Report
Flaxby New Settlement
Viability and Delivery Report
(Strictly Private and Confidential)
September 2017
Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
Prepared By: Dale Robinson, MRICS, Registered Valuer Status: Version 1 Draft Date: September 2017
September 2017 2 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
Contents
Executive Summary 4
1. Introduction 8
2. Development Proposals 11
3. Land Ownership 14
4. Travel and Transport 16
5. Utilities 24
6. Drainage 33
7. Sustainable Energy 35
8. Education 37
9. Public Green Space, Cycling, Walking and Rights of Way Improvements 38
10. Delivery and Viability 40
11. Conclusions 47
Appendices
Appendix 1 – Flaxby masterplan
Appendix 2 – Fore Consulting highway drawings/plans
Appendix 3 – Letters of support
Appendix 4 – Technical note setting out the assumptions applied within the residual development appraisals
Appendix 5 – Residual Development Appraisals
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Executive Summary
Within this report we examine the viability and deliverability of Flaxby new settlement. For planning purposes the NPPF provides the following definitions of ‘deliverability’.
Footnote 11 states that to be considered deliverable, sites should be available now, offer a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on site within five years and in particular that development of the site is viable. (emphasis added) Footnote 12 states that to be considered developable, sites should be in a suitable location for housing development and there should be a reasonable prospect that the site is available and could be viably developed at the point envisaged (emphasis added).
The Planning Practice Guidance (PPG) advises that an assessment of availability, suitability and achievability should be made in determining whether a site is deliverable over the plan period.
Availability
There are no legal or landowner constraints to the delivery of the Flaxby new settlement. All of the land is owned / controlled by our client; a single promoter (Flaxby Park Ltd). The entire site is, therefore, available for development now. This has been acknowledged by Harrogate Borough Council in their New Settlement Report (‘NSR’ July 2017). A contractual position has been agreed for the purchase of the former station house and east bound platform of the former Goldsborough station should that location be selected for the new rail halt and park and ride (train) facility.
In our opinion this single ownership is a major advantage of the Flaxby new settlement, which provides the greatest certainty of early and appreciable delivery in the first 5 years of the plan and continuing thereafter.
The site already benefits from the prior construction of a new roundabout on the A59, which serves the site (new settlement), the recently approved Flaxby Green Park capable of creating 2,840 new jobs and the draft employment allocation (FX5), which are both situated immediately to the south. This existing junction, which was constructed for the specific purpose of enabling major development at the former golf course, will form the principal vehicular access into the development.
Whist it is considered that junction 47 of the A1 (M) has capacity to facilitate circa 400 units it is acknowledged that traffic associated with the completed new settlement will result in the junction exceeding capacity meaning additional improvements will be required. The additional mitigation works for Flaxby can be delivered on land owned or controlled by Flaxby Park Ltd and within adopted highway land.
There is also capacity in the utility networks (electricity and gas) to facilitate an initial phase of development without major reinforcement works. This is confirmed within the ICS2 Report which states1 that Northern Powergrid has also indicated that the Flaxby site may be more suitable to the provision of temporary works and connections to supply the initial phases of development. Northern Gas Networks has also confirmed that capacity is available for an initial phase of development but the completed development will require off site reinforcement works. The ICS2 Report also confirms2 that there is an existing gas supply to the Flaxby site. 5 These are all key factors / issues for the Council, given the anticipated shortfall of housing in the first 5 years of the plan, and clearly demonstrates that the site is immediately available for development as soon as the planning process allows.
Suitability
In terms of physical and environmental suitability, a full and detailed suite of technical investigations and reports have been undertaken (up to outline planning application level of detail) covering highways; landscape; heritage; ecology; flood risk; drainage; ground conditions; noise and air quality. All of these
1 Refer to para 4.11 – Page 10 2 Refer to para 4.5 – Page 8
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reports conclude that there are no limitations to the delivery of the Flaxby new settlement which cannot be overcome following appropriate mitigation, which has already been incorporated into the masterplan. A number of these matters have already been agreed in writing with the council and other consultees through a formal pre-application process.
Achievability
Our client (Flaxby Park Ltd) is not a residential developer. Instead, their approach will be to invest in the strategic infrastructure and then sell serviced development plots to the market.
Our client has a strong track record of successfully delivering major strategic development on large complex sites such as Flaxby. One such example is Wynyard Park (www.wynyardpark.com) which is a large scale new settlement in Hartlepool and Stockton. Critically, this site is now positively delivering a significant amount of new development on the ground at an early date following the grant of planning permission and illustrates our client’s commitment and ability to deliver new settlement scale development quickly. Since 2012, 154 homes have been built, a further 903 have secured planning permission/minded to grant and 1,832 houses have draft allocations in Publication Local Plans.
In terms of market attractiveness, it is GVA’s view that there will be strong demand for the development proposed; if the site is allocated and planning permission subsequently granted, then there can be a high degree of confidence in delivery by the market at an early date. This is supported by the Leeds office of Jones Lang Lasalle (JLL) who confirm that they have held detailed discussions regarding our client’s land with the majority of PLC and national house builders who operate in the region and other regional housebuilders. Without exception, JLL’s approaches have resulted in extremely positive responses and offers, and it is clear that, were the site to be allocated as a new settlement, it would be the premier location to develop within the region. The interest that JLL has received indicates that the delivery of 2,750 houses in this location would be easily achievable. JLL’s professional view is that interest in our client’s land, should it be marketed with a residential allocation, would be extremely strong. GVA agree with that view.
National (Bellway Homes) and regional (Harron Homes) house builders have also confirmed their commitment in writing to delivering homes within a first phase. Additional housing will be provided at Flaxby on a phased basis, alongside additional infrastructure. JLL (supported by GVA) envisage that the site could accommodate at least three national house builders, a regional house builder and self- builders/custom builders all providing homes simultaneously and across multiple outlets. In this respect an assumed delivery rate of 150 dwellings per annum is considered easily achievable in terms of market demand/developer appetite.
Our client has confirmed that formal offers have been received from all the developers listed below.
Barratt Homes Persimmon Taylor Wimpey Avant Homes Linden Redrow Miller Kier
In addition there is also clear evidence of delivery5 with respect to each element of the community / social infrastructure within Flaxby new settlement. In particular confirmation has been received from the following parties:
Letter from Eastgate Medical Group confirming interest in providing medical facilities to Flaxby New Settlement Email from team rector of Knaresborough confirming their interest in providing a place of worship Letter from Village confirming their interest in providing a hotel with community uses (coffee shop public house, community restaurant, swimming pool, spa and gymnasium) in the village centre Letter from Places for People (care home operator) confirming their interest in the ‘retirement village’
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The Diocese of Leeds has provided confirmation to our client of their willingness to develop primary schools at Flaxby.
In terms of the self-build/custom-build plots our client has a proven track record of delivering high quality self build plots at its exemplary new settlement site at Wynyard Park in Hartlepool and Stockton Borough Council and is keen to proactively deliver the same at Flaxby new settlement. At Wynyard Park, planning permission has been granted for 72 self-build plots and a significant number are now under construction. Further plots are currently going through the planning process.
In view of the above it is clear that our client’s new settlement proposal will be delivered as soon as the planning process allows.
Viability
We have undertaken an appraisal of the Flaxby proposals, which demonstrate that the residual value of serviced development plots at Flaxby is circa £810,000 per acre (or £23,000 per plot)3. The total value expected from Flaxby having also taken in account the revenue from the sale of self build plots is estimated to be circa £80m. The total infrastructure costs for Flaxby are currently thought to be in the region of £46m, thereby generating positive viability headroom of c£34m, as highlighted in Table 1. Green Hammerton is shown for comparison.
Table 1 – Viability Analysis Item Flaxby Green Hammerton Cost (£) Cost (£) A. Total Revenue £79,882,000 £51,319,000 Infrastructure Costs Travel and Transport £21,750,000 £85,045,000 Utilities £5,030,000 £20,000,000 Drainage tbc £2,310,370 Sustainable Energy - - Education £17,508,540 £15,830,000 Public Green Space £1,733,000 £1,733,000 B. Cumulative Infrastructure Costs £46,021,540 £124,918,370 Headroom (A-B) £33,860,460 -£73,599,370
In recognition of the Council’s anticipated shortfall of housing in the first 5 years of the plan particular attention also needs to be given to the viability of the initial phase of development. It is estimated that the initial phase of development at Flaxby will comprise circa 200 units. The estimated revenue from this initial phase of development is £4,600,000.
The infrastructure items identified below will need to be completed prior to the construction / occupation of the first dwelling. The costs of these works will be recovered through the revenue generated from the initial first phase of development.
Table 2 – Enabling Works for Initial Phase Item of Infrastructure Flaxby A. Total Revenue £4,600,000 A59 junction improvements £1,200,000 new four arm roundabout on the A59 at the junction5 with the B6265 - Improvements to Cattal Station - Foul pumping station - SuDs attenuation basis – Phase 1 - Upfront education payment £1,000,000 New gas supply - Diversions £560,000 B. Cumulative Infrastructure Costs £2,760,000
Headroom (A – B) £1,840,000
3 This assumes development is policy compliant including affordable housing at 40%
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As demonstrated above the initial phase of development also generates positive headroom of £1.84m which again assumes affordable housing is provided at 40%.
In our opinion Flaxby new settlement represents a far superior option for the new settlement to Green Hammerton in respect of delivery and viability. Indeed the Council’s own NSR confirms that Flaxby is the most deliverable of the new settlement options (Flaxby, Green Hammerton, Maltkiln). It is a significant shortcoming that neither the promoter of Green Hammerton nor the Council has produced any viability evidence for that site and this report seeks to address that evidence ‘gap’. The key advantages of Flaxby over Green Hammerton are set out in detail within the main report.
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1. Introduction
1.1 The Draft Local Plan (DLP) identified two options for a new settlement to provide approximately 3,000 new houses, as part of its growth strategy; namely our client’s land at Flaxby (FX3 – north of the A59) and Green Hammerton (GH11)4. However, the DLP confirmed that only one new settlement is required in the Publication Local Plan.
1.2 Detailed representations were submitted in December 2016 to inform the DLP and to explain the major benefits and opportunities provided by the Flaxby new settlement and demonstrate that Flaxby should be selected as the sound new settlement in the Publication Local Plan and Green Hammerton rejected.
1.3 Despite the evidence clearly demonstrating that Flaxby was the superior location for the new settlement the Council identified Green Hammerton (GH11) as the preferred location in the Additional Sites consultation (July 2017). As outlined within our representations to the DLP and Additional Sites consultations, we strongly object to this preference, which is flawed and based on an erroneous assessment of the available evidence. The Council must now decide whether that preference should be retained or whether Flaxby should be identified in the Publication Local Plan currently due early next year (2018).
1.4 It is clear that the new settlement will be responsible for meeting approximately 31% of the residual housing shortfall identified by the Council. It is, therefore, critical that the Council selects the most deliverable and developable option to ensure that housing needs are met on the ground. If the wrong option is selected and the plan is found unsound, or if the selected site fails to deliver at the rate envisaged by the housing trajectory, then the housing strategy of the Local Plan will fail and housing need will go unmet, resulting in serious housing delivery failures for the area.
1.5 This is a significant issue in Harrogate district which has a longstanding record of persistent under supply against need and is unable to demonstrate a 5 year supply of deliverable housing sites, as required by national planning policy. This further emphasises the importance of selecting the right new settlement option now given its central role in meeting housing need, including over the next 5 years (which Flaxby is capable of given it’s locational benefits and access to existing services, infrastructure and utilities – see later).
1.6 Given our view on the clear delivery benefits of Flaxby over Green Hammerton (presented within this report) it is our firm submission that Flaxby represents the superior option for the new settlement over Green Hammerton and should be selected as the new settlement in the Publication Local Plan. That would be the sound option.
1.7 In preparing this report, we have referred to information included within various documents, as summarised below. The extent to which this has been relied upon when preparing this assessment is referred to in our report.
Documents relating to Flaxby new settlement
Outline Development Framework (December 2016), prepared by Wildblood MacDonald, which presents the current masterplan for the site and a development framework for its delivery Design and Access Statement (August 2017), prepared by Wildblood MacDonald Utilities and Drainage Assessment prepared by Wardell Armstrong – March 2017 Flood Risk Assessment and Drainage Strategy – February 2017, prepared by Wardell Armstrong Transport and Access Appraisal – December 2016, prepared by Fore Consulting. Framework Travel Plan and Transport Assessment – June 2017, prepared by Fore Consulting Flaxby Park Rail Station Feasibility Study – October 2016, prepared by JMP (now SYSTRA) Flaxby Park Station: Preliminary Timetabling and Demand Forecasting Report – October 2016, prepared by JMP (now SYSTRA) Ecology Surveys and Reports prepared by Brooks Ecological (complete September 2017) Noise and Air Quality Assessments and Reports prepared by Wardell Armstrong (and agreed by the Council)
4 Also referred to as Great Hammerton by the site’s promoter.
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Heritage Assessment prepared by Wardell Armstrong in pre-application process with Historic England and the Council Landscape and Visual Impact Assessment prepared by Wardell Armstrong Archaeological Assessment prepared by Wardell Armstrong Minerals Assessment prepared by Wardell Armstrong Ground Surveys and Investigations prepared by Wardell Armstrong (and agreed by the Council) GVA representations to Harrogate District Draft Local Plan: Additional Sites Consultation – August 2017
Documents relating to Green Hammerton New Settlement
Great Hammerton Growth Area Vision – August 2015. Great Hammerson Vision Document – December 2016 Hammerton Development Framework – August 2017 Great Hammerton Technical Appendix – Representation to Draft Harrogate Local Plan – December 2016. This document was prepared by Nathaniel Lichfield & Partners (now Lichfield’s) and hereafter is referred to as the Lichfield representations. Technical review of electrical and gas utilities at Green Hammerton, prepared by Wardell Armstrong – December 2016. Preliminary Environmental Report (Rail) – August 2017 - prepared by GHD; Preliminary Environmental Report (Highways) – August 2017 - prepared by Bryan G Hall; Preliminary Appraisal of Flood Risk – August 2017 – prepared by Weetwood Preliminary Utilities Survey – August 2017 – prepared by Weetwood Preliminary Surface Water Briefing Note – August 2017 – prepared by Weetwood Education Briefing Note – August 2017 – prepared by Elmet Education Ltd Hammerton Growth Area Deliverability Statement – August 2017 – prepared by Lichfields and hereafter referred to as the Deliverability Statement.
Other Documents
Harrogate District Local Plan, Infrastructure Capacity Study – Development Options, Infrastructure Appraisal Stage 2 Report – July 2016 hereafter referred to as the ICS2 Report), which provides an infrastructure based appraisal of various development scenarios based on the Local Plan growth options. This report builds on the baseline report that was completed in June 2015. Harrogate District Draft Local Plan 2016. Harrogate Borough Council Planning Guidance: Negotiating Affordable Housing Contributions Harrogate Council Guidance on Developer Contributions to Education Facilities (dated July 2016) Technical Housing Standards – Nationally Described Space Standards (March 2015). Harrogate Borough Council Strategic Housing Market Assessment – Final Report – September 2015 Harrogate District Strategic Housing Market Assessment – Update Report – June 2016 Harrogate District Sites & Policies DPD: Strategic Traffic Assessment of Development Growth in Harrogate and Knaresborough: 2009 to 2024 Draft Site Allocations (November 2013) prepared by Jacobs Harrogate District Local Plan: New Settlement Report (July 2017).
1.8 The remainder of this report is structured as follows:
Section 2 provides a brief summary of the development proposals for each new settlement. Section 3 considers the issues of land ownership and the risks to delivery. Section 4 examines the critical infrastructure issues associated with the proposals. In particular this section of the report focusses on the impacts to the Strategic Road Network (SRN), local road network, rail network and bus networks. Section 5 examines the likely diversion and off site reinforcement / new utility supplies that will need to be undertaken in order to facilitate each new settlement. Section 6 considers the likely requirements for surface and foul water drainage. Section 7 provides a summary of the proposals for sustainable/alternative energy sources. Section 8 examines what education provision will be required in order to meet demand from each of the new settlements. Section 9 examines the requirements for public green space.
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Section 10 considers the deliverability and viability of each new settlement. Section 11 summaries and concludes our report.
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2. Development Proposals
2.1 In this section of the report we provide a brief description of the proposals for each of the new settlements.
Flaxby New Settlement
2.2 Details of the proposals are set out within the Outline Development Framework and Design and Access Statement, prepared by Wildblood MacDonald, which present the current masterplan for the site and a development framework for its delivery. A copy of the latest masterplan is provided at Appendix 1. The masterplan has been prepared and updated in close liaison with the Council, other consultees and following a full public consultation process undertaken by our client (June 2017) during an 11-month pre-application period dating back to October 2016, including monthly meetings with the Council. In the most recent September 2017 pre-application meeting, the Council advised that the masterplan had been positively prepared, was acceptable in terms of layout, housing density and ranges, landscaping and open spaces and response to heritage. It was confirmed by the Council that are no objections regarding detailed technical matters relating to the proposed masterplan layout.
2.3 In summary the site extends to an area of circa 170ha (420acres) of which some 92ha (227 acres) will be developed with the remaining land (i.e. 78ha /193acres) given over to green space including natural and semi natural green space, public parks and gardens, amenity greenspace, allotments and playing fields.
New Housing 2.4 The scheme will deliver circa 2,750 new homes at an average density of 33.5 dwellings per hectare5 (density excludes the apartments and retirement village). The scheme also includes areas of higher density (at 36.5 dwellings per ha) and lower density (at 21 dwellings per hectare) development. The approach to density is summarised in Figure 1 with higher densities (i.e. 36.5dph) proposed around the entrance to the development and village core. Medium density development (33.5 dwelling per hectare) is proposed further from the centre and lower densities (21 dwellings per hectare) are proposed on the fringes in order to achieve an appropriate relationship with the surrounding countryside.
2.5. The total number of new homes is made up as follows:
Table 3 – Flaxby new settlement housing breakdown House Type Number General Housing 1,984 Self build plots 137 Apartments (adjacent to centre) 497 Retirement Village130
The Retirement Village 2.6 An area of circa 4 hectares (9.88 acres) is to be provided for a retirement village6. This is intended to be run by a specialist and provide a range of homes or other units to cater for the elderly. It is intended that these will provide for the full range of infirmity from appropriately designed homes for the able bodied, to sheltered accommodation and specifically equipped homes for the more infirm.
New Village Centre 2.7 The new settlement will be formed around a traditional market village centre encompassing a central fountain, public square, shops (including convenience store), employment (offices), medical facilities/health centre, public house/restaurant, hotel, community centre recreation and play facilities.
5 This complies with the Councils Draft Local Plan Policy HS1, which expects new housing development to achieve a minimum net density of 30 dwellings per hectare. 6 As outlined later within this report Places for People have confirmed their interest in developing the retirement village.
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Figure 1 – House building density plan
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Green Hammerton New Settlement
2.8 The Council identify that Green Hammerton (Option 2: Site Ref: GH11) could deliver 2,774 dwellings alongside community uses and local employment opportunities. The ability of Green Hammerton to deliver 2,774 is identified within the Lichfield representations7.
2.9 A vision statement has been prepared, on behalf of the promoters (CEG), for the Green Hammerton new settlement. This document outlines the vision for Green Hammerton and explains the development potential associated with the site. Further detail is also provided in the Development Framework (August 2017). In summary the site extends to a gross area of approximately 173ha (428 acres) from which 57ha (140 acres) will be dedicated to new green spaces.
New Housing 2.10 The Vision Document supports the principle that the scheme will deliver around 2,774 new homes, which equates to an average density of 30 dwellings per hectare8. It is noted that the Framework Document states the site could accommodate up to 3,000 new dwellings albeit various technical assessments, supporting the proposals, are based on the lower figure. The Deliverability Statement also references that the scheme will deliver 2,774 new homes.
New Village Centre 2.11 The Vision Document for Green Hammerton confirms that a new local centre will be provided encompassing healthcare, local shops (including café) and community facilities focussed around a village green.
2.12 The more recent Development Framework introduces and area of employment land on the Framework Masterplan9 to the south of the proposed local centre, which is colour washed for employment purposes (B class uses). There is no further reference to employment opportunities within the remainder of the document. Indeed the Vision Document states that the only employment created will be jobs in the proposed ‘school, healthcare facilities and shops, which it states will be provided in the medium term. However, the Deliverability Statement does make reference to the fact that the proposals include circa 3 – 5ha of employment land, anticipated to include a mix of B1, B2 and B8 provision.
2.13 In terms of Flaxby, the site masterplan proposes new office jobs within the development in addition to those which will be created in the two primary schools, hotel, care village, healthcare, sport and leisure facilities, shops, cafes, restaurants and other community facilities. In addition, jobs will also be provided at the recently approved Flaxby Green Park (which is capable of accommodating 2,840 jobs immediately south, which have been identified by the Council as being of “major significance at the District and Regional level”) and draft employment allocation (FX5), which will create further jobs, both of which are immediately to the south of our client’s land. This employment provision is significantly in excess of that proposed by Green Hammerton, and the substantial sustainability benefits of co-locating the new settlement next to this new employment of District and Regional significance is a considerable locational advantage of Flaxby.
