planning report PDU/ PDU/2586/02 1 February 2012 Areas 7 and 1c, Canning Town London Thames Gateway Development Corporation (in the London Borough of Newham) planning application no. 11/00662/LTGDC Strategic planning application stage II referral (new powers) Town & Country Planning Act 1990 (as amended); Greater London Authority Acts 1999 and 2007; Town & Country Planning (Mayor of London) Order 2008 The proposal Outline application for the creation of a new town centre development within a series of buildings ranging from 4 to 18 storeys comprising residential (circa 1,100 units); retail (including foodstore); leisure, community and health; offices; live/work units; research and development/light industry; student accommodation; and hotel uses as well as detailed application for Phase 1 of the development. The applicant The applicant is Bouygues and the architect is Aecom and Haworth Tompkins for Phase 1. Strategic issues The outstanding issues relating to affordable housing, housing quality, density, inclusive design/lifetime neighbourhoods, student accommodation, transportation, and energy efficiency standards have been satisfactorily resolved. The Development Corporation’s decision In this instance the London Thames Gateway Development Corporation has resolved to grant permission but giving delegated authority for officers to refuse permission if the Section 106 agreement is not signed within a specified date. Recommendation That the LTGDC be advised that the Mayor is content for it to determine the case itself, subject to any action that the Secretary of State may take, and does not therefore wish to direct refusal. page 1 Context 1 On 10 May 2011 the Mayor of London received documents from Newham Council, on behalf of the London Thames Gateway Development Corporation (LTGDC) notifying him of a planning application of potential strategic importance to develop the above site for the above uses. This was referred to the Mayor under Category under Categories 1A, 1B, and 1C of the Schedule to the Order 2008: 1A “Development which comprises or includes the provision of more than 150 houses, flats, or houses and flats.” 1B ”Development (other than development which only comprises the provision of house, flats, or houses and flats) which comprises or includes the erection of a building or buildings outside Central London and with a total floorspace of more than 15 000 sq.m.” 1C “Development which comprises or includes the erection of a building that is more than 30 metres high and is outside the City of London.” 2 On 16 June 2011 the Mayor considered planning report PDU/2586/1, and subsequently advised the Corporation that the application did not comply with the London Plan, for the reasons set out in paragraph 112 but that the possible remedies set out in paragraph 114 of that report could address these deficiencies. 3 A copy of the above-mentioned report is attached. The essentials of the case with regard to the proposal, the site, case history, strategic planning issues and relevant policies and guidance are as set out therein, unless otherwise stated in this report. Since then, the application has been revised in response to the Mayor’s concerns (see below). On 12 January 2012 the LTGDC decided that it was minded to grant full planning permission in respect of Phase 1 on Development Parcel 1 and outline permission in respect to the remaining plots subject to conditions the completion of a legal agreement under Section 106 agreement and 19 January 2012 it advised the Mayor of this decision. Under the provisions of Article 5 of the Town & Country Planning (Mayor of London) Order 2008 the Mayor may allow the draft decision to proceed unchanged or direct the LTGDC under Article 6 to refuse the application. The Mayor has until 1 February 2012 to notify the LTGDC of his decision and to issue any direction. 4 The environmental information for the purposes of the Town and Country Planning (Environmental Impact Assessment) (England and Wales) Regulations 1999 has been taken into account in the consideration of this case. 5 The decision on this case, and the reasons will be made available on the GLA’s website www.london.gov.uk. Update 6 At the consultation stage the Corporation was advised that the application complied with the London Plan, for the reasons set out in paragraph 112 of the above-mentioned report; but that the possible remedies set out in paragraph 114 of that report could address these deficiencies: Affordable housing. Housing mix. Density. Housing quality. page 2 Student accommodation. Inclusive design. Climate change. Transport. Affordable Housing 7 At the initial application stage the quantum of affordable housing for the outline development was not provided with the application. The GLA required that a minimum level of affordable housing should be secured in any permission to ensure the application was compliant with the London Plan and that clarification on existing and previous residential use should be provided. 8 Since the stage 1 report the applicant has submitted a development appraisal to justify the proposed level and tenure mix of affordable housing that could be delivered as part of a viable scheme on a confidential basis. That appraisal has been independently assessed and verified by Jones Lang LaSalle on behalf of LTGDC. 9 The development appraisal and accompanying affordable housing statement concludes that, at this time, the development is only viable with affordable housing set at 30% (with grant) across the entire site and 27.5% (without grant except for Phase 1) across the entire site. However, subject to future viability and HCA grant funding, the proposed development could provide up to a maximum of 35% affordable housing. London Thames Gateway Development Corporation are satisfied that the details within the submitted development appraisal are robust and accurate for a scheme of this nature. 10 The proposed affordable housing tenure split across the entire site will deliver a 50:50 split between affordable rented and intermediate accommodation. The split within Phase 1 is weighted towards affordable rented accommodation; however this is balanced out through the later phases of the development. This detailed application comprises of 71 affordable units, including 51 affordable rent units and 20 intermediate units. Within Phase 1 this equates to 39.6% affordable housing. One Housing Group has been identified as the preferred RSL partner for Phase 1. The intermediate units will be provided within Block A1 and affordable rented units within Block A3 and 2 townhouses in Block A4. It is noted that the extra care accommodation has not been factored into the affordable housing percentages. 11 The London Plan (paragraph 3.75) states that, “In making arrangements for assessing planning obligations, boroughs should consider whether it is appropriate to put in place provisions for re-appraising the viability of schemes prior to implementation. To take account of economic uncertainties, and in respect of schemes presently anticipated to deliver low levels of affordable housing, these provisions may be used to ensure that maximum public benefit is secured over the period of the development”. Having considered the financial appraisal, LTGDC is content to accept the applicant’s commitment to provide a minimum of 30% affordable housing across the site, with re-appraisal, negotiation and review of each phase of development, prior to the implementation of any subsequent phase(s) of development. Further, in response to GLA comments that the Mayor is not consulted on reserved matters applications and will therefore not be afforded an opportunity to consider the level of affordable housing provided in the later phases. LTGDC and LBN officers have agreed to seek a minimum percentage of 30% across the whole site to be secured within the section 106 agreement – details of which are set out in paragraph 20. 12 GLA accept this approach to securing across site affordable housing provision and the application is compliant with the London Plan. page 3 Extra Care Accommodation 13 In addition to the above, the development also provides for extra care accommodation which is targeted at older people and is a form of retirement housing which can accommodate both independent living and personal care. The provision was supported by the GLA, although clarification was sought regarding whether this would be classed as C2 or C3 under the Use Classes Order as was classification as to whether these are to be counted as affordable units and the mechanism to ensure affordability. 14 Condition C3 part (b) which sets out the quantum of built floorspace and distribution on land uses in a table and identifies extra care as a Sui Generis use meets GLA concerns at the initial application stage. Housing Mix 15 At the consultation stage, the housing mix of the outline application was not provided and the GLA required that the applicant commit to a minimum level of family accommodation. 16 The issue with the housing mix was the applicant stated that planning permission is not being sought for housing mix as part of the outline application and that the precise housing mix for each development plot would be resolved during the reserved matters stage. As highlighted with the affordable housing provision, the applicant was informed that the Mayor is not consulted on reserved matters applications and would not have an opportunity to comment on the housing mix in line with the SPG. Any permission should set parameters for housing mix across the development, with particular reference to the level family accommodation. 17 The full consent for Phase 1 provides for the following mix of units: Bedroom Numbers Unit Numbers Percentage (%) 1 bed (2 person) flat 54 30.2 2 bed (3 person) flat 12 6.7 2 bed (4 person) flat 71 39.7 3 bed (5 person) flat 21 11.7 3 bed (5 person) town 14 7.8 house 3 bed (5 person) duplex 7 3.9 units Total 179 18 Within the presented mix 78.4% of the 2 bed 4 person and 3 bed 5 person units are allocated to affordable rented units.