Oban Action Plan

3.3 TOWN CENTRE TRAFFIC MANAGEMENT & PARKING

Recommendation 1: Argyll and Bute Council progress a detailed Traffic and Parking & Modelling Study within the Town Centre to allow a comprehensive review of parking and traffic management.

Recommendation 2: Argyll and Bute Council progress measures to increase parking capacity by relocating the Lochavulin Lorry and Coach Park, quickly advancing rationalisation of parking on the Railway sidings and increasing On-Street Parking progressed in parallel with a review of the current pricing structure to support short term town centre parking.

Recommendation 3: Argyll and Bute Council prepare and issue a Commercial Development Brief for a Multi- Storey Car Park on the Tweeddale Street Site to test the feasibility by inviting the private sector to design, build, fund and operate a multi-storey car park on this site.

3.3.1 Introduction

Oban secured the key connections to the national road network in 1821 but remains, due to geography essentially a ‘one road in one road out’ town with inevitable implications on traffic circulation and movement in a compact regional service centre. There are two strategic routes, which run through Oban: the A85 (Trunk Road) and the A816. The A85 runs from Perth to Oban whilst the A816 runs from Lochgilphead.

3.3.2 Key issues and Current Traffic & Parking Management

Traffic Flow A major constraint for Argyll and Bute is it’s topography with its indented coastline and terrain which results in a high dependence on the private car. The A85 (Trunk Road) Perth to Oban and the A816 from Lochgilphead to Oban are the main strategic routes with the routes forming the roundabout at Argyll Square. Whilst they are recognised as strategic routes they are also the only routes into the town and as a result carry a mix of both local and regional traffic and are fairly saturated.

The area relies heavily on tourism, which is reflected in the traffic flows with July and August the busiest months for visitors to Oban. Flows from the north (A85) are heavier than those from the south even though employment sources (traffic generators) are located in the South. Traffic flows in Oban are the largest in Argyll with flows on the A85 George Street in the order of 21,500 vehicles a day during peak periods in August. In the morning during the school term delays of up to 25 minutes can be experienced on George Street. Within the town there are traffic peaks associated with ferry traffic. Identified operational problems are:

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 Unstable traffic flows.  Drivers give priority to vehicles exiting from side roads, slowing main line traffic.  Operation of Oban High School buses on Soroba Road holds up traffic.  Potential conflict with right turners.

Journey time surveys were undertaken using GPS equipment. The attached plans show vehicle speeds as a snapshot of conditions on Wednesday 3rd August 2005 and indicate areas where congestion / delay occur. Delay is assumed to start once instantaneous speed falls below 10 mph as detailed in Design Manual for Roads and Bridges (DMRB) Volume 12 Section 2 Part 1 Traffic Appraisal in Urban Areas. Key areas identified from the journey surveys are: -

 Constant delay experienced on George Street.  Delay at George Street/ Esplanade.  Delay at Corran/ Esplanade.  Delay (potentially associated with pedestrian crossing and traffic lights) experienced on Combie Street and Argyll Square.

Parking Parking provision was reviewed in 1991 against local objections, since then no significant changes have been made to the system. A 2005 parking survey has been undertaken by the Council (both on and off street) during the months of April to September 2005. The data provided identifies Longsdale, Tweeddale Street, Rockfield, Albany Street and Lochavullin A and B as those car parks, which are often full. There are 11 off street car parks available providing a total of 598 bays including 20 disabled bays. No time restrictions are applied in the off street areas. Car parks are located throughout the town with the majority on the north side. The Council is responsible for enforcement within the off street car parks.

On street provision is 446 bays and is mostly centred around Argyll Square and the ferry terminal. On street parking is subject to a maximum stay of 2 hours Monday to Saturday from 9am to 6pm. Traffic Wardens and the Police undertake enforcement. It has been suggested that this could be achieved more effectively.

Problems associated with parking have been identified as:  Disruption to through traffic while vehicles manoeuvre into bays.  Limited Ferry Park and Ride provision.  Illegal parking.

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Trunk Road Traffic Flows Scottish Executive Trunk Road Data has been sourced and analysed. Comparative assessment of the stations the A85 at George St (within Oban Town) and Dunbeg (outwith Oban) shows that there is double the amount of traffic within the town than there is on the trunk road in and out of the town which indicates that the majority of trips within the town centre are local trips.

Further analysis of the Hourly Use Level Profile of these roads in April and July (off-peak and peak seasons) indicate a broadly similar profile with the majority of vehicles on the network between 8am and 7pm. In April there is a distinct peak between 8-9am. This peak may be the result of the school run and/or a combination of this and travel to work movements. The final set of graphs show a comparison of the hourly profiles of the A85 and A816 roads in specific months. Like the first chart these indicate there is more traffic within the town than outwith the town again indicating that the majority of trips within the town are local trips.

Public Transport Provision Oban offers a range of public transport services including ferry connections to five islands, local bus, inter urban bus and rural rail services. CalMac operates from the Railway Pier. During the summer months up to 18 ferries a day depart from Oban. Construction has started on a second Linkspan facility at the harbour, which will reduce the congestion associated with handling one vessel at a time.

West Coast Motors are the public service providers within Argyll and Bute providing 11 local services Monday to Friday and some Saturday service in Oban. Local bus routes provide approximately hourly or greater service. Citylink operates services from Aberdeen, Dundee and Perth four times a week and daily from Edinburgh and Glasgow. Some of the services are operated with support from Local Councils. Train services operate on a daily basis from Edinburgh and Glasgow serving local stations. Pedestrian facilities exist around the town footpaths, crossing points and signalised pedestrian crossings. Routes are favourable along the waterfront.

There are no designated cycle lanes around the town and no connection to the National Cycle Network although cycle parking facilities are available on the waterfront. At this time the level of demand for cycling is unclear, however, its importance is recognised within the Local Transport Strategy. Development of cycle facilities can be advanced at modest cost and should form an important component of any revised public transport arrangements.

Problems associated with transport provision have been identified as:  Little integration of services across the different modes.  Low frequency of services.  Limited availability of public transport service information.  Ferries cannot operate in adverse weather.  Reduced ferry timetable during the winter months.  Buses delayed in same congestion as cars.  High flows on main routes make them unattractive for cycling.

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3.3.3 Strategic Needs – Traffic and Transportation

The assessment of Oban Town Centre highlights a traffic network that is operating close to peak hour capacity with congestion and issues of traffic management particularly acute on the Soroba Road/ Lochavulin junctions; George Street/ Argyll Square and the entrance to the town. Full traffic counts, including O/D surveys and cordon data for car parking are not available, limited information is available on cycle demand and use and these limitations on current and relevant information necessarily qualify our assessment.

The main strategic concern is that if substantial additional urban expansion is planned for Oban with an increase of the settlement area and allocation of land outwith at Dunbeg/ Dunstaffnage but requiring access to Town Centre services then a clear transportation strategy needs to be developed capable of supporting growth and offering sustainable travel choices.

The Development Plan envisages population growth of the order of 5% by 2012 and a further 10% between 2012 and 2023 secured with of the order of 800-1000 new residential units over the ten year period. The main conclusions from our assessment and which we believe there is a substantial level of support following dialogue with Transportation Officers and other stakeholders are summarised below:

 Traffic & Parking Surveys Origin-destination interview surveys should be undertaken with an inner and outer cordon to determine the types of trips. These surveys should include questions on parking and the requirement for long stay parking within the town.

 Traffic Circulation Improvement Measures required to facilitate improved traffic flows within the town and address the key ‘pinch points’ that suffer the highest level of peak hour congestion and have the potential to exacerbate safety and emergency vehicle movements and local environmental conditions. Works may include a range of potential management measures including revised junction arrangements, amended traffic signal timing; relocation of pedestrian Pelican crossing location; and Traffic Regulation Orders to restrict right turn movements and extend areas of controlled parking and could include measures to improve pedestrian and cycle accessibility.

 Additional OnOn---StreetStreet & Off Parking Capacity Parking has been identified as constrained and requiring further capacity especially in the centre and harbour areas. It is important that both on-street and off-street parking is managed to ensure capacity is appropriately provided and further additional capacity can be secured through a combination of measures including stricter enforcement, amended charging structures, parking durations and wherever possible the identification of new spaces.

Off-street parking clearly offers significant opportunity at key locations to improve capacity in clearly signed central locations. Additional capacity is considered important and provision of new surface level or multi- storey parking has been indicated as a priority item for Argyll and Bute Council.

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Plate 6 - Traffic Congestion Assessment

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Securing improvements to traffic management and parking recognise the importance for local businesses of clear arrival points and a visitor friendly, readily accessible town centre with good parking. The issue of congestion needs however not to be over-stated. Whilst peak season/ peak hour congestion is clearly evidenced the scale of the issue and the cost/ benefit of maintaining and extending capacity for existing patterns of transportation movement needs careful assessment. Modest measures extending travel choices, promoting edge of centre parking and good path connections can support changes in behaviour with real local benefits. Other potential needs include a range of smaller measures that are difficult to quantify or assess without more detailed information but which reflect a need or opportunity and may have merit subject to funding include:

 Improve Car Park signage to ensure visitors are appropriately directed to the most appropriate car park. This could include Parking Variable Message Signs allowing drivers to identify locations were there are parking spaces available. This would entail the installation of detector loops at off-street car parks as well as the installation of the signs.

In Section 4.0 we detail our recommendations for projects and summarise below some of the other ideas and options has been reviewed and not progressed having been assessed as unlikely to offer any realistic chance of delivery or funding.

 Oban Bay Infill MultiMulti---StoreyStorey Car Park suggested to offer centre of town parking with a high capacity and potential fundable by realising development value for retail or other activity above the lower car park levels. Located on George Street the site is considered unsuitable for any form of built development that would restrict views to Oban Bay and the costs and construction issues are highly prejudicial to a viable or deliverable project. Recommendation: Not to be considered. Other sites (Tweeddale Street / Corran Hall / Railway Sidings are all more feasible and deliverable

 Urban Edge - Park & Ride clearly desirable to reduce commuter traffic and offer travel choices to long stay visitors and commuters wishing to avoid peak hour congestion and/or parking charges. Trialed by Argyll and Bute Council but considered to be ahead of a definable local need and local acceptance and financial unsustainable in terms of supporting public transport servicing. Recommendation: Currently non viable to be integrated into Development Road proposals

 Diversion Route Avoiding Argyll Square Motorists in Oban are subject to delays within the town centre. Argyll Square is one of the points within the town which causes to delay to motorists. It is also a key focus for pedestrian movements in the area due to its location adjacent to the public transport hub. To alleviate this problem to an alternative route through this part of the town avoiding Argyll Square was considered. Due to the constrained nature of Oban town centre only one route could be identified without requiring further land to develop. This is by converting Stevenson Street to two-way operation and redesigning the road markings on either end of the street to promote this road as the main route i.e. change the priority to make Argyll Square and George Street the minor roads.

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This route has not been progressed as it does not provide sufficient benefit to pedestrians or motorists. This road is also located adjacent to a primary school (due for closure / potentially future Council offices) which may reduce its effectiveness. The footpaths surrounding the road require to be amended to accommodate 2 lanes of traffic. Some of the parking on the street would also be lost. Recommendation: Study assessment not to be pursued at this time potentially reviewed following decision on the future use of Rockfield.

Diversion Route Avoiding Oban High School At the end of the school day the A816 experiences delays adjacent to the Oban High School. This delay was thought to be the result of the school, however, a site visit identified that this is not the case as few vehicles are able to exit from the school travelling northbound. From observations the delay would appear to be the result of the volume of the traffic signal controlled junction of Soroba Road and Lynn Road. The delay would appear to be caused by the amount of time given to Lynn Road and the filter for southbound traffic. Consideration was given to the creation of a road link to the east of Soroba Road between Gibraltar Street and Millpark Road. This road could potentially be created using part of Lochside Street and Millpark Road, however, the majority of the road would have to be constructed and would require the compulsory purchase of land and/or properties. Although the provision of this new road could relieve the problems at the junction of Soroba Road and Lynn Road it does not create any significant benefits to the town centre close to Argyll Square. Recommendation: Non viable in financial, planning, design or transportation terms

3.3.4 Developing a Project Framework for Town Centre Traffic & Parking

The requirements for Town Centre traffic management and parking have yet to be quantified and this can only be done following a comprehensive traffic and parking survey. Argyll and Bute Council have advanced a series of measures/ innovations in recent years but the scope for manoeuvre is increasingly limited and a more comprehensive approach is now required. The approach needs to move beyond a simple ‘predict and provide’ to securing more wherever possible from existing assets and address a changing agenda based on extending travel choices and encouraging more sustainable travel options. This would include:

Traffic Measures  Promoting Peak Hour Clear-Ways through the central corridor, George Street, Argyll Square and Soroba Road to ensure free flow traffic conditions in morning am and pm peak.

This would mean the loss of parking on George Street with benefits for traffic flow, pedestrian safety and reduced congestion.

 Restrict right turn vehicle manoeuvres on George Street and others to reduce waiting and stop-start traffic.

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Parking  Promoting a balance of transport planning measures that positively provides for short stay parking for shoppers, variable duration needs for day and short stay visitors and to manage/restrict demand for all day/ long stay town centre parking.

 Develop a car park strategy aligned with the Council's objective of sustainable transport and which clearly links increased income from car park revenues with reinvestment in the modernisation of the Council's car parks.

 Develop a level of parking charges set to manage supply and demand across differing zones including central car parks/ peripheral/ edge of centre parking and provide a pricing structure that places a premium on central/ core area parking. Review current charging structures/ levels/ hierarchy.

 Consider extending the Controlled Parking Zone.

Parking capacity, notwithstanding enhanced management and adjustment to charging appears to be an issue requiring additional capacity to be identified with the suggestions being a multi-storey car park.

Multi-storey car parks are excellent and can offer a service quality, security and the necessary capacity at key sites but this is balanced with higher capital costs, higher revenue costs and sometimes less flexibility of provision. It is essential to secure a level of pricing parity between quality central surface car parks and multi- story parking. This is normally achieved by raising charges on all central area parking to the multi-storey charge business case level. The level required to sustain a multi-storey car park is not known but is likely to be significantly higher than current parking charges. This may or may not be acceptable to A&BC.

The results of the car parking study currently being undertaken by A&BC will inform the type of parking solution appropriate to Oban but we believe that best value will be secured through a sequential process that seeks to: first  Maximise existing assets in on-street and off-street parking (designate new parking)  Increase central area charges  Review central area parking durations  Increase central area enforcement  Extend/ create new off-street parking at existing sites  Extend or create new sites as surface car parks  Consider multi-storey car parking

A number of town centres have taken this approach and managed to secure additional parking both on-street and off-street to help address a real or perceived lack of capacity and at the same time boost car park revenues for reinvestment.

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Creating additional parking space has costs and impacts that may not be acceptable. The best sites have already been utilised and hence the interest in multi-storey facilities. However all sites, particularly those peripheral to the central core should be re-examined. A potential exists to develop further off-street spaces on land to the frontage of the Corran Halls. If the Corran Halls site was the preferred site for upgrading of the cultural facilities then the development proposals could include a basement multi-storey car park providing for public use at appropriate times. A multi-storey site for Oban would best be located peripherally to the town centre (capturing vehicles before they add to congestion) but with good quality pedestrian links and clear connectivity via the Esplanade.

Project proposals that could address the three key requirements of the Town Centre in terms of improved traffic management and car parking capacity are set out below.

Traffic Measures

 Developing A Micro Simulation Oban Traffic Model Although the Council have a good understanding of how Oban’s road network operates, no detailed understanding exists of what type of traffic is using the town i.e. local, strategic or tourism traffic and how it contributes to town centre problems. Origin-destination interview surveys should be undertaken with an inner and outer cordon to determine the types of trips. These surveys could include questions on parking and the requirement for long stay parking within the town. Surveys would be carried out at cordon points on key routes into and within the town. The survey information could be used to construct a micro- simulation model of the town. This would allow the Council to evaluate the impact of any potential traffic management measures or future developments. The model would initially be funded by the Council, with a level of cost recouped by selling the model to potential developers. Developers should be encouraged to use the model when undertaking a Transport Assessment for their development.

Parking

 Parking Audit aimed to Secure Additional OnOn---StreetStreet Spaces & More effective use of peripheral parking areas Complete a review of on-street parking to identify all opportunities for additional on-street spaces and any rationalisation of existing on-street arrangements. Off street parking typically costs £2000 per space to build. Identifying additional capacity even a modest 20 central area spaces is very cost effective. A walkover survey identified a limited yet valuable opportunity for some additional on-street parking in the Rckfield area (Stevenson St /Hill St/ Tweeddale St) once the school closes. Additionally through signage and higher town centre charges and low charges/free peripheral parking more could be potentially done to discourage access to the central area reducing demand and lowering congestion. The location of a multi-storey on Tweeddale Street would tend to encourage access and generate summer peak day congestion.

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 Car Park to replace Lochavulin Coach & Lorry Park The Lochavullin coach and lorry park is in a central, key location and provision for coach and lorry parking is not considered as optimum use of land. Alternative sites could be made available using a section of the Glengallan Road / Glenshallach Industrial Estate or a new facility provided on A&BC land to the rear of the Tweedmill site off Soroba Road. The level of facility required may need further discussion but CCTV/toilets are not considered essential and should not be the sole responsibility of the Council. Opportunity may exist to amalgamate the Lonsdale Coach Park with the Lochavullin Lorry Park creating a single new facility and improving summer capacity for visitor signed parking at Lonsdale and town centre parking at Lochavullin.

 Develop a MultiMulti---StoreyStorey Car Park Parking within Oban has been recognised as a problem by Argyll & Bute Council for a number of years. The Council operate a number of off-street car parks, one of which is located on Tweeddale Street between Argyll Street and Hill Street. This car park provides 90 car parking spaces. A feasibility study was undertaken for Argyll and the Islands Enterprise in November 1992 to investigate the potential for constructing a multi-storey car park on this site. The construction of a multi-storey car park on this site could allow the provision of 220 parking spaces, an increase of 130 parking spaces. This report is over 10 years old and requires updating. The basic principles however of the report remain substantially unchanged including the need to ensure that the pricing strategy for car parking within the centre would need to ensure a multi-storey car park could be competitive.

Oban currently attracts a large number of visitors due to its role as a port for ferries to a number of the islands off the west of Scotland i.e. Mull, Colonsay, Lismore, Coll, Tiree, Barra and South Uist. Despite attracting a large number of visitors in the summer months there is no long-stay parking facilities for visitors to park cars albeit that the Auction Mart site has been used at times. More detailed survey information of ferry travellers is required to determine the need for long stay parking associated with the ferry activity in Oban.

 Car Parking Enforcement Summer months are the busiest in Oban’s calendar with more demand for parking spaces. The volume of traffic together with the lack of parking spaces in locations such as north George Street create delays within the town. Illegal parking witnessed on north George Street resulted in single file traffic through the area where it could be increased to 2 lanes close to Stafford Street.

The Council should check that valid traffic regulation orders are in place to prohibit or restrict parking within the town and that they tie in with signing and road markings on-street. The Council should also work with the Police to ensure that tighter enforcement pressures are applied to those who park illegally. If this is unsuccessful parking within the town could be decriminalised allowing the Council to police parking provision and issue fines where required. Decriminalising parking and varying (days/ times) on which wardens operate could help to reduce a number of the parking problems. Although it is not the key instigator of this recommendation, the decriminalisation of parking should be regularly reviewed as a mechanism for providing new investment in transport and traffic management.

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 Walking and Cycling Signing Strategy As one of the key industries of Oban is tourism there is a high level of walking within the town whether it be from car parks to the town centre or from the town centre to the ferry terminal. However, visitors unfamiliar with the town may find it difficult to find their way between facilities. Particular lack of signage was noted around the public transport hub on Station Road/ Queen’s Park Place, rail station and ferry terminal.

It is therefore recommended that signage be improved, building on the current fingerpost system and adding more interpretive signage to inform and enhance the visitor stay and experience. Signs could include better information for cyclists and include signing of cycle facilities (storage/cycle racks) to make Oban more cycle friendly.

 Signing Strategy for Routes Out of Oban There are good directional signing into Oban, however, once within town the signing out to other locations are poorer. This may lead to more trips within the town centre as drivers drive around the town and try to find out where they wish to go. This may contribute to additional trips within the town centre in the summer months in particular. One of the main destinations when leaving Oban is Glasgow. It can be reached using the routes via Lochgilphead (A816) ; the A85 to Loch Awe and A819 to Inveraray and on to Tarbet and a shorter route via Crianlarich (A85)

Summary

Scheme Timescale Estimated Cost Lead Authority

Oban Transport Survey & Modelling Summer ‘06 £50-60,000 A&BC

Car Parking Enforcement Ongoing Ongoing A&BC

Multi-Storey Car Park Market Testing Summer ‘07 Nil Private Sector

Walking and Cycling Signing Strategy Spring ‘06 £15,000 A&BC

Signing Strategy for Routes Out of Oban Spring ‘06 £40,000 A&BC

Oban Development Road 2010 £14 million Multi Partnered

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3.4 STRATEGIC INFRASTRUCTURE

Recommendation 1: Argyll and Bute Council establish with Scottish Water the strategic priorities for development support in Argyll and Bute and confirm commitments to development of Oban’s water supply and waste water capacity. Water and drainage capacity are a potential constraint on Oban’s growth. Scottish Water’s are understood to made a commitment to upgrading by 2010. Early confirmation required for inclusion in Development Briefs

Recommendation 2: Argyll and Bute Council advance, in partnership with interested Developers, Strategic Development Impact Appraisals for the HALs/ PDAs within the Oban Development Road Corridor to secure a framework for development and clarify the scale of infrastructure needs and future funding.

Recommendation 3: Argyll and Bute Council promote strategic housing land releases with the capacity to fund either upgraded WWTW/ /Water Supply and/or the Development Road infrastructure secured through development agreements and seek to restrict all other strategic housing land allocations (PDAs).

3.4.1 Introduction

Utility infrastructure that is services (water/drainage/energy/telecoms) are essential for development and where capacity is limited the costs of upgrading networks and supply provision can involve significant costs that frequently impact on development viability. Water supply and drainage is constrained across much of Scotland with energy (electricity, gas) and telecoms less critical in terms of constraint. ISDN/ ASDL broadband telecoms may be critical to certain employment uses.

3.4.2 Key Stakeholders and Interests

Scottish Water - Water Supply & Wastewater Treatment Scottish Water is a public company, answerable to the Scottish Parliament with a responsibility for managing the water and drainage infrastructure of Scotland. Scottish Water is a new public sector model for the Scottish water industry and operates to a business plan approved by the Scottish Parliament. Scottish Water Planning and Development Services (Development Planning Team & Development Services). Scottish Water have advised that they are unable to provide a definitive answer to supply/capacity at this time and they are undertaking a review of all works looking at capacities, yields, etc. The results of this review will be available at the earliest date of summer 2006.

Scottish Water indicate that they can only determine the impact that the above developments will have on works that are at capacity by undertaking process audits and flow and load surveys. They also indicate that to determine the impact of each of the sites on the local network would require a Development Impact Assessment.

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Discussion between Scottish Water and Argyll and Bute Council (Spring 2006) failure to comply with the Water Order present a very serious challenge for have confirmed Scottish Water hare reviewing a programme for upgrading Scottish Water today. Any new future development has to be considered in this strategic WWTW and Water Supply infrastructure in Oban by 2010. context. In light of the above position, a holding letter has been issued to recent developer enquiries, stating Scottish Water’s Strategic Team is investigating the Scottish & Southern Energy (Electricity Supply) situation.

Scottish & Southern Energy (SSE) have indicated that there were no constraints The existing waste water treatment works is located at Pennyfuir adjacent to the to development as they will supply developments with normal connection cost A85 north of Oban. This facility was commissioned in 2001 and is consented for paid by the developer. SSE indicated that there are no plans to upgrade or dry weather flows of 4,958m3. The collection and pumping station is located at change the power network in the Oban area. The capacity for power is good the Corran Parks on the outskirts of the town centre. Corran Parks is set to within the Oban area with the sub stations having sufficient excess capacity. If forward flows at an upper rate of 160 litres per second which equates to 3 x dry development in Oban resulted in this spare capacity being used SSE would put weather flow. This is effectively a constraint on the works. plans into place to increase capacity at its sub stations. SSE indicated that their policy was never to constrain development. Pennyfuir Waste Water Treatment Works can treat sewage from a population equivalent to 26,600. This is made up from a winter population equivalent to Scotland Gas Networks 10,600 raising to a summer population of 19,600. Since the treatment works at Pennyfuir is also a sludge treatment centre, most of the remaining 7,000 Scotland Gas Networks confirmed that Oban is not currently connected to the population equivalent headroom is generally utilised for processing imported national gas supply network. Scotland Gas Networks indicated that Oban’s only sludge from septic tanks in the area. No other surplus capacity is locally available gas supply is currently transported by road freight to Oban in LPG form. This is but clearly if SW can create capacity elsewhere then the septic tank load could be taken to a facility in the Oban area were it is transformed into natural gas and transferred away from Pennyfuir releasing capacity for Oban. pumped throughout the area as required. A second pump station at Ganavan also feeds directly into the works from the 3.4.3 Strategic Needs Ganavan catchment. The upper limit of this facility is 12 litres per second. The flows are managed in such a way that when Ganavan is active the pumps at Oban’s water supply comes from Loch Gleann a Bhearraidh, which is located to Corran Parks ramp down so that the inlet flow at the works is not above 160 the south of Oban near Kilmore. This loch is augmented from Loch Nell when the litres per second. At Ganavan there is room for additional growth of level drops. The treatment works is located at Tullich on the A816, South of approximately 50 houses. Oban. This facility has a design output of 11.5MLD and the average throughput is 9MLD rising to 11.5MLD during the peak weeks seasonal influx of tourists. Following the completion of the Glengallan Road developments there will be little This peak demand matches the WTW’s full design output. Excluding the short room for any substantial development growth within Oban. peak demand, the summer demand reaches 10.6MLD. Loch Gleann a Bhearraidh is a relatively small shallow loch with a porous catchment area that means much The Scottish Water network at Connel and Dunbeg have connectivities of 30% of the rainfall soaks away to ground and does not collect in the loch. Over the and 95% respectively. A new treatment facility at Dunbeg with treatment volume 3 last 5 years there has been low summer rainfall. These factors combined with the of 463 m deals with the current connected population at Connel and Dunbeg. customer demand, requires Scottish Water to augment the supply from Loch These are estimated to be 959 collectively. A further new treatment facility at Nell. This in turn has resulted in significant challenges for Scottish Water to North Connel treats flows for Lora View and Black Croft which has a treatment 3 manage the Absorption Water Order at Loch Nell, both in preventing the risk of capacity of 130 m and for a connected population of 266.Both facilities at North over abstraction and in complying with the conditions of the Order to artificially Connel and Dunbeg will become live during May 2006. These facilities were only ensure compensation water goes down the River Nell. Balancing the continuity funded to provide quality enhancement to the existing flows. Therefore there is of customer service, supporting the tourist economy and mitigating the risk of no design capacity for future growth. Provision of new water and sewerage

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connections for new developments within Oban has been identified as a constraint. Scottish Water has defined the constraints as either: -

 No public system available.  Existing works at capacity.  Existing works are near capacity.

Scottish Water have advised Argyll and Bute Council that a committed programme of upgrading is in the programme for completion in 2010. The full scope of these works is not known at this time.

The preparation of the Local Plan has identified areas for development and their individual issues are as summarised in the following table.

Potential Development Area Issues related to Strategic Utilities 5/68 Dunbeg Water Capacity - Sewerage Capacity 5/69 Dunbeg - Tom Laith Water Capacity - Sewerage Capacity 5/69 Dunbeg - Pennyfuir Water Capacity - Sewerage Capacity 5/26 Oban - Ganavan Water Capacity - Sewerage Capacity 5/170 Oban - Ganavan Water Capacity - Sewerage Capacity 5/3 Oban - Longsdale Water Capacity - Sewerage Capacity 5/6 Oban - Longsdale Road Water Capacity - Sewerage Capacity 5/5 Oban - Glencruitten Water Capacity - Sewerage Capacity 5/7 Oban - Glencruitten Water Capacity - Sewerage Capacity 5/4 Oban - Glencruitten Water Capacity - Sewerage Capacity 5/13 Oban - Glengallan Road Water Capacity - Sewerage Capacity

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Waste Water Treatment Network Capacity & Treatment Facilities The Waste Water Network assessment is normally carried out in two stages. Initially the existing network is modelled with the additional development flows to determine the impacts on the waste water network. This is followed by a detailed agreement on the elements/ requirements of the scheme which needs to be concluded in advance of connection to the adopted waste water network. Scottish Water will require a Development Impact Assessment (Waste Water) utilising both existing modelled information on the sewer catchment and data specific to the development proposal. If there is no existing appropriate local area model a skeletal model will be constructed and run, normally involving a network survey on the affected system. A process Audit/ Flow and Load Survey will highlight the effect, if any of the additional development load on the WWTW capacity of the works.

Water Supply Network A Development Impact Assessment (Water WIA) utilising existing water supply zone modelling will be run factoring in the development load/ flow and an assessment made as to the effect of the development.

Surface Water Management Surface water that discharges to a surface water sewer, culvert or watercourse will require to be designed in accordance with the SEPA Guidelines for Sustainable Urban Drainage System (SUDS).

Private Sewage Treatment Works Where there is no public sewage treatment facility or where it can be reasonably justified that existing public sewage systems do not have sufficient capacity to accommodate further development, there may be the opportunity to provide private sewage treatment facilities. The regulation of such infrastructure normally falls under Planning Legislation and relevant environmental quality regulation operated by SEPA.

In normal circumstances SEPA would resist the proliferation of privately owned sewage treatment works and would look to Scottish Water to vest the works.

Experience suggests that Scottish Water assess the vesting of private sewage treatment works under a business model, relating criteria for taking over the works to income, operating cost and future replacement costs. It is very difficult in light of such criteria to justify vesting of works for units that serve less than 25-40 residential units. Where it can be demonstrated that a long term maintenance agreement has been put in place to ensure that the private STW is likely to continue to perform adequately, it may be easier to get SEPA to relax their position on constructing development with private treatment facilities.

Private Sewage Treatment facilities and vary dramatically in cost from approximately £40,000 for a small works to serve one or two units to approximately £500,000 serving up to 100 units.

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3.4.4 Developing a Project Framework

The issues with Scottish Water are difficult to address given the levels of uncertainty within Scottish Water who are in the process of developing their strategic approach to investment funding and contribution to developer funded infrastructure.

The current position relative to HAL and PDA areas is as tabulated below:

Lorn and the Inner Isles Site Ref. Location Use/Class No. of units/ Wastewater Asset Planners area (ha) Comment H-AL 5/15 North Connel – Lora View Housing 24 Works at capacity

H-AL 5/16 North Connel – Achnacree Housing 8 Works at capacity H-AL 5/2 Oban – Glenshellach Road 1 Housing 100 Capacity at Oban (Pennyfuir) works H-AL 5/3 Oban – Glenshellach Road 2 Housing 40 Capacity at Oban (Pennyfuir) works H-AL 5/4 Oban – Glengallan 1 Housing 23 Capacity at Oban (Pennyfuir) works H-AL 5/7 Oban – Glengallan 2 Housing 75 Capacity at Oban (Pennyfuir) works H-AL 5/6 Oban – Glengallan 3 Housing 30 Capacity at Oban (Pennyfuir) works Port Appin Housing 15 Port Appin Tank beyond capacity Taynuilt – Achlonan Housing 40 Capacity at Taynuilt Works

From the "Strategic Review of Charges 2006-10: Final Determination" the Commissioner states that Scottish Water should provide a ‘reasonable cost’ contribution to ‘Part 3’ costs i.e. assets related to local network reinforcement costs associated with new development, such as increased capacity on water mains, sewers, service reservoirs or pumping stations. Scottish Water is expected to be responsible for funding all ‘Part 4’ costs i.e. assets including treatment works, reservoirs or outfalls. This means that Scottish Water have to fund any increase in capacity required for any new water or wastewater treatment works, reservoirs, etc, however, the developer is responsible for providing the connections to the network to an adoptable standard at which point Scottish Water will adopt the works. In light of the indication set out by the Water Industry Commission on ‘Part 4’ assets, and the current Scottish Water liaison exercise on prioritisation, it is imperative that development opportunity identified through the Action Plan and beyond is adequately prioritised and programmed. This priority and programme should be made the highest priority through the Planning Process and by representation to Argyll and Bute Council and other development organizations such as Highland and Island Enterprise. 47 IronsideFarrar Development Framework Oban Action Plan

In March 2006 the Scottish Executive Scottish Water announced via Scottish Executive amendment to the Provision of Water and Sewerage Services (Reasonable Cost) (Scotland) Regulations 2006.

The Amended Regulations will based on 2006-07 charges provide for Scottish Water to contribute up to £1,300 for new water connections /£1,500 for new waste water connection. Oban expansion would allow a Scottish Water contribution to Ws/WWTW for 1,000 homes (2006-07) charges of £2.8 million costs recoverable on connection.

3.4.5 Developing Project Proposals

The Scottish Water asset and the available capacity that it can offer to new development is continuously changing. Assumptions have been as to the potential scale of investment required and some conclusions drawn on how the Oban Action Plan should proceed as infrastructure investment costs have the potential to have a significant bearing on the viability, programme and organisation of several of the key areas addressed by this study. The housing assessment and growth forecasts for Oban suggest the need for approximately 1000-1200 homes over a 17 year period 2006-2023. The Local Plan in Housing Land (HAL’s) and Potential Development Areas (PDA’s) supports this general quantum.

Scottish Water in discussion with Argyll and Bute Council have indicated that further capacity work will be undertaken and commissioned by 2010. Although detail is unavailable at this time it is assumed that this will provide additional capacity for the period 2010-2015 and substantially reduce the network constraint on development during this period.

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3.5 DEVELOPMENT ROAD

Recommendation 1: Argyll and Bute Council progress a full STAG Appraisal for the Development Road preferred alignment at an order of cost of £80,000-£100,000 for a Development Road estimated at £14 million.

Recommendation 2: Argyll and Bute Council focus the STAG on a Preferred Route that offers the lowest cost, most fundable and deliverable scheme with the aim to secure funding commitments by 2008 and a project start subject to funding in 2010-2012.

Recommendation 3: Argyll and Bute Council promotes the scheme through Transport Scotland and Hi-Trans as the number one Argyll and Bute priority transportation scheme for 2010-2015.

The cost of the Development Road is a major challenge. The major funder for this road will need to be Transport Scotland/ Hi-Trans supported by developer contributions and other parts of the public sector. Inability to secure a strong STAG case will make it very difficult to secure Hi-Trans funding support.

3.5.1 Introduction

Argyll and Bute Council have are considering the potential for a Development Road linking the A85 and A816 The Development Plan safeguards a potential corridor within which some limited route development and initial feasibility study work has been progressed. This is a major project for Argyll and Bute Council and partners and a key element of infrastructure to support future growth.

3.5.2 Key Stakeholders & Interests

Scottish Executive – Transport Scotland Transport Scotland is the new national transport agency for Scotland established in 2006. Transport Scotland’s remit is to help deliver the Scottish Executive's vision for transport. Consultations with the Scottish Executive have indicated that the Scottish Executive/ Transport Scotland is currently limited to works currently on site associated with the A85 Trunk Road West Tyndrum section.

Issues:  SE could contribute technically but do not anticipate a financial role within the Development Road.  SE envisage that the Development Road might be expected to secure substantial private sector developer contributions together with other funding partners.  SE/ TS have a presumption against new accesses onto the trunk road.  Any new junctions require to satisfy policy guidance in SPP17 (para 22) and PAN 75. SE will consider new junctions where nationally significant economic growth or regeneration benefits can be demonstrated.  Scottish Executive advise that a new access onto the trunk road would require a roundabout with acceleration and deceleration lanes.

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Plate 7 - Development Road / Emerging Alignments

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 SE has no interest in extending, redefining or amending the trunk road Argyll and Bute Council – Planning & Economic Development designation on the A85 that currently terminates at Argyll Square  Funding in future will be directed through Regional Transport Partnerships The Council’s Economic Development Strategy is built around four key objectives and Transport Scotland including Supporting Business. The Council is developing in partnership with Argyll and the Islands Enterprise (AIE), a joint Sites and Premises Action Plan. Argyll and Bute Council – Transportation Services The Strategy highlights that “Oban and its hinterland, due to infrastructural constraints and its lack of developable land to accommodate its continued Argyll and Bute Council as the responsible authority for the Local Road Network growth and inward investment opportunities, will require strategic infrastructural are directly involved in the feasibility, promotion, development and adoption of investment”. the Development Road. The Council has identified that: Argyll and Bute Council Planning Services have secured in the Argyll and Bute  Town Centre traffic volumes are operating at/ close to the theoretical Finalised Draft Local Plan, May 2005 a safeguarded corridor for the Development carrying capacity at peak summer periods with resultant safety and Road. Using the provisional allocation mechanism of ‘Potential Development congestion problems and more localised issues exist at all times of year Areas’ (PDAs) the local Plan identified opportunity for development within the  Development Road would relieve Town Centre traffic movement by corridor to meeting medium-long term needs for residential and other land-uses. facilitating movements from north to south of the town, reduce the PDAs do not form part of the ‘effective housing land supply’ but represent requirement to use George Street/ Argyll Square and generally benefit opportunity for the private residential sector to respond with development business and visitors. proposals and masterplan strategies capable of contributing to the investment in  Qualified by limited geotechnical and SI data the estimated costs for the strategic infrastructure. Development Road at 2004 costs is £12.6 million with an alternative alignment to Connel adding a further £6.2 million Issues:  Hi-Trans the Regional Transportation Partnership have included the Oban  Significant PDA’s have been identified and all areas cannot be promoted Development Road within its schedule of medium/ long term projects for given local housing demand currently operating at 50-70 annum. the Region. No committed funding for the scheme has yet been identified.  Issues associated with utilities impact on effective land supply for housing with developers expected to meet costs for water and drainage Issues: infrastructure and related upgrading.  Scottish Transportation Appraisal Guidance (STAG) Assessment required  The Development Road will involve significant planning issues associated supported by detailed traffic, geotechnical, engineering, environmental and with environmental amenity, protected species, landscape and visual impact economic studies. and these will need to be fully addressed in any future NID application by  Need to ensure a feasible and deliverable route is protected within the Local A&BC. Plan designation to safeguard the schemes opportunity from shorter term development.  Need to secure strategic support and support across Local Strategic Partnerships as to the need for the Development Road.

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Argyll and Islands Enterprise Issues:  Weak developer sector in Argyll & Bute/ Western highlands A&IE seeks to facilitate property and business needs delivered often in partnership  Sites require major investment with limited specialist development expertise/ using the model developed at SAMS and elsewhere in the HIE area. Argyll and resource and financial strength to secure coordinated masterplan delivery. Islands Enterprise’s interest in the Development Road is at this time marginal and limited to the Development Road’s ability to address growth, and support viable, 3.5.3 Strategic Needs – Development Road market ready commercial property. In the short/ medium term (2005-2015) this can be fully met at the SAMS Facility and/or Oban Airport and further provision The Oban Development Road requires a full STAG Assessment. The STAG has not been identified. Assessment uses a standard methodology to determine the value of the scheme, by comparison to alternatives, whether the scheme offers best value and has the The AIE Business Plan, has as a priority the SAMS Campus and addressing with capacity to secure the benefits and outcomes envisaged. The key issues are those A&BC Planning a clear strategy to safeguard longer term capacity at this location. relating to cost, fundability and the assessment of the economic case in terms of The latter is required to meet medium/ long term demand and strengthen the Local Economic Benefits (EALI), Transport Economic Efficiency (TEE) related safety, case for investment in the essential enabling infrastructure. environmental, accessibility and integration costs and benefits.

The rationale for public sector intervention in the provision of new development A traffic model will be required to assess travel time and operating cost savings land associated with the Development Road is therefore long term and would (or otherwise) associated with re-assignment of traffic to the Development Road need to be argued in relation to the need for the public sector led by A&BC to which will feed directly into economic appraisal software (TUBA) to provide undertake complex land acquisitions; address market failure (cost/ value benefit – cost ratios etc. This appraisal would also include an assumption for imbalances) and/or support advance infrastructure in return for equity in longer- traffic associated with the new housing development. The case for the term development land. Development Road has yet to be fully tested or validated. All significant funding partners will require a STAG Assessment and are likely to proceed only on the Residential Developer/ Development Sector basis of a positive output demonstrating best value and a positive NPV. A STAG assessment is completed in stages and will comprise: The Development Plan provides a mechanism to engage with land and developer  A Part 1 appraisal of the generated options which have not been sifted out interests to new investment. The land-use framework offers an effective 10-year will be undertaken to an appropriate level in accordance with STAG supply of marketable development land. The volume residential development guidance. The Part 1 appraisal will be presented to the Council and key sector has not traditionally operated in Oban with most residential developments partners to agree the way forward and provide a clear Brief for the more progressed by medium scale local developer/ builders or involve smaller scale detailed Part 2 appraisal. housing numbers pursued on a plot-by-plot basis. The scale of infrastructure  A Part 2 appraisal will address in considerable more detail the preferred requirements and the need for a strategic land assembly and developer financing option(s) from Part 1 At the end of the second stage of the appraisal the all suggests that larger scale developments will need strategic development findings will be presented in the form of a STAG report (EALI-TEE partnering working with key landowners with the experience and capacity to Assessments) with associated Appraisal Summary Tables (AST's) and will be lead, coordinate, finance and market a programmed release of residential land sufficiently comprehensive to allow robust decision making and secure any and housebuilder development. necessary approvals.

The major land areas identified for development with the Argyll and Bute Local Plan are sited on land held within three major estates/ property interests namely: Dunstaffnage Estate, Dunollie Estate and Glencruitten Estate. A Development Masterplan has been prepared for the expansion of Dunbeg/ Dunstaffnage for Dunstaffnage Estates by RMJM.

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Development Road Scheme Cost A85 Connel to A816 Link DRA 5/4 & DRA 5/7)

Argyll and Bute Transportation Services have design work associated with The principal alternative is a longer route connecting to the A85 west of Connel Development Road Action Areas (DRA’s) for the Development Road. Preliminary referred to as DRA 5/4 that runs broadly parallel with the upland access from construction cost estimates (based on 2004 cost base) are £1,200,000 a Connel to the head of Glencruitten Road at Rowantree Cottage and connects up kilometre excluding major earthworks and structures. Work undertaken to date with the link to the A816. has established the broad parameters for a scheme and appears robust and well considered. Summary Scheme Costs (excl land acquisition)

A85 to A816 Link (DRA 5/3 & DRA 5/7 A&BC Roads Cost Update Design Route Cost Estimate Cost Estimate Sections The preferred Outline Route forms a combination of road lengths or strings (2004) (2006) designated by code references. DRA 5/3 (1.5km) long runs from a new junction

Dunbeg to A816 DRA 5/3 on the A85 to the top of the Glencruitten Road at Rowantree Cottage. The £12.6 million £14.1 million Development Road DRA 5/7 provisional cost estimate for this section is £3,800,000. A link road to Longsdale has an estimated cost of £900,000. The DRA 5/3 route passes through difficult

terrain and with only limited site investigations completed a 30% cost Connel to A816 DRA 5/4 £18.76 million £21.0 million Development Road DRA 5/7 contingency has been allowed which inclusive of fees provides a Preliminary Cost Estimate of £6,580,000 (excluding land acquisition).

Connecting DRA3/5 with Soroba Road/ A816 is link DRA 5/7 which also gives The Oban Development Road Feasibility Study in 2002 (Waterman access to a number of PDA’s and a new access to Mossfield Park and Environmental) considered the justification and economic case challenging for a Glencruitten Road and potentially Glencruitten Drive housing areas. DRA 5/7 is scheme with costs at that time broadly estimated at between £6.6 and £7.2 2km long excluding the connection link to Glencruitten Road and the million. It is our view that progressing a full STAG Assessment on the Glencruitten Road Link to DRA3/5. Allowing for contingencies and fees provides Development Road Link via Connel at costs 50% more expensive than a shorter a budget order of cost of £6,160,000 (excluding land acquisition). route will have a high likelihood of delivering a negative result.

The combined sections DRA3/5 and DRA5/7 constitute the Development Road The STAG Appraisal will look at options and alternatives but needs to have a which would have a construction length of 3.5km (excluding supporting clear focus on the most deliverable and viable scheme. The alternatives secondary connections) and a estimated cost including allowances for summarised below have been assessed as unlikely to strengthen successful contingencies and fees (cost base 2004) of £12,600,000 excluding land costs. delivery; or are likely to involve unmerited levels of development work and cost with no likelihood that they can offer realistic funding.

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Oban

Connel Link Not Harbour Link Recommended Not Recommended

DRA 5/3

Rowantree Cottage

Oban Development Road STAG Appraisal—Route Corridor

DRA 5/7

Variable Topography within Development Road Corridor

Plate 8 - Development Road Connecting A85 and A816

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 Extending the Development Road to Connel. It has been suggested that the preferred strategy for the Development Road should extend to Connel forming a 7.5km new Trunk Road. The cost of this scheme is 50% more expensive than the preferred route and is unlikely in the STAG assessment to secures significant greater user, strategic transportation or economic benefit. Indeed transport benefits may be reduced as Dunbeg village/ Village Expansion Dunstaffnage Marina road and public transport users would be less likely to be attracted to the route. Recommendation: Project DR5/4 is not advanced as a preferred route/ route option in developing the STAG or undertaking SI/ geotechnical & topographic surveys. Route safeguarded for future.

 Extending direct connections to the Ferry Terminal. The benefits of a direct link to the Harbour and Ferry Terminal are clear and reflect the strategic importance of the ferry in terms of routes. However traffic volumes are not that significant in the totality of vehicle movements within Oban and the cost/ benefit of a very complex road portal/ bridge link from Lochavulin would incur major costs, require substantial agreements with Network Rail together with complex land assembly and CPO measures. It is our view that the delivery of a Development Road (A85 to A816) between the A85 (Pennyfuir/Dunard Cottage) and the Tweed Mill offers the best chance to capture a positive cost/ benefit and this in itself represents a very major challenge to secure the necessary funding and partnership approvals. Recommendation: Project DR5/8 is complex and costly and potentially undeliverable. Whilst the objective of a direct Ferry Terminal Link would be of real benefit the cost and engineering suggest that this is not pursued as a core part of the current STAG Assessment.

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3.5.4 Developing a Project Framework for the Development Road

The aspiration and potential value of the Development Road is clear and a consensus exists that the medium to long-term growth of Oban will require a new road link to secure new development land to provide for settlement expansion. Consultations with all key stakeholders, has established that the following are material considerations in developing a strategy and project Action Plan:

 Development Road – Settlement Expansion represents one of the only mechanisms to deliver settlement expansion and secure an effective housing land supply beyond 2010 that is contiguous and integrated with existing settlement. The development of Dunbeg as a dormitory settlement without facilities can only exacerbate vehicle movement and might be anticipated to encourage car dependency. ConclusionConclusion: Urban expansion in the Glencruitten/ Oban East/ Development Road corridor offers a pattern of growth that is probably more sustainable and offering better connectivity than other locations in the Oban area.

 Development Road – Town Centre Relief Road. Addressing Town Centre congestion is one of the functions of the Development Road and potentially one of the quantifiable benefits (journey time / road safety/ amenity benefits) that can come out of the STAG Assessment. However this should not be over-played. Traffic congestion in Oban is largely seasonal and the level and frequency of journey time delay limited. Traffic flows in Oban are the largest in Argyll with flows on the A85 George Street in the order of 21,500 vehicles a day during peak periods in August. Morning peak school term delays of up to 25 minutes can be experienced on George Street. Within the town there are traffic peaks associated with ferry traffic. Identified operational problems include unstable traffic flows, junction priorities breaking flow, operation of school buses on Soroba Road. Further analysis of the traffic profile suggest that there is more traffic within the town than outwith the town again indicating that the majority of trips within the town are local trips. ConclusionConclusion: Town centre congestion may only secure modest benefits from the operation of the Development Road with a substantial number of users still seeking, for a variety of reasons, to access the town centre.

 Development Road – PDA’s. The Development Road will access a substantial development area currently largely un-accessible and un-supported by transport infrastructure. The Development Road would make these sites ‘effective’ in terms of housing land supply subject to development of Masterplans that include robust business plans demonstrating that the sites are economically deliverable. The cost of the Development Road at £14 million is beyond the ability of the development sector to fund from forward house sales it is unrealistic to assume more than a 20-30% contribution from the housing sector. ConclusionConclusion: The Development Road is beyond the funding capacity of the development sector in a market where house sales are of the order of 50-70 units a year. A partnership mechanism will need to be developed. Draft Indicative Routing (A&BC Transportation)

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 Development Road STAG The STAG Assessment for the Development Road will incur significant investment It is imperative that the Brief for this study maximises the opportunity to secure a positive balance of benefits over cost such that the scheme can win the support of the Regional Transport Partnership (HI-Trans) and secure prioritisation within competing transport investment programmes. ConclusionConclusion: STAG Scoping is completed to define the lowest risk strategy and offer the best opportunity to secure a positive appraisal outcome.

The following are material considerations in developing a strategy and project Action Plan:

 Argyll and Bute Council has a very limited ability to make substantial funding contribute to the Development Road but funding is committed for the STAG and future capital budgets will need to be allocated to support partnership funding with the major funding contribution secured from others.

 Transport Scotland and HiHi---TransTrans are identified by Argyll and Bute Council as the principal funding authority and early agreement and continued lobbying will be required to ensure the Development Road is set within the Hi-Trans priorities and forward budget planning.

 Development / Housing Sector Investment is a major partner but the absence of Strategic Housing Developer’s operating in the Oban market limits the opportunity to draw upon larger scale strategic site release expertise and the funding strength of large developer organisations. Discussion with a number of ‘fast-track – facilitated’ development route for strategic land if it is to attract this type of player into the local market. The scale of this development and the need to limit the supply of other sites will be critical to securing funding from this source.

 European Regional Funds are currently being restructured. Allocations are currently addressed through the Highlands and Islands Special Transition Programme and now largely focussed on Intereg/ Leader/ Celtic programmes. The Special Transitional Programme offers a framework focussed on four priorities that include: Increasing competitiveness, employment and increasing incomes; creating the conditions for regional competitiveness; Human resource development; Assisting rural communities. Early dialogue on EU Structural Funds and information on the changing programme structures and priorities will be vital to identifying the scope for funding. Innovation and multi-partnered funding packages are typically required to secure major funding support.

The Development Road costs are a major challenge and scope is limited to secure meaningful cost reductions. Critical to the funding strategy will be the capacity to secure commitments from the Regional Transport Partnership and capture development sector contributions. A number of new mechanisms may be required but much may ultimately be dependant upon the willingness of landowners and estates to engage in a process for which they have very limited experience or expertise.

Emerging Preferred Route (A&BC Transportation)

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3.5.5 Developing Project Proposals Programme for Delivery

The STAG Assessment defines scheme objectives and it is critical that the scheme The programme for the Development Road is medium term with the initial tested within the STAG process can secure a positive cost to benefit balance. On appraisal and assessment process progressed over a 18-24 month period high cost rural schemes this is not always possible. Mechanisms that can help to dependant upon resources and annual budgets. Delivery of the Development a positive assessment not surprisingly seek to develop the scheme proposal to Road and its programme will be dependant upon other funding partners and capture the maximum level of benefit whilst containing costs. Mechanisms that funding priorities and it will be important that the Town Centre Traffic we have looked at to potentially assist in this regards include: Management & Parking strategy and Development Road are seen as two elements of a single Oban transportation strategy. The essential hierarchy is  Developing the Scheme in Sectional Stages set out above moving from measures to extend Traffic Management, Address  Promoting parts of the scheme by other mechanisms Eg. Developing the initial junction as an early phase of other works Parking & Circulation, secure Public Transport Improvements and develop a such as development of the Tweedmill site detailed programme, post 2008 to advance the Development Road  Securing Relaxation of Standards  Making use of existing parts of the Network Eg. Upgrading by major maintenance the Glencruitten Road  Reducing the Length/ Cost of the Scheme  Design to secure cost benefits Eg. Avoiding any additions that extend costs without disproportionate positive benefits  Extending the benefits  Integrating improvements to Soroba Road to secure safety benefits

Experience with STAG highlights the importance during the Stage 1 initial appraisal to ensure the objectives are clear and the scheme order of costs / order of benefits are broadly aligned to avoid redundant studies and modelling. Items worth further consideration include:

 Reviewing opportunity to utilise a Glencruitten Road Corridor extending south from the existing road alignment onto the Glencruitten Road/ Golf Course boundary. This option has been reviewed and not considered further by A&BC due to the need to CPO property and spatial/ land-use constraints (A&BC Transportation). It does however allow, at a potentially reduced service standard a link to be developed using in part the existing network with potential benefits for cost, programming and STAG Assessment benefits.  Promoting a limited housing development at the Tweed Mill Site/ South Oban High School to fund and facilitate a junction and initial access spur to the Mossfield Park Link. This would need to review the scale and value of any development land within the corridor and the relationship with boundary users including the railway.

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3.6 STRATEGIC LAND SUPPLY 3.6.2 Potential Population Growth

Recommendation 1: Argyll and Bute Council establish an Oban Expansion The following desk based study into the policy framework for growth, identifies Group forming a inter-departmental officer Working Group (Transport/ Utility/ that a range of growth scenarios have been discussed. These include: Planning) to co-ordinate the planning for strategic land releases with key public and private sector partners.

It is critical that the residential demand (scale/ duration) associated with Oban’s Organisation Population Growth Prediction growth is recognised and that the demand is likely to be of the order of 1000 units. Argyll and Bute Structure Plan Ap- Predicts a 1% per annum rise in proved 2002 population to 2012. Recommendation 2: Argyll and Bute Council progress strategic Development Impact Appraisals for the HAL’s/ PDA’s within the Development Road Corridor to Argyll and Bute Finalised Draft Local Housing Allocations = 738 for Oban,

secure a framework for dialogue with landowners and clarify the scale of Plan May 2005 Lorn and the Isles. With a people to infrastructure constraints and future funding. house ratio of 2.24 /unit, the poten- tial population growth to 2012 would

Recommendation 3: Argyll and Bute Council promote strategic housing land be 1653 (around 20% growth). releases with the capacity to fund either upgraded WWTW/ Water Supply and/or the Development Road infrastructure secured through development agreements and seek to restrict all other strategic housing allocations (PDAs). Scottish Council for Development Comment given by SCDI member: and Industry- membership submis- who predicts “a population growth

Recommendation 4: Argyll and Bute Council secure the long term future sion to HIE Consultation 2005 potential of up to 50% over the next expansion of the Scottish Association for Marine Science (SAMS) and support 15 years. through planning and other mechanisms the UHI/ AIE investment programme. Local Housing Strategy States that Lorn’s population will increase significantly. 3.6.1 Introduction 2003 – 2008

The key issues in terms of strategic land supply in Oban are securing an effective Economic Development Strategy Region population considered to be housing land supply that is capable of providing sustainable balanced static overall, but with sustained 2000 – 2003 communities and affordable housing together with an appropriate long-term population increases in Oban levelling supply of employment land. out depopulation in other areas.

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Therefore, in relation to housing land required and land availability, an The following information has been taken from the Argyll and Bute Profile 2004, examination into three different possibilities has been carried out: potential printed by Argyll and Bute Council: growth at the following growth rates over the next five years (from 2007–2012): 5% growth rate (1% per annum) and 10% growth rate (2% per annum) The  The average number of people per household in Argyll and Bute at the time current population of Oban is predicted to be 8234 (as at 2002 based on of the 2001 census was 2.24, slightly lower than the Scottish average of Population Survey Figures of 1997–98). 2.27.  The average household size in Argyll and Bute is projected to fall to under

two persons by the year 2015 due to projected changes in the population Table 1 Growth in Population 20062006---20122012 profile.

Oban Potential Population Change 20062006---20122012 Based on the current figure of 2.24 and the projection that this will drop to a Year Increase of 5% Increase of 7.5% Increase of 10% figure below 2, we have used the average occupancy figure of 2.12 for the full 15-year period. 2005 8250 8250 8250 3.6.4 Housing Land Supply 2012 8662 8868 9075 (+412) (+618) (+825) Argyll and Bute Council recognises the vital role that good quality housing and appropriate support plays in the economic, social and physical development and The above table shows the range in potential population growth, based on the well being of Oban. The Argyll and Bute Local Housing Strategy recognises that three different growth rates, and reveals that by 2012 Oban’s population may there are significant imbalances within the Argyll & Bute housing system that rise to a figure approaching 8662 with the growth rate of 5% (1% per annum). require a wider, thematic and long-term strategic and partnership based The table below takes this 2012 population and increases it by 5%, and 10% for approach. the subsequent two five-year periods i.e. 2012 to 2017 and 2017 to 2023.

Table 2 Growth in Population 20122012---201720172017---20232023

3.6.3 Oban Potential Population Change 20122012---201720172017---20232023 Year Increase of 5% Increase of 7.5% Increase of 10% 2012 8662 (8662) (8662)

2017 9095 9312 9528 (+433) (+650) (+866) 2023 9550 10010 10481 (+455) (+698) (+953)

Housing Requirements (People/ Household)

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To calculate the housing land requirements for the predicted population growth, Table 6 Potential Increases in Population over the next fifteen years, the following housing densities have been used: 20– 25 units /ha = low; 30–35 units /ha = med; 40–45 units /ha = high Increase in Population 5% Growth 7.5% 10% Growth Growth Table 3 Population Increase of 5% for the period 2007-2007--20122012 (1% per annum) 2007-2012 412 (412) (412) Volume Potential Popula- Low Medium High of 2012-2017 433 650 866 New Period tion In- Density Density Density Houses Housing crease (ha) (ha) (ha) * 2017-2023 455 698 953 Units/ha 2007- 412 194 9 6 5 Required 1300 1760 2231 2012 * People / Household 2.12

Table 7 Potential Increases in Housing Requirements

Table 4 Population Increase of 5% for the periods 20122012---201720172017---20232023 Volume of Houses 5% Growth 7.5% 10% Growth Popula- Volume Me- Growth Low High tion in- of dium Period Density Density 2007-2012 194 (194) (194) Potential crease Houses Density (ha) (ha) New * (ha) 2012-2017 204 307 408 Housing 2012- 433 204 9 6 5 2017-2023 215 329 450 Units/ha 2017 Required 2017- 455 215 10 7 5 613 830 1052 2023 Total 888 419 19 13 10 From the table above, we can see that there is range of predicted housing re- * People / Household 2.12 quirements for Oban, ranges from 613 units to 1052 units required in the next fifteen years.*(this figure does not include any changes to existing buildings, eg Table 5 Population Increase of 10% for the periods 20122012---201720172017---20232023 demolition/ upgrading/ renovations). It is assumed (no detailed assessment un- Me- dertaken) that some 12-18% of the housing land supply may be met by brown- Popula- Volume Low High dium field land redevelopment/ urban infill land within the existing town boundary of Period tion in- of Density Density Density Oban. These projections provide a basis for comparison with the existing housing Potential crease Houses (ha) (ha) (ha) land allocations in the draft Local Plan. (783 units allocated for the area / 268 New units for Oban / 310 units for Dunbeg/ 205 units for all other areas 2012- 866 408 18 13 10 Housing 2017 Units/ha 2017- 953 450 20 14 11 Required 2023 Total 181 858 38 27 21 9

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3.6.5 Employment Land Supply associated with demographic change, high levels of in-migration, signifi- cant levels of second/ holiday home ownership, and shortage of affordable Argyll and Bute Council and Argyll and Islands Enterprise recognises the impor- housing. Oban suffers from the twin problems of a constrained housing tance of maintaining market ready employment land to support business devel- choice and a lack of affordable housing. opment. Argyll and Bute Council has designated employment land within the Development Plan at Glengallon Road and Oban Auction Mart (Local Draft Plan  Employment and Incomes – low and uncertain incomes, partly as a result of Business & Industry Allocation). The public sectors role in the provision of em- seasonal, low paid and part-time employment, highlight the importance of ployment land is focussed on addressing specific sectors and market areas where affordability. market failure can be demonstrated or specific added value opportunity exists. Argyll and the Islands Enterprise  SAMS represents a strategic growth cluster for Oban offering a strong fit with AIE/ HIE economic strategy. The future development of this facility and AIE principal interest is in the Dunbeg/ Dunstaffnage area associated with SAMS capacity to offer long term expansion needs to be recognised in safeguard- and the continued expansion and development of SAMS as a specialist educa-

ing long term employment land supply. tional and marine centre of excellence. No specific remit relative to housing or residential land development.  The Lochavullin Industrial and Retail Park offers significant opportunity for land-use rationalisation and relocation of lower value uses as the main Scottish Marine Science Association (SAMS) Town Centre commercial/ retail/ service centre for Oban. This process should be encouraged including rationalisation of local authority land uses with The Scottish Association for Marine Sciences (SAMS) is an internationally re- opportunity in the short term for relocation to Glenshellach Road Industrial nowned marine research establishment. SAMS is based at the Dunstaffnage Ma- Estate and in the medium/ longer term relocation opportunity within the rine Laboratory and employs around 120 staff. The research centre currently de- Development Road Corridor. livers a BSc(Hons) in Marine Science and offers training for around 20 PhD stu- dents, which is delivered through the facility’s academic partner – the UHI Mil-  Oban Airport offers opportunity to develop a service and industrial cluster. lennium Institute. The research centre offers excellent laboratory and aquarium Detail of the masterplan for Oban Airport and the provision of industrial facilities, two scientific research vessels, a first-class marine research library and land supply are not clearly understood at this time. links with research and training institutions throughout the world. A new labo- ratory is under construction and will become a key focus for marine scientific research in Scotland. The Action Plan considers this facility to be of vital impor- 3.6.6 Key Stakeholders and Interests tance to the area in terms of attracting new industry and retaining a skilled workforce. Argyll & Bute Council Currently new staff attracted to SAMS experience considerable difficulty in find- The Housing Strategy suggests that the key issues identified at the local authority ing suitable and affordable accommodation within the Oban area for themselves area and local housing market areas level relate to Oban are: and their families.

 Population Change – some larger settlements such as Oban are experienc- In 2006 SAMS will be announcing a major expansion of the facility following an ing population increase, while many fragile rural areas and island communi- award of £11.4million to the University of the Highlands and Islands (UHI) Mil- ties will experience net loss in population; lennium Institute. The award to SAMS of £5.6 million will fund an initial 10 posts and further teaching and research posts will follow.  Housing Supply and Demand – housing supply and demand problems exist

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Dunstaffnage Estate households earning below the mortgage threshold. The SIP area of Soroba within Oban also demonstrates an unequal distribution of income across the An outline masterplan has been prepared by RMJM. The Dunstaffnage Estate lies housing market area. There is growing evidence of recruitment problems due to approximately 2km north of Oban between the A85 (main road) into Oban and accommodation shortages and constraining economic development. the coast extending to approximately 400hectares. To the west of the site the coastline extends from Ganavan Bay and beach, leading to the peninsula which Housing Supply: The 2001 Census records a total housing stock of 7,700 with includes Dunstaffnage Castle and forms another attractive bay containing a ma- around 15% (958 properties) being vacant, second or holiday homes and there- rina and the SAMS marine research centre. fore ineffective in meeting local needs. The main sector is owner occupied with 66%; private rented 8%; social rented 22%.. The SR turnover is low and demand To the east of the site adjacent to the A85 is Dunbeg, a large flat low lying bowl remains high with on average 9 applicants for every available Council let and which is defined by the surrounding hills and leads south to Loch Dubh which is approximately 20 for each Housing Association let. Some 45% of all Council also surrounded by hills. The draft Local Plan has allocated large pockets of land applicants are single persons. Oban is experiencing rapid house price inflation, to the south and west of Dunbeg for future housing sites with 310 units as with a severe shortage of suitable sites and infrastructure restrictions constrain- housing land allocations together with 60 hectares in PDAs. Dialogue between ing further house development. Average house prices are therefore amongst the the Estate and A&BC Planning is on-going. highest in the Council area and beyond the reach of many lower income or first- time buyer households. House sales are buoyant with marked uplift in values. Serviced plots have achieved £175,000 and sites at Milfort advertised at 3.6.7 Strategic Needs £100,000.

Argyll and Bute Council through both the Structure and Local Plan is seeking to Land Supply: This is a major issue with the short supply of effective housing sites address this context and recognising the key role that housing and community and significant infrastructure restrictions being a major constraint on investment related infrastructure have on supporting Oban’s growth agenda. Detailed hous- and economic development. Key issues noted in Housing Action plan include: ing needs for Oban are set out above. The following points for Lorn and the Isles  Address estimated need for 300-400 social homes, mainly in Oban and area including Oban are pertinent: surrounding villages by 2013.  Enable provision of approximately 100 private homes, mainly in the mid Demography: Between 1991 and 2001, the overall population increased by and lower range of the market, by 2008 3.2% to 15,409, although this varied considerably across the area from an in-  Ensure Structure and local Plan policies maximise availability of suitable sites crease of 11% in North Lorn and 15% in Ardconnel-Kilmore to a decrease of 3% and include a policy for affordable housing in Oban. The majority of the population resides in Oban and all other settle- ments have a population of less than 1,000, with rural Lorn being one of the least densely populated mainland areas in Argyll & Bute.

Economy: Unemployment and benefit uptake in Lorn tends to be lower than in the rest of Argyll & Bute, reflecting Oban’s relatively buoyant economy. The ma- jority of employment is in agriculture and forestry, the service sector, and distri- bution and catering, reflecting the important of tourism to the economy. Aver- age incomes are higher than the Argyll & Bute average and close to Scottish av- erages. However, there is significant part-time seasonal employment and aver- age incomes in the rural area are relatively lower, with an estimated 80% of

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3.6.8 Developing a Project Framework

Construction industry capacity or lack of capacity (development sector and build- Allowing for a typical new build housing density of 10/ acre (relatively low den- ing sector) is a potential issue for Oban and which could potentially act to con- sity in modern urban design terms, but appropriate to many of the sites around strain growth and the delivery of market ready sites and new house starts. The Oban) a house-builder is typically seeking to configure sites in the 8-10 acre absence of any larger volume national house-builders and experienced strategic range capable of providing 80-100 units or an effective two year land supply. In land developers active in the Oban market place is of some concern. Large strate- higher density apartment and flatted developments the unit number rather than gic land disposal, of the scale envisaged for Oban needs a level of resourcing, the acreage determines the scale. In structuring land disposal and the packaging legals, market expertise, and financial packaging that the house-building sector, of land the issue of market targets/ volumes and associated site configurations typically simply doesn’t possess. It is important in looking at strategic land to will be critical to structuring land packages and planning for infrastructure. recognise the fundamental differing roles between ‘land developer’ and ‘house- builder’. A limited number of national companies successfully operate both roles The new build market in Oban has typically operated in the 10-20 and 20-40 but for the most part land developers and house-builders have a complementary scale developed as discrete phases within a larger consent offering a mix of relationship to secure, assemble, market and develop houses and support new 2/3bed detached, semi-detached and apartment units. Annual house starts communities. within Oban typically operating around a mean of 50-60 units.

Housing developers are generally seeking to develop sites of a scale that reflects The framework proposals for put forward by Dunstaffnage Estate Trust for Dun- local housing demand and offer a scale of opportunity that reflects both their beg, Pennyfuir and Ganavan envisages land parcelling within a variety of 5-8 capacity and their market position. Typically the mainstream house-builder is packages. seeking to build a portfolio of sites each offering a scale of opportunity that of- fers 8-12 months forward marketing and disposal. Larger sites and strategic de- velopment areas are therefore frequently advanced by ‘Strategic Land Develop- ers’ and parcelled and packaged to create a structured and phased land release suitable to potentially both the volume niche and specialist social/ rented hous- ing sectors. Larger sites offering multiple house-builder involvement are struc- tured to diversify the product range, extend choice, increase customer awareness and level of market penetration and as a result extend the market opportunity and reduce commercial risk.

Sales targets generally sought by the medium scale house-builder, outwith the main volume sector associated with large urban centres, are typically of the order of 3-5 units / month with individual house-builders seeking an annualised dis- posal of 36-60 units. Without this sort of level of market capacity the manage- ment costs on sites, promotion cost and retention of a dedicated sales team be- come increasingly tenuous.

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Assessment of Developer Contributions Illustrative Example:

Land acquisition, site preparation and abnormal development costs all form key A 10 acre site/ 4 ha development land parcel offering a mixed building format determinants in setting levels of market interest and determining land values and comprising 3 and 4 bed semi & detached villas including some terrace units and whether sites are viable within any given market. An issue of particular sensitivity 1& 2 bed cottages and flatted apartments could reasonably generate approxi- are costs that cannot be readily quantified within the developer’s non-site spe- mately 90,000sg ft cific expertise such as: geotechnical; any land remediation cost; and water and Assume: drainage infrastructure. 4 bed detached 1100 sq ft 25% 27 units 29,700 3 bed detached 900 sq ft 40% 44 units 39,600 These issues tend to require expensive both pre-acquisition investigations such as 2 bed terrace 750 sq ft 15% 16 units 12,000 Site Investigations and Development Impact Assessments all required in advance 3 bed apartments 850 sq ft 10% 11 units 9,350 of planning negotiations and normally in advance of the developer acquiring a 2 bed cottages 750 sq ft 10% 11 units 8,250 full interest in the site. These pre site acquisition risks are funded entirely at the Total units 110 89,900 developers/land-owner cost and risk and have a very significant and dispropor- tionate impact on viability. This is especially the case when the anticipated an- Assume building/ infrastructure costs sq ft of £100 nual sales and sales values are low / medium and an established market place Assume land acquisition/ legals/ etc (per plot) £40,000 and market awareness of the site and location is either only poorly developed or Assume other inputs / management/ marketing/ etc £12,500 yet to be built. DEVELOPMENT COST (AVERAGE UNIT) £139,900 Developer Contribution @10% £11,500 The costs of water and drainage, transport and community infrastructure sug- TOTAL DEVELOPMENT COST £153,800 gests that the level of ‘developer contributions’ associated with any development Developers Profit @15% £23,070 in the Oban area are likely to be high. House-builders other than in special cir- MEAN /AVERAGE SALES VALUE £176,870 cumstances (market/ site opportunity/ special demand/ scale) would anticipate securing land and all infrastructure abnormals and developer contributions Developer contribution within this illustrative scenario is £11,500 per unit. Fi- within a given percentage of the gross return. This suggests the way forward will nancing costs will depress this with levels of annual sales restricting the scale of require partnership agreements between land-owners and one or more strategic developer contribution. Without a major strategic land developer it is difficult to developers. see how the residential sector can unlock medium/long term value and fund short term investment in strategic infrastructure. All figures need to be taken with caution. This is not a detailed ‘circle model’ or developer viability assessment. The scenario is seeking to better understand the The market will substantially determine the level of contribution. The key factor scale of funding and address the likely implications in terms of how private and is level of annual sales and these are not high or proven in Oban. A full circle public sector may need to co-operate to ensure development is brought forward. analysis will be required. A provision assessment suggests: Developer contribution needs to comply with the guidelines for planning gain and be reasonable or proportionate.  Developer contribution capital sums are very dependant upon scale and the 800 unit £9.2 million level offers the best fit with known/ anticipated de- mand. At 50 unit sales per year that equates to £575,000 or £2.8 million within a 5 year development phase.

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 Developer contributions are secured through volume house sales. The mar- Levels of developer contribution and costs associated with abnormal infrastruc- ket in Oban will be unable to meet the contributions required to deliver ture are normally factored into land acquisition values. Development land values both Strategic Utilities/ Development Road costs. Other developments such often include a substantial ‘hope value’ associated with planning and the fund- as a Hotel/golf Course have historically only captured very limited developer ing by others of infrastructure. Early dialogue and a clear position on public and contributions due to the levels of business risk. private sector investment, programmes and developer contributions need to be established between the Council and strategic landowners that can form the  Assuming a split between Community Infrastructure and Utility/ Transport basis for a Partnership Agreement. This will require formal agreements, land op- Infrastructure of 50/50 would suggest that the maximum range of potential tions and will require, in our view, the expertise and financial resource of a Stra- contribution to strategic infrastructure will fall between £4.6million and tegic Residential Land Developer. £6.9 million for 800 and 1200 houses respectively subject to finance costs. Securing a mechanism that can bring together the key landowners, commercial interests will be challenging. Important issues are: The potential implications for this on the funding of strategic infrastructure are:  Argyll and Bute Council will need to be pro-active in dialogue with Scottish  The private sector can contribute to strategic infrastructure but contribu- Water to confirm the commitment to WWTW/ Water Supply provision tions within a standard development model will be insufficient to meet the total capital investment requirement. It is unlikely that the private sector will  Argyll and Bute Council will need to help facilitate major landowners estab- initiate development unless a wider public sector investment package and lishing development frameworks for the key strategic Site Development/ development vehicle is established. PDA’s with landowners and encouraging participation of strategic land de- velopers  The ‘development contributions’ associated with community infrastructure need to be assessed to provide an early and clear understanding of the de-  A Strategic Residential Land Developer seems essential to secure the conti- velopment needs for affordable housing, schools, open space etc. nuity of interest and partnership with landowners necessary to deliver a scheme with such an extended programme.  The extended development programme and limited scale of annual sales makes advance funding of both strategic utility and transport infrastructure  Developing a Detailed Business Plan developed around a phased capital a critical element in the viability of the scheme. Advance investment require- works (for roads and utility infrastructure) programme may represent the ments and the lack of security over capacity will make advance funding best mechanisms to secure private sector monies. The alternative is for pub- ahead of development receipts unattractive to the private sector. An innova- lic sector funded infrastructure with some form of ‘claw-back’ via develop- tive partnership mechanism with planning, utility capacity and risk funding ment agreements. guarantees may be required.

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3.7 TOWN CENTRES AND AREAS FOR ACTION (AFAS)

Recommendation 1: Argyll and Bute Council progress a Conservation Appraisal of the town centre to establish the value of defining the core central area of George Street and Alexandra Place a designated Conservation Area.

Recommendation 2: Argyll and Bute Council need to work closely with other partners and local stakeholders in developing and promoting enhanced Town Centre management. A Town Centre Management company is of- ten recommended as a mechanisms to take these issues forward but we have not identified a scale of need that would justify a discrete organisation or fully dedicated resources of a TCMC in Oban.

3.7.1 Introduction

The Local Plan identifies a number of areas within the centre of Oban as Areas for Action or AFA’s. These are potential development areas for partnership or community action and may include a range of initiatives from land assembly and asset management programmes through to development and redevelopment proposals and environmental enhancement. The identified AFA’s in Oban are as follows:

AFA 5/1 Oban – South Pier/ Railway Pier AFA 5/2 Oban - George Street/ North Pier AFA 5/3 Oban – Esplanade AFA 5/4 Oban Bay AFA 5/5 Dunstaffnage Bay AFA 5/6 Oban Airport & PDA 5/71; 5/72 North Connel Airfield

The key interest in these sites is to ensure the development of these sites is progressed within an urban design framework that supports quality of place and enhances the appeal and functionality of Oban as a place to live, work or visit. Scottish Planning Policy (SPP 68) is important in this regard. It identifies six key qualities as vital to the success and sustainability of development: Distinct identity; Safe and Pleasant Spaces; Ease of Movement; Sense of Welcome; Adaptability and Good Use of Resources.

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3.7.2 Key Stakeholders and Interests Public Sector / Council Offices

Argyll and Bute Council Argyll and Bute Council are seeking to secure a long term rationalisation of its property in Oban and develop a new, single Council Area office within the town Tourism is now one of the key drivers of economic development in the area, with centre. Reorganisation will allow the disposal of surplus offices and secure a £300m estimated expenditure in Argyll and Bute per annum. Cultural tourism is a modern, fit for purpose, new administration facility with efficiency and building significant component of this spend, accounting for an estimated £120m with service cost savings. The council is at an early stage of reviewing options, with the area’s cultural heritage presenting a significant and growing reason for tour- potential sites including; Albany Street, Rockfield Primary School, Lochavullin sites ists to visit. The economic impact of contemporary cultural activities also contrib- (Council Depot / Tweedmill area) or longer term proposals linked to other devel- utes to business and community sustainability, improving quality of life for the opments. The favoured sites currently include: area’s people.  Albany Street Private Sector /Development Sector Redevelopment of the council offices with a new extension over the existing off- street car park, offering a combination of traditional cellular Tourism, services and consumer activity are key drivers of the local economy, play office accommodation and Council Chambers together with modern a key role within the town centre and require a framework that supports local open plan office space. enterprise. The strength of the retai sector is critically important. The town centre strategy needs to ensure that Oban continues to offer a safe, welcoming, accessi-  Rockfield Primary School ble and distinctive place. Visit Scotland considers Oban has the capacity to build Redevelopment of the primary school at Rockfield in a traditional stone further attractions and critically opportunity exists for further high quality hotel building (1877) which with full refurbishment would offer a town centre accommodation within the centre. site, with parking and the capacity and flexibility to meet anticipated council needs. Quality of place and its role as a gateway and reference for the Western High- lands and Islands is a key part of Oban’s appeal. Building on this appeal requires Argyll and Bute Council are evaluating options and a programme for reorganisa- Oban to address issues associated with its retail offer, summer season conges- tion. The Action Plan considers that both sites offer potential. The council should, tion, parking, streetscape quality, litter, lighting that helps to enhance its appeal. however, also consider the value in promoting a wider mixed use development where council funding for offices could help secure other objectives and project Retail diversification within the centre and large footplate national supermarket / goals. DIY retailers at Lochavullin is an established pattern which should help to support the enhancement in the quality of retail and environment in George Street. Traf- Council budgets are limited but if a clear business case can be made for rational- fic improvements to reduce congestion, widen pavements, improve pedestrian ising property assets and developing new offices these monies may assist in deliv- crossing and enhance the George Street area. ering the ‘leverage funding for a wider initiative. In Falkirk the Council has em- ployed such a strategy to support the new Community Stadium and similar initia- tives have ensured that limited local government funding can help deliver wider ambitions. In Oban this could include redevelopment and refurbishment of the Corran Halls to incorporate council offices, cultural facilities or similar in other locations (North Pier/ Rockfield/ etc).

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3.7.3 Strategic Needs (AFA’s 5/1: 5/2: 5/3: 5/4)

The Finalised Local Plan identifies Areas for Action (AFAs) each has a schedule identifying the nature of the particular actions required. The following table identifies the issues associated with the AFAs.

Areas For Action Issues Response

Integration of transport Houses ferry terminal, best served by improv- train station and bus ing signage and con- station. nectivity between bus, 5/1 Oban – South Pier/ Operation of ferry traffic train and ferry termi- Railway Parking facilities nals. Integration of transport Transport integration modes should focus on time- Sustainable Transport tabling and service standards Traffic management measures and consid- Operation of traffic on eration of priority George Street greenways for peak 5/2 Oban – George St/ Parking season/ peak am/ pm North Pier Interaction of Pedestrians traffic movement. Re- Sustainable Transport view pedestrian facili- ties, parking and cross- ing points Operation of traffic on Esplanade Review pedestrian fa- 5/3 Oban - Esplanade Parking cilities and crossing Interaction of Pedestrians points Sustainable Transport Marine Operations Establish Harbour Road 5/4 Oban Bay Sustainable Transport or Trust Junction strategy needs Access Options developing to meet 5/5 Dunstaffnage Bay Sustainable Transport Trunk Road require- ments

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Public Realm

Public realm in its widest sense (the street, building facades, car parks, footways, squares and spaces) impact on perceptions of welcome, security, community, prosperity, and choice which together substantially determine the use patterns of town centres. Oban has the opportunity to enhance and build on its quality of place by improv- ing the functionality of the town centre (parking/ accessibility/ servicing/ markets & events); the appeal of the centre (distinctiveness/ choice & diversity retail/ streetscape quality/ safety); and the quality of and standards of maintenance. This would require:

 Strategic Town Centre Strategy with a clear and distinctive vision of the shape, character and quality of the town centre.

 Development of a simple Design Guide that secures clarity of the ambition and ensures (and supports)

private and public sectors contribute to urban built quality (signage/ shopfronts/ façade treatments/ build- ing repair/ boundaries).

 Quality commitments benchmarked against streetscape best practice using high quality natural stone ma- terials and contemporary design detailing supported by a commitment to high quality streetscape man- agement.

 Focus on making the town centre more serviceable and appealing (safe/ clean/ accessible/ connected) with the public realm providing the spaces and infrastructure to allow enhanced levels of activity and events (markets/ seasonal festivals/ band-stand / evening economy).

3.7.4 Developing a Project Framework

Developing Key Sites through Development Masterplans & Design Briefs

Oban is experiencing significant growth however this has largely focussed on areas outwith the centre and new town centre building investment has been limited. The result is that there exists a legacy of site opportunity that new Development Plan and Planning Policy Guidance in terms of AFA’s are seeking to address. The key develop- ment sites and opportunities include:

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 Railway Pier Retail (AFA 5/1) 1980’s retail development in waterfront location offering internal mall and medium/large unit has strug- gled to be viable. Opportunity in next 10 years for comprehensive redevelopment potentially including hotel and with masterplanning revised access and circulation arrangements. Development Brief should seek to promote:  Quality contemporary architectural solution with natural stone rendered façade treatment and street level retail units offering active frontages  Building massing to allow 3 or 31/2 / 4floors with residential on all but ground floors where active frontages and retail should continue to be encouraged albeit on smaller scale  Quality frontage detailing to Railway Pier frontage reflecting the new Terminal building material palette

 Woolworths/ Boots (AFA 5/2) 1960-70’s two storey retail unit in prime town centre location offering good medium/large unit on George Street with rear/side servicing on main thoroughfare. Building makes a negative contribution to streetscape with opportunity in next 10 years for comprehensive redevelopment. Development Brief should seek to promote:  Quality contemporary architectural solution with natural stone façade treatment and street level retail units offering active frontages  Building massing to allow three storey or 21/2 -31/2 floors with residential above with pitched or mansard roof detailing in natural slate finish  Quality streetscape and façade treatments appropriate to a Conservation Area with well integrated retail signage.

 Bay – North Pier (AFA 5/2) The development for Oban Bay and the provision of additional berthage and potential development is focussed on the North Pier. This is a sensitive site and a key visual focus and activity node for both recrea- tion and tourism. The re-development of the Seafood Restaurant/ Café Bar demonstrates that significant waterfront development can be successfully advanced offering quality new facilities and a visual reference in keeping with the character and quality of place.

The North Pier could accommodate a modest extension or act as a focus for a wider development. In ei- ther case a Development Brief for this area needs to be mindful of the quality of the setting and bound- ary/adjacent property issues and would require any development whether limited to a marine/pier devel- opment or new Waterfront Facilities to offer a:  World Class architectural solution with the opportunity through an international competition or invited shortlist to select an award winning design approach.  Quality contemporary architectural solution with natural stone finishes and compact footprint maintaining views and securing and respecting the primacy of scale of the Argyll Hotel and Espla- nade.

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Developing the Quality of Streetscape (AFA 5/1 & 5/2 & 5/3))

Oban needs to build on the existing appeal of its centre, to offer real diversity and choice built around the Oban Bay and ‘Capital of the Western Highlands’ theme. A Town Centre enhancement project should seek to establish a sustainable timeless streetscape quality. Oban needs to sensitively address the development of its public realm to ensure that the character and distinctive quality of place are not compromised or diluted by inappropriate materials, use of standard treatments and approaches that add little and are more appropriate to centres of lower character and quality.

 Gateway and Arrival Points Oban Bay and the views across to Kerrera forms Oban’s unique place reference. Developing gate- ways and arrival points would be inappropriate and in our view unnecessary and the ‘Welcome to Oban’ signage is adequate and appropriate.

 Rail Station /Bus /Ferry Interchange Public Realm Space The Rail /Bus / Ferry interchange operates across three sites and the opportunity to secure a single Transport Interchange was lost when opportunity to amalgamate the Calmac Ferry Terminal and a new rail station was not progressed.

Public realm and related vehicular/ parking measures improvements are however all that is required to offer transport users a better facility and clearer more legible connectivity between facilities. The main requirements are for better signage, clearer path connections between facilities and better quality pavements and lighting. The opportunity exists (post Development Road/ Town Centre Traffic Management) to re-design the Bus Station externals into a high quality Oban Town Square. Oppor- tunity exists here to secure a substantial part of these works through ‘Developer Contribution’ linked to redevelopment of the Railway Pier Retail buildings. Opportunity to develop a quality Town Square and event, market and performance space connected to the waterfront with a shared space bus/ taxi and activity space should be further explored.

 George Street The George Street central waterfront core could be substantially enhanced. This is a fantastic space, the centre of Oban and offers opportunity to do something special. Currently congested and clut- tered by on-street parking a simplification of the central core is overdue. This could allow for wider pavements and shared surfaces facilitating street cafés/activity overlooking waterfront with easier pedestrian circulation and reduced town centre congestion. A reduction in clutter and statutory sign- age and adoption of Conservation Area best practice principles would improve the legibility and pro- vide for a stronger sense of local identity and special quality of place.

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The development of a peak hour Clear-Way on George Street (see 4.3.4) with restricted right turn vehicle manoeuvres would reduce waiting and stop-start traffic, involve the loss of a limited number of parking spaces but secure major gains for pedestrians and a reaffirm the primacy of the George Street frontage.

Improvements to streetscape detailing with new natural stone pavements, simplifying unnecessary streetscape clutter (road engineering/ pavement blisters/ parking indents), and ensuring streetscape furniture are of the highest quality will also be important. Quality natural stone pavements consistent within the central core would enhance the space and strengthen the appeal. Better quality lighting and building and architectural feature lighting to key building facades and facia board lighting to animate the street and further enhance the sense of welcome.

The initiative to introduce a sand beach in the Town Centre, even if lost through winter storms, is applauded as an appropriate yet modest initiative that enhanced the Bay and offered more choice, activity and summer appeal.

Oban Town Centre Conservation Area

George Street, Queenspark Place and the main building line of the Esplanade/ Alexandria Place include a num- ber of listed buildings. A Local Authority may promote a Conservation Area after assessing and determining that an area is of special architectural or historic interest the character and appearance of which it is desirable to preserve or enhance. The George Street/ Alexandria Place area would warrant further assessment.

Developing connectivity and access to Open Space

The provision, design and management of a network of accessible open spaces is an important element of the urban fabric that helps define quality of place and can make an important contribution to both visitor and resident experience and enjoyment. The quality and character of open space and the links and interpretation that connect spaces is often a defining element in the image and function of places.

In Oban the key connections are between the Bay and the residential hinterland, movements around the Bay, links to McCaigs Tower and pedestrian connections to retail, service and local nodes and points of interest. Potential exists to develop and enhance these links with three priorities identified from a walk through the town.

 Upgrading and enhanced signage and interpretation of the pedestrian connection to McCaig’s Tower via the Jacob’s Ladder that should become much more important part of the experience of visiting Oban.

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 Developing a Heritage/ Story Trail around Oban Bay with signage and interpretation telling Oban’s story from Dungallan Park to Port Mor.  Improving pavements and safe pedestrian routes through the town and linking main facilities.

Open space, combining both green space and civic space, is a vital resource for a very broad range of func- tions that include direct activities such as active sport, play, recreation, leisure, visual amenity, nature conser- vation, access, and less tangible or indirect effects supporting place building, urban renewal, civic and com- munity infrastructure, healthier lifestyle choices and facilitating economic development. Individual spaces are important but equally the wider structure created by well-connected open space networks and safe and acces- sible connected linear spaces can allow the collective asset of open space to better support a diversity of needs and interests.

Developing the Public Realm for Events

Develop the potential of Oban as a location of choice for events and festival activity. The Action Plan recom- mends a more positive strategy to develop a full events and festival programme by targeting key national events (Royal National Mod/ West Highland Yacht Week / Mull & Iona Food Festival/ Mull Rally/ Sailing Regat- tas/ Argyllshire Gathering – Oban Games/ Shinty Championships) and building a local festival (see Mull/ Islay/ Campbeltown Festivals) and event weekend programme to support greater engagement from visitors and local residents.

West Highland Yacht Week Festival is a natural opportunity constrained by the lack of facilities for yachts in Oban Bay. Addressing the proposals for the North Pier and linking the West Highland Yacht Week to a major town event festival has substantial potential.

Festival and events programmes even when modest in ambition can significantly contribute to tourism and place/ destination development and should form a key part of Argyll and Bute Council’s tourism, visitor and cultural strategies. Partnership working with key agencies (Council/ VisitScotland – Area Network/ AIE) to de- velop a marketing strategy to encourage and promote future events in Oban.

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3.8 Other Strategic Projects

Oban Airport (AFA 5/6)

The Scottish Executive has approved the project’s £6 million plus costs (with ERDF and HIE funding) which will see Oban developed as a regional air hub, with licensed airfields built on Coll and Colonsay. The new air service will integrate with the existing scheduled air services between Tiree and Glasgow and allow the Argyll Island air network to link with the pan-Highland and national services. This will dramatically improve access to local ser- vices and provide vital business and tourist links for the area, and strengthen Oban’s potential to secure inward investment and diversify its economy.

The potential for Oban Airport is significant, and offers a unique opportunity through partnership working, to facilitate new business and secure new competitive advantage. An issue which should be investigated in rela- tion to the airport is the access arrangements and suitability of the existing infrastructure out to the airport.

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