Les Waters Senior Manager, Licensing Email: [email protected] 22 July 2020 Company Secretary Network Rail Infrastructure Limited 1 Eversholt Street London NW1 2DN Network licence Condition 17 (land disposal): Coal Road, Auchinleck, East Ayrshire Decision 1. On 23 June 2020, Network Rail gave notice of its intention to dispose of land at Coal Road, Auchinleck, East Ayrshire (“the land”), in accordance with Condition 17 of its network licence. The land is described in more detail in the notice (copy attached). 2. We have considered the information supplied by Network Rail including the responses received from third parties consulted. For the purposes of Condition 17 of Network Rail’s network licence, ORR consents to the disposal of the land in accordance with the particulars set out in its notice. Reasons for decision 3. We are satisfied that Network Rail has consulted relevant stakeholders with current information and no objections were received. 4. In considering the proposed disposal, we note that: there is no evidence that railway operations would be affected adversely; Network Rail completed the process to remove the land from the strategic freight site list in 2018; and no other reasonably foreseeable railway use for the land was identified. 5. Based on all the evidence we have received and taking into account all the material facts and views relevant to our consideration under Condition 17, we are satisfied that there are no issues for us to address. 6. We have had regard to our decision criteria in Land disposal by Network Rail: The regulatory arