Glasgow City Council 15Th June 2017 Executive Committee
Item 13 Glasgow City Council 15th June 2017 Executive Committee
Report by Executive Director of Development and Regeneration Services
Contact: Richard Brown Ext: 76000
DEVELOPMENT AND REGENERATION OF RIVER CLYDE CORRIDOR: PEEL HOLDINGS LIMITED
Purpose of Report:
To inform members of a number of legacy issues between the Council and Peel Holdings Limited and seek approval to progress resolution of these issues in order to further the development and regeneration of the River Clyde corridor.
Recommendations:
It is recommended that Committee:
(a) notes that the resolution of a number of ongoing legal issues with Peel Holdings Limited is critical to the future development and regeneration of the River Clyde corridor; (b) approves the draft terms and conditions agreed in Section 3 of this report; and (c) delegates authority to the Executive Director of Development and Regeneration Services, the Solicitor to the Council and Director of Governance to finalise all necessary legal agreements.
Ward No(s): Citywide:
Local member(s) advised: Yes No consulted: Yes No
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1.0 Background
The regeneration of the River Clyde corridor has been a strategic priority for the City Council since the mid-1990s. This focused approach has achieved some notable successes in re-inventing the City’s waterfront, including the development of the International Financial Services District (IFSD) at Broomielaw, developments at Glasgow Harbour, relocation of the BBC and STV to Pacific Quay and the construction of both the Riverside Museum and the SEC Campus. There has also been significant investment in both the public realm and in new infrastructure.
In promoting the continued regeneration of the river corridor the Council is committed to an ambitious programme of infrastructure investment through City Deal and is working with key stakeholders to unlock the development potential of vacant sites and bring additional employment opportunities and investment to the City.
2.0 Peel Holdings Limited
The regeneration of the river corridor has been delivered in partnership with a number of key stakeholders including Peel Holdings Limited (PHL). PHL has a significant land holding within the area. Recent discussions with PHL have identified a number of outstanding issues that require to be addressed. Resolution of these issues will allow the Council promote the development of City Deal funded infrastructure and unlock a number of vacant sites for development.
2.1 Land around Riverside Museum
The Council’s Riverside Museum site is divided into four distinct parcels of land (see Appendix 1):
1. Land owned by the Council – Public realm/landscaping in the immediate surroundings of the museum.
2. Land owned by PHL and leased to the Council – Public realm / landscaping in the area of the former Yorkhill basin.
3. Land owned by PHL and leased to the Council (lease agreed) – Areas of access road, main car park, soft landscaping and cycle path.
4. Land owned by PHL and occupied by the Council (lease agreed but unsigned) – Areas of access road, overflow car park, soft landscaping and cycle path.
The terms of the lease agreements between PHL and the Council requires that the Council maintain areas 2, 3 & 4 to levels that are acceptable to PHL. Following protracted discussions between Land and Environmental Services and PHL an acceptable maintenance strategy has now been agreed which will allow the outstanding lease agreements to be concluded.
2.2 Glasgow Harbour Development Obligations
In September 2012, the Council granted Planning Permission in Principle (PPP) to Glasgow Harbour Ltd (a subsidiary of PHL) for a mixed use development at Glasgow Harbour. The terms of the PPP included a Section 75 legal agreement requiring financial contributions of £2,612,363 towards the costs of the proposed Clyde Fastlink. The contributions were to be payable in instalments upon completion of each phase of the approved development.
Whilst the Section 75 Agreement set out this figure towards Fastlink contributions, the local development plan does make allowance for consideration of other key public transport infrastructure investments made by developers when considering the requirement for Clyde Fastlink contributions. PHL has provided information to the Council showing the extent of key public transport infrastructure provision and enhancements which demonstrate that PHL has already implemented other public works in the vicinity of the development site, the value of which, exceed those directly required under the Planning considerations underpinning the grant of Planning Permission. These large scale works, amounting in total to approximately £24million, have successfully contributed towards enhanced connectivity to both development sites and the wider area (see Appendix 2).
Given that no part of the mixed use development outlined above has been implemented to date, PHL made a formal application under the process outlined in the local development plan to Modify Planning Obligations with regards to the Section 75 Clyde Fastlink contributions. This application was reported to the Planning Applications Committee, on the basis of the significant financial investment already made in enabling infrastructure.
Through the formal Planning process identified above, the Planning Applications Committee was asked to consider waiving the normal Fastlink contributions in lieu of the additional investment in infrastructure and off site works already undertaken, and in recognition of the total financial burden on development currently delivered. The Planning Applications Committee voted in favour of continuing consideration of this request for a further 6 months period. The Executive Committee is asked to note the approach being taken and note the separate consideration that will take place by the Planning Applications Committee regarding the Section 75 Agreement in due course.
2.3 Proposed Govan-Partick Footbridge
The Govan-Partick Charrette (2015) demonstrated widespread support for the construction of a new bridge to re-establish the historical link between the north and south banks of the river at this location. The proposed cycle and footbridge has now been identified as a piece of strategic infrastructure to be delivered as part of the City Deal investment programme. The Council has recently commissioned a design team to progress proposals for the bridge with construction currently scheduled for 2019. The Consultants are seeking to finalise the alignment of the proposed bridge to allow design work to progress. It is proposed that the southern footing of the bridge is located at Water Row in Govan. This location is preferred as it offers an opportunity to create a direct route to Govan
Town Centre which will support ongoing regeneration efforts being delivered through the Central Govan Action Plan. The location of the northern footing of the bridge is subject to a more detailed appraisal with landing sites identified on the east bank of the River Kelvin adjacent to the Riverside Museum or on the west bank of the River Kelvin on land owned by PHL. Should the Council elect to land the bridge on the west bank of the River Kelvin following the design process then it will be necessary to reach agreement with PHL in relation to land acquisition and the delivery of complementary infrastructure including a footbridge across the River Kelvin to the Riverside Museum and public realm connections between both bridges. PHL has committed to making available a landing point for the proposed Govan- Partick Footbridge at no cost to the Council and to provide a pedestrian bridge over the River Kelvin again at no cost to the Council which has an anticipated cost of circa £3-4m. It is anticipated both bridges and the surrounding complimentary public realm will be complete at the same time.
2.4 Access and Integrity of the Waterfront
City Deal will fund investment aimed at promoting access and integrity of the Waterfront. Interventions involve a programme of investment in quay walls to address structural integrity, increase connectivity along the river, improve place quality and maximise the development potential of adjacent sites. The delivery of this investment programme will depend on future cooperation between the Council and PHL in their capacity as owners of sections of quay walls (e.g. Yorkhill Quay) and of significant areas of the river bed adjacent to the river edge. A further detailed Report will be submitted to Executive Committee on these interventions in due course.
3.0 Draft Terms Agreed
Following negotiations between PHL and the Council the following main draft Terms and Conditions have been agreed. The terms and conditions will form the basis of a supplementary legal agreement between the parties to ensure compliance and delivery.
a) Conditions relating to Land Around Riverside Museum:
1. An acceptable maintenance strategy has been agreed between the Council and PHL.
2. Following completion of agreed improvement works by Land & Environmental Services earlier this year, routine maintenance will commence thereafter.
3. Ground maintenance in area 2 will be managed by Glasgow Life, as for area 1, with grass cutting works sub-contracted to Land & Environmental Services in line with terms agreed with PHL.
4. Road, ground and lighting maintenance in areas 3 & 4 will be managed directly by Land & Environmental Services and will be managed to “as adopted” standard in line with terms agreed with PHL. b) Conditions relating to the Govan-Partick Bridge
Should the Council elect to land the bridge on the west bank of the River Kelvin:
1. PHL will provide the site for the northern footing on their land holding to the west bank of the River Kelvin at no cost to the Council.
2. PHL will be obliged to construct a link bridge across the River Kelvin to Riverside Museum on the basis of an agreed specification at its cost.
3. PHL will provide the walkway and public realm connections between the proposed Govan-Partick footbridge and the bridge across the River Kelvin noted in item c) 2. above.
4. PHL will construct the items noted in items c) 2. and 3. above in order that they are completed in advance of the completion of the proposed Govan- Partick footbridge. c) Conditions relating to Access and Integrity of Quay Walls
1. The Council and PHL will co-operate to deliver City Deal investment aimed at addressing structural integrity, increasing connectivity along the river, improving place quality and maximising the development potential of adjacent sites.
4.0 Observations
A number of the issues outlined in this report have been outstanding for a number of years and have impeded the completion of lease agreements as well as the implementation of a proper maintenance regime. If agreed then this report will resolve these issues and allow the Council and PHL to work positively together to deliver significant improvements and investment over a number of development sites.
The formal resolution of all issues noted above shall be in the form of a Legal Agreement between the parties and contain such further terms and conditions deemed necessary by Glasgow City Council’s Executive Director of Development and Regeneration Services, and the Legal Manager (Corporate and Property Law). Each party shall be responsible for its own legal expenses in connection with any such agreement.
Policy and Resource Implications
Resource Implications:
Financial: PHL will commit to further infrastructure investment of £3-4M and provide to the Council at nil value the land required to unlock additional City Deal funded investment in relation to the proposed Govan-Partick Footbridge should the west boat of the River Kelvin be the preferred option.
Legal: The final terms of any agreement will be subject to further review and negotiated by Legal Services.
Personnel: Issues will be addressed by existing Council personnel.
Procurement: N/A
Council Strategic Plan: Economic Growth; A Vibrant City; A Sustainable City.
Equality Impacts:
EQIA carried out: No
Outcome: Not required as this paper does not relate to a new policy or project but to resolution of a number of legacy issues.
Sustainability Impacts:
Environmental: Resolution of issues will unlock delivery of the Govan-Partick Footbridge which will represent a significant investment in sustainable travel infrastructure.
Social: Resolution of issues will address ongoing maintenance issues in the vicinity of the Riverside Museum which is a key social and cultural asset.
Economic: Resolution of issues will unlock delivery of City Deal funded infrastructure and a significant mixed-use development.
5.0 Recommendations
It is recommended that Committee:
(a) notes that the resolution of a number of ongoing legal issues with Peel Holdings Limited is critical to the future development and regeneration of the River Clyde corridor;
(b) approves the draft terms and conditions agreed in Section 3 of this report; and
(c) delegates authority to the Executive Director of Development and Regeneration Services, the Solicitor to the Council and Director of Governance to finalise all necessary legal agreements.