7 Para 1.11 – page 2 8 Based on a net developable area of 92.5ha (229 acres) 9 Refer to page 75 of the Framework Document
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3. Land Ownership
3.1 Land assembly is often a major constraint to the delivery of large sites. However, Flaxby is rare in that it is owned / controlled by our client in its entirety; a single promoter (Flaxby Park Ltd) who has expressed a clear willingness to deliver at the earliest opportunity. The entire site is, therefore, available for development now. Land Registry confirmation has previously been provided to Harrogate Borough Council.
3.2 The ownership of the land at Flaxby is identified within Figure 2
Figure 2 – Flaxby Land Ownership
3.3 The land edged blue and cross hatched blue is in the freehold ownership of Flaxby Park Ltd. The land edged and cross hatched in red is subject to an option agreement which benefits Flaxby Park Ltd. The owner has confirmed that the land is immediately available for Flaxby Park Ltd to implement the proposed development. The land edged and hatched green is not included within the scheme boundary but is in the same ownership as the land edge and crossed hatched red.
3.4 A contractual position has also been agreed for the purchase of the former station house and east bound platform of the former Goldsborough station (denoted by the orange circle), should that location be selected for the new rail halt and park and ride (train) facility.
3.5 The Council’s own NSR agrees that Flaxby is the most deliverable option based upon its assessment of availability.
3.6 In comparison the land at Green Hammerton is fragmented and within multiple private ownerships, including a large employer (Johnsons of Whilxley) who will require relocation. Significant
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compensation will be required to move their operations. Our client estimates that the cost of relocation will be circa £6,000,000, which is simply not necessary at Flaxby as the site is currently vacant and unused (and controlled by our client).
3.7 The Vision Statement (Dec 2016) for Great Hammerton confirms10 that the land is owned by a ‘number of local landowners’. The document states that CEG has secured a number of land agreements to date and is in dialogue with all other landowners. These points are reiterated within the Deliverability Statement11 . However, our client’s solicitors have undertaken their own research which evidences that the Green Hammerton promoter has agreements in place on less than 10% of the site area. This leaves over 90% of the site uncontrolled by the development promoter and in fragmented private ownerships. This contradicts the Council’s own conclusions in the New Settlement Report and advice given to GVA that 146 hectares is controlled by CEG. If the land is not assembled or question marks remain there can be no confidence of delivery. In addition the promoter will be subject to considerable acquisition costs, thereby, further undermining the viability of the proposals. These are both serious considerations.
3.8 Whilst theoretically it may, ultimately, be possible to assemble all of the remaining land within Green Hammerton, there are serious doubts and risks over whether this site can be assembled in a timely manner in order to deliver early in the plan period, or as the trajectory envisages, to help the Council meet its housing needs effectively. This is a key issue for the Council, particularly given the shortfall of housing in the first 5 years of the plan, shown in the trajectory and confirmed in the Councils Housing Land Supply Update 2017, which confirms a 4.2 year supply. The lack of 5 year supply is also highlighted in recent appeal decisions, the most recent being Appeal Ref: APP/E2734/W/16/3150954 – Land at Orchard Close, Knaresborough12.
3.9 The Council’s NSR confirms that Green Hammerton (along with Maltkiln) is the least deliverable option (it is given the lowest rank possible) in terms of availability.
Summary
Given the strategic importance of the new settlement to the delivery of housing, there is a significant and serious risk that the growth strategy and overall vision and objectives of the Local Plan will fail if Green Hammerton is selected as the preferred new settlement.
In our opinion the single ownership and control; is a major advantage of the Flaxby new settlement, which provides the greatest certainty of early and appreciable delivery in the first 5 years of the plan and continuing thereafter.
10 Refer to page 46 11 Refer to para 6.1 – page 4 12 Para 8 states that the Council are unable to demonstrate a five year supply of housing land.
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4. Travel and Transport
4.1 This section of the report examines the critical infrastructure issues associated with the proposals. In particular this section of the report focusses on the impacts to the Strategic Road Network (SRN), local road network, rail network and bus networks.
Impacts on Strategic Road Network
4.2 Both of the options for the new settlement are located in the east of the borough meaning Junction 47 of the A1 (M) will remain the principal (and signed) access to the Strategic Road Network (SRN). Whilst the ability of Junction 47 to accommodate significant levels of additional traffic is an issue for both proposals, the levels of mitigation required for Green Hammerton are more onerous than those for Flaxby.
A1 (M) Junction 47 4.3 The junction already exceeds capacity at peak times and an improvement scheme is currently being considered. In partnership: Nork Yorkshire County Council (NYCC), Highways England and the York, North Yorkshire and East Riding Local Enterprise Partnership (LEP) are developing proposals to upgrade Junction 47 of the A1 (M), incorporating widening of slip road approaches and installation of traffic signal controls and widening of the circulating carriageway to accommodate a third lane.
4.4 The A59 / A168 link road junction will also be signalised and linked to the operation of Junction 47 as part of the scheme. The combination of these works is known as the ‘LEP Scheme’. The works to Junction 47 will be designed, funded (£2.1m of Local Growth Funding has been allocated) and implemented by Highways England in partnership with NYCC.
4.5 Fore Consulting were commissioned by our client to prepare a Transport Assessment for the Flaxby new settlement13. Within this document14 Fore Consulting confirm that the LEP scheme will be sufficient to satisfactorily accommodate up to 400 dwellings from the Flaxby new settlement, as well as existing and future traffic growth to 2024.
4.6 Bryan G Hall has been appointed to provide highways and transport advice) on behalf of CEG who are promoting the Green Hammerton site (refer to the Preliminary Environmental Report (Highways) dated August 2017). At para 1.10 it is implied that the proposals will deliver improvements to Junction 47 of the A1 (M) over and above the improvements already planned for this junction as part of the LEP scheme. However, their report includes no assessment work in relation to Junction 47. Instead reference is simply made to what NYCC, Highways England and the LEP have done to date15.
4.7 The Deliverability Statement16 also confirms [that the scheme will make] a significant contribution to planned infrastructure improvements such as at the A1(M) J47.
4.8 In the absence of any assessment by the promoter, it is unclear whether the LEP scheme would be sufficient to support any development at Green Hammerton but, for the purpose of this assessment, we have assumed that a similar number of dwellings could be facilitated at Green Hammerton (i.e. circa 400 units).
4.9 It is acknowledged that traffic associated with the completed new settlement (whether this is Flaxby or Green Hammerton) will result in the LEP scheme exceeding capacity meaning additional improvements will be required.
4.10 As part of their Transport Assessment Fore Consulting tested a range of additional measures / changes to the junction layout and concluded that the LEP scheme with additional improvements will be sufficient to ensure the junction satisfactorily accommodates the completed new settlement at Flaxby in addition to traffic from Flaxby Business Park (FX4 and FX5) and relevant existing and future traffic growth. This is accepted by NYCC and Highways England and confirmed by the pre-application process for Flaxby.
13 Flaxby New Settlement – Transport Assessment (13th June 2017) 14 Refer to Section 8.2.1 – page 54 15 Refer to paras 6.23 to 6.20 – pages 38 and 39. 16 Refer to para 10.18 (last bullet) – Page 16
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4.11 Fore Consulting has estimated the cost of these additional improvements, based on a scheme devised in consultation with NYCC and Highways England17, to be in the region of £3,500,000. It is anticipated that the delivery mechanism will be via a Section 278 Agreement with all works being completed prior to occupation of the 401st dwelling.
4.12 These additional mitigation works can be delivered entirely on land owned or controlled by Flaxby Park Ltd and adopted highway land.
4.13 In terms of Green Hammerton, Fore Consulting’s professional opinion is that the promoters would also need to deliver, as a minimum, the scheme agreed with NYCC and Highways England (or something similar at a cost of £3,500,000). In addition, Fore Consulting also advise that the delivery of Green Hammerton will require dualling of the A59, between the site and Junction 47. Bryan G Hall accepts that the A59 between the site and J47 will need to be dualled at some point18 though no detail is given on delivery, timing or costing/funding. They simply state that they (presumably the site’s promoters) will work with HBC and NYCC.
4.14 Fore Consulting has provisionally estimated that the cost of dualling the A58 could be in the order of £5,300,000. These works are likely to involve land outside of the promoter’s control and in multiple ownerships, thereby impeding the deliverability of these works. Additional CPO costs may well arise.
Impacts on Local Road Network
Flaxby New Settlement 4.15 The site already benefits from the prior construction of a new £4,000,000 roundabout on the A59 (refer to figure 3) which was built to serve major new development at the site (FX3), but which currently serves the recently approved Flaxby Green Park (FX4) and the draft employment allocation (FX5), which are both situated immediate to the south.
Figure 3 – The Existing A59 Roundabout
17 Based on drawings 3443 SK001 01, 3443 SK001 03 and 3443 SK001 04 (copies are provided at Appendix 2). 18 Refer to para 6.22 – page
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4.16 This existing junction, which was constructed for the specific purpose of enabling major development at the former golf course, will form the principal vehicular access into the development. However, the existing arm to the north will need to be reconfigured to accommodate the first section of access road. It is considered that a short stretch of dual carriageway will be constructed from this existing roundabout to a second (approximately 100m into the site), where access would split into two arms, one west and one to the east, to form the ’spring point’ for the loop road which will then serve the entire development.
4.17 A preliminary layout has been identified by Fore Consulting (dwg: 3443/SK00 02)19 which they have estimated will cost in the region of £1,200,000. Fore Consulting have confirmed that the existing junction layout (including the proposed changes) will satisfactorily accommodate all of the traffic associated with the new settlement and the proposed Flaxby Business Park (FX4) to the south. Fore Consulting have confirmed that the works will need to be completed prior to occupation of the first dwelling and will be secured via a Section 38 Agreement.
4.18 An additional second vehicular access is proposed from a new roundabout on the A59 at the southwest corner of the site. This roundabout will replace the existing problematic A59 / York Road junction and provide improved access to Flaxby and Coneythorpe as well as the new settlement. A drawing prepared by Fore Consulting (dwg 3443 SK001 1020) shows a preliminary general arrangement of the proposed changes.
4.19 Fore Consulting have also estimated that the total costs of these works will be in the region of £2,300,000 and will need to be completed prior to occupation of the 401st dwelling. The works will be delivered via a Section 278 Agreement.
4.20 Our client is also proposing a new pedestrian bridge of theA59 which will connect Flaxby Green Park and the draft employment allocation (FX5). It should not be forgotten that they are already connected by the existing roundabout on the A59. The cost of the pedestrian bridge is estimated at £1,000,000
4.21 The design of the proposed new settlement includes a main distributor loop road that passes around the development and connects with the previously described A59 access junctions. The loop road is intended to be the principal distributor with a 6.7m carriageway capable of accommodating construction traffic, commercial vehicles serving the development and a bus route. Fore Consulting have estimated that the cost of the loop road will be circa £4,000,000.
Green Hammerton New Settlement 4.22 Assuming development can be accessed /accommodated off the proposed LEP scheme, Fore Consulting suspect that local improvements will be required on the A59 in order to serve this initial phase of development. The Preliminary Environmental Report (Highways) provided by Bryan G Hall confirms that Phase 1 (circa 285 units) will provide a new four arm roundabout on the A59 at the junction with the B626521.
4.23 Within the Lichfield representations22 it states that within the immediate vicinity of Green Hammerton it is proposed to undertake phased diversion of the A59 to allow the development to integrate with the existing settlement and ensure that residents are not segregated from facilities in the existing village (as they currently would be). It is also stated that the works will include high standard roundabout junctions at either end of the A59 around the settlement to improve access to the A59 corridor for the existing settlement as well as for traffic on the B6265 to and from Boroughbridge.
4.24 The Preliminary Environmental Report (Highways) provided by Bryan G Hall also confirms that the down grading of the existing A59 is at the heart of the proposals. The report goes on to state that in order to support the down grading of the existing A59, and delivered in association with it, will be phased delivery of a new southern bypass23. Reference is also made to a new eastern connection at the eastern extent of the site by way of a new 3 arm roundabout with the A59 and a new 5 arm roundabout with the A59 to the west. The Framework masterplan included on page 75 of the Hammerton Development Framework (August 2017) shows these two roundabouts at either end of the
19 Refer to Appendix 2 20 Refer to Appendix 2 21 Refer to para 2.14 – page 7 22 Para 2.22 – page 7 23 Refer to Paras 1.8 and 1.9 – Page 2
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re-routed A59 echoing Lichfield’s statement that the diverted A59 will include high standard roundabouts at either end.
4.25 It is noted that the downgrading of the existing A59 will be undertaken in a phased manner over an extended period of time. The whole bypass won’t be in place until 2,400 units are built so severance will remain an issue for some time (estimated as 2035 / 36 by Bryan G Hall)24
4.26 The Preliminary Environmental Report (Highways) also confirms that the proposals will include junction improvements with respect to the A59 including improvements to local road junctions currently serving Green Hammerton, Kirk Hammerton and Cattal. The Deliverability Statement25 also confirms that wider improvements to the A59 corridor [will be undertaken] to improve capacity, provide road safety benefits, improve access for local residents and accommodate future anticipated traffic growth. Whilst no further detail is provided, the Lichfield representations also confirm26that a number of other junction improvements could be funded or contributed to by the Green Hammerton proposals in order to mitigate the impact of development related traffic, most notably at:
Whixley crossroads, potential for a roundabout to resolve existing road safety issues. Fore consulting have estimated that the total costs would be circa £2,500,000 A59/A168 potential for traffic signals to resolve existing road safety issues. Fore Consulting have estimated that the costs would be circa £300,000. A59/A658roundabout junction improvements at Knaresborough. Fore Consulting have estimated that the costs of these works will be in the region of £200,000.
4.27 The Green Hammerton proposals are also likely to have an impact on the York Outer Ring Road (A1237). Whilst improvements have been undertaken at this junction as part of the Poppleton Bar Park and Ride site it is unclear whether these works will provide sufficient capacity to accommodate traffic from the Green Hammerton new settlement. Again no evidence has been submitted by the promoter.
4.28 The Deliverability Statement includes a schedule of infrastructure costs at Appendix 1. The total cost for highway infrastructure is included at £35,000,000, which includes:
Provision of a new four arm roundabout on the A59 at the junction with the B6265 Downgrading and re-routing of the A59 inclusive of the high standard roundabouts at either end; and Internal road layout
4.29 The costs, therefore, exclude additional works to junction 47 of the A1 (M) which Fore Consulting have estimated will cost in the order of £3,500,000 (refer to para 4.12), dualling of the A59 between the site and Junction 47 which Fore have provisionally estimated could cost in the region of £5,300,000 (refer to 4.13) and the cost of local junction improvements (see para 4.24) which Fore Consulting have estimated will could cost £3,000,000.
4.30 Therefore the total infrastructure costs are likely to be in the region of £46,800,000. In comparison the infrastructure costs for Flaxby will be in the region of £7,000,000. This is a difference if £39,800,000. The key point here is that the infrastructure costs are a direct consequence of the GH11’s location itself and the constraints which that location presents. They are unnecessary and avoidable at Flaxby, which already has upfront infrastructure in place.
Wider Off Site Contributions
4.31 Jacobs on behalf of Harrogate Council prepared a Strategic Traffic Assessment of Development Growth in Harrogate and Knaresborough. Within their report they identify a number of junctions that are predicted to operate at over capacity by the end of the Local Plan period. Of these junctions a total of fourteen were considered to warrant mitigation measures to provide additional capacity. Four of these are located to the east of Harrogate and, as such, would potentially be impacted by development related traffic flows from the Flaxby and Green Hammerton new settlements. Fore Consulting has estimated the expected contributions for each of these junctions (refer to Table 4) based on Local Plan pro rata estimates of development flows through each of the junctions. It should be noted that in
24 Refer to Table 2 – Page 6 of the Preliminary Environmental Report) 25 Refer to para 10.18 (bullets inclusive) – page 15 and 16. 26 Para 2.23 – page 7
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absence of any consideration of wider off site works / contributions in the Preliminary Environmental Report (Highways) prepared by Bryan G Hall for the Hammerton growth area Fore Consulting has also made an assessment of the estimated costs with respect to Green Hammerton.
Table 4 – Estimate off Site Highway Contributions Junction Flaxby Green Hammerton Estimated Timing Estimated Timing Costs Costs A59/Harrogate Bypass £250,000 Prior to £200,000 Prior to occupation roundabout mitigation. occupation of of 401st dwelling 401st dwelling St James Retail £150,000 Prior to £125,000 Prior to occupation {Park/Harrogate Bypass; occupation of of 601st dwelling 601st dwelling A59/B6164 £100,000 Prior to £80,000 Prior to occupation occupation of of 801st dwelling 801st dwelling A658 / B6163 £100,000 Prior to £80,000 Prior to occupation occupation of of 1,001st dwelling 1,001st dwelling Total Contribution £600,000 £485,000
Impacts on the Rail Network
Flaxby New Settlement 4.32 Given that the Harrogate to York railway line runs adjacent to the site, there is an opportunity for incorporating into the masterplan land for a future railway halt, potentially combined with a park and ride (parkway station) facility. There are a number of options to serve Flaxby by rail which include reopening the former Goldsborough Station.
4.32 JMP (now SYSTRA) was commissioned in 2016 to explore the feasibility of a new rail station to serve the Flaxby New Settlement.
4.34 The indicative costs for constructing the new station are estimated at £8,400,000 (excluding land acquisition). As outlined previously our client has a contractual commitment to purchase the former station house and east bound platform of the now closed Goldsborough station, should that location be selected for the new rail halt and park and ride (train) facility.
4.35 In addition to the capital costs there will be ongoing operating costs but SYSTRA advised that these should be comfortably recovered through the revenue from the station.
4.36 The promoter of FX4 (Flaxby Business Park) are also proposing a new railway station which provides a further opportunity.
Green Hammerton New Settlement 4.37 The Lichfield representations state27 that the proposal provides the potential for improved passenger and waiting facilities at Hammerton and Cattal stations, as well as the opportunity to provide enhanced vehicular access and improved parking. This is confirmed within the Preliminary Environmental Report (Highways) issued by Bryan G Hall28 The Hammerton Growth Area Deliverability Statement (August 2017) also states that consideration is being given to the inclusion of Park and Ride and bus rail interchange facilities.
4.38 GHD Ltd has prepared a Preliminary Environmental Report (Rail) for the proposals and concludes that it would appear sensible to propose a staged approach to the changes in rail infrastructure. In the first instance GHD recommend29 some investment should be made at Cattal to enhance facilities including parking, connection to buses, improved connections for pedestrians and cyclists to the development and improved passenger facilities etc. The report recommends that little if any investment is made at Hammerton. Then has development proceeds the increase in rail patronage can be monitored and
27 Para 2.16 - page 6 28 Refer to para 3.17 – page 12. 29 Refer to section 4 of the GHD report.
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if appropriate a new central station should be considered further. The report acknowledges that the provision of a new station would be accompanied by the closure of the two existing stations.
4.39 The Deliverability Statement includes costs of £160,000 for the provision of an extra 30 car parking spaces at Cattal station. No costs are included for enhanced or improved passenger waiting facilities. In accordance with the recommendations from GHD no costs are included for improvements at Hammerton station.
4.40 In addition, the location of the proposed development and associated increase in vehicle movements will require safety improvements to three level crossings (Cattal Station, Parker Lane and Hammerton Station). This has also been identified by Network Rail as an issue that will have to be addressed in some manner. The GHD report acknowledges that the level crossings are likely to require attention.
4.41 It is also acknowledged within the Lichfield representations30 that there is the potential to create a single new station with associated park and ride / kiss and ride facilities in the long term, located midway between Hammerton and Cattal. Reference is made to a single new rail station within the Bryan G Hall report but there is no commitment to it31. It simply talks about the ‘potential to create a single new station. The Deliverability Statement also makes reference to a new station. In particular it states at para 10.24 that [in the] long term it would be possible to provide a new centrally located station with state of the art passenger facilities, if preferred (emphasis added).
4.42 The cost of the new station is included in Appendix 1 of the Deliverability Statement at £20,000,000 (it is assumed this cost is inclusive of improvements to the existing level crossings). A further cost of £10,000,000 has been included for the park and ride and bus rail interchange facilities. The Deliverability Statement shows the new station (including park and ride facilities) being completed in 2035/2036 so the promoters are only planning to invest £160,000 in the existing Cattal station prior to the new station opening. Even then, there is no absolute commitment from the schemes promoters to deliver the new station. In contrast our client has secured a contractual position to purchase the former station house and east bound platform of the now closed Goldsborough station, should that location be selected for the new rail halt and park and ride (train) facility.
4.43 At this point it should be noted that the existing trains calling at Cattal and Kirk Hammerton are already at capacity and the planned improvements to the line will simply address the existing need. In addition the existing stations are clearly not fit for purpose to serve a new settlement and this is confirmed by Network Rail. In this respect the investment of only £160,000 in Cattal Station prior to the new station opening seems woefully inadequate.
4.44 In terms of the new station there are benefits of this being located at Flaxby as there will be a two way flow of movement; people will use the train in the morning to reach work at the business park whilst residents at Flaxby new settlement would use the train to reach work at Knaresborough and Harrogate (two way flow in and out)., This would be reversed in the evening.
4.45 Whilst the latest masterplan for Green Hammerton shows and area of employment land for B use classes the Deliverability Assessment states that this will commence in Phase 5 (2029/2030) with future delivery phased according to demand. In this respect there is no certainty that the employment land will be brought forward. Indeed, demand is likely to be impacted due to the close proximity of Flaxby Business Park and the draft allocation (FX5) which is a superior location for employment uses compared to Green Hammerton.
4.46 In this respect there is a risk that the new station at Green Hammerton will be predominantly one way with residents using the train in the morning to reach work and then again in the evening to return home., This highlights the efficiency and feasibility benefits of a new station at Flaxby over Green Hammerton.
30 Para 2.17 page 6 31 Refer to para 3.18 – page 12
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Impacts on the Bus Network
Flaxby New Settlement 4.47 Given the scale of development a significant opportunity exists to directly fund a new, high quality bus service to directly serve the site, with the service stopping at both Harrogate and Knaresborough bus stations. Initial discussions have already taken place with the local bus operators on the feasibility and funding of such a service.
4.48 At this stage the precise details of future bus service arrangements can’t reasonably be predicated or confirmed. However, the promoter (Flaxby Park Ltd) is committed to providing funding to ‘pump prime’ these services for at least five years following initial occupation of the development.
4.49 Based on figures from Fore Consulting a total contribution of £750,000 is estimated based on an annual payment of £150,000 over the 5 year period from initial occupation. It is anticipated that the services would become commercially viable after this period. These assumptions have been agreed in principle by Transdev.
Green Hammerton New Settlement 4.50 The Lichfield representations32 confirm that the Green Hammerton new settlement would benefit from some enhancements to existing scheduled bus services. In addition it is acknowledged that there is scope to introduce extended services from Harrogate to the site. Reference is made to extending the existing TransDev 1A service which could be enhanced to provide a service to Green Hammerton. Transdev has confirmed that they have had no dialogue with the promoters of Green Hammerton.
4.51 The Preliminary Environmental Report (Highways) confirms33 that it is the intention to pump prime new services to ensure a phases approach to public transport improvements. Costs of £7,200,000 are included within Appendix 1 of the Deliverability Statement. These costs are based on timetable on improvements to existing services / or the provision of two new bus services at £100,000 per annum per service over the 18 year planned period (a total cost of £3,600,000).
Summary It is anticipated that both schemes can facilitate an initial phase of development (i.e. circa 400 units) based on available capacity at Junction 47 of the A1 (M). Beyond this initial phase of 400 dwellings significant highway works are anticipated for Green Hammerton including dualling of the A59 to Junction 47. This involves land outside the control of the promoter and could impede/threaten the delivery of subsequent phases of development. Whilst it is acknowledged that additional highway works will also be required for Flaxby these are more economically viable than Green Hammerton and can be accommodated on land owned or controlled by Flaxby Park Ltd and adopted highway land.
As demonstrated in the table below the total costs for travel and transport are significantly higher for Green Hammerton than for Flaxby (circa £64,295,000 higher). It should also be noted that the proposals at Green Hammerton are also likely to have a significant impact on the York Outer Ring Road which has not been taken into account in this assessment. The key point to note is that the infrastructure costs are a direct consequence of the GH11’s location itself and the constraints which that location presents. They are unnecessary and avoidable at Flaxby, which is self-evident.
Table 5 – Summary of Transport and Travel Costs Infrastructure Item Flaxby Green Hammerton A1 (M) Junction 47 – additional capacity upgrades £3,500,000 £3,500,000 Pedestrian bridge over the A59 £1,000,000 - Dualling of A59 between Green Hammerton and Junction - £5,300,000 47 of A1M Green Hammerton Infrastructure (refer to para 4.27) - £35,000,000 Improvements to local road network - - a) Upgrade to existing A59 roundabout £1,200,000 - b) Second A59/York Rd junction £2,300,000 -
32 Para 2.11 - page 5 33 Refer to paras 7.10 and 7.11 – Pages 41 and 42
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c) Whixley crossroads improvements - £2,500,000 d) A59/A168 traffic signals - £300,000 e) A59/A658 junction improvements - £200,000 Internal Distributor Road £4,000,000 34- Offsite Contributions £600,000 £485,000 Improvements to Cattal Train Stations - £160,00035 New Train Station £8,400,000 £30,000,00036 Bus subsidy £750,000 £3,600,00037 Total Travel and Transport Contributions £21,750,000 £85,045,000
34 Included in Green Hammerton Infrastructure costs 35 These costs exclude any improvements to passenger waiting facilities. 36 The costs include £10,000,000 for a new (single) park and ride interchange facility and £20,000,000 for the new station, which we have assumed is inclusive of works to the existing g level crossings. 37 Based on the provision of two new bus services at a cost of £100,000 per annum per service over the 18 year planned period.
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5. Utilities
5.1 This section of the report examines the likely diversion and off site reinforcement / new utility supplies that will need to be undertaken in order to facilitate each new settlement.
Flaxby New Settlement
5.2 Wardell Armstrong (WA) was commissioned in March 2017 to undertake an assessment of existing utilities for the proposed development at Flaxby. This assessment includes a utilities plan which identifies the location of existing apparatus which need to be considered to inform the development of the masterplan and detailed design. The reader is directed to this report for further detailed information.
New Supplies
5.3 At this stage it is estimated that new supplies will be required for Northern Powergrid, Yorkshire Water and Northern Gas Networks to support the proposed development.
Electricity (Northern Powergrid) 5.4 Northern Powergrid has confirmed that there is currently capacity to serve the development. However, the proposed supply is high voltage and will need to be converted to low voltage for distribution. This will be achieved through the provision of 10 distribution sub stations strategically positioned across the site. A budget cost of £4,370,000 has been provided by Northern Powergrid38.
5.5 It should also be noted that the ICS2 Report39 also confirms that Northern Powergrid has indicated that scenario 3 (i.e. Flaxby) would appear to have benefits over Scenario 2 (i.e. Green Hammerton), as the Flaxby site is located in fairly close proximity (between approximately 1.5km and 3km) to the existing substation at Coneythorpe. By comparison the Green Hammerton site would be around 12km from the York Outer Ring Road / Upper Poppleton, which may be on the limit of what would be considered practically and financially viable (i.e. the consultant team noted that the above cabling cost guide would provide a figure of around £9m for cable installation along for 12km, excluding connection costs and route specific issues such as crossing the River Nidd and its floodplain). As outlined later Wardell Armstrong estimate that the cost of providing electricity connections to Green Hammerton will be circa £15,000,000.
5.6 The costs for establishing electricity connections are therefore around £10,000,000 cheaper for Flaxby.
5.7 The ICS2 Report also states40 that Northern Powergrid has also indicated that the Flaxby site may be more suitable to the provision of temporary works and connections to supply the initial phases of development. Wardell Armstrong has corroborated this position.
Potable Water (Yorkshire Water) 5.8 Yorkshire Water has confirmed that the local potable water mains network has insufficient capacity available to accommodate the additional demand from the development. However, Yorkshire Water are currently completing a growth study and trying to find solutions for water supply in the area. This is likely to be within the next Asset Management Plan (AMP) period starting in 2020. Therefore it is not possible, at this stage, to provide a cost estimate until the growth solution has been completed.
Gas (Northern Gas Networks) 5.9 Northern Gas Networks has confirmed that capacity is available but the completed development will require off site reinforcement works. The proposed supply will also be via a medium pressure supply and, therefore, a gas governor will need to be located on site to convert the supply to low pressure. Wardell Armstrong has confirmed that the cost for a gas governor will be in the region of £100,000.
5.10 The ICS2 Report confirms41 that the costs and delivery issues would be somewhat reduced from those outlined in scenario 2 (i.e. Green Hammerton) as there is an existing supply to the Flaxby site.
38 Please refer to correspondence from Northern Powergrid at Appendix F of the Utilities Assessment (March 2017) 39 Refer to para 4.11 – Page 40 Refer to para 4.11 – Page 10 41 Refer to para 4.5 – Page 8
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Diversions
5.11 The development of the Flaxby new settlement will result in Northern Powergrid and BT Openreach apparatus needing to be diverted. Wardell Armstrong has estimated the scope of the diversion works and their associated costs42, which are summarised in Table 6.
Table 6 – Flaxby New Settlement (Diversion Costs) Utility Company Budget Cost Comment Electricity Northern £500,000 Budget estimate provided by Northern Powergrid Powergrid to clear the site (diversion of high voltage and low voltage apparatus)43. Telecoms BT £60,000 Budget desktop estimate to disconnect BT Openreach service (1,000m approx. Length) to existing clubhouse and abandon associated ductwork) Total Costs £560,000
Green Hammerton New Settlement
New Supplies
Gas (Northern Gas Networks) 5.12 Settlements to the east of the A1 are not currently connected to NGN’s network. The Preliminary Utilities Survey (24th August 2017), undertaken by Weetwood, confirms that there are no assets located within the site boundary or within the vicinity of the site44. The report also acknowledges45 that there are no points of connections for gas within close proximity of the site. Weetwood claim within their report that there is a potential point of connection to the east at Upper Poppleton. They further claim that Northern Gas Networks has advised that no reinforcement of the existing network would be required at this point of connection. No evidence has been provided to substantiate this claim. Weetwood also claim that a further point of connection, to the west at Flaxby, is available but would require some reinforcement of the existing network.
5.13 The Lichfield representations confirm46 that reinforcement of the gas network will be required in order to provide the development with gas and acknowledge47 that the two closest feeds are at Flaxby Covet and Upper Poppleton.
5.14 Within Appendix B of the Preliminary Utilities Survey is a letter (dated 6th April 2017) from Mr Andrew Grime (a Director at Weetwood) addressed to Mr S Hartley of Harrogate Borough Council. Within this correspondence (Annex A) Mr Grime indicates that the regional DNO (Northern Gas Networks) has undertaken a regional network appraisal for the purpose of assessing the implications of connecting the proposed development to their supply network. It is stated that this assessment is based on the current masterplan. Mr Grime confirms that there is currently no supply network east of Flaxby or west of Upper Poppleton. He goes on to state that the scope of their reinforced, extended and new supply apparatus (presumably on the basis of feedback from Northern Gas Networks, albeit no evidence is provided) will include:
Reinforcement, as required of the upstream Flaxby medium pressure network (off site); New connection to the Flaxby existing medium pressure main (off site); Extension of the medium pressure main to Great Hammerton (off site); Inclusion of capacity to be capable of serving existing properties en-route to enable ‘in fill’ scheme Ring main supply network (on site); Local network medium pressure to low pressure governors (on site); Low pressure distribution and consumer supplies (on site); and
42 Refer to section 3.7 (inclusive of Table 2) of Wardell Armstrong’s Utilities Assessment for Flaxby (March 2017) 43 Refer to correspondence from Northern Powergrid at Appendix F of the Utilities Assessment (March 2017) 44 Refer to para 3.2 – Page 5 45 Refer to Section 4 46Refer to para 4.16 – page 17 47 Refer to para 4.14 – page 17
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Consumer medium pressure supplies as required (on site).
5.15 The Council’s Infrastructure Capacity Study – Development Options Infrastructure Appraisal (Stage 2 Report) – July 201648 confirms49 ‘that major growth at Green Hammerton will require either new infrastructure linking to the Intermediate Pressure Network for York to the east, or would need to connect to the Harrogate network to the west. Both options would require installation of significant new infrastructure over long distances and would need to overcome complex practical and logistical issues, with the former having to cross the River Nidd and the latter having to negotiate crossing of the A1 (M). Although the issues are not considered insurmountable by NGN, the very major costs and long lead in times involved would mean there would be significant uncertainty on how the gas infrastructure required to serve Green Hammerton would be funded and delivered (emphasis added).
5.16 The issues identified within the ICS2 Report are corroborated by Wardell Armstrong within their review of the electrical and gas utilities of the proposed new settlement at Green Hammerton. The reader is directed to this previously submitted report for further detailed information.
5.17 Within their report Wardell Armstrong identify two possible options for connecting the proposed development with the existing gas network (refer to Table 7) which each option costing circa £5m.
Table 7 – Green Hammerton Gas Connection Options and Associated Costs Solution Budget Costs Option 1 – Connect to the exiting main pressure gas Circa £4,900,000 (includes £300,000 network at Flaxby Covert including crossing of the A1 (M) allowance for crossing of the A1 (M) but with assumed thrust bore method. does not allow for failed attempts at thrust bore method. Option 2 – Connect to existing main pressure gas Circa £5,200,000 (includes £300,000 network at Upper Poppleton via River Nidd crossing. allowance for crossing of the River Nidd but does not allow for failed attempts at thrust bore method.
5.18 Within Annex B to Mr Grimes letter is included a quotation from Energetics which sets out their utility servicing proposal (including gas) for Great Hammerton. Within their quotation Energetics include an estimated cost of circa £1,840,000, which excludes the costs associated with drilling under the A1 (M). Energetics also confirms that once a firm costing has been received their quotation will be updated, indicating this is a provisional sum which in our opinion is likely to increase (see later).
5.19 It should not be forgotten that any new infrastructure is likely to be required over long distances and will inevitably cross land within multiple third party ownerships. This will add further costs to the installation of new gas supplies at Green Hammerton, further compounding viability, and could result in significant delays. This is a key issue for Green Hammerton as the site is not currently connected to the network and will need to establish a new supply before housing can be delivered. Any delays will, therefore, be a key issue for the Council, particularly given the anticipated shortfall of housing in the first 5 years of the plan, shown in the trajectory and confirmed in the Councils Housing Land Supply Update 2017, which confirms a 4.2 year supply.
Electricity (Northern Powergrid) 5.20 The Lichfield representations50 confirm that reinforcement of the existing electricity network will be required in order to supply the site. The scope of the potential off and on site reinforcement works are set out within Annex A to Mr Grime’s letter dated 6th April 2017. The works listed include:
Coneythorpe primary substation capacity (off site); Primary substation dedicated switchgear (off site); Dedicated high voltage ring main circuit, Coneythorpe to Green Hammerton (off site); Potential for switched link to existing high voltage circuit for additional security (off site); High voltage ring main network (on site); Strategically placed network substations (on site); and Low voltage distribution and supplies (on site).
48 Hereafter referred to as the ICS2 Report 49 Refer to para 4.4 – page 8 50 Refer to para 4.1 - page 17
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5.21 There is no evidence from Northern Powergrid to substantiate whether these works are required or indeed are sufficient to serve the development at Green Hammerton.
5.22 In fact the ICS2 Report51 states that there will be substantial challenges in providing electricity connections to serve the proposed growth at Green Hammerton. In particular the report identifies that a connection to the existing Harrogate/Knaresborough network to the west would need to cross the A1, but Northern Powergrid indicate this may be precluded due to logistical and installation costs and associated ongoing maintenance issues. The alternative would be to connect to transmissions systems coming from the bulk supply point in York. However, this network uses a different transformer configuration / vector ratio to surrounding areas (including Harrogate district) which would raise serious practical and maintenance issues for Northern Powergrid (a key issue is ‘dead switching in the event of a fault, when usually ‘live’ switching can be made without loss of supply).
5.23 It would appear that Energetics have not taken into consideration the issues identified within the ICS2 Report.
5.24 Once again the issues identified within the ICS2 Report are corroborated by Wardell Armstrong within their review of the electrical and gas utilities of the proposed new settlement at Green Hammerton. Wardell Armstrong estimate that the cost of providing electricity connections will be circa £15,000,000. Once again these costs exclude the acquisition of third party land interests and potential CPO costs.
5.25 Energetics estimate the cost of the ‘contestable works’ and off site reinforcements will be £4,500,000, subject to review (emphasis added) on receipt of a formal offer. Once again it should be noted that any new infrastructure is likely to be required over long distances and will inevitably cross land within multiple third party ownerships. This will add further costs to the installation of new electricity supplies at Green Hammerton, further compounding viability, and could result in significant delays, which is a key issue for the Council particularly given the anticipated shortfall of housing in the first 5 years of the plan.
Potable Water (Yorkshire Water) 5.26 The ICS2 Report states52 that although Green Hammerton does have an existing Water Supply, this would require significant reinforcement work to serve the scale of development proposed. The Lichfield representations corroborate this stating53 that ‘reinforcement works would allow the site to be served by potable water”.
5.27 Within Annex A to Mr Grimes letter dated 6th April it is stated that the existing local monopoly water network operator (Yorkshire Water) has undertaken a regional network appraisal for the purpose of assessing the implications of connecting the proposed development to their supply network. The scope of the reinforced, extended and new water supply apparatus (presumably based on the findings of the appraisal undertaken by Yorkshire Water, albeit no evidence is provided) are listed as:
Upgrade and expansion of Whixley underground reservoir (off site); Reinforcement of the gravity trunk and distribution mains between Whixley reservoir to the Providence Green locality (off site); Provision of a network distribution pumping station and supply to the development where elevated ground levels demand (off site); Gravity ring main supply network to the development where capable (on site); Pumped supply main network to the development where required (on site) Distribution supplies and connections, inclusive of firefighting water services (on site)
5.28 Energetics has provided a budget cost of circa £1,000,000 to cover Yorkshire Waters reinforcement works. However, to our knowledge Yorkshire Water are currently completing a growth study and trying to find solutions for water supply in the area. Mr Grime’s letter pre dates this study and, therefore, it is not possible to make assumptions on the apparatus and the associated costs that may or may not be required until the growth solution has been completed.
51 Refer to para 4.9 – page 9 52Refer to para 4.17 – page 11 53 Refer to para 4.22 – page18
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Cost of Providing New Supplies to Green Hammerton
5.29 As set out previously Energetics has provided a quotation, to the scheme promoters (CEG), which sets out their utility servicing proposal) for Great Hammerton. Their costs for providing gas, electricity and water have been discussed previously. However, in addition there will also be on site works at a cost of £5,296,190 bringing the total costs to £12,636,190. A summary of the costs is provided in Table 8.
Table 8 – Green Hammerton IDNO Utility Costs Description of Works Total Cost (excluding VAT) Payment Terms Electricity £4,500,000 On Acceptance Gas £1,840,000 On Acceptance Water £1,000,000 On Acceptance On Site Spine Works £1,936,190 To be paid in line with payment plan to be agreed Housing Pods mains and £3,360,000 To be paid in line with payment service connections for 2,800 plan to be agreed properties Total Costs £12,636,190
5.30 Energetics state that the principle developer (i.e. the scheme promoter – CEG) will receive a rebate of £1,000 per plot for each house connected to their Electricity and Gas networks upon request from the customer. Based on 2,800 plots Energetics calculates the total rebate to be £2,800,000. In addition they claim that a water asset payment will be made by the adopting water authority (Yorkshire Water) on formal adoption of the water infrastructure. Energetics estimate (based on current reimbursement rates) that the total water payment will be circa £1,500,000.
5.31 To assist in possible funding options Energetics also propose a contractual arrangement whereby each housing plot developer would be guaranteed a fixed price for the electrical and gas connections within their development plot of £800 per residential connection. Based on this assumption an additional £2,240,000 of income would be generated and could be used to offset the utility servicing costs.
5.32 As demonstrated in Table 9 the net IDNO utility costs taking into account these rebates and payments is £6,096,190.
Table 9 – IDNO Net Utility Costs Description Total Cost (excluding VAT) Total Cost £12,636,190 Energetics Rebate -£2,800,000 Yorkshire Water asset value rebate -£1,500,000 Housing plots (main and services) payment at £800 per plot. -£2,240,000 Net Costs £6,096,190
5.33 In summary Energetics has estimated that the costs of electricity and gas upgrades / reinforcement will cost £6,340,000. They have also identified that the Yorkshire Water reinforcement will cost an additional £1,000,000. In contrast Wardell Armstrong has estimated that it would cost c£5,000,000 to connect Green Hammerton to the gas networks and a further £15,000,000 to provide the necessary electricity connections. Therefore, there is a cost difference of £13,660,000 between Wardell Armstrong and Energetics with respect to connecting the Green Hammerton site to the gas and electricity networks. Wardell Armstrong is confident in their costings, especially those for the electricity connections (at £15,000,000) as they are based on advice from a contact at Northern Powergrid.
