and AAP and guidance within the NPPF.

8.2.16 The two class A1 retail units proposed within the Transport Interchange Development are within the South Shields Town Centre and the South Shields Town Centre Primary Shopping Area as well as being opposite the Primary Shopping Frontages, and are therefore considered to fit in with local and national planning policy.

The extent to which the proposed purpose will contribute to the achievement of the promotion or improvement of the economic, social or environmental wellbeing of the area

The Council's well-being objectives

8.2.17 In 2011 the Council launched its 20 year 'Shaping our Future’ vision6, setting out a long- term ambition for the borough: South Tyneside will be an outstanding place to live, invest and bring up families. To achieve this vision, 10 strategic outcomes were produced under the themes 'people' and 'places' and it was agreed that one of the most pressing outcomes was to achieve a regenerated South Tyneside with increased business and jobs, which led to the launch of the 365 Vision.

8.2.18 In 2013 the 'Shaping our Future’ vision was refreshed and it was agreed that one of the key priorities was to deliver the regeneration of town centres and villages. A number of key actions were identified to deliver this, including the delivery of phases 1 to 4 of the 365 Vision.

8.2.19 The Council considers the Scheme will contribute significantly to the improvement of the economic, social and environmental well-being of the area for reasons as follows.

Economic well-being

8.2.20 The Scheme will promote and improve the economic well-being of the area by:-

(a) Providing a step change in reversing the decline of South Shields Town Centre and bringing forward transformational change in the rest of the Town Centre.

(b) Creating a vital and economically viable Town Centre.

(c) Creating a Town Centre fit for purpose and better able to meet the retail and leisure needs of local residents. The enhanced retail and leisure facilities will enable residents to meet more of their needs locally and reduce the need to travel to centres further afield.

6 The South Tyneside Vision 2011-2031

71160982.4\SW37 13 (d) Increasing footfall and retail expenditure within the Town Centre resulting in significant knock on effects on existing businesses in the area and attracting new business to the Town Centre.

(e) Improving confidence amongst potential investors.

(f) Providing modern and flexible retail floor space, to attract a diverse range and quality of occupiers.

(g) Acting as a catalyst for wider regeneration in South Shields Town Centre.

(h) Improving sustainable access to the Town Centre.

(i) Creating new jobs during construction of the Scheme and many more once it is built and trading.

(j) Contributing additional business rates each year, of which it is anticipated the Council will receive 50% annually thereby providing a valuable source of public revenues locally.

Social well-being

8.2.21 The Scheme will promote and improve the social well-being of the area by:-

(a) Creating a vibrant Town Centre which will be a place of all year round cultural, leisure and retail activity for residents, businesses and visitors.

(b) Delivering family/visitor friendly new leisure development and cafés at Barrington Street, giving the town a more rounded offer, attracting families to consider South Shields as a place to live and/or visit.

(c) Providing improved public transport facilities by the delivery of a fully integrated modern public transport hub providing ease of access into and out of the Town Centre and ease of connecting from bus services to Metro services and vice versa.

(d) Creating a landmark piece of architecture by way of the new Interchange building, giving a positive sense of arrival into the town.

(e) Improving pedestrian connectivity and flow, and Town Centre permeability, legibility and safety by:

(i) reducing severance within the Town Centre by reducing carriageway space, vehicular flow and highway infrastructure;

(ii) creating a new pedestrian link from Keppel Street to King Street;

(iii) creating a new pedestrian link from King Street to the new Barrington Street leisure and retail development and onwards to Waterloo Square;

(iv) removing existing unsightly infrastructure; and

(v) re-configuring highways and altering bus routes.

(f) Developing unsightly areas of the Town Centre to high standards of urban design that will mend the urban fabric and help rejuvenate and enhance the character and appearance of the Town Centre.

71160982.4\SW37 14 (g) Providing improved and better located car parking facilities by the delivery of a multi storey car park at Oyston Street.

(h) Contributing to the delivery of important services in the area by virtue of the additional business rate receipts received by the Council.

(i) Increasing personal safety, security and accessibility and reducing road accident risk for pedestrians in the central area including Keppel Street and Smithy Street area and wider area across the Town Centre.

Environmental well-being

8.2.22 The Scheme will promote and improve the environmental well-being of the area by:-

(a) Providing for new high quality built development as well as enhancing public realm through landscape improvements and the creation of the Barrington Street public square (allowing the existing listed building on Barrington Street to become a key part of the Town Centre environment) and the Interchange public square.

(b) Those strategic urban spaces improving connections within the Town Centre and beyond to the Foreshore and Riverside, making it easier for pedestrians to move around South Shields.

(c) Having a beneficial effect on the grade II listed Church of St Hilda and the Riddick’s building (non-designated heritage asset).

Conclusion

8.2.23 The Scheme will contribute significantly to the improvement of the economic, social and environmental well-being of South Shields.

Whether the purpose for which the acquiring authority is proposing to acquire the land could be achieved by any other means. This may include considering the appropriateness of any alternative proposals put forward by the owners of the land, or any other persons, for its reuse. It may also involve examining the suitability of any alternative locations for the purpose for which the land is being acquired.

8.2.24 The purpose of acquiring the Order Land is to facilitate delivery of the Scheme providing the revival of South Shields Town Centre in accordance with planning policy. Planning permission for the Scheme has been granted.

8.2.25 The number and diversity of land interests in the proposed Order Land means it is unlikely all necessary interests will be acquired by agreement so as to enable comprehensive redevelopment within a reasonable timescale.