5.34 Wardell Armstrong has also advised that the IDNO process is used as a comparison to traditional route of utilities supply and at this stage, prices and opportunities can vary significantly; often IDNO’s have hidden costs that are not obvious until a detailed comparison is required to be carried out. This is confirmed within the Energetics quotation, as outlined previously, with a caveat that the costs for the electricity and gas reinforcements are subject to review on receipt of a formal offer. It is our assertion, therefore, that Energetics has considerably underestimated their costs.
5.35 Further to this, an IDNO (such as Energetics) will apply to the local regional gas, electric and water companies for capacity, then the IDNO will construct their own embedded network and all connections must be completed by the IDNO as they would then own and maintain them. They can offer savings,
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by offsetting costs against owning the asset but the house builder will be restricted on who they can connect their networks to and also the service connection and on site works must be carried out by the IDNO. This is confirmed within Energetics quotation in which they set out their conditions for future land transfers. In particular they state that ‘should the infrastructure developer (i.e. CEG), as the principle developer, enter into an agreement with a third party housing developer for the sale of a plot within the site, then the following conditions must be met:
i. Any contract between the infrastructure developer and a third party housing developer for [the] sale of land within the shall include an express provision that the third party housing developer must enter into an agreement with Energetics Design and Build to enable Energetics Design and Build to carry out the utility infrastructure and connections on that particular plot of land at a charge to be agreed between Energetics Design and Build and the third party housing developer; and ii. Any contract between infrastructure developer and third party housing developer for sale of land within this development [i.e. Green Hammerton] shall include an express provision that the third party housing developer must comply with all reasonable obligations imposed by Energetics Design and Build to enable the adoption of all electricity and gas connections by Energetics Electricity Limited and Energetics Gas Limited respectively following completion of the works.
5.36 This can cause issues if there are different house builders (which is highly likely given the scale of the proposals) wanting different connection providers, as house builders have preferred options on companies they would like to use.
Diversions
Electricity 5.37 The Lichfield representations confirm54 that there are some existing Northern Powergrid electricity cables within the vicinity of the site, including a number of 11kV lines which cross the site. The Lichfield representations confirm55 that any assets crossing the site will need to be diverted at a cost or undeveloped easements will need to be provided for the retained assets within the site thereby reducing development potential. These points are confirmed within the Preliminary Utilities Survey (24th August 2017) undertaken by Weetwood. In particular the report confirms56 that the following services are present within / adjacent to the site boundary.
An 11 kV overhead cable, which runs north – west to south - east through the centre of the site to the north of Kirk Hammerton, which then runs south – west to north – east. A separate line branches off in a south westerly direction, beneath the railway. An 11kV overhead cable runs east to west through the centre of the site, splitting into two lines in the western section of the site, running south – east to north – west and north – east to south – west. An 11kV overhead cable running west – east adjacent to York Road; and An overhead cable running south to north along Kirk Hammerton Lane.
5.38 The Weetwood report states that diversion of electricity lines running through the site will likely be required.
Telecommunications 5.39 It is also acknowledged within the Lichfield Representation57 that BT Open Reach and Virgin Media have assets within the vicinity of the site, including ducts within the A59. This is corroborated within Weetwood’s Preliminary Utilities Survey, which confirms that there are existing BT telecommunication assets present within the site boundary58. In particular the report identifies that the existing BT Openreach network within the area is supplied through ducts located within Station Road (west), Gilsthwaite Lane, A59 York Road, B6265, Kirk Hammerton Lane and Station Road (Kirk Hammerton).
5.40 The report concludes, given the proposals involve the potential realignment of the A59, that diversion of the BT apparatus located in the road will be required. The report also advises that diversion of BT assets in Kirk Hammerton Lane and within Gilsthwaite Lane may also be required,
54 Refer to para 4.14 –page 17 55 Refer to para 4.28 – page 18 56 Refer to para 3.1 – page 3 57 Refer to para 4.15 – page 17 58 Refer to para 3.3.1 – page 3.
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5.41 The report also confirms that Virgin Media has existing telecommunication assets within the A59 (York Road) and that diversion of Virgin Media apparatus located in the road will be required59.
Water / Foul Water 5.42 The Lichfield Representation confirm60 that Yorkshire Water has some water and wastewater infrastructure within and adjacent to the site. This is expanded upon in the Preliminary Utilities Assessment (24th August 2017), which identifies that the following services (potable water) are present within / adjacent to the site boundary:
A water main (less than 4” diameter) in: Station Road (west) and Gilsthwaite Lane, Kirk Hammerton Lane/Parker Lane; and Station Road (Kirk Hammerton); Abandoned water mains (less than 4” diameter) located in Station Road (west) and A59 York Road; A water main (more than 4” diameter) located in the site boundary to the east of Parker Lane and north of the A59; Gilsthwaite Lane and Kirk Hammerton Lane; A59 (York Road); and Kirk Hammerton Lane/Parker Lane. Two abandoned water mains (more than 4” diameter) located within the site boundary, adjacent to Kirk Hammerton Lane/Parker Lane.
5.43 The report confirms61 that diversion of the active mains within the site boundary and the main located within the A59 will likely be required as part of the proposals.
5.44 In addition to the potable Water services the Preliminary Utilities Assessment also identifies that the following foul water services are present within/adjacent to the site boundary.
A 150mm diameter foul sewer located in Kirk Hammerton Lane/Parker Lane; A 225mm diameter and a 300mm diameter foul sewer located in the site boundary, to the east of Parker Lane; A 225mm diameter foul sewer located in Station Road (west) and Cilsthwaite Lane, to the west of the site; A rising main and foul sewer (diameter not specified) located in Station Road (Kirk Hammerton), to the east of the site; A 300mm to 375mm surface water sewer in Station Road (west) out falling to Kirk Hammerton beck; and A waste water treatment works located south of the site, east of Kirk Hammerton.
5.45 The report states that Yorkshire Water has advised that no buildings can be erected within 3 meters, nor trees planted within 5 meters of the 225mm and 300mm diameter foul sewer located within the site boundary. The report also concludes that a build over agreement could be reached for the 150mm diameter foul sewer but suggests that a Section 185 application could be made if a public sewer needed to be diverted.
5.46 The Lichfield representations confirm62 that any assets crossing the site will need to be diverted at a cost or undeveloped easements will need to be provided for the retained assets within the site thereby reducing development potential.
Summary
The ICS2 report identifies major delivery issues concerning gas and electricity for the Green Hammerton new settlement, which in our view could present ‘show stopper’ constraints in terms of delivery. Whilst it is acknowledged that there are issued to be addressed at Flaxby these are not insurmountable and are more economically viable than Green Hammerton.
Settlements to the east of the A1 are not currently connected to NGN’s network, therefore, major growth at Green Hammerton will require either new infrastructure linking to the Immediate Pressure
59 Refer to para 3.3.3 – page 3 60 Refer to para 4.15 – page 17 61 Refer to para 3.4 – page 4 62 Refer to para 4.28 – page 18
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Network for York to the east, or would need to connect to the Harrogate network to the west. Both options would require installation of significant new infrastructure over long distances and would need to overcome complex practical and logistical issues, with the former having to cross the River Nidd and the latter having to negotiate crossing of the A1 (M). Although the issues are not considered insurmountable by NGN, the very major costs and long lead in times involved would mean there would be significant uncertainty on how the gas infrastructure required to serve Green Hammerton would be funded and delivered.
It would appear that the site promoters are aware of these infrastructure constraints and are proposing to appoint an IDNO. Whilst IDNO’s can offer savings, by offsetting costs against owning the asset the house builders will be restricted on who they can connect their networks to and also the service connection and on site works must be carried out by the INDO. Wardell Armstrong has also advised that the IDNO process is used as a comparison to traditional route of utilities supply and at this stage, prices and opportunities can vary significantly; often IDNO’s have hidden costs that are not obvious until a detailed comparison is required to be carried out. This is confirmed within the Energetics quotation, with a caveat that their costs for the provision of electricity and gas reinforcements are subject to review on receipt of a formal offer. It is our assertion, therefore, that Energetics has considerably underestimated their costs, which are expanded upon below.
Energetics has estimated that the costs of electricity and gas upgrades / reinforcement will cost £6,340,000. They have also identified that the Yorkshire Water reinforcement will cost an additional £1,000,000. In contrast Wardell Armstrong has estimated that it would cost c£5,000,000 to connect Green Hammerton to the gas networks and a further £15,000,000 to provide the necessary electricity connections. Therefore, there is a cost difference of £13,660,000 between Wardell Armstrong and Energetics with respect to connecting the Green Hammerton site to the gas and electricity networks. Wardell Armstrong is confident in their costings, especially those for the electricity connections (at £15,000,000) as they are based on advice from a contact at Northern Powergrid. In comparison the costs and delivery issues for Flaxby would be somewhat reduced from those at Green Hammerton, as there is an existing supply to the Flaxby site.
There will also be substantial challenges in providing electricity connections to serve the proposed growth at Green Hammerton. In particular a connection to the existing Harrogate/Knaresborough network to the west (which it would appear is what Energetics are proposing) would need to cross the A1, but Northern Powergrid indicate this may be precluded due to logistical and installation costs and associated ongoing maintenance issues. The alternative would be to connect to transmissions systems coming from the bulk supply point in York. However, this network uses a different transformer configuration / vector ratio to surrounding areas (including Harrogate district) which would raise serious practical and maintenance issues for Northern Powergrid (a key issue is ‘dead switching in the event of a fault, when usually ‘live’ switching can be made without loss of supply).
As outlined previously Wardell Armstrong has estimated that the cost of providing electricity connections to Green Hammerton will be circa £15,000,000. In comparison Northern Powergrid has provided a budget cost of £4,370,000 to provide electricity connections at Flaxby. This is more than £10,000,000 cheaper than Green Hammerton. The ICS2 Report also states63 that Northern Powergrid has also indicated that the Flaxby site may be more suitable to the provision of temporary works and connections to supply the initial phases of development. This is a key issue for the Council, particularly given the anticipated shortfall of housing in the first 5 years of the plan.
As demonstrated in Table 10 the costs of providing new/reinforcing existing utilities, based on current information, is around £20m more for Green Hammerton than Flaxby.
Table 10 – Summary of Utility Costs Infrastructure Item Flaxby Green Hammerton New gas supplies / reinforcements £100,000 c.£5,000,000 New electricity supplies / reinforcements £4,370,000 £15,000,000 New potable water supplies / reinforcements tbc tbc Diversions £560,000 tbc64 Total Utility Costs £5,030,000 £20,000,00065
63 Refer to para 4.11 – Page 10 64 The costs for Diversions at Green Hammerton are likely to be considerable as demonstrated in paras 5.23 to 5.32
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It should not be forgotten that the provision of new gas and electricity infrastructure at Green Hammerton is also required over long distances and will inevitably have to cross land within multiple third party ownerships. This will add further costs to the installation of new supplies at Green Hammerton, further compounding viability, and could result in significant delays. This is a key issue for the Council, particularly given the anticipated shortfall of housing in the first 5 years of the plan, shown in the trajectory and confirmed in the Councils Housing Land Supply Update 2017, which confirms a 4.2 year supply
65 We note that Energetics costs are cheaper but we believe their costs to be considerably underestimated, In addition similar discounts could be applied to the electricity costs for Flaxby if the utilities are delivered by an IDNO notwithstanding the reservations and risks we have highlighted previously.
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6. Drainage
6.1 This section of the report examines the likely requirements for surface and foul water drainage66.
Surface Water Drainage
Flaxby New Settlement 6.2 Flaxby New Settlement already benefits from an established system of SuDs features (from its previous use as a golf course) to control surface water drainage. The proposed surface water drainage scheme will utilise the existing SuD’s and transfer all surface water to a central community attenuation and amenity area.
Green Hammerton 6.3 The Lichfield representations state67 that given the scale of the proposals managing surface water in order to ensure that there are no increases in surface water flood risk off site will be important. They confirm that the proposals will offer the opportunity to adopt a sustainable approach to surface water management, which will include Sustainable Drainage Systems (SuDs). It is further acknowledged that the masterplan will need to provide adequate space for above ground attenuation features and associated easements and maintenance strips. The most recent Great Hammerton Vision document also confirms that sustainable urban drainage systems will underpin a network of green spaces assisting with sustainable water management and providing rich habitats for wildlife.
6.4 The Preliminary Appraisal of Flood Risk (24th August 2017) prepared by Weetwood also confirms68 that SuDS will be accommodated within the proposed site layout. This is considered further within the Preliminary Surface Water Drainage Briefing note (August 2017). The costs of the SuDs and on site surface water network are included within Appendix 1 of the Deliverability Statement at £850,613 and £1,459,757 respectively.
Summary Flaxby already benefits from an established system of SuDs features, from its previous use as a golf course, to control surface water drainage. In comparison the total cost of providing SUDs and the on- site surface water network will cost £2,310,370 at Green Hammerton.
Foul Water Drainage
Flaxby New Settlement 6.5 Our client has funded Yorkshire Water Services (YWS) to undertake a feasibility study, which has confirmed that the site is remote from public foul sewerage and reinforcement of the network is likely to be required. A new sewage pumping station will be provided on site with a rising main to connect to the public sewer or suitable treatment facility. The foul sewage pumping station will be located to the south of the site where ground levels are at their lowest. YWS indicates that this solution is feasible but may require some investment at Harrogate South Water Treatment Works.
Green Hammerton New Settlement 6.6 The ICS2 Report confirms that significant reinforcement works are required for Green Hammerton and this is corroborated within Lichfield representations69. The scope of the potential off and on site reinforcement works are set out within Annex A to Mr Grime’s letter dated 6th April 2017. The works listed include:
Building outfalls to public foul (only) gravity sewers within highway zones (on site) Public main foul (only) gravity sewer network (on site); Public sewer pumping station subject to development levels (on site) Development outfall trunk gravity sewer (off site)
66 Wardell Armstrong LLP (WA) was commissioned to prepare a Flood Risk Assessment and Drainage Strategy, for the Flaxby New Settlement, in February 2017 and the reader is directed to this report for further detailed information. 67 Refer to Para 4.20 – Page 17 68 Refer to para 4.1.2 – Page 10 69 Refer to Para 4.16 – Page 17
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Trunk sewer routed to Kirk Hammerton waste water treatment plant (off site) Upgrade and expansion of Kirk Hammerton waste water treatment plan (off site); and Revise the Environment Agency’s Kirk Hammerton wastewater treatment water outfall licence.
6.7 The costs for the foul water drainage are included within Appendix 1 of the deliverability statement. The costs include £220,000 for a foul pumping station; £78,840 for an off-site sewer, and £853,500 for the on-site foul water network.
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7. Sustainable Energy
7.1 The Preliminary Utilities Survey confirms70 that ongoing discussions with Yorkshire Water, Independent Distribution Network Operators (INDO’s) and Independent Gas Transporters (IGT’s) will help identify the best mix of traditional and sustainability utility solutions moving forward. Options for the latter (sustainability utility solutions) are stated to include energy from waste and solar power both supported by battery storage and grey water reuse for communal areas.
7.2 The use of INDO’s / IGT’s and renewable energy sources seems to be in a direct response to reduce reliance on conventional energy sources due to the prohibitive costs of connecting to the gas and electricity networks. This is confirmed in the Lichfield representations which state71 there is an opportunity for sustainable energy production to be incorporated as part of the proposals. This would reduce reliance on conventional energy sources. The Lichfield representations confirm72 that that the options for renewable / alternative energies being explored as part of the proposals for Green Hammerton include:
Connection to the Allerton Waste Recovery Plant (AWRC) to provide a district heating system via a local energy centre73 Water re use74; Anaerobic digestion75; Photovoltaic panels supported by battery storage (the Lichfield representations state that Green Hammerton would also look to generate at least 50% of electricity demand via this alternative energy source)76.
7.3 The potential to provide /transfer heat from the Allerton Waste Recovery Facility to the Flaxby New Settlement are also being explored by our client. Eon has confirmed, in writing, their desire to provide community heating to the site (see Appendix 3). Our client is exploring this further as part of the Flaxby New Settlement proposal.
7.4 It is unclear whether the promoters of Green Hammerton are having similar discussions. However, it should be noted that the AWRC is more than 5km away from Green Hammerton but only c750m from Flaxby. Therefore, it is reasonable to assume that the costs of infrastructure from the AWRC to serve the district heating system will be considerably cheaper / more cost effective for Flaxby than Green Hammerton.
7.5 It should be noted that these alternative energy sources are relatively new and will be the subject of further feasibility work. In the event they are not feasible or viable solutions can’t be identified the options for providing connections to the gas and electricity networks at Green Hammerton (as identified at previously) are complex and the costs prohibitive, which could prove to be a ‘show stopper’ for Green Hammerton.
7.6 In comparison, the costs for connecting to the gas and electricity networks at Flaxby are less complex and significantly cheaper (more than £10m cheaper than Green Hammerton).
Summary
There is an implied assumption, within the Lichfield representations, that sustainable energy production will be incorporated into the Green Hammerton proposals in an attempt to reduce reliance on conventional energy sources. This would appear to be an acknowledgment of the significant costs and logistical issues that will need to be overcome in order to establish new gas and electricity supplies to Green Hammerton. Sustainable energy will also be incorporated into the Flaxby proposals, if viable, and Flaxby is, from a locational perspective, better placed to establish a district heating system using heat from the AWRP.
70 Refer to section 4. 71 Refer to para 4.23 – Page 18 72 Refer to para 4.24 – Page 18 73 Refer to para4.24 – Page 18 74 Refer to para 4.26 – Page 18 75 Refer to para 4.26 – Page 18 76 Refer to para 4.26 – Page 18
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Because these alternative energy sources are relatively new there is a risk they will be unviable or unfeasible, which presents a significant risk for Green Hammerton as it has already been established that there will be significant constraints (logistical and financial) in connecting the site to the electivity and gas networks.
In comparison the costs for connecting Flaxby to the gas and electricity networks are not insurmountable and are more economically viable than Green Hammerton. As a consequence the proposals for Flaxby are not reliant on alternative energy sources as it would appear is the case for Green Hammerton.
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8. Education
8.1 Within this section of the report we examine what education provision will be required in order to meet demand from each of the new settlements.
Primary
Flaxby New Settlement 8.2 Contributions will be required to enable North Yorkshire County Council (NYCC) to deliver primary school capacity to meet demand from the new development. NYCC has assessed that the scheme would generate a need for two new 420 place primary schools on site.
8.3 Harrogate Council has issued Guidance on Developer Contributions to Education Facilities (dated July 2016), which states that the total obligation will be based on a cost of £14,273 per primary place. However, NYCC has confirmed that this figure is incorrect and the contributions are actually based on a cost per primary school place of £13,596.
8.4 On this basis the cost of a new 420 space primary school is estimated to be in the region of £5,710,32077. Therefore, a combined cost for two schools is estimated to be in the region of £11,420,640.
8.5 As outlined later in this report the Diocese of Leeds has provided confirmation to our client of their willingness to develop primary schools at Flaxby at their own expense. Our client would provide them with the land.
Green Hammerton New Settlement 8.6 The ISC2 Report confirms78 that the nearby existing primary school has no space for expansion. The report goes on to recommend that the creation of a new settlement would enable 1 or 2 new modern primary schools to be provided within the site and would avoid placing further pressures on Harrogate and Knaresborough schools.
8.7 The proposals at Green Hammerton include for the provision of a 3FE all through primary school and a 2FE primary school. The Deliverability Assessment includes a cost of £9,630,000 for both schools which appears, on the face of it, optimistic.
Secondary
Flaxby New Settlement 8.8 NYCC has confirmed that a secondary school is not required on site. Instead the secondary education needs will be accommodated through an extension to Boroughbridge High School, where approximately 15 new classrooms will be required to serve the new settlement. NYCC has confirmed that a financial contribution will be required from the scheme based on a cost of £20,293 per secondary place. Assuming that each new classroom will accommodate 20 students the 15 new classrooms will accommodate a total of 300 students. On this basis the total financial contribution will be £6,087,900.
Green Hammerton New Settlement 8.9 The ISC2 Report79 states that the new settlement at Green Hammerton would feed Boroughbridge High School. The Deliverability Statement has included a cost of £6,200,000 based on 338 secondary school places.
Summary
Given the scale of development at both settlements is similar it is not surprising that the education costs are similar.
77 420 school places multiplied by £13,596 per space 78 Para 5.16 – Page 15. 79 Para 5.16 – page 15
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9. Public Green Space
9.1 Within this section of the report we examine the requirements for public green space.
Parks, Gardens and Natural/Semi Natural Greenspace
Flaxby New Settlement 9.2 In addition to any small areas of amenity land to be provided within the housing plots a large part of the site will be dedicated to public green space. The illustrative masterplan currently includes the following.
A central linear park stretching from the Old York Road south to the A59 and encompassing existing landscaped features of the former golf course. An arm of parkland will be provided to the west of the Central Linear park, again encompassing existing landscaped features of the former golf course, to allow the park to extend towards Flaxby and provide footpath links to both the northern and southern ends of the village; A further arm of parkland will be provided from the northern edge of Flaxby Covert through to the Allerton Heritage Walk. A northern linear park will also be created including a tree lined walk; Retention of the existing mature woodland copses (except for the areas required for the new access road in Flaxby Covet); Amenity landscape buffers around the west and southern boundaries are to be retained and enhanced through management and the introduction of additional appropriate species; An amenity landscaped buffer will be installed along the full length of the eastern boundary. This will be managed with some clearance to allow the introduction of new planting including coniferous species and allow the creation of a heritage trail (The Allerton Heritage Trail) with viewpoints and interpretation boards relating to the Park, The Temple and The Castle to the east. A landscaped setting will be created along the Old York Road to provide an attractive footpath and cycleway between Flaxby and the proposed village centre.
Green Hammerton 9.3 The original Great Hammerton Growth Area Vision identifies seven key design principles. One of these (Principle 6) is focussed on creating a generous landscape framework of green open space that surround and permeate the heart of the neighbourhoods, connecting the existing and future communities to the surrounding countryside. This is replicated in the more recent vision document.
9.4 Whilst it is not possible, at this stage, to estimate the costs associated with parks, gardens and natural/semi natural greenspace a lot of the public open space etc. is already in place at Flaxby due to its former use as a gold course. Therefore, it is reasonable to assume that the costs at Flaxby will be significantly lower than those at Green Hammerton.
Allotments
Flaxby New Settlement 9.5 The masterplan currently dedicates 2ha in the northern quarter for allotments. Typically allotments are 250sq.m in area meaning there would be a requirement for circa 68 plots assuming 85% of the total area. Typical costs for fencing, a water supply and equipment to move topsoil etc. are estimated to be in the region of £3,500 per plot. On this basis the total costs are estimated to be in the region of £238,000.
Green Hammerton New Settlement 9.6 It is also stated within the original Great Hammerton Growth Area Vision that orchards and allotments will provide opportunities for local food production. Given that both proposals will provide a similar number of dwellings it is assumed that the costs from Flaxby will be replicated for Green Hammerton.
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Playing Fields
Flaxby New Settlement 9.7 A large area of public open space has been dedicated in the northern quarter of the site. Within this area the masterplan identifies around 9ha (22 aces) as playing fields. For the purpose of this exercise we have assumed that this area will accommodate 6 turf pitches (for football and or rugby) and a turf cricket pitch. A natural turf cricket pitch (with 8 pitch square and 2 winter sports pitches) is estimated to cost £265,000. The cost of a senior football turf pitch is estimated to be in the region of £85,000. The cost for turf rugby pitches range between £100,000 and £115,000. For the purpose of this exercise we have assumed that three pitches will be football (at a total cost of £255,000) and three will be rugby (at a total cost of £345,000).
9.8 The costs are based on facility costs from Sports England. The total cost of the sports pitches are £865,000.
9.9 A sports pavilion/building is also proposed to serve the planning fields within the northern quarter. The facilities have not yet been determined but could range from a simple pavilion with changing rooms to a larger structure incorporating a range of indoor sports. For the purpose of this assessment we have assumed a cost of £630,000. The costs are based on Sport England’s facility costs for a 4 team changing room and club room of traditional construction.
Green Hammerton New Settlement 9.10 It is not clear whether the proposals include the provision of playing fields etc. However, because the proposals are of a similar scale, in terms of the total number of dwellings, we have assumed that the proposal will provide a similar level of provision to that proposed at Flaxby.
Summary
Whilst the proposals for public green space are less advanced for Green Hammerton it is assumed that the proposals will incorporate proposals which are similar to those identified for Flaxby,
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10. Delivery and Viability
10.1 In this section of the report we examine the deliverability of each new settlement. For planning purposes, footnotes 11 and 12 of the NPPF provides the following definitions of ‘deliverability.
10.2 NPPF (footnote 11) states that to be considered deliverable, sites should be available now, offer a suitable location for development now, and be achievable with a realistic prospect that housing will be delivered on site within five years and in particular that development of the site is viable. (emphasis added)
10.3 Footnote 12 of the NPPF states that to be considered developable, sites should be in a suitable location for housing development and there should be a reasonable prospect that the site is available and could be viably developed at the point envisaged (emphasis added).
10.4 The Planning Practice Guidance (PPG) advises that an assessment of availability, suitability and achievability should be made in determining whether a site is deliverable over the plan period.
Availability
10.5 As outlined in Section 3 there are no legal or landowner constraints to the delivery of the Flaxby new settlement. This has been acknowledged by Harrogate Borough Council in their New Settlement Report.
10.6 In comparison the land at Green Hammerton is fragmented and within multiple ownerships, including a large employer (Johnsons of Whilxley) who will require relocation. Significant compensation will be required to move their operations (estimated by our client to be c£6,000,000).
10.7 If the land is not assembled or question marks remain there can be no confidence of delivery. This is reflected in the New Settlement Report which identifies Flaxby as the most deliverable option – based on land ownership alone. Our client’s solicitors have undertaken their own research which evidences that the Green Hammerton promoter has agreements in place on less than 10% of the site area. This leaves over 90% of the site uncontrolled by the development promoter and in fragmented private ownerships meaning the promoter will be exposed to considerable acquisition costs, thereby, further undermining the viability of the proposals.
10.8 Whilst it may, ultimately, be possible to assemble all of the land within Green Hammerton there are doubts over whether this site can be assembled in a timely manner in order to deliver early in the plan period to help the Council meet its housing needs effectively. This is a key issue for the Council, particularly given the anticipated shortfall of housing in the first 5 years of the plan, shown in the trajectory and highlighted in recent appeal decisions, the most recent being Appeal Ref: APP/E2734/W/16/3150954 – Land at Orchard Close, Knaresborough.
10.9 In our opinion the single ownership is a major advantage of the Flaxby new settlement, which provides the greatest certainty of early and appreciable delivery in the first 5 years of the plan and continuing thereafter.
10.10 Whist it is considered that junction 47 of the A1 (M) has capacity to facilitate circa 400 units (whether they are delivered at Flaxby or Green Hammerton) it is acknowledged that traffic associated with the completed new settlement will result in the junction exceeding capacity meaning additional improvements will be required.
10.11 Whilst the additional mitigation works for Flaxby can be delivered on land owned or controlled by Flaxby Park Ltd and adopted highway land the works for Green Hammerton are likely to involve land outside of the promoters control and in multiple ownerships, thereby impeding the deliverability of these works and compromising the ability to deliver future phases of development.
10.12 In addition to land ownership issues Green Hammerton is not connected to the gas network meaning that any scheme at Green Hammerton (including an initial phase of development) will require either new infrastructure linking to the Immediate Pressure Network for York to the east, or would need to connect to the Harrogate network to the west. Both options would require installation of significant new
September 2017 40 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
infrastructure over long distances and would need to overcome complex practical and logistical issues, with the former having to cross the River Nidd and the latter having to negotiate crossing of the A1 (M). Although the issues are not considered insurmountable by NGN, the very major costs (circa £5m) and long lead in times involved would mean there would be significant uncertainty on how the gas infrastructure required to serve Green Hammerton would be funded and delivered. Once again this is a key issue for the Council, given the anticipated shortfall of housing in the first 5 years of the plan.
10.13 In comparison there is an existing gas supply which serves the Flaxby new settlement, which is capable of serving an initial phase of development before reinforcement works are needed. .
10.14 As a consequence, given the strategic importance of the new settlement to the delivery of housing, there is a significant risk that the growth strategy and overall vision and objectives of the Local Plan will fail if Green Hammerton is selected as the preferred new settlement.
Suitability
10.15 In terms of physical and environmental suitability, a full and detailed suite of technical investigations and reports have been undertaken (up to outline planning application level of detail) covering highways; landscape; heritage; ecology; flood risk; drainage; ground conditions; noise and air quality. All of these reports conclude that there are no limitations to the delivery of the Flaxby new settlement which cannot be overcome following appropriate mitigation, which has already been incorporated into the masterplan.
10.16 However, the ICS2 report identifies major delivery issues concerning gas and electricity for the Green Hammerton new settlement, which in our view could present ‘show stopper’ constraints in terms of delivery. Whilst it is acknowledged that there are issues to be addressed at Flaxby these are not insurmountable and are more economically viable (see later) than Green Hammerton.
10.17 The cost of providing electricity connections to Green Hammerton alone have been estimated at circa £15,000,000. In comparison Northern Powergrid has provided a budget cost of £4,370,000 to provide electricity connections at Flaxby. This is more than £10,000,000 cheaper than Green Hammerton. The ICS2 Report also states80 that Northern Powergrid has also indicated that the Flaxby site may be more suitable to the provision of temporary works and connections to supply the initial phases of development. This is a key issue for the Council, particularly given the anticipated shortfall of housing in the first 5 years of the plan.
10.18 It would appear that the site promoters are aware of these infrastructure constraints and are proposing to appoint an IDNO. Whilst IDNO’s can offer savings, by offsetting costs against owning the asset the house builders will be restricted on who they can connect their networks to and also the service connection and on site works must be carried out by the INDO. Wardell Armstrong has also advised that the IDNO process is used as a comparison to traditional route of utilities supply and at this stage, prices and opportunities can vary significantly; often IDNO’s have hidden costs that are not obvious until a detailed comparison is required to be carried out. This is confirmed within the Energetics quotation, with a caveat that their costs for the provision of electricity and gas reinforcements (net costs of circa £6.1m) are subject to review on receipt of a formal offer. It is our assertion, therefore, that Energetics has considerably underestimated their costs..
10.19 There is an implied assumption, within the Lichfield representations, also confirmed within the the Preliminary Utilities Survey that sustainable energy production will also be incorporated into the Green Hammerton proposals in an attempt to reduce reliance on conventional energy sources. This again would appear to be an acknowledgment of the significant costs and logistical issues that will need to be overcome in order to establish new gas and electricity supplies to Green Hammerton. However, because these alternative energy sources are relatively new there is a risk they will be unviable or unfeasible, which presents a significant risk for Green Hammerton as it has already been established that there will be significant constraints (logistical and financial) in connecting the site to the electivity and gas networks.
10.20 Sustainable energy will also be incorporated into the Flaxby proposals, if viable, and Flaxby is, from a locational perspective, better placed to establish a district heating system using heat from the AWRP.
80 Para 4.11 – Page 10
September 2017 41 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
However, if these are not viable the costs for connecting Flaxby to the gas and electricity networks are not insurmountable and are more economically viable than Green Hammerton. As a consequence the proposals for Flaxby are not reliant on alternative energy sources or INDO’s as it would appear is the case for Green Hammerton. Notwithstanding the risks of the IDNO approach, as outlined previously, this solution could also be adopted for Flaxby thereby reducing its utility costs.
Achievability
10.21 Neither our client (Flaxby Park Ltd) nor the promoter of Green Hammerton (CEG) are residential developers. Instead, their approach is to invest in the strategic infrastructure and then sell serviced development plots to the market.
10.22 Our client (Flaxby Park Ltd) has a strong track record of successfully delivering major strategic development on large complex sites. One such example is Wynyard (www.wynyardpark.com). Critically, these sites are all now positively delivering development on the ground at an early date following the grant of planning permission.
10.23 We would note that whilst the lead promoter of the Green Hammerton new settlement (CEG) has established a number of outline planning permission in the district (Manse Farm and Skipton Road)81, neither of these schemes have started on site. At Skipton Road, outline planning permission for 345 houses has been granted since 2014 with no reserved matters application(s) submitted at the time of writing (CHECK). At Manse Farm, outline planning permission exists for 600 houses, with no reserved matters application(s) for the housing element submitted
10.24 Whilst there may no doubt be reasons for this, and matters may well be progressing, the fact is that these two consents equate to 1.69 years of supply (at 557 per annum) with no houses yet 6.67 years’ worth of supply over the plan period attributed to a single promoter. In our view this could present delivery risks to the Council and begins to create the potential for a single promoter to control housing delivery across multiple sites which may undermine the Councils ability to meet needs effectively.
10.25 In terms of market attractiveness, it is GVA’s view that there will be strong demand for the development proposed; if the site is allocated and planning permission subsequently granted, then there can be a high degree of confidence in delivery by the market at an early date. This is supported by the Leeds office of Jones Lang Lasalle (JLL) which specialise in the regional residential market. Provided at Appendix 3 is correspondence by JLL82 which confirms that:
JLL have held detailed preliminary discussions regarding our client’s land with the majority of PLC and national house builders who operate in the region and other regional housebuilders. Without exception, JLL’s approaches have resulted in extremely positive responses and it is apparent that, were the site to be allocated as a new settlement, it would be considered to be the premier location to develop within the region. The interest that JLL has received indicates that the delivery of in excess of 2,500 houses in this location would be easily achievable. JLL’s professional view is that interest in our clients land, should it be marketed with a residential allocation, would be extremely strong.
10.26 National (Bellway Homes) and regional (Harron Homes) house builders have previously expressed their commitment in writing to delivering homes within a first phase (refer to Appendix 3 for copies of their correspondence). Subsequently our client has advised that both of these developers have now entered into legal contracts, subject to planning.
10.27 Additional housing will be provided at Flaxby on a phased basis, alongside additional infrastructure. JLL (supported by GVA) envisage that the site could accommodate at least three national house builders, a regional house builder and self-builders/custom builders all providing homes simultaneously and across multiple outlets. In this respect an assumed delivery rate of 150 dwellings per annum considered easily achievable in terms of market demand/developer appetite. A time line for envisaged planning and delivery is provided in Table 1183.
81 Details of the Schemes 82 Refer to letter from C Calvert Esq. Dated 31st May 83 Even if build rates were less than 150 dwellings per annum, given commencement, is immediately achievable it is clear that a substantial number of homes will be provided within the plan period including the first 5 years.
September 2017 42 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
Table 11 – Flaxby Indicative Timeline Stage Timing Local Plan Adoption Autumn 2019 Outline planning application including detailed Late 2019 phase 1 Determination of planning application Mid 2020 Start on site Late 2020 Housing delivery at 150 dwellings per annum 2021 - 2034 Completion (2,750 dwellings) 2034
10.28 As outlined previously JLL (supported by GVA) anticipate house building from multiple outlets delivering simultaneously along with self builds. Our client has confirmed that formal offers have been received from all the developers listed below.
Barratt Homes Persimmon Taylor Wimpey Avant Homes Linden Redrow Miller Kier
10.29 Evidence of firm house builder interest in delivering Green Hammerton is unknown. Although it is understood that Linden Homes and Loxley Homes have options on some land parcels within the overall site area.
10.30 In addition there is also clear evidence of delivery with respect to each element of the community / social infrastructure within Flaxby new settlement. In particular confirmation has been received from the following parties:
Letter from Eastgate Medical Group confirming interest in providing medical facilities to Flaxby New Settlement Email from team rector of Knaresborough confirming their interest in providing a place of worship Letter from village confirming their interest in providing a hotel with community uses (coffee shop public house, community restaurant, swimming pool, spa and gymnasium) in the village centre Letter from Places for People (care home operator) confirming their interest in the ‘retirement village’
10.31 In addition the Diocese of Leeds has provided confirmation to our client of their willingness to develop primary schools at Flaxby.
10.32 Copies of the correspondence from the various parties is included at Appendix 3
10.33 Evidence of interest of interest in delivering the community uses at Green Hammerton is unknown.
10.34 In terms of the self-build plots our client has a proven track record of delivering high quality self build plots at its exemplary new settlement site at Wynyard Park in Hartlepool and Stockton Borough Council and is keen to proactively deliver the same at Flaxby new settlement.
10.35 In view of the above it is clear that our client’s new settlement proposal will be delivered as soon as the planning process allows.
Viability
10.36 As outlined earlier our client (Flaxby Park Ltd) and the promoter of the Green Hammerton Scheme (CEG) are not developers. The basic principle is that both promoters will be able to recover their investment in the major site infrastructure through revenue generated from selling serviced residential development plots.
September 2017 43 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
10.37 Whilst both schemes include local centres incorporating a range of commercial uses we have limited our assessment of viability to the residential land because most of the infrastructure requirements and the majority of the developable land within both settlements is associated with the residential components therefore we have assessed the viability purely from the residential perspective.
10.38 For the purpose of this assessment we have used the residual valuation method to determine the anticipated revenue that could be generated from the serviced residential plots. The residual basis of valuation is explained further in the RICS Valuation Information Paper (VIP) 12 but in summary seeks to establish the residual land value by having regard to a pre-described range of circumstances / costs and values, including a predetermined level of profit. This can be expressed through the following simple calculation.
Gross Development Value (GDV) (minus) Total Costs ( including Developers Profit) = Residual Land Value
Gross Development Value includes all sales income generated by the development, including that from affordable housing; Total Development Costs include construction costs, professional fees, planning, finance / interest charges etc. Developer’s Profit is expressed by reference to a percentage of the Total Development Costs or Gross Development Value.
10.39 Assessing viability requires judgements which are informed by the relevant available information /evidence. It requires a realistic understanding of the costs and the value of development in the local area and an understanding of the operation of the market. However, there is no statutory guidance. The NPPF says ‘evidence supporting the assessment should be proportionate, using only appropriate available evidence’’ (emphasis added).
10.40 The development cost and value assumptions applied within our residual appraisals are set out in detail within Appendix 4.
10.41 The results of our appraisals84 demonstrate that the residual value (assuming development is policy compliant including affordable housing at 40%) of serviced development plots at Flaxby is circa £810,000 per acre (or £23,000 per plot). In comparison the residual value of serviced development plots at Green Hammerson is circa £650,000 per acre (or £18,500 per plot).
10.42 On this basis the total value expected from both settlements is summarised in Table 12. It is clear that whilst both schemes generate a significant amount of revenue Flaxby has the potential to generate significantly more revenue from the completed scheme (circa £35m more based on our appraisal). It should also be noted that the revenue projections for Green Hammerton are based on the full 2,774 allocation of dwellings whereas the figures for Flaxby exclude the retirement village and the apartments within the village centre.
Table 12 – Estimated Revenue from Sale of Serviced Plots House Type Flaxby Green Hammerton General Housing £45,632,00085 £51,319,00086 Self-build plots £34,250,00087 - Total Value £79,882,000 £51,319,000
10.43 Within Table 13 we have compared the estimated revenue with the cost of the cumulative infrastructure requirements to determine the ‘viability headroom’. The results of this exercise clearly demonstrate that the Green Hammerton proposals are unviable generating negative headroom of -£73.5m. In comparison Flaxby generates positive headroom of £34m.
84 Refer to our development appraisals included at Appendix 5 85 This is based off 1984 dwellings and excludes value associated with the Retirement Village and Apartments within the village centre 86 Based off 2,774 dwellings 87 This is based on a value of £250,000 per plot and reflects that values that are currently being achieved at Wynyard Park.
September 2017 44 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
Table 13 – Viability Analysis Item Flaxby Green Hammerton Notes Cost (£) Cost (£) A. Total Revenue £79,882,000 £51,319,000 Refer to Table 13 Relocation Costs - £6,000,00088 Acquisition Costs89 - Significant - tbc Infrastructure Costs Travel and Transport £21,750,000 £85,045,000 Utilities £5,030,000 £20,000,000 Drainage tbc £2,310,370 Sustainable Energy - - Education £17,508,540 £15,830,000 Public Green Space £1,733,000 £1,733,000 B. Cumulative Costs £46,021,540 £130,918,370 Headroom (A-B) £33,860,460 -£79,599,370
10.44 Whilst it is acknowledged that it has not been possible to capture all of the costs within this assessment any further costs identified for Green Hammerton will simply compound the viability issues. It should also not be forgotten that the promoters of Green Hammerton don’t control circa 90% of the site. Whilst theoretically it may, ultimately, be possible to assemble all of the remaining land within Green Hammerton, this assessment has demonstrated it would not be viable to do so raising serious doubts and risks over whether this site will even be brought forward for development.
10.45 In comparison the site at Flaxby is owned and controlled by a single promoter and there is significant headroom to accommodate any unforeseen costs. The revenue analysis in Table 9 does assume that affordable housing is provided at 40% but the Council doe accept they may need to consider a different affordable housing requirement for the new settlement.
10.46 Even if affordable housing is included at zero on Green Hammerton the scheme would still be unviable, generating negative headroom of circa -£46,000,000. At this point let’s not forget that Flaxby, based on current information, generates positive headroom of circa £34m assuming affordable housing at 40%.
10.47 In recognition of the Councils anticipated shortfall of housing in the first 5 years of the plan particular attention also needs to be given to the viability of the initial phase of development. As outlined earlier it is estimated that both proposals could feasibly deliver an initial phase of between 200 (Flaxby) and 285 (Green Hammerton) units.
10.48 The estimated revenue from this initial phase is shown in Table 14.
Table 14– Estimated Revenue from Initial Phase (400 units) of Development Flaxby Green Hammerton A. Total Revenue £4,600,000 £5,272,500
Enabling works for initial phase of development
10.49 The infrastructure items identified below will need to be completed prior to the construction / occupation of the first dwelling. The costs of these works will be recovered through the revenue generated from the initial first phase of development (See above).
10.50 As demonstrated in Table 15 the initial phase of development at Green Hammerton is not viable. However, the revenue projections assume affordable housing at 40%. If affordable housing is reduced to zero the value at Green Hammerton increases to circa £1,165,000 per acre (or circa £33,000 per plot). On this basis the total revenue would increase to £9,405,000 generating positive headroom of
88 Our client estimates that the cost of relocating Johnsons of Whilxley) will be circa £6,000,000, which is simply not necessary at Flaxby as the site is currently vacant and unused (and controlled by our client). 89 Our client’s solicitors have undertaken their own research which evidences that the Green Hammerton promoter has agreements in place on less than 10% of the site area. This leaves over 90% of the site uncontrolled by the development promoter and in fragmented private ownerships. The promoter will, therefore, be subject to considerable acquisition costs, thereby, further undermining the viability of the proposals. Flaxby is already in the control of our client.
September 2017 45 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
£775,000. If affordable housing is capped at 10% the initial phase of development at Green Hammerton would generate a small positive headroom of £205,000.
Table 15– Enabling Works for Initial Phase Item of Infrastructure Flaxby A. Total Revenue £4,600,000 £5,272,500 A59 junction improvements £1,200,000 new four arm roundabout on the A59 at the - c£2,000,000 junction with the B6265 Improvements to Cattal Station - £160,000 Foul pumping station - £220,000 SuDs attenuation basis – Phase 1 - c£250,000 Upfront education payment £1,000,000 £1,000,000 New gas supply - £5,000,000 Diversions £560,000 tbc B. Cumulative Infrastructure Costs £2,760,000 £8,630,000
Headroom (A – B) £1,840,000 -£3,357,50090
10.51 The positive headroom of £1.84m at Flaxby is generated assuming affordable housing at 40%.
Summary
Green Hammerton is not viable without significant reductions in affordable housing. Even if affordable housing is reduced to zero the entire scheme is still inviable. In contrast Flaxby generates positive headroom of circa £34m from the whole scheme assuming affordable housing at 40%.
Whilst the initial phase of development at Green Hammerton is viable this requires a reduction in affordable housing to 10% and even then the viability is only marginal at best. In addition the provision of new gas infrastructure may not be possible in a timely manner due to the fact it will need to cross multiple third party land ownerships. In contrast Flaxby generates significant headroom (circa £1.8m) of a much smaller scheme based on a policy compliant position with respect to affordable housing (i.e. 40%).
The negative viability is a direct consequence of the Green Hammerton location and the constraints which that location presents. They are unnecessary and avoidable at Flaxby.
90 This analysis excludes any costs associated with third party land acquisitions
September 2017 46 Flaxby Park Ltd Flaxby New Settlement – Viability and Delivery Report
20. Conclusions
20.1 It is our submission that Flaxby demonstrably performs stronger than Green Hammerton and there are some major disadvantages with the Green Hammerton option which mean it should be rejected. In brief summary these include:
That the land is in multiple ownership and all of the land within Green Hammerton does not appear to be completely assembled and available now. This is a key issue for the Council, particularly given the anticipated shortfall of housing in the first 5 years of the plan, shown in the trajectory and confirmed in the Councils Housing Land Supply Update 2017, which confirms a 4.2 year supply. The lack of 5 year supply is also highlighted in recent appeal decisions, the most recent being Appeal Ref: APP/E2734/W/16/3150954 – Land at Orchard Close, Knaresborough The major costs and threats to delivery (achievability) of infrastructure identified in particular gas and electricity supply); Green Hammerton is not viable even if affordable housing is reduced to zero. In contrast Flaxby generates positive headroom of circa £34m from the whole scheme assuming affordable housing at 40%. An initial phase of development would not be viable at Green Hammerton without reductions in affordable housing to circa 10% and even then viability is marginal at best. In contrast an initial phase of development at Flaxby is viable generating headroom of circa £1.8m.
20.2 Overall it appears that the proposals for Green Hammerton are significantly behind Flaxby in their evolution and suitability; in terms of land availability, technical assessment / suitability and crucially evidence of deliverability and viability compared to the alternative presented by Flaxby.
20.3 In our opinion Flaxby new settlement represents a superior option for the new settlement to Green Hammerton in respect of delivery and viability.
September 2017 47
Appendix 1 – Flaxby Masterplan
Drain ©Wildblood Macdonald Architects ltd. registered in England and Wales no. 8722626
Do not scale, use figured dimensionsDef only. All dimensions are to be verified and checked before the commencement of any shop drawings or work whatsoever, either on his own 45.4m LB 1.22m RH behalf or for sub contractors or suppliers. Any discrepancies must be reported to the Drain Architect immediately. This drawing is to be read in conjunction with all related architects', SHORTSILL LANE engineers' and specialist drawings and other relevant information. If printing from
Cottage electronic copies, ensure print scaling is set to "None" to ensure correct scaling of drawing.
Farm A 1(M) A 168
19 Mast Pond FB Treelow MS Ivy 13 Cottage Far Park 8
9 El Sub Sta Track
1.22m RH 6
9
Pump Cottage Boat House 47.8m 5
Pp 1 58.6m GREEN LANE 1
Tiger Pear Tree House Inn (PH) Co Const, ED & Ward Bdy Field Ivy House House 1.22m RH Pond Coneythorpe Elm Rowan Tree Lodge 1.22m RH 1.22m FF Cottage
Bramblewick Mowbrae High Fish Pond Tate's Plantation 1.22m RH Pond
1.22m RH
Pond Def
44.6m Pond
Drain
Pond Mill Hill 60
46.3m
1.22m RH RH 1.22m 1.22m 60.2m
Path 65 Gantry
SHORTSILL LANE Ten Low Field Pond Pond Co Const, ED & Ward Bdy 60
CG
Pp Spring Bank Farm
55 The Temple Ordnance Survey, (c) Crown Copyright 2016. All rights reserved. Licence number 100022432 Path
46.2m CG Golf Course Def 50 60 65 53.4m
Intakes 55 High Shortsill Ten Low Field
Low Shortsill
Def 45 Near Park New Park
43.8m Pond
YORK ROAD Def 44.2m
48.6m
Drain 46.5m Oakheads Hill Pond
49.5m CG
Flaxby Moor The Old MS School House West Lodge
46.5m Pond
YORK ROAD
45.5m 10 A 1(M) 50 Pond A 168
9 Policeman's Cottage
Hillside Cottage 8
Lilliel 49.5m 52.9m
Rivendell Flaxby
SHORTSILL LANE
Coney Way Flaxby Grange Cottage
Norbury Lodge
1 2
Woodmans
Cottages
Pond
Def GP Flaxby Grange
1 48.8m
1 FB
4
5 Gantry 3 Cedars Langshawe 6 LB Pond Treetops TCB Golf Course Drain The Grange Pond Fairfield
Pond Leemere Malham
1.22m RH Pond Four Winds Co Const, ED & Ward Bdy Path Magnolia 1.22m RH 1.22m RH
Fieldhead 4
Old Pump Cottage Pond Flaxby Park Lay-by Golf & Leisure
Centre 1 1.22m RH
Def FB CH Woodland View
Drain Gardener's Cottage
South Edge
Def BS Pond Pond
Pond
FB
Track
1.22m RH
Moor Drain YORK ROAD 47.7m 1.22m FF Flaxby Moor Pond
Drain
Allerton Grange Pond Gantry Sinks Pond 40.4m
Track Mast Pond Flaxby Moor Def School Cottage Tanks
Tanks A 168 Well FB
FB
Drain Drain Allerton Grange Farm Cottage
Pond
Factory Old Schoolhouse
43.8m Pond FB 37.7m
1.22m RH Flaxby Covert
FB
Depot Track
Depot 39.0m
34.5m
A 168
Drain
The Old Station House Ox Closes
Track A 59
Path (um)
Def
44.4m
FB FB White Rail Beck
Drain 1.22m RH Path (um)
Track
Lay-by
NORTH Def
Drain Pond
SS
1.22m FF
Path (um)
MP .5 Allerton Lay-by Moor
A 1(M) A 1(M)
A 168
Drain Drain Spring Wood A 1(M) Pond Ox Closes
1.22m FF
Path (um) Allerton Moor
Built Development Moor Drain Allerton
Drain Path (um)
FB Existing Woodland / Tree Planting Path (um)
Drain
Car Park
Signal Post Proposed Woodland / Tree Planting SCS
1.22m RH Goldsborough Fields Semi-Wild Greenspace White Rail Beck Flaxby Covert
MP .25 Track
SS Track H ȉȀ ͝͡ AJB 30/08/2017 Regularly Maintained Greenspace Drain WB southern boundary of site. Route revised to single bridge across to site south of proposed settlement site 1.22m Tk H
Drain Rev. Description. By. Date. Existing Ponds / Streams FB Drain Pond Works Proposed Ponds Chy
Track 1.22m FF Pond Track
Proposed Swales / Ditches Drain Tank Flaxby Moor Def Drain Client Existing / Proposed Mounding Drain Drain Flaxby Park Ltd
Project Proposed Tree Avenues / Individual Trees Track Proposed New Settlement at
1.22m RH Bayram Hill Flaxby Track Zone for Sports Building MP 13 Drain North Yorkshire
Drain SP Public Footpath/Cycleway New Cut Drawing Title Scale @ size Flaxby Wood Cottage Illustartive Masterplan 1:5000 @ A2
Alternative Foot/Cycle Bridge over A59 Drain Level Crossing Job No. Dwg No. Revision 2414 (SK)100 H Clearing for Art Area Pond Date drawn Status Drawn by Checked AUG 2017 SKETCH AJB MW Flaxby Green Park approved employment site MP.75 Wildblood Macdonald Architects Limited
Potential Alternative Locations for Rail Halt Def Parkhill Studio, Parkhill, Walton Road Double Dike
Pond Wetherby, LS22 5DZ Track
Drain t 01937 585225 f 01937 580329 Drain (Drain) Area for growth within Draft Allocation Consultation Track www.wildblood-macdonald.com Track Half Moon Plantation
Great Dike Level Crossing SD
Appendix 2 – Fore Consulting highway drawings/ plans
YORK
H'GATE
H'GATE
A59 THIS DRAWING IS THE PROPERTY OF FORE CONSULTING A59 C REGISTERED IN ENGLAND NO 7291952 COPYRIGHT RESERVED
A59 DO NOT SCALE N O T E S
1. PRELIMINARY LAYOUT SUBJECT TO FULL TOPOGRAPHICAL SURVEY & DETAILED DESIGN INCLUDING CDM COMPLIANCE, STATUTORY ADDITIONAL LANE TO BE PROVIDED AS PART UNDERTAKERS SEARCH, DIVERSION REQUIREMENTS, HIGHWAY DRAINAGE
OF THE FLAXBY GREEN PARK DEVELOPMENT PROVISION, LAND AVAILABILITY AND LOCAL AUTHORITY APPROVAL. YORK
H'GATE 2. THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ARCHITECTS,
H'GATE ENGINEERS & SPECIALISTS DRAWINGS AND SPECIFICATIONS. A59
A59
A59
YORK
A59
A1MS H'GATE
A59
A1M S A1M A59 H'GATE
YORK A59 A1M S
A 168 FREE FLOW LEFT TURN SLIP LANE TO
A59
BE PROVIDED YORK YORK
A1M S A59 H'GATE
A1M S A1M
H'GATE
A59 A59
CHANGES TO JUNCTION APPROACH AND CIRCULATORY AS NYCC / HIGHWAYS ENGLAND UPGRADE SCHEME
A59 A 59
H'GATE
A59 A1M S
H'GATE
A59
A1M S
A1M N A1M
H'GATE
A59 2 LANE EXIT AND MERGE ON SLIP ROAD
H'GATE A59 TO BE PROVIDED AS PART OF THE
FLAXBY GREEN PARK DEVELOPMENT
A1M N A1M
H'GATE
A59
H'GATE A59
A FLAXBY GREEN PARK DEV UPDATE 08/17 PJ CHANGES TO JUNCTION APPROACH AND REV DESCRIPTION DATE BY CIRCULATORY AS NYCC / HIGHWAYS ENGLAND UPGRADE SCHEME CLIENT: FLAXBY PARK LTD
PROJECT FLAXBY NEW SETTLEMENT
A59 Lay-by A59 DRAWING TITLE H'GATE POSSIBLE HIGHWAY IMPROVEMENT WORKS H'GATE YORK A59 / A1(M) ROUNDABOUT
PRELIMINARY
Fore Consulting Limited A59 2nd Floor, Queens House 34 Wellington Street A59 Leeds H'GATE LS1 2DE H'GATE 0113 2460204 YORK [email protected] www.foreconsulting.co.uk
Drawn by Checked by Date Scale Format PJ PI 2016 1:500 A1
Job Number Drawing Number Revision 3443 3443 SK001 03 - THIS DRAWING IS THE PROPERTY OF FORE CONSULTING C REGISTERED IN ENGLAND NO 7291952 COPYRIGHT RESERVED DO NOT SCALE N O T E S
1. PRELIMINARY LAYOUT SUBJECT TO FULL TOPOGRAPHICAL SURVEY & DETAILED DESIGN INCLUDING CDM COMPLIANCE, STATUTORY UNDERTAKERS SEARCH, DIVERSION REQUIREMENTS, HIGHWAY DRAINAGE PROVISION, LAND AVAILABILITY AND LOCAL AUTHORITY APPROVAL.
2. THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ARCHITECTS, ENGINEERS & SPECIALISTS DRAWINGS AND SPECIFICATIONS. DEVELOPMENT LOOP ROAD. TIE INTO ARCHITECTS MASTERPLAN AUTOTRACK VEHICLE DIMENSIONS:
PROPOSED ROUNDABOUT 13010 6150 WITH 40m ICD
DEVELOPMENT LOOP ROAD. TIE INTO ARCHITECTS MASTERPLAN
4480 1300 3600 6470 1330 1330 2870
EXTENSION OF EASTBOUND APPROACH 3.00 FLARE TO BE PROVIDED AS PART OF 7.30 2.00 FLAXBY GREEN PARK DEVELOPMENT FTA DESIGN ARTICULATED VEHICLE (1998) 7.30 3.00 OVERALL LENGTH 16.480M OVERALL WIDTH 2.550M OVERALL BODY HEIGHT 3.870M MIN BODY GROUND CLEARANCE 0.515M MAX TRACK WIDTH 2.470M NEW ACCESS ROAD LOCK TO LOCK TIME 3.00S TO DEVELOPMENT KERB TO KERB TURNING RADIUS 6.550M
EXIT FROM ROUNDABOUT TO BE WIDENED TO ACCOMMODATE DUAL CARRIAGEWAY Ox Closes
PEDESTRIAN / CYCLE CROSSINGS TO BE
PROVIDED AS PART OF WORKS APPROVED Def FOR FLAXBY GREEN PARK DEVELOPMENT
NEW FOOTWAY CONNECTIONS AND CROSSING FOOTWAYS TO BE PROVIDED AS PART OF TO LINK TO FOOTWAYS PROVIDED AS PART FLAXBY GREEN PARK DEVELOPMENT OF FLAXBY GREEN PARK DEVELOPMENT
MASTERPLAN 1:1000
FTA Design Articulated Vehicle (1998) FTA Design Articulated Vehicle (1998)
B FLAXBY GREEN PARK DEV UPDATE 08/17 PJ A UPDATED LAYOUT 05/17 PJ REV DESCRIPTION DATE BY
FTA Design Articulated Vehicle (1998) FTA Design Articulated Vehicle (1998) CLIENT: FLAXBY PARK LTD
PROJECT FLAXBY NEW SETTLEMENT
DRAWING TITLE PRIMARY A59 ACCESS ROUNDABOUT
FTA Design Articulated Vehicle (1998) FTA Design Articulated Vehicle (1998)
PRELIMINARY
Fore Consulting Limited 2nd Floor, Queens House 34 Wellington Street Leeds LS1 2DE 0113 2460204 [email protected] www.foreconsulting.co.uk
Drawn by Checked by Date Scale Format PJ PI 2016 1:1000 A1
Job Number Drawing Number Revision AUTOTRACK ANALYSIS 1:500 AUTOTRACK ANALYSIS 1:500 3443 3443 SK001 02 B THIS DRAWING IS THE PROPERTY OF FORE CONSULTING C REGISTERED IN ENGLAND NO 7291952 COPYRIGHT RESERVED DO NOT SCALE N O T E S
1. PRELIMINARY LAYOUT SUBJECT TO FULL TOPOGRAPHICAL SURVEY & DETAILED DESIGN INCLUDING CDM COMPLIANCE, STATUTORY UNDERTAKERS SEARCH, DIVERSION REQUIREMENTS, HIGHWAY DRAINAGE PROVISION, LAND AVAILABILITY AND LOCAL AUTHORITY APPROVAL.
2. THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ARCHITECTS, ENGINEERS & SPECIALISTS DRAWINGS AND SPECIFICATIONS.
YORK
Ox Closes
Def
DRAWING NO. 3443 SK001 02
YORK
H'GATE
H'GATE
A59
A59
A59
YORK
H'GATE
H'GATE
A59
A59
A59
YORK
A59
A1MS H'GATE
A59
A1M S A1M A59 H'GATE
YORK A59 A1M S
A 168 A FLAXBY GREEN PARK DEV UPDATE 08/17 PJ
A59
YORK YORK REV DESCRIPTION DATE BY
A1M S A59 H'GATE
A1M S A1M H'GATE A59 Ox Closes A59 CLIENT:
A59 A 59 H'GATE FLAXBY PARK LTD
A59 A1M S
H'GATE
A59
H'GATE
A1M S A59
H'GATE PROJECT FLAXBY NEW SETTLEMENT
44.3m
A1M N A1M
H'GATE
A59
H'GATE A59
DRAWING TITLE
A1M N A1M H'GATE
A59 POSSIBLE PRIMARY ACCESS & CHANGES TO A1/M1 H'GATE
A59 JUNCTION 47 KEY PLAN
A59 Lay-by A59 H'GATE H'GATE YORK PRELIMINARY
Fore Consulting Limited 2nd Floor, Queens House 34 Wellington Street A59 DRAWING NO. 3443 SK001 03 A59 DRAWING NO. 3443 SK001 04 Leeds H'GATE H'GATE YORK LS1 2DE 0113 2460204 [email protected] www.foreconsulting.co.uk
Drawn by Checked by Date Scale Format PJ PI 2016 1:1000 A1
Job Number Drawing Number Revision 3443 3443 SK001 01 A THIS DRAWING IS THE PROPERTY OF FORE CONSULTING C REGISTERED IN ENGLAND NO 7291952 COPYRIGHT RESERVED DO NOT SCALE N O T E S
1. PRELIMINARY LAYOUT SUBJECT TO FULL TOPOGRAPHICAL SURVEY & DETAILED DESIGN INCLUDING CDM COMPLIANCE, STATUTORY UNDERTAKERS SEARCH, DIVERSION REQUIREMENTS, HIGHWAY DRAINAGE PROVISION, LAND AVAILABILITY AND LOCAL AUTHORITY APPROVAL.
2. THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ARCHITECTS, ENGINEERS & SPECIALISTS DRAWINGS AND SPECIFICATIONS.
ADDITIONAL LANE TO BE PROVIDED AS PART OF THE FLAXBY GREEN PARK DEVELOPMENT
A59
H'GATE
A1M S A59
H'GATE
44.3m
2 LANE EXIT AND MERGE ON SLIP ROAD APPROACH WIDENED TO CHANGES TO JUNCTION AS NYCC APPROACH WIDENED TO TIE INTO EXISTING INCORPORATE TWO LANES / HIGHWAYS ENGLAND UPGRADE INCORPORATE TWO LANES A FLAXBY GREEN PARK DEV UPDATE 08/17 PJ A59 ALIGNMENT REV DESCRIPTION DATE BY SCHEME EXCEPT WHERE NOTED
CLIENT: FLAXBY PARK LTD
PROJECT FLAXBY NEW SETTLEMENT
DRAWING TITLE POSSIBLE HIGHWAY IMPROVEMENT WORKS A59 / A168 JUNCTION
PRELIMINARY
Fore Consulting Limited 2nd Floor, Queens House 34 Wellington Street Leeds LS1 2DE 0113 2460204 [email protected] www.foreconsulting.co.uk
Drawn by Checked by Date Scale Format PJ PI 2016 1:500 A1
Job Number Drawing Number Revision 3443 3443 SK001 04 A THIS DRAWING IS THE PROPERTY OF FORE CONSULTING C REGISTERED IN ENGLAND NO 7291952 COPYRIGHT RESERVED CONNECTION TO EXISTING YORK ROAD ALIGNEMT. CYCLISTS TO DO NOT SCALE RE-JOIN CARRIAGEWAY N O T E S
1. PRELIMINARY LAYOUT SUBJECT TO FULL TOPOGRAPHICAL SURVEY & DETAILED DESIGN INCLUDING CDM COMPLIANCE, STATUTORY UNDERTAKERS SEARCH, DIVERSION REQUIREMENTS, HIGHWAY DRAINAGE TYPICAL DIMENSIONS AT ROUNDABOUT TRAFFIC ISLANDS PROVISION, LAND AVAILABILITY AND LOCAL AUTHORITY APPROVAL.
TO CATER FOR CYCLISTS 2. THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ARCHITECTS, ENGINEERS & SPECIALISTS DRAWINGS AND SPECIFICATIONS.
13010 6150
3.0m SHARED CYCLE/FOOTWAY TO FOLLOW PROPOSED ALIGNMENT 4480 SHARED CYCLE/FOOTWAY TO 1300 3600 6470 1330 1330 2870 FOLLOW EXISTING YORK ROAD R0.50 ALIGNMENT
3.00 3.50 (min 3.0m) FTA DESIGN ARTICULATED VEHICLE (1998) OVERALL LENGTH 16.480M OVERALL WIDTH 2.550M OVERALL BODY HEIGHT 3.870M INFORMAL CROSSING MIN BODY GROUND CLEARANCE 0.515M POINT 5.50 MAX TRACK WIDTH 2.470M LOCK TO LOCK TIME 3.00S R0.50 KERB TO KERB TURNING RADIUS 6.550M
CROSSING POINT WITH KEY DROPPED KERBS & TACTILE PAVING PROPOSED SHARED CYCLE/FOOTWAY
FTA Design Articulated Vehicle (1998) FTA Design Articulated Vehicle (1998) TIE INTO MASTERPLAN PROPOSED ROUNDABOUT (40m ICD)
NEW SECTION OF 3.5m SEGREGATED CYCLE LANE
FTA Design Articulated Vehicle (1998)
TRANSITION TO SEGREGATED FOOTWAY/CYCLEWAY FTA Design Articulated Vehicle (1998)
ALIGNMENT OF EXISTING YORK ROAD TO BE RETAINED FOR USE BY CYCLISTS/PEDESTRIANS ONLY FTA Design Articulated Vehicle (1998) FTA Design Articulated Vehicle (1998)
A CYCLE LANE ADDED 05/17 PJ REV DESCRIPTION DATE BY
CLIENT: CONNECTION TO POSSIBLE FUTURE FLAXBY PARK LTD CYCLE ROUTE TO HARROGATE AND EXTENT OF KNARESBOROUGH. TO BE DELIVERED HIGHWAY WORKS PROJECT BY HARROGATE COUNCIL FLAXBY NEW SETTLEMENT
FTA Design Articulated Vehicle (1998)
PROPOSED ROUNDABOUT (60m ICD). ENGINEERING DRAWING TITLE LAYOUT TO BE CONFIRMED AT DETAILED DESIGN STAGE. POTENTIAL HIGHWAY ALTERATIONS TO YORK ROAD & ADJACENT INDUSTRIAL ACCESSES
FTA Design Articulated Vehicle (1998) OPTION 2
100m FLARE LENGTH 3.65m LANE WIDTHS P R E L I M I N A R Y
EXTENT OF Fore Consulting Limited 2nd Floor, Queens House HIGHWAY WORKS 34 Wellington Street Leeds LS1 2DE 0113 2460204 [email protected] www.foreconsulting.co.uk
Drawn by Checked by Date Scale Format PJ PI 2016 1:1000 A1
Job Number Drawing Number Revision 3443 3443 SK001 10 A
Appendix 3 – Letters of support
E.ON Connecting Energies UK Ltd. Westwood Way Westwood Business Park Mr Matt Johnson Coventry Park Plus Limited CV4 8LG Wynyard Park House eonenergy.com
Wynyard Avenue Jim Cleland Billingham, TS22 5TB T 0247 619 5474 [email protected]
Monday 24 October 2016
Dear Matt
Many apologies for the delay in responding back to you following our meeting.
I have had initial discussions internally with regards to the Flaxby project, specifically with our Community Energy Team. In terms of the project itself, E.ON would be happy to support you in developing the principles for the delivery of a Community Energy scheme for Flaxby. The key objective will be to provide the development with an energy efficient, low cost, low carbon energy solution utilising centralised energy generation and distributed energy networks.
As such a development would be led by Community Energy, their Head of Development, Richard Scott, will be in contact to discuss the next steps, to introduce you to the CE business and arrange a visit to the Cranbrook project. You can find details of CE’s activities and the Cranbrook development below.
https://www.eonenergy.com/for-your-business/community-energy https://www.eonenergy.com/for-your-business/community-energy/Community-energy- casestudies/cranbrook
In terms of how we move the project forward, once you have had an opportunity to review E.ON’s capabilities and experience in Community Energy, we would look to establish a joint development arrangement that would enable both parties to work towards developing a viable solution for the planned development, in a step by step way. E.ON UK Plc Registered in England and Wales No 2366970
Registered Office: Westwood Way Westwood Business Park 1 | 2
Coventry CV4 8LG
E.ON and CE would seek to develop, deliver and operate the energy centre(s) and networks designed to meet the energy demands of the Flaxby development. The development of which would seek to ensure that consumers benefit from cost beneficial energy delivered effectively through high quality customer services. This approach is based on E.ON’s experience in the delivery of energy to customers over many years.
To summarise, we would certainly be interested in working with you to develop the principles for the delivery of an integrated energy solution for Flaxby, based on a step by step approach that matches your own site development plans. The next step would be to introduce you to the Community Energy Team and the Cranbrook project.
With kind regards
Yours sincerely
Jim Cleland
Head of Development (UK) Industrial CHP Solutions (EEP)
2 | 2
From: G [mailto:[email protected]] Sent: 30 November 2016 14:42 To: [email protected] Subject: Flaxby Development
Dear Michael, our Christians Together in Knaresborough group met this lunchtime and would like to invite you to come and meet with us some time in the new year. Obviously timescales are known to you, so if you could generate a few dates when we will know about the viability of the proposal that would be super. There was some very real interest. I look forward to hearing from you Very best wishes Garry H
Flaxby Park Limited Wynyard Park House Wynyard Avenue Stockton on Tees TS22 5TB
Dear Mr Johnson
Flaxby Park Ltd (“FPL”) : Proposed New Settlement at Flaxby
We write to acknowledge our awareness and support of your proposals regarding the creation of a new settlement on the land that you own at Flaxby and to confirm our interest in working with FPL to develop a new Village Hotel that would serve the business and leisure needs of both the immediate local community and the wider Yorkshire economy.
As owners and operators of 3 hotels across the county (part of our national portfolio of 28) we know the local market very well. The continued growth of our network in strong locations across the UK is a core part of our ongoing strategy. We have now successfully built 3 new Village Hotels in the last 2 years (Edinburgh, Glasgow and Aberdeen) and have one further under development in Portsmouth. A site in a new settlement at Flaxby as is proposed would complement our regional and national network and as far as we can see no other site in the local region provides this level of potential.
The Village Hotel is a unique offer in the hospitality market as it was always designed to be at the heart of its community, focusing as much on the local population as residents who stay in the hotel. Village is much more than simply a place to stay as it provides a Starbucks coffee shop, a community restaurant, a public house, a swimming pool, spa facilities and a 2,000 member capacity gym alongside its more typical hotel offer of 120 bedrooms and associated function suites. Over and above the amenity that we provide to guests and residents alike a typical Village will create 120 local jobs for the community it serves.
We have long been aware of the site at Flaxby as a possible hotel location and the potential opportunity that could offer to a hotelier, lying as it does at that heart of Yorkshire but close to the main arterial road network. From our initial assessment, we consider that the development of Flaxby as a new settlement would create a strong environment for Village. From our perspective, as much of the infrastructure (i.e. the roundabout that provides access), is already in place it would allow us to accelerate and prioritise the delivery of an asset on the site and would also presumably accelerate the ability to deliver the housing needs for the area.
Lastly, we can also confirm we have direct experience of working with members of the FPL team in the successful delivery of 4 of our existing assets and would be eager to more fully engage with FPL and develop an asset on site, on an owned or leased basis, if it was allocated for development under the Local Plan. We would anticipate working closely with the FPL team through the master planning process to ensure that a Village Hotel is at the heart of the community and is consisted with the brand standards that we offer.
Village is one of the most innovative hotel companies in the market and has a unique offer to its customers. I look forward to working with FPL to bring one to Flaxby.
Yours Sincerely
Gary Davis Chief Executive Officer Village Hotel Group
Appendix 4 – Residual Appraisal Assumptions
Residual Appraisal Assumptions
The assumptions which have informed the residual development appraisals are set out below. It should be noted that the majority of these assumptions apply to both new settlements. The only exception is the sales values for the open market housing (private sales).
It should also be noted that our assessment is based on an indicative 1ha (2.4711 acre) development plot at an average density of 34.5dwellings per hectare for Flaxby and 30 dwellings per hectare for Green Hammerton.
Market Housing Mix
Flaxby New Settlement Draft Policy HS1 (Housing Mix and Density) of the Harrogate District Draft Local Plan 2016 states that the Council will seek to balance the housing market across the plan period and work towards a mix of housing identified in the Strategic Housing Market Assessment (SHMA). Draft Policy HS1 goes on to state that housing developments should, therefore, seek to deliver a range of house types and sizes that reflect and respond to the identified housing needs and demands of the Districts households.
The Strategic Housing Market Assessment (September 2015) identifies a need based predominantly on 2 and 3 bed roomed homes. Whilst the SHMA was updated in June 2016 the current document does not update the need / requirements for different sizes of homes. In the absence of any updated guidance (and recognising the update was published not long after the previous SHMA) we have made reference to the previous document.
Within this context the assessment has assumed that the market housing will be provided in the following proportions; 40% two bed, 45% three bed and 15% four plus bed.
Affordable Housing Mix
The Council published Planning Guidance90, in November 2015, to assist applicants in negotiating affordable housing contributions. This document makes reference to Policy H5 of the Harrogate District Local Plan (2001), which seeks a requirement of 40% based on schemes of 15 dwellings or more or 0.5ha or more, Policy HS2: Affordable Housing and Starter Homes of the Harrogate District Draft Local Plan 2016 requires 40% affordable housing on all developments,
The assessment, therefore, assumes that 40% of the total number of dwellings will be affordable91.
The Councils Planning Guidance stipulates that the affordable housing will be split 70% affordable rent and 30% intermediate housing for sale. Policy HS2: Affordable Housing and Starter Homes of the Harrogate District Draft Local Plan 2016 states that the final tenure mix of the affordable housing will be determined through negotiation taking account of up to date assessments and the characteristics of the area. For the purpose of this assessment we have assumed the mix specified in the Councils Planning Guidance (i.e. a split of 70% affordable rent and 30% intermediate housing for sale). It is assumed the intermediate housing for sale will be shared ownership.
In terms of the mix of the affordable homes the Planning Guidance states that affordable housing should be provided in the following proportions: 15% one bed units, 60% two bed and 25% three/four bed units.
Dwelling Sizes
Market Housing Units Draft Policy HS5 of the Harrogate District Local Plan 2016 requires that all new market homes should, as a minimum, meet the relevant Nationally Described Space Standards (NDSS). On this basis the following minimum gross internal floor areas have been included within the assessment; two bed (3 person house) at 70sq.m (753sq.ft); three bed (4 person house) at 84sq.m and 4 bed (5 person house) at 120sq.m92
90 Negotiating Affordable Housing Contributions – November 2015 91 It is noted, however, that the Council may need to consider a different affordable housing requirement for the new settlement and for specific strategic sites. 92 This higher than the NDSS but more aligned to the sizes currently being delivered in the market.
Residual Appraisal Assumptions
The assumptions which have informed the residual development appraisals are set out below. It should be noted that the majority of these assumptions apply to both new settlements. The only exception is the sales values for the open market housing (private sales).
It should also be noted that our assessment is based on an indicative 1ha (2.4711 acre) development plot at an average density of 34.5dwellings per hectare for Flaxby and 30 dwellings per hectare for Green Hammerton.
Market Housing Mix
Flaxby New Settlement Draft Policy HS1 (Housing Mix and Density) of the Harrogate District Draft Local Plan 2016 states that the Council will seek to balance the housing market across the plan period and work towards a mix of housing identified in the Strategic Housing Market Assessment (SHMA). Draft Policy HS1 goes on to state that housing developments should, therefore, seek to deliver a range of house types and sizes that reflect and respond to the identified housing needs and demands of the Districts households.
The Strategic Housing Market Assessment (September 2015) identifies a need based predominantly on 2 and 3 bed roomed homes. Whilst the SHMA was updated in June 2016 the current document does not update the need / requirements for different sizes of homes. In the absence of any updated guidance (and recognising the update was published not long after the previous SHMA) we have made reference to the previous document.
Within this context the assessment has assumed that the market housing will be provided in the following proportions; 40% two bed, 45% three bed and 15% four plus bed.
Affordable Housing Mix
The Council published Planning Guidance90, in November 2015, to assist applicants in negotiating affordable housing contributions. This document makes reference to Policy H5 of the Harrogate District Local Plan (2001), which seeks a requirement of 40% based on schemes of 15 dwellings or more or 0.5ha or more, Policy HS2: Affordable Housing and Starter Homes of the Harrogate District Draft Local Plan 2016 requires 40% affordable housing on all developments,
The assessment, therefore, assumes that 40% of the total number of dwellings will be affordable91.
The Councils Planning Guidance stipulates that the affordable housing will be split 70% affordable rent and 30% intermediate housing for sale. Policy HS2: Affordable Housing and Starter Homes of the Harrogate District Draft Local Plan 2016 states that the final tenure mix of the affordable housing will be determined through negotiation taking account of up to date assessments and the characteristics of the area. For the purpose of this assessment we have assumed the mix specified in the Councils Planning Guidance (i.e. a split of 70% affordable rent and 30% intermediate housing for sale). It is assumed the intermediate housing for sale will be shared ownership.
In terms of the mix of the affordable homes the Planning Guidance states that affordable housing should be provided in the following proportions: 15% one bed units, 60% two bed and 25% three/four bed units.
Dwelling Sizes
Market Housing Units Draft Policy HS5 of the Harrogate District Local Plan 2016 requires that all new market homes should, as a minimum, meet the relevant Nationally Described Space Standards (NDSS). On this basis the following minimum gross internal floor areas have been included within the assessment; two bed (3 person house) at 70sq.m (753sq.ft); three bed (4 person house) at 84sq.m and 4 bed (5 person house) at 120sq.m92
90 Negotiating Affordable Housing Contributions – November 2015 91 It is noted, however, that the Council may need to consider a different affordable housing requirement for the new settlement and for specific strategic sites. 92 This higher than the NDSS but more aligned to the sizes currently being delivered in the market.
Affordable Units The Councils Planning Guidance sets out minimum space standards of 60sq.m for the one bed units, 70sq.m for the two bed units and an average of 92.5sq.m for the three / four bed units. Policy HS5: Space Standards of the Harrogate District Draft Local Plan 2016 specifies that all affordable homes should, as a minimum, meet the relevant Nationally Described Space Standards (NDSS).
The minimum space standards set out within the Councils Planning Guidance are higher than those specified within the NDSS so for the purpose of this assessment we have applied the areas set out within the Councils Planning Guidance.
Standard Construction Costs
Standard construction costs93 inclusive of preliminaries, substructures and superstructures (but excluding external works) are included at £861psm (£80psf). No distinction has been made with regard to the cost of constructing the affordable dwellings.
Extra Design Related Costs
In accordance with Draft Policy HS1 (Housing Mix and Density) 10% of the dwellings will need to be built to accessible and adaptable standards (M4 (2): Category 2).
M4 (2) accessible and adaptable dwellings replaces and is the nearest technical housing standard to the previously recognised ‘Lifetime Homes’ standard. A study undertaken by EC Harris (on behalf of Department for Communities and Local Government) in September 2014 examined the cost impacts of the Housing Standards Review. The study concluded that the cost of providing Category 2 – accessible and adaptable dwellings would cost an additional (extra over industry practice) £520 and £523 per property for housing.
For the purpose of this assessment an average cost of £521.5 per property has been included. It should be noted that these costs exclude the costs of additional space associated with the access standard. The same report by EC Harris estimates these costs range between £1,444 (cost for an additional 2sq.m) and £2,166 (cost for an additional 3sq.m) per property for housing.
However, for private/market housing, the changes / increase in space standards can also have an impact on sales value which may offset some or all of the additional build cost. This fact was recognised within the EC Harris report which concluded that for relatively small areas (i.e. and additional 1sq.m to 2sq.m of floor space) 90% of the additional cost is recovered via sales values. However, the ability to recover the additional costs by increased sales revenue reduces as the amount of additional space increases.
Given that the extra space standards associated with M4 (2) are expected to range between 2sq.m and 3sq.m we have assumed that approximately 80% of the extra space related costs can be recovered.
Within this context and for the purpose of clarity the following costs have been incorporated into the assessment for M4 (2) – Accessible and Adaptable Dwellings.
Table1- Cost of providing M4 (2) Accessible and Adaptable standards Category Housing
Category 2 - access £521.5 Category 2 – access related space costs £361 Total Category 2 Accessible £882.5
It should be noted that for shared ownership and affordable rented housing there will be limited opportunity to offset the access related space costs through additional revenue. Therefore the costs have been included in full meaning the overall costs for affordable rent and shared ownership properties is£2,326.5 per dwelling.
93 The costs reflect compliance with Part L 2010 Building Regulations
External Works
As described previously the build costs do not include the cost for external works. Therefore, the assessment includes a further allowance for these items, which typically include plot specific works such as landscaping (turf, trees and shrubs, drives, pathways and hardstanding and fences etc.), estate roads and footpaths, drainage, street lighting, signage and statutory utilities.
As a rule of thumb a typical allowance for external works would be 10% of the base construction costs.
Professional / Project Fees
Many viability assessments incorporate an assessment of fees based upon a percentage of house building costs. For the purpose of this assessment professional fees are included at the rate of 6% (charged on the construction costs, including enhanced design costs, and external works).
Contingency
A contingency of 3% is included and charged on build costs (including enhanced design costs) and external works.
Sales Fees
Agent’s fees and marketing are included at the rate of 3% of the private sales income.
Sale Legal Fees
Sale legal fees are included at £1,000 per property.
Finance Rate
Most developers operate on the basis of a gross developer margin /profit which is inclusive of overhead and finance recovery. However, for the purpose of this assessment a precautionary approach has been adopted and a separate provision for interest has been included within the assessment.
It is often difficult to establish what an appropriate rate of interest would be. Current margins are substantial despite the exceptionally low base rate. It is not uncommon within viability assessments for interest rates to be included at a rate of between 6 – 6.5%, particularly for schemes which are to be delivered by local or sub- regional developers who do not typically benefit from the same advantageous funding facilities / terms as the volume house builders. The large PLC house builders may, for example, be able to access debt finance from a revolving corporate structure. On the other hand, smaller developers may be required to access debt finance on a site by site basis and their covenant strength is inherently weaker than the PLCs.
A finance rate of 6 % has been included within the assessment.
Profit
For the purpose of this assessment a blended profit equal to 20% of total GDV has been included.
Stamp Duty and Legal Fees on Residual Land Value
Stamp duty is included at the rates which are consistent with current HM Revenue and Customs requirements – see Table 7. A further allowance of 1.75% of the gross residual land value has been included within the assessments to cover legal (0.75% of site value) and agents (1.00% of site value) costs.
Table 2 - Stamp Duty Thresholds for Non-Residential / Mixed Use Land or Property Purchase Price Stamp Duty Land Tax Rate Up to £150,000 0% The next £100,000 (the portion from £150,001 to £250,000) 2% The remaining amount (the portion above £250,000) 5% Source: HM Customs and Revenue
Open Market Sales Values
To support the representations submitted in December 2016 JLL undertook research into the average sales prices achieved over the last 5 years in the areas surrounding Flaxby and Green Hammerton. The results of this work are still relevant today in view of the relatively short period of time since that has elapsed since this research was undertaken.
The results of the JLL research demonstrate that the average sales values in Flaxby, Goldsborough and Coneythorpe are higher than those in Green Hammerton, Kirk Hammerton and Cattall at £295psf and £265psd respectively.
JLL are also of the view that properties within the Flaxby New Settlement are likely to be in greater demand due to the proximity to Harrogate and Knaresborough than those on the eastern side of the A1 at the Green Hammerton New Settlement.
GVA share the views of JLL and their research findings, Therefore we have assumed sales values of £295psf for the Flaxby and £265psf for Green Hammerton.
Affordable Housing Transfer Values
The Councils Planning Guidance (Negotiating Affordable Housing Contributions – November 2015) specifies a flat value of £1,100psm to be applied to all property sizes and types of affordable housing.
Timings / Phasing
We have cash flowed the appraising assuming the following timescales.
• 6 month lead in period to the completion / sale of the first unit ; • Thereafter a construction rate based on a build to sales rate of 5 units per month; • The land value is to be paid upfront and prior to commencement of development
Affordable Units The Councils Planning Guidance sets out minimum space standards of 60sq.m for the one bed units, 70sq.m for the two bed units and an average of 92.5sq.m for the three / four bed units. Policy HS5: Space Standards of the Harrogate District Draft Local Plan 2016 specifies that all affordable homes should, as a minimum, meet the relevant Nationally Described Space Standards (NDSS).
The minimum space standards set out within the Councils Planning Guidance are higher than those specified within the NDSS so for the purpose of this assessment we have applied the areas set out within the Councils Planning Guidance.
Standard Construction Costs
Standard construction costs93 inclusive of preliminaries, substructures and superstructures (but excluding external works) are included at £861psm (£80psf). No distinction has been made with regard to the cost of constructing the affordable dwellings.
Extra Design Related Costs
In accordance with Draft Policy HS1 (Housing Mix and Density) 10% of the dwellings will need to be built to accessible and adaptable standards (M4 (2): Category 2).
M4 (2) accessible and adaptable dwellings replaces and is the nearest technical housing standard to the previously recognised ‘Lifetime Homes’ standard. A study undertaken by EC Harris (on behalf of Department for Communities and Local Government) in September 2014 examined the cost impacts of the Housing Standards Review. The study concluded that the cost of providing Category 2 – accessible and adaptable dwellings would cost an additional (extra over industry practice) £520 and £523 per property for housing.
For the purpose of this assessment an average cost of £521.5 per property has been included. It should be noted that these costs exclude the costs of additional space associated with the access standard. The same report by EC Harris estimates these costs range between £1,444 (cost for an additional 2sq.m) and £2,166 (cost for an additional 3sq.m) per property for housing.
However, for private/market housing, the changes / increase in space standards can also have an impact on sales value which may offset some or all of the additional build cost. This fact was recognised within the EC Harris report which concluded that for relatively small areas (i.e. and additional 1sq.m to 2sq.m of floor space) 90% of the additional cost is recovered via sales values. However, the ability to recover the additional costs by increased sales revenue reduces as the amount of additional space increases.
Given that the extra space standards associated with M4 (2) are expected to range between 2sq.m and 3sq.m we have assumed that approximately 80% of the extra space related costs can be recovered.
Within this context and for the purpose of clarity the following costs have been incorporated into the assessment for M4 (2) – Accessible and Adaptable Dwellings.
Table1- Cost of providing M4 (2) Accessible and Adaptable standards Category Housing
Category 2 - access £521.5 Category 2 – access related space costs £361 Total Category 2 Accessible £882.5
It should be noted that for shared ownership and affordable rented housing there will be limited opportunity to offset the access related space costs through additional revenue. Therefore the costs have been included in full meaning the overall costs for affordable rent and shared ownership properties is£2,326.5 per dwelling.
93 The costs reflect compliance with Part L 2010 Building Regulations
External Works
As described previously the build costs do not include the cost for external works. Therefore, the assessment includes a further allowance for these items, which typically include plot specific works such as landscaping (turf, trees and shrubs, drives, pathways and hardstanding and fences etc.), estate roads and footpaths, drainage, street lighting, signage and statutory utilities.
As a rule of thumb a typical allowance for external works would be 10% of the base construction costs.
Professional / Project Fees
Many viability assessments incorporate an assessment of fees based upon a percentage of house building costs. For the purpose of this assessment professional fees are included at the rate of 6% (charged on the construction costs, including enhanced design costs, and external works).
Contingency
A contingency of 3% is included and charged on build costs (including enhanced design costs) and external works.
Sales Fees
Agent’s fees and marketing are included at the rate of 3% of the private sales income.
Sale Legal Fees
Sale legal fees are included at £1,000 per property.
Finance Rate
Most developers operate on the basis of a gross developer margin /profit which is inclusive of overhead and finance recovery. However, for the purpose of this assessment a precautionary approach has been adopted and a separate provision for interest has been included within the assessment.
It is often difficult to establish what an appropriate rate of interest would be. Current margins are substantial despite the exceptionally low base rate. It is not uncommon within viability assessments for interest rates to be included at a rate of between 6 – 6.5%, particularly for schemes which are to be delivered by local or sub- regional developers who do not typically benefit from the same advantageous funding facilities / terms as the volume house builders. The large PLC house builders may, for example, be able to access debt finance from a revolving corporate structure. On the other hand, smaller developers may be required to access debt finance on a site by site basis and their covenant strength is inherently weaker than the PLCs.
A finance rate of 6 % has been included within the assessment.
Profit
For the purpose of this assessment a blended profit equal to 20% of total GDV has been included.
Stamp Duty and Legal Fees on Residual Land Value
Stamp duty is included at the rates which are consistent with current HM Revenue and Customs requirements – see Table 7. A further allowance of 1.75% of the gross residual land value has been included within the assessments to cover legal (0.75% of site value) and agents (1.00% of site value) costs.
Table 2 - Stamp Duty Thresholds for Non-Residential / Mixed Use Land or Property Purchase Price Stamp Duty Land Tax Rate Up to £150,000 0% The next £100,000 (the portion from £150,001 to £250,000) 2% The remaining amount (the portion above £250,000) 5% Source: HM Customs and Revenue
Open Market Sales Values
To support the representations submitted in December 2016 JLL undertook research into the average sales prices achieved over the last 5 years in the areas surrounding Flaxby and Green Hammerton. The results of this work are still relevant today in view of the relatively short period of time since that has elapsed since this research was undertaken.
The results of the JLL research demonstrate that the average sales values in Flaxby, Goldsborough and Coneythorpe are higher than those in Green Hammerton, Kirk Hammerton and Cattall at £295psf and £265psd respectively.
JLL are also of the view that properties within the Flaxby New Settlement are likely to be in greater demand due to the proximity to Harrogate and Knaresborough than those on the eastern side of the A1 at the Green Hammerton New Settlement.
GVA share the views of JLL and their research findings, Therefore we have assumed sales values of £295psf for the Flaxby and £265psf for Green Hammerton.
Affordable Housing Transfer Values
The Councils Planning Guidance (Negotiating Affordable Housing Contributions – November 2015) specifies a flat value of £1,100psm to be applied to all property sizes and types of affordable housing.
Timings / Phasing
We have cash flowed the appraising assuming the following timescales.
• 6 month lead in period to the completion / sale of the first unit ; • Thereafter a construction rate based on a build to sales rate of 5 units per month; • The land value is to be paid upfront and prior to commencement of development
Appendix 5– Development Appraisals
Flaxby New Settlement 35 Total Units Residual Model 21 Total Private Appraisal I 14 Total Affordable 40% 1 Total Site Area (Ha) acre 5.5 ha ITEM TIMING
Start Finish # of Months OK 1.0 Development Value Total # Units Size (NIA sq.m) £psf £psm 1.1 Residential New Build (Private Sales)
1.1.1 House Type 1 - 2 bed dwellings Nov-20 Dec-21 14 8 70 £295 £3,175 @ £222,282.02 per unit = £1,778,256 £1,778,256
1.1.2 House Type 2 - 3 bed dwelling Nov-20 Dec-21 14 9 84 £295 £3,175 @ £266,738 per unit = £2,400,646 £2,400,646
1.1.3 House Type 3 - 4 + bed dwelling Nov-20 Dec-21 14 4 120 £295 £3,175 @ £381,055 per unit = £1,524,220 £1,524,220
21 £5,703,122
1.2 Residential New Build (Affordable / Social Rent)
1.2.1 House Type 1 - 1 bed dwelling Nov-20 Dec-21 14 1 60 102 £1,100 @ £66,000 per unit = £66,000 £66,000
1.2.2 House Type 2 - 2 bed dwellings Nov-20 Dec-21 14 5 70 102 £1,100 @ £77,000 per unit = £385,000 £385,000
1.2.3 House Type 3 -3/4 bed dwellings Nov-20 Dec-21 14 3 93 102 £1,100 @ £101,750 per unit = £305,250 £305,250
9 £756,250
1.3 Residential New Build (Intermediate)
1.3.1 House Type 1 - 1 bed dwelling Nov-20 Dec-21 14 1 60 102 £1,100 @ £66,000 per unit = £66,000 £66,000
1.3.2 House Type 2 - 2 bed dwellings Nov-20 Dec-21 14 3 75 102 £1,100 @ £82,500 per unit = £247,500 £247,500
1.3.3 House Type 3 -3/4 bed dwellings Nov-20 Dec-21 14 1 120 102 £1,100 @ £132,000 per unit = £132,000 £132,000
5 £445,500
NET DEVELOPMENT VALUE £6,904,872
2.0 Development Costs 13 35 35 395 2.1 Residential New Build (Private Sales) Total # Units Unit Size (GIA sq.m) £ per unit £psm £psf
40% 2.1.1 House Type 1 - 2 bed dwellings Jun-20 Jul-21 14 560 8 70 @ 60,270 @ 861 £80.0 = £482,160 £482,160
45% 2.1.2 House Type 2 - 3 bed dwelling Jun-20 Jul-21 14 756 9 84 @ 72,324 @ 861 £80.0 = £650,916 £650,916
15% 2.1.3 House Type 3 - 4 + bed dwelling Jun-20 Jul-21 14 480 4 120 @ 103,320 @ 861 £80.0 = £413,280 £413,280
14 21 1,796 £1,546,356 19,333 2.2 Residential New Build (Affordable Rent) 9
15% 2.2.1 House Type 1 - 1 bed dwelling Jun-20 Jul-21 14 1 60 @ 51,660 @ 861 £80.0 = £51,660 £51,660
60% 2.2.2 House Type 2 - 2 bed dwellings Jun-20 Jul-21 14 5 70 @ 60,270 @ 861 £80.0 = £301,350 £301,350
25% 2.2.3 House Type 3 -3/4 bed dwellings Jun-20 Jul-21 14 3 93 @ 79,643 @ 861 £80.0 = £238,928 £238,928
9 688 £591,938 7,400 2.3 Residential New Build (Intermediate - Shared Ownership) 5
15% 2.3.1 House Type 1 - 1 bed dwelling Jun-20 Jul-21 14 1 60 @ 51,660 @ 861 £80.0 = £51,660 £51,660
60% 2.3.2 House Type 2 - 2 bed dwellings Jun-20 Jul-21 14 3 75 @ 64,575 @ 861 £80.0 = £193,725 £193,725
25% 2.3.3 House Type 3 -3/4 bed dwellings Jun-20 Jul-21 14 1 120 @ 103,320 @ 861 £80.0 = £103,320 £103,320
5 405 £348,705 4,360 35 2889 31093
2.1 Residential New Build Private Sales (M4 2 Standards) Total # Units £ per unit
2.1.1 Private Dwellings Linked to build costs 0 2 @ 883 = £1,853 £1,853
2.1.2 Affordable Dwellings Linked to build cots 0 2 @ 2,327 = £4,653 £4,653
4 £6,506
2.4 External Works
2.4.1 On plot external works Linked to build costs @ 10.00% £249,350
£249,350
Total Construction Costs £2,742,855
2.5 General Construction Contingency 108.13 1.799173327 @ 3% £82,285.66
2.6 Project Fees
2.6.1 Professional Fees (including surveys) Jan-20 Jun-20 6 @ 6.00% = £164,571 £164,571 2.6.3 Building Regs / NHBC Jan-20 Jun-20 6 @ £1,000 per property £35,000 £35,000
2.6 S106 and S278 Payments £199,571
2.6.1 Education Contribution - Single Form Entry Primary School 0 @ £0 2.6.2 Education Contribution - Secondary 0 @ £0 2.6.3 Green Infrastructure 0 @ per unit £0 £0 2.6.4 Cycling Link 0 @ per unit £0 £0 2.6.5 Infant Play - LAP 0 @ £0 2.6.6 Junior Play - LEAP 0 @ £0 2.6.7 Tennage Play - NEAP 0 @ £0 2.6.8 Two team changing facility 0 @ £0 2.6.9 Youth grass picth 0 @ £0 2.6.10 Adult 3G pitch 0 @ £0 2.6.11 4 team chaging facility 0 @ £0 2.6.12 MUGA 0 @ £0 2.6.13 Outdoor Tennis Courts 0 @ £0 2.6.14 Highways Contribution 0 @per unit £0
£0 2.7 Developer's Sales and Marketing Costs
2.7.1 Direct Sale Agents Costs - Private sales only Linked to sales programme £134,805 @ 1.75% = £99,805 £99,805 2.7.2 Direct Sale Legal Fees Linked to sales programme @ 1,000 = 35,000 £35,000 2.7.3 Marketing / Promotion - Private sales only Linked to sales programme @ 1.25% = £71,289 £71,289
£206,094
TOTAL DEVELOPMENT COSTS £3,230,806
2.8 Developer's Profit Profit (%GDV) @ 20% = £1,380,974.33
£1,380,974
2.9 Acquisition Costs / Residual Land Value Jun-20 Jun-20 1 Gross Purchase Price = £2,128,434 Jun-20 Jun-20 1 Stamp Duty @ = 95,922 Jun-20 Jun-20 1 Legal Costs @ 1.50% = £31,927 Jun-20 Jun-20 1 Disturbance £2,000,585
TOTAL PROJECT COSTS [EXCLUDING INTEREST] £6,740,214
TOTAL INCOME - TOTAL COSTS [EXCLUDING INTEREST] £164,658
2.10 Finance Costs Opening Balance APR PCM Interest 6.00% 0.487% -£164,658 Net Cashflow in month Closing Balance
TOTAL PROJECT COSTS [INCLUDING INTEREST] £6,904,872
Balance 0 Flaxby New Settlement 35 Total Units Residual Model 21 Total Private Appraisal I 14 Total Affordable 40% 1 Total Site Area (Ha) acre 5.5 ha ITEM TIMING
Start Finish # of Months OK 1.0 Development Value Total # Units Size (NIA sq.m) £psf £psm 1.1 Residential New Build (Private Sales)
1.1.1 House Type 1 - 2 bed dwellings Nov-20 Dec-21 14 8 70 £265 £2,853 @ £199,677.07 per unit = £1,597,417 £1,597,417
1.1.2 House Type 2 - 3 bed dwelling Nov-20 Dec-21 14 9 84 £265 £2,853 @ £239,612 per unit = £2,156,512 £2,156,512
1.1.3 House Type 3 - 4 + bed dwelling Nov-20 Dec-21 14 4 120 £265 £2,853 @ £342,304 per unit = £1,369,214 £1,369,214
21 £5,123,143
1.2 Residential New Build (Affordable / Social Rent)
1.2.1 House Type 1 - 1 bed dwelling Nov-20 Dec-21 14 1 60 102 £1,100 @ £66,000 per unit = £66,000 £66,000
1.2.2 House Type 2 - 2 bed dwellings Nov-20 Dec-21 14 5 70 102 £1,100 @ £77,000 per unit = £385,000 £385,000
1.2.3 House Type 3 -3/4 bed dwellings Nov-20 Dec-21 14 3 93 102 £1,100 @ £101,750 per unit = £305,250 £305,250
9 £756,250
1.3 Residential New Build (Intermediate)
1.3.1 House Type 1 - 1 bed dwelling Nov-20 Dec-21 14 1 60 102 £1,100 @ £66,000 per unit = £66,000 £66,000
1.3.2 House Type 2 - 2 bed dwellings Nov-20 Dec-21 14 3 75 102 £1,100 @ £82,500 per unit = £247,500 £247,500
1.3.3 House Type 3 -3/4 bed dwellings Nov-20 Dec-21 14 1 120 102 £1,100 @ £132,000 per unit = £132,000 £132,000
5 £445,500
NET DEVELOPMENT VALUE £6,324,893
2.0 Development Costs 13 35 35 395 2.1 Residential New Build (Private Sales) Total # Units Unit Size (GIA sq.m) £ per unit £psm £psf
40% 2.1.1 House Type 1 - 2 bed dwellings Jun-20 Jul-21 14 560 8 70 @ 60,270 @ 861 £80.0 = £482,160 £482,160
45% 2.1.2 House Type 2 - 3 bed dwelling Jun-20 Jul-21 14 756 9 84 @ 72,324 @ 861 £80.0 = £650,916 £650,916
15% 2.1.3 House Type 3 - 4 + bed dwelling Jun-20 Jul-21 14 480 4 120 @ 103,320 @ 861 £80.0 = £413,280 £413,280
14 21 1,796 £1,546,356 19,333 2.2 Residential New Build (Affordable Rent) 9
15% 2.2.1 House Type 1 - 1 bed dwelling Jun-20 Jul-21 14 1 60 @ 51,660 @ 861 £80.0 = £51,660 £51,660
60% 2.2.2 House Type 2 - 2 bed dwellings Jun-20 Jul-21 14 5 70 @ 60,270 @ 861 £80.0 = £301,350 £301,350
25% 2.2.3 House Type 3 -3/4 bed dwellings Jun-20 Jul-21 14 3 93 @ 79,643 @ 861 £80.0 = £238,928 £238,928
9 688 £591,938 7,400 2.3 Residential New Build (Intermediate - Shared Ownership) 5
15% 2.3.1 House Type 1 - 1 bed dwelling Jun-20 Jul-21 14 1 60 @ 51,660 @ 861 £80.0 = £51,660 £51,660
60% 2.3.2 House Type 2 - 2 bed dwellings Jun-20 Jul-21 14 3 75 @ 64,575 @ 861 £80.0 = £193,725 £193,725
25% 2.3.3 House Type 3 -3/4 bed dwellings Jun-20 Jul-21 14 1 120 @ 103,320 @ 861 £80.0 = £103,320 £103,320
5 405 £348,705 4,360 35 2889 31093
2.1 Residential New Build Private Sales (M4 2 Standards) Total # Units £ per unit
2.1.1 Private Dwellings Linked to build costs 0 2 @ 883 = £1,853 £1,853
2.1.2 Affordable Dwellings Linked to build cots 0 2 @ 2,327 = £4,653 £4,653
4 £6,506
2.4 External Works
2.4.1 On plot external works Linked to build costs @ 10.00% £249,350
£249,350
Total Construction Costs £2,742,855
2.5 General Construction Contingency 108.13 1.799173327 @ 3% £82,285.66
2.6 Project Fees
2.6.1 Professional Fees (including surveys) Jan-20 Jun-20 6 @ 6.00% = £164,571 £164,571 2.6.3 Building Regs / NHBC Jan-20 Jun-20 6 @ £1,000 per property £35,000 £35,000
2.6 S106 and S278 Payments £199,571
2.6.1 Education Contribution - Single Form Entry Primary School 0 @ £0 2.6.2 Education Contribution - Secondary 0 @ £0 2.6.3 Green Infrastructure 0 @ per unit £0 £0 2.6.4 Cycling Link 0 @ per unit £0 £0 2.6.5 Infant Play - LAP 0 @ £0 2.6.6 Junior Play - LEAP 0 @ £0 2.6.7 Tennage Play - NEAP 0 @ £0 2.6.8 Two team changing facility 0 @ £0 2.6.9 Youth grass picth 0 @ £0 2.6.10 Adult 3G pitch 0 @ £0 2.6.11 4 team chaging facility 0 @ £0 2.6.12 MUGA 0 @ £0 2.6.13 Outdoor Tennis Courts 0 @ £0 2.6.14 Highways Contribution 0 @per unit £0
£0 2.7 Developer's Sales and Marketing Costs
2.7.1 Direct Sale Agents Costs - Private sales only Linked to sales programme £124,655 @ 1.75% = £89,655 £89,655 2.7.2 Direct Sale Legal Fees Linked to sales programme @ 1,000 = 35,000 £35,000 2.7.3 Marketing / Promotion - Private sales only Linked to sales programme @ 1.25% = £64,039 £64,039
£188,694
TOTAL DEVELOPMENT COSTS £3,213,406
2.8 Developer's Profit Profit (%GDV) @ 20% = £1,264,978.63
£1,264,979
2.9 Acquisition Costs / Residual Land Value Jun-20 Jun-20 1 Gross Purchase Price = £1,703,072 Jun-20 Jun-20 1 Stamp Duty @ = 74,654 Jun-20 Jun-20 1 Legal Costs @ 1.50% = £25,546 Jun-20 Jun-20 1 Disturbance £1,602,872
TOTAL PROJECT COSTS [EXCLUDING INTEREST] £6,181,457
TOTAL INCOME - TOTAL COSTS [EXCLUDING INTEREST] £143,436
2.10 Finance Costs Opening Balance APR PCM Interest 6.00% 0.487% -£143,436 Net Cashflow in month Closing Balance
TOTAL PROJECT COSTS [INCLUDING INTEREST] £6,324,893
Balance 0