8.2.26 The Council has considered whether redevelopment in accordance with planning policy might be achieved by individual landowners without the need for compulsory purchase. However, owing to the comprehensive nature of the Scheme, redevelopment by individual owners is not considered to be a practicable option.

8.2.27 Sub-division of the Scheme into separate components controlled by different developers would be unworkable commercially as the Scheme requires a comprehensive and sequential design and delivery which cannot be achieved without control of the land.

8.2.28 The fundamental nature of the planning policy objective for the Town Centre, i.e. the revival and regeneration of the Town Centre, means it is not possible for this objective to be achieved at a different location.

71160982.4\SW37 15 8.2.29 As the purpose of the Transport Interchange Development is to integrate the existing Metro and bus station services, the location of the Transport Interchange Development is therefore dictated by the position of the existing Metro line. It is considered that the proposed location of the new Transport Interchange at Keppel Street is the only feasible location in the Town Centre and that there are no other suitable alternative sites available.

8.2.30 It is considered that the Order Land is the most appropriate option for the land uses proposed by the Scheme.

8.2.31 Overall, it is concluded that there is no credible alternative which could deliver such a comprehensive Scheme which meets the planning policy objectives within a reasonable timeframe.

8.3 Paragraph 14 – What information about the resource implications of the proposed scheme does an acquiring authority need to provide?

"In preparing its justification, the acquiring authority should address:

a) sources of funding - the acquiring authority should provide substantive information as to the sources of funding available for both acquiring the land and implementing the scheme for which the land is required. If the scheme is not intended to be independently financially viable, or that the details cannot be finalised until there is certainty that the necessary land will be required, the acquiring authority should provide an indication of how any potential shortfalls are intended to be met. This should include:

 the degree to which other bodies (including the private sector) have agreed to make financial contributions or underwrite the scheme; and

 the basis on which the contributions or underwriting is to be made

b) timing of that funding - funding should generally be available now or early in the process. Failing that, the confirming minister would expect funding to be available to complete the compulsory acquisition within the statutory period (see section 4 of the Compulsory Purchase Act 1965) following the operative date, and only in exceptional circumstances, would it be reasonable to acquire land with little prospect of the scheme being implemented for a number of years.

Evidence should also be provided to show that sufficient funding could be made available immediately to cope with any acquisition resulting from a blight notice."

Generally and Masterplan Development

8.4 The Council is delivering the Masterplan Development and Transport Interchange Development in partnership with Muse and Nexus, both of whom have experience in comparable schemes.

8.5 Nexus is the trading name of the Tyne and Wear Passenger Transport Executive, a statutory body formed originally established by the Tyneside Passenger Transport Area (Designation) Order 1969, deriving its powers from the Transport Act 1968 (as amended). Nexus has responsibilities for Metro services, bus services, and the Shields Ferry within Tyne and Wear.

8.6 Muse are part of the Morgan Sindall group of companies. They are a national developer with regional operations in , London, Leeds and Glasgow. They have more than 30 years’ experience of delivering high quality developments in UK towns and cities and have delivered more than 16 million square feet of commercial and residential property. In 2014 they had revenue of £113 million and a £10 million operating profit.

8.7 In 2013 Muse were selected as the preferred development partner of the Council for the redevelopment of strategic sites within the Town Centre. The Council and Muse have entered into a Development Agreement relating to delivery of the Scheme. The Development Agreement

71160982.4\SW37 16 provides for the redevelopment of sites by Muse on a phased basis. Under the terms of the Development Agreement, Muse are responsible for the construction costs of the Masterplan Development.

8.8 The Council has allocated funding for the Scheme in its Medium Term Financial Plan 2016-2021 ("MTFP") to pay for property acquisitions, public realm and highway improvements, service and utility diversions and professional fees. The capital allocation to the Scheme is £57 million over the MTFP period, plus all unspent funds from the present year budget in the region of £5m. These sums will also cover the construction costs of the Masterplan Development and the Council's contribution to the cost of the Transport Interchange Development.

Transport Interchange Development

8.9 The Transport Interchange Development is being funded jointly through the Council, Nexus and the Single Local Growth Fund ("SLGF"). The SGLF is administered through the North East Local Enterprise Partnership. The costs of building the Transport Interchange will be borne by those parties respectively in approximately the following percentages: 33%, 20% and 47%. Nexus and the Council have agreed heads of terms for a Partnership Agreement in relation to the Transport Interchange Development, which will amongst other things provide detailed arrangements for the drawdown of funding over 3 or 4 years. SLGF funding is likely to be drawn down over a similar period.

8.10 Muse will have the role of development manager for the Transport Interchange Development, employing the contractor and consultants.

8.11 The Council is therefore confident that funds will be available for the Scheme and satisfied that there are no financial impediments to the Scheme proceeding.

8.12 Paragraph 15, CPO Guidance – How does the acquiring authority address whether there are any other impediments to the scheme going ahead?

"The acquiring authority will also need to be able to show that the scheme is unlikely to be blocked by any physical or legal impediments to implementation. These include:

 the programming of any infrastructure accommodation works or remedial work which may be required; and

 any need for planning permission or other consent or licence

Where planning permission will be required for the scheme, and permission has yet to be granted, the acquiring authority should demonstrate to the confirming minister that there are no obvious reasons why it might be withheld. Irrespective of the legislative powers under which the actual acquisition is being proposed, if planning permission is required for the scheme, then, under section 38(6) of the Planning and Compulsory Purchase Act 2004, the planning application will be determined in accordance with the development plan for the area, unless material considerations indicate otherwise. Such material considerations might include, for example, a local authority’s supplementary planning documents and national planning policy, including the National Planning Policy Framework."

8.13 Planning permission has been granted for the Scheme and therefore there is no impediment to implementation in this regard.

8.14 An application for an order under section 247 of the 1990 Act will made to the Council for the stopping up of sections of highway on Barrington Street, Coronation Street, Chapter Row, East Street, Keppel Street, Albermarle Street, William Street and Burrow Street. It is intended that if objections to the application for stopping up are made, any inquiry will be co-joined with the inquiry relating to the Order.

71160982.4\SW37 17 8.15 One or more agreements under section 278 of the Highways Act 1980 will be entered into between the Council and Muse in respect of the Highway Works. This is not considered an obstacle to the implementation of the Scheme.

8.16 Parts of the proposed new retail and leisure development in the Barrington Street area would fall within the Health and Safety Executive's control of major accident hazards (COMAH) inner zone, associated with the gas holder on Oyston Street. Demolition of the gas holder is due to commence in mid to late 2017 and complete approximately 6 months later and therefore should be fully decommissioned and demolished prior to completion of the Masterplan Development (which is programmed to complete in 2020). For these reasons, this is not considered an obstacle to the delivery of the Scheme.

8.17 The Council is therefore satisfied that there are no physical or legal impediments to the Scheme proceeding.

8.18 Paragraph 12, CPO Guidance – How does an acquiring authority justify a compulsory purchase order?

8.19 The overarching consideration for the Council when making the Order and for the Secretary of State in deciding whether the Order should be confirmed, is set out in paragraph 12 of the CPO Guidance which states:-

"A compulsory purchase order should only be made where there is a compelling case in the public interest.

An acquiring authority should be sure that the purposes for which the compulsory purchase order is made justify interfering with the human rights of those with an interest in the land affected. Particular consideration should be given to the provisions of Article 1 of the First Protocol to the European Convention on Human Rights and, in the case of a dwelling, Article 8 of the Convention."

8.20 Section 6 of the Human Rights Act 1998 prohibits a public authority from acting in a way which is incompatible with the rights and fundamental freedoms set out in specified provisions of the European Convention on Human Rights. Article 1 of the First Protocol provides the right to peaceful enjoyment of possessions and that no one shall be deprived of his possessions except in the public interest, Article 8 provides the right to respect for private and family life including a person's home and Article 6 provides the right to a fair and public hearing.

8.21 The European Court of Human Rights has recognised that "regard must be had to the fair balance that has to be struck between the competing interests of the individual and of the community as a whole". Both public and private interests are to be taken into account in the exercise of the Council's powers and duties as a local planning authority. Any interference with a Convention right must be necessary and proportionate. Compulsory purchase and overriding private rights must be justified by sufficiently compelling reasons in the public interest and must be a proportionate means of achieving the objectives of the Order. Similarly, any interference with rights under Article 8 must be "necessary in a democratic society" and proportionate.

8.22 The Order, if confirmed, would strike an appropriate balance between public and private interests. Interference with Convention rights, to the extent that there is any, is considered to be justified in order to secure the economic, social and environmental well-being benefits the Scheme will bring. Appropriate compensation will be available to those entitled to claim it under the relevant provisions of the statutory compensation code.

8.23 The requirements of Article 6 are satisfied by the statutory procedures under which this Order is being prepared and confirmed, which include for the right to object, the right to be heard at any public inquiry and by the right to statutory challenge under the Acquisition of Land Act 1981.

8.24 For the reasons set out in this Statement of Reasons, the Council considers that there is a compelling case in the public interest for the Order thus meeting the requirements of the Convention.

71160982.4\SW37 18 8.25 Paragraph 13, CPO Guidance – How will the confirming minister consider the acquiring authority's justification for a compulsory purchase order?

"The minister confirming the order has to be able to take a balanced view between the intentions of the acquiring authority and the concerns of those with an interest in the land that it is proposing to acquire compulsorily and the wider public interest. The more comprehensive the justification which the acquiring authority can present, the stronger its case is likely to be.

However, the confirming minister will consider each case on its own merits and this guidance is not intended to imply that the confirming minister will require any particular degree of justification for any specific order. It is not essential to show that land is required immediately to secure the purpose for which it is to be acquired, but a confirming minister will need to understand, and the acquiring authority must be able to demonstrate, that there are sufficiently compelling reasons for the powers to be sought at this time.

If an acquiring authority does not:

 have a clear idea of how it intends to use the land which it is proposing to acquire; and

 cannot show that all the necessary resources are likely to be available to achieve that end within a reasonable time-scale

it will be difficult to show conclusively that the compulsory acquisition of the land included in the order is justified in the public interest, at any rate at the time of its making."

8.26 The Council considers it has demonstrated in this Statement of Reasons that there are sufficiently compelling reasons for the powers to be sought at this time to enable the Scheme and the benefits it will bring to be delivered. The Council has more than a clear idea of how it intends to use the land which it is proposing to acquire; the detail of which is set out in Section 7 above. Further and as demonstrated above the necessary resources are in place to enable the Scheme to be delivered by the Council, Muse and Nexus within a reasonable timescale.

8.27 Paragraph 2, CPO Guidance - When should compulsory purchase powers be used?

"… The confirming authority will expect the acquiring authority to demonstrate that they have taken reasonable steps to acquire all of the land and rights included in the Order by agreement. Where acquiring authorities decide to/arrange to acquire land by agreement, they will pay compensation as if it had been compulsorily purchased, unless the land was already on offer on the open market.

Compulsory purchase is intended as a last resort to secure the assembly of all the land needed for the implementation of projects. …"

8.28 Since 2013 the Council has been acquiring interests and land required to implement the Scheme and now owns approximately 45% of the Order Land. Although the Council has a significant landholding in the Order Land, several major freehold and long leasehold interests still need to be acquired.

8.29 In addition, the Order Land is home to a significant number of occupational interests that still need to be acquired. The Council has attempted to contact and progress negotiations with all known occupational tenants where it holds the freehold interest. Where the Council does not have a contractual relationship with the occupational interests it is likely that conditional agreements will need to be entered into. There are a few occupational tenants that have not wanted to enter into discussions, either because they plan to vacate their units in the short term or because they are unwilling to engage. The Council and Muse are monitoring vacant units elsewhere in the Town Centre to facilitate potential relocations to enable continuity of trade.

8.30 The Council considers it has taken more than reasonable steps to acquire all of the land and rights included in the Order by agreement, however it is unlikely the outstanding interests will be acquired within a reasonable timescale. The comprehensive nature of the Scheme means it cannot be

71160982.4\SW37 19 delivered unless all interests are acquired, therefore the Council is making this Order as a last resort to secure the assembly of all the land needed for the implementation of the Scheme.

8.31 The Council will continue to seek to acquire the outstanding interests in the Order Land by agreement, wherever possible.

9. SPECIAL CONSIDERATIONS AFFECTING THE ORDER LAND

9.1 Historic Environment

9.2 Whilst there are no heritage assets within the Order Land, a number of designated heritage assets have been identified within the area surrounding the Order Land (referred to within the Environmental Statement7 and hereinafter as the ‘Study Area’).

9.3 The designated heritage assets within the Study Area are:

9.3.1 River Tyne Police Offices, Former Mercantile Marine Offices, Mill Dam, 23 Mill Dam, St Hilda’s Colliery Head Stocks, Sundial, Four Gate Piers to Church of St Hilda, Church of St Hilda, Trustee Savings Bank, 16 Barrington Street, Alum House Ham, Old Town Hall, 105 and 107 King Street, Lloyds Bank, Entrance building of the former Theatre of Varieties, Marks and Spencer, No’s 67 and 69 King Street, the Scotia Public House, Barclays Bank, South Shields Museum and Art Gallery and its associated Wall and Railings, the former Marine School, Stags Head Public House, Victoria Hall, 1 Beach Road, 3 & 3a Beach Road, 5 Beach Road, 11 Beach Road, 17 Beach Road, 23 Beach Road, 21 and 21a Beach Road, 29-33 Beach Road, 37-57 Beach Road, Municipal Buildings and associated Railings and Piers, Britannia Public House and associated Railings, 1-22 Mariners Cottages, 23-39 Mariners Cottages, Boundary Wall to 1-21, Boundary Wall to 23-39, Mill Dam Conservation Area, Mariners Cottages Conservation Area and the Buffer Zone of the Frontiers of the Roman Empire (Hadrian’s Wall) World Heritage Site.

9.4 The non-designated heritage assets within the Study Area are:

9.4.1 The Quadrant, Mill Dam Jetty, Chimney to former Cookson Glassworks, Merchant Navy Memorial, Staithes House, the Waterfront Public House, Dalton Lane Workshops, the Mission to Seafarers House, Unity Hall, Painted Mural, Ferry Landing, Harton Low Staithes, 29-33 King Street, Former Woolworth Building, Former Bridge Buffet, National Westminster Bank, Edinburgh Buildings, the Criterion Public House, 4-8 Fowler Street, Mechanics Arms Public House, Lambton Arms Public House, Victorian Pillar Box (Market Place), 10 Mile End Road, Minchellas Café, Burton Menswear, Man with Donkey Statue, Lion Statue, Ship and Royal Public House, Dolly Peel Statue, Fleet and Spirit of South Shields Artworks, the Bridge on River Drive, Victorian Pillar Box, Beach Road / St Hilda Street, opposite South Shields Town Hall, Former South Shields Hebrew Congregation, St Paul and St John United Reform Church, St Bede’s Roman Catholic Church, Gas Holder, Bethesda Free Church, Victoria Statue, War Memorial, Baptist Church, Former Unitarian Church, South Tyneside Bangladesh Muslim Cultural Association and Mosque, Freemason’s Hall, Gregory Jubilee Hall, Nautical Objects Reliefs, Baitul Malmur James-e- Masjid and Islamic Centre and the Cyprus Public House.

9.5 The Scheme will have a beneficial effect on the significance of:

9.5.1 The Grade II listed Church of St Hilda, through the creation of a new vista and framed view; and

9.5.2 The Riddick’s building (non-designated heritage asset), by improving the building's setting and the context with which it is experienced.

7 Joint Environmental Statement, Detailed Transport Interchange Application and Outline Town Centre Masterplan Application (Turley, July 2015)

71160982.4\SW37 20 9.6 The Scheme will have no impact on the significance of:

9.6.1 The River Tyne Police Offices, Former Mercantile Marine Offices, Mill Dam, 23 Mill Dam, Sundial, Four Gate Piers to Church of St Hilda, Alum House Ham, Old Town Hall, 105 and 107 King Street, the Scotia Public House, Barclays Bank, South Shields Museum and Art Gallery and its associated Wall and Railings, the former Marine School, the Stags Head Public House, 23 Beach Road, 21 and 21a Beach Road, 29-33 Beach Road, 37-57 Beach Road, 1-22 Mariners Cottages, 29-39 Mariners Cottages, Boundary Wall to 1-21, Boundary Wall to 23-39, Mill Dam Conservation Area, Mariners Cottages Conservation Area, the Buffer Zone of the Frontiers of the Roman Empire (Hadrian’s Wall) World Heritage Site, the Quadrant, Mill Dam Jetty, Chimney to former Cookson Glassworks, Merchant Navy Memorial, Staithes House, the Waterfront Public House, Dalton Lane Workshops, the Mission to Seafarers House, Unity Hall, Painted Mural, Ferry Landing, Harton Low Staithes, Former Bridge Buffet, National Westminster Bank, Edinburgh Buildings, the Criterion Public House, 4-8 Fowler Street, Victorian Pillar Box (Market Place), 10 Mile End Road, Minchellas Café, Burton Menswear, Man with Donkey Statue, Lion Statue, Ship and Royal Public House, Riddick’s, 21 Fowler Street, Dolly Peel Statue, Fleet and Spirit of South Shields Artworks, Bridge on River Drive, Pillarbox opposite South Shields Town Hall, Former South Shields Hebrew Congregation, St Paul and St John United Reform Church, St Bede’s Roman Catholic Church, Bethesda Free Church, War Memorial, Former Unitarian Church, South Tyneside Bangladesh Muslim Cultural Association and Mosque, Freemason’s Hall, Gregory Jubilee Hall, Nautical Objects Reliefs, Baitul Malmur James-e-Masjid and Islamic Centre and the Cyprus Public House.

9.7 The Scheme will have no harmful impact on the significance of:

9.7.1 The Municipal Buildings and its associated Gate Piers and Railings, Victoria Hall, St Hilda’s Colliery Head Stocks, Trustee Savings Bank, Lloyds Bank, Entrance Building of the Former Theatre Varieties, Marks and Spencer’s, 67 and 69 King Street, 1 Beach Road, 3 and 3a Beach Road, 5 Beach Road, 11 Beach Road, 17 Beach Road, Britannia Public House and associated Railings, Former Woolworth Building, Mechanics Arms Public House, Lambton Arms Public House, Gas Holder, Baptist Church and Victoria Statue.

9.8 There will be an effect on the setting of the Grade II listed 16 Barrington Street, by reason of the development taking place within that setting. The proposed leisure/retail building is larger in scale than the existing built development and will reduce the prominence of the listed building from the west and south. However, the proposals to open up the view through to and from King Street, offering new views towards the listed building, will bring enhancement to the setting, so that on balance the overall impact of the proposals is positive. Further and in any event, any limited adverse effect would be outweighed by the public benefits that will be delivered by the overall scheme.

9.9 Notice has been given to the County Archaeologist in respect of potential objects of archaeological interest relating to the Mill Dam (a reservoir of water held for powering the mill) which is believed to have extended from the original river frontage up into the area now occupied by Waterloo Square and is potentially underlying the properties either side of Coronation Street. This was the focus for early medieval settlement in the area and there could be associated archaeological remains. Condition 11 of the Masterplan Development planning permission requires archaeological investigation to be carried out prior to commencement of each phase, to ensure that any archaeological remains can be preserved wherever possible and recorded.

9.10 Special Kinds of Land (Section 17, CPO Guidance)

9.11 There is no land within the Order Land which is owned by a local authority other than the Council, held by the National Trust inalienably or which forms part of a common, open space or fuel or field garden allotment.

9.12 Within the Order Land the following operational land and apparatus of statutory undertakers has been identified:-

71160982.4\SW37 21 9.12.1 The Royal Mail Delivery Office and Post Office at Keppel Street - both these premises are to be demolished as part of the Scheme. Royal Mail is looking to relocate to a vacant site at West Walpole Street that is owned by the Council and the Post Office has identified potentially suitable alternative premises on King Street.

9.12.2 Land, bridges, Metro line and existing Metro station south of Keppel Street – these are all owned and operated by Nexus. The Scheme proposes various works to this land, equipment and apparatus, which have been developed in conjunction with Nexus and will be carried out with their agreement.

9.13 The presence of statutory undertaker land and apparatus is not considered an impediment to the implementation of the Scheme.

9.14 Crown Land (Section 19, CPO Guidance)

9.15 Within the Order Land the following Crown land has been identified:-

9.15.1 Job Centre Plus, Chapter Row - the Secretary of State for Communities and Local Government is the leasehold owner of the premises and the Secretary of State for Work and Pensions the occupier. The Job Centre Plus is looking to relocate to the existing library premises at Prince George Square (once the library facility has moved to the new Digital Media Centre and premises been renovated by the Council).

9.15.2 Post Office, Keppel Street - the Post Office Limited has a 999 year leasehold interest in the premises and the Post Office Limited is wholly owned by the Department for Business, Innovation and Skills. The Post Office has identified potentially suitable alternative premises on King Street.

9.16 The Council is in active negotiations in relation to the relocation of the Post Office and Job Centre. The presence of Crown land is not considered an impediment to the implementation of the Scheme.

10. EQUALITY

10.1 Paragraph 6, CPO Guidance – How should the Public Sector Equality be taken into account in compulsory purchase regime?

"All public sector acquiring authorities are bound by the Public Sector Equality Duty as set out in section 149 of the Equality Act 2010. In exercising their compulsory purchase and related powers (eg powers of entry) these acquiring authorities must have regard to the effect of any differential impacts on groups with protected characteristics."

10.2 The Council therefore has a statutory duty under section 149 of the Equality Act 2010 to have due regard to the need to:-

10.2.1 eliminate discrimination, harassment, victimisation and any other conduct that is prohibited by or under the Act;

10.2.2 advance equality of opportunity between persons who share a relevant protected characteristic and persons who do not share it; and

10.2.3 foster good relations between persons who share a 'relevant protected characteristic' (age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex, and sexual orientation) and persons who do not share it.

10.3 A full Equality and Diversity Assessment has been carried out to ensure that the proposals accord with Council Policy on such matters. This will be monitored and reviewed throughout the promotion and implementation of the Order to ensure that any impact can be measured and mitigated against as necessary.

71160982.4\SW37 22 10.4 An Equality Check was conducted during preparation of the 10 July 2013 Cabinet Report to appoint Muse as preferred developer. There have been no changes in circumstances since that time that would necessitate a refreshed check.

10.5 The acquisition strategy for the Order has been tailored to minimise barriers to equal opportunities for those with disabilities recognising that some businesses needing to relocate may have disabled customers and/or staff with specific access requirements. The Council will work with all such businesses offering a bespoke package of assistance to help relocate those businesses to premises that would accommodate such requirements.

10.6 Having had full regard to its duty under section 149 of the Equality Act 2010, the Council considers there is a compelling case in the public interest sufficient to justify the making of the Order.

11. CONTACT INFORMATION

11.1 Those parties affected by the Order who wish to discuss matters with a representative of the Council should contact:

John Sparkes 0191 424 7603 [email protected] Head of Regeneration Economic Regeneration Group South Tyneside Council

Harry Alder 0191 424 7679 [email protected] Senior Regeneration Manager Economic Regeneration Group South Tyneside Council

Ben Broome 0191 424 6546 [email protected] Principal Solicitor Development South Tyneside Council

11.2 Owners and tenants of properties affected by the Order who wish to negotiate a sale and/or relocation or discuss matters of compensation should contact:

Liz McLoughlin 0191 269 0129 [email protected] RICS Registered Valuer Partner Rating and Regeneration Sanderson Weatherall LLP

12. INSPECTION OF DOCUMENTS

12.1 A copy of the Order, Order Map and other documents may be seen at:

12.1.1 Broughton Road Reception, South Tyneside Council, Town Hall, Westoe Road, South Shields NE33 2RL, Monday to Friday between 08:30 and 16:45 hours; and

12.1.2 at www.southtyneside.gov.uk/cpo.

13. INQUIRY PROCEDURE RULES

13.1 This Statement of Reasons is not intended to be a statement of case in accordance with the Compulsory Purchase (Inquiries Procedure) Rules 2007.

71160982.4\SW37 23 14. INQUIRY DOCUMENTS

14.1 The following documents may be referred to or put in evidence in the event of an inquiry. These may be inspected at the same venues and times as the Order (see Section 12 above).

List of Documents:

14.1.1 Planning application documents for:

(a) the Masterplan Development (reference ST/0664/15/OUT);

(b) the Transport Interchange Development (reference ST/0660/15/FUL);

14.1.2 Joint Environmental Statement, for the Transport Interchange Development and Masterplan Development (Turley, July 2015)

14.1.3 Planning decision notice for:

(a) the central library and digital media centre (reference ST/0649/14/LAA);

(b) the market place remodelling (reference ST/0651/14/LAA);

(c) the Masterplan Development (reference ST/0664/15/OUT);

(d) the Transport Interchange Development (reference ST/0660/15/FUL);

14.1.4 Guidance on Compulsory Purchase (October 2015);

14.1.5 National Planning Policy Framework (March 2012);

14.1.6 National Planning Practice Guidance (2015) (this is only available for inspection via the following web-link - http://planningguidance.communities.gov.uk);

14.1.7 The Core Strategy (2007);

14.1.8 The South Shields Town Centre and Waterfront Area Action Plan (2008);

14.1.9 The Development Management Policies Development Plan Document (2011);

14.1.10 South Shields 365 Town Centre Vision document;

14.1.11 The South Tyneside Retail, Health and Capacity Study (GVA, October 2012);

14.1.12 The South Tyneside Retail Health and Capacity Study 2006 to 2025 (White Young Green, May 2007);

14.1.13 Shaping our Financial Future - Medium Term Financial Plan 2016-2021 Council Budget (South Tyneside Council);

14.1.14 Shaping Our Future, South Tyneside Council Vision 2011-2031;

14.1.15 Shaping Our Future, South Tyneside Council Strategy 2013-2016;

14.1.16 The Council's Equality Impact Assessment;

14.1.17 The Council's Equality and Diversity Policy; and

14.1.18 The Council's Equality Objectives 2012-16.

71160982.4\SW37 24 15. CONCLUSION

15.1 In conclusion, for the reasons set out in this Statement of Reasons, the Council considers that there is a compelling case in the public interest for compulsory acquisition of the interests and rights referred to in the Order.

Pinsent Masons LLP

Dated 12 May 2016

71160982.4\SW37 25 APPENDIX 1 – PLANNING POLICY

NATIONAL PLANNING POLICY

The National Planning Policy Framework ("NPPF") (2012)

1. The NPPF provides the Government's overarching planning policy guidance and its overriding principle is the presumption in favour of sustainable development. Its purpose is to send a strong signal to all those involved in the planning process about the need to plan positively for appropriate new development so that both plan-making and development management are proactive and driven by a search for opportunities to deliver sustainable development, rather than frustrated by unnecessary barriers. In relation to decision taking, this means "approving developments that accord with the development plan without delay"8.

2. Paragraph 17 of the NPPF identifies twelve core planning principles of which the following are of particular relevance:-

2.1 Proactively drive and support sustainable economic development to deliver the homes, business units, infrastructure and thriving local places that the country needs. Every effort should be made to identify and meet housing, business and other development needs of an area, and respond positively to wider opportunities for growth;

2.2 Encourage the effective use of land by reusing brownfield land;

2.3 Promote mixed use developments;

2.4 Conserve heritage assets in a manner appropriate to their significance;

2.5 Actively manage patterns of growth to make the fullest possible use of public transport; and

2.6 Take account of land and support local strategies to improve health, social and cultural wellbeing for all, and deliver sufficient community and cultural facilities and services to meet local needs.

3. The NPPF also specifically requires planning policies to be positive and promote competitive Town Centre environments, and seeks to ensure that the vitality and viability of Town Centres is protected and enhanced through development and that retail and leisure needs are met in full.

National Planning Practice Guidance ("NPPG") (2014)

4. There are no policy changes of significance in the NPPG which would affect the decision made to make the Order. The guidance supports Town Centre policy within the NPPF as set out above. It states that local planning authorities should assess and plan to meet the needs of main Town Centre uses in full, in broadly the same way as for their housing and economic needs, adopting a ‘Town Centre first’ approach and taking account of specific Town Centre policy. Local planning authorities should take full account of relevant market signals when planning for Town Centres and should keep their retail land allocations under regular review.

REGIONAL PLANNING POLICY

5. The Regional Spatial Strategy for the North East was revoked in April 2013 and no longer forms an upper tier to the statutory development plan.

6. Whilst there is no longer a regional planning tier in England, Section 33A of the Planning and Compulsory Purchase Act 2004 (as amended by the Localism Act 2011) introduces a new "duty to co-operate" in preparing Local Plans, that ensures that local authorities have regard to cross

8 National Planning Policy Framework, Paragraph 14 (March 2012)

71160982.4\SW37 26 boundary issues in co-operation with their neighbouring authorities and other key organisations such as Historic England and Natural England. This approach is also advocated in the NPPF that sets out a series of strategic priorities for the duty to co-operate.

7. The North East Local Enterprise Partnership (North East LEP) provides a joint approach for the seven local authorities of , Newcastle, Gateshead, South Tyneside, Sunderland, Northumberland and Durham. The potential opportunities provided by close working relationships between the authorities in the creation of a combined authority, 'LA7', will have an important strategic role influencing particularly the economy, skills and transport across the area.

8. The North East LEP published the North East Strategic Economic Plan in March 2014 which sets out the ambitious vision to strengthen the area’s economy and provide more opportunities for businesses and communities. It includes a list of scheme priorities including the development of the South Shields Transport Interchange which it states will provide a focal point for the transport network and create a step-change in quality that is a pivotal element of the 365 Vision

LOCAL PLANNING POLICY

9. The Council has a fully adopted Local Development Framework which provides the statutory ‘development plan’ for the area.

The Core Strategy (2007)

10. The Core Strategy lies at the heart of the Local Development Framework and sets out the overall direction of the plan and drives forward this blueprint for the future. It contains a range of policies that are relevant to the Scheme. These are as follows:-

10.1 Policy ST1 – ‘Spatial Strategy for South Tyneside’ sets out the importance of delivering sustainable development and supports development that reflects the scale and functions of the main towns, which includes South Shields, as well as maximising the re-use of previously developed land, in the built up areas. It also supports the principles of securing mixed-use development, promoting accessibility, and ensuring that development maximises the community benefits of regeneration, whilst avoiding or minimising environmental impacts and congestion and safeguarding natural and cultural assets.

10.2 Policy ST2 – ‘Sustainable Urban Living’ supports the highest standards of urban design so that buildings and their settings make a positive contribution to the local area.

10.3 Policy A1 – ‘Improving Accessibility’ sets out that the Council will support public transport, walking and cycling initiatives that maximise the accessibility of new development within regeneration areas along the riverside corridor, including South Shields.

10.4 Policy SC1 – ‘Creating Sustainable Urban Areas’ sets out that in order to deliver sustainable communities, development proposals will be focused and promoted within the built-up areas. They should create a strong sense of place by strengthening the distinctive historic and cultural qualities and townscape of our towns and villages, and promote high quality design. They should also revitalise and focus high trip-generating uses within our town centres, whilst maintaining and improving the provision of accessible basic local services and community facilities.

10.5 Policy SC2 – ‘Reviving our Town Centres and other Shopping Centres’ sets out that development proposals for retailing, as well as offices, commercial leisure, indoor sports, cultural, social and community facilities, will be focused and promoted within the three town centres of South Shields, Jarrow and Hebburn. They should protect and enhance the retail character and function of ground floor premises within the defined primary shopping areas and primary retail frontages; encourage retail growth and an appropriate mix of uses within the secondary shopping streets and through the re-use of upper floors; and encourage the controlled and well-managed growth, diversification and promotion of the evening economy, particularly in South Shields Town Centre.

71160982.4\SW37 27 The South Shields Town Centre and Waterfront Area Action Plan (2008)

11. This Area Action Plan (AAP) is the detailed development plan document for the South Shields area and covers the Scheme site and Order Land. It contains a range of policies that are relevant to the Scheme. These are as follows:-

11.1 Policy SS1 – ‘Strategic Vision for South Shields Town Centre and Waterfront’ sets out that the spatial strategy is to strengthen, revive and promote the growth of South Shields Town Centre as the Borough’s principal centre for shopping, entertainment and leisure, culture and administration, making it a popular and attractive market town.

11.2 Policy SS2 – ‘Mixed-Use Development Opportunities in South Shields’ allocates a range of key sites for a mix of uses where appropriate. Those relevant sites within or on the periphery of the Scheme site and Order Land are:-

11.2.1 Asda superstore on Ocean Road (approx. 1.2 ha) (classes A1, A3, A4 and D2);

11.2.2 Central library and adjacent car park (approx. 0.3 ha) (classes A1, A2, A3, B1, D1 and D2);

11.2.3 Land to the west of Fowler Street (approx. 3.5 ha) (classes A1, A2, B1, B2, C3 and D2);

11.2.4 Land at Coronation Street (approx. 2.4 ha) (classes A1 and D2);

11.2.5 Sites in the Barrington Street area (approx. 0.8 ha) (classes A1 and A2); and

11.2.6 Wouldhave House in the market place (approx. 0.3 ha) (classes A1, A2, A3, A4 and D1).

11.3 Policy SS3 – ‘Improving the Physical Accessibility of South Shields Town Centre and Waterfront’ sets out that the accessibility of existing and proposed development sites within the South Shields Town Centre will be improved for all modes of travel, giving priority to sustainable travel. This includes improving links within the Order Land, particularly connections between the King Street and Waterloo Square/Coronation Street primary shopping areas, and with the proposed Transport Interchange, and between the Market Place and the Shields Ferry landing. Improvements to the Metro station and bus stands are also promoted, as are connections between the Coronation Street/Waterloo Square area and the west of Fowler Street.

11.4 Policy SS7 – ‘Retailing Opportunities in South Shields Town Centre‘ promotes South Shields Town Centre as the primary retail and commercial centre in South Tyneside, and encourages proposals that broaden the range of shopping opportunities and improve the vitality and viability of the Town Centre. The policy seeks to concentrate retail development within the designated primary shopping area and its primary shopping frontages. A range of sites are allocated for retail development which is within or on the periphery of the Scheme site and Order Land. These include:-

11.4.1 The Barrington Street area (by 2010);

11.4.2 The Market Square – redevelopment of the Wouldhave House offices (by 2016).

11.5 Policy SS8 – ‘Evening and Night-time Economy in South Shields’ sets out that the diversification of evening and night-time economy attractions that enhance the vitality of South Shields will be promoted and managed, including the provision of new restaurants (class A3), bars (class A4) and other licensed premises in the area around the Market Place and the designated Riverside Regeneration area.

71160982.4\SW37 28 11.6 Policy SS9 – ‘Entertainment, Leisure and Community Facilities Opportunities in South Shields’ allocates a range of sites suitable for commercial leisure and indoor sports facilities, and other social and community facilities. Those sites within the Scheme site and Order Land include:-

11.6.1 Coronation Street – for a swimming pool and sports/leisure centre.

11.7 Policy SS9 also clarifies that proposals for entertainment, leisure or other community facilities on other sites will only be permitted where they would not adversely impact on the vitality and viability of existing facilities and allocated sites within the designated Town Centre.

11.8 Paragraph 5.12 of Policy SS9 sets out that there is a demand for better cinema provision in South Shields Town Centre, and whilst the Customs House on the riverside is currently home to a small cinema facility, it is somewhat separated from the rest of the town’s entertainment and night-life in the Ocean Road area. The operators of the Customs House have also suggested that they would consider the potential for divesting themselves of this element of their operation to enable them to further develop their own expansion plans focused around the creative arts.

11.9 Policy SS12 - ‘Protecting the Built Environment Assets of South Shields’ sets out that the Council will promote and encourage schemes and proposals that protect, preserve and enhance heritage assets. The policy refers to the area around the Old Town Hall in the Market Place which is on the periphery of the Scheme site and Order Land which has now been granted full planning permission (dated 2 October 2014 reference ST/0651/14/LAA) for remodelling works (the second phase of the 365 Vision).

11.10 Policy SS13 – ‘Protecting the Natural Environment Assets of South Shields’ sets out that the Council will seek to protect and enhance the natural environmental assets of the South Shields Town Centre, riverside and foreshore areas. This includes the integrity of European Designated Sites along the coast.

The Development Management Policies Development Plan Document (2011)

12. This document sets out detailed criteria against which development in the borough will be assessed, and provides guidance on the circumstances in which planning permission will be granted or refused. These include:-

12.1 Policy DM1 – ‘Management of Development’ supports development that is designed to convey sensitive consideration of its surroundings, enhancing local setting and reinforcing local identity.

The South Tyneside Local Development Plan Document

13. The Council is now reviewing its adopted Local Development Framework as a ‘Local Plan’. An initial ‘Strategic Growth Options’ consultation took place in July 2015, and this was followed by: a ‘Spatial Growth and Development Options’ consultation in Autumn 2015; which will in turn be followed by consultation on a publication draft DPD in Spring 2016; submission to the Secretary of State in 2016; and then independent examination and potential adoption in 2017/2018.

14. South Tyneside Council and are also progressing an Area Action Plan to support an International Advanced Manufacturing Park. This supports the councils’ City Deal proposal for a strategic employment site on land to the north of Nissan which could create over 5,000 jobs and draw in significant private investment within the region. A public consultation on key issues and options took place between February - March 2015, and this will be followed by a publication draft in Winter 2015/16, submission draft in spring 2016, with independent examination and potential adoption in 2016/2017.

71160982.4\SW37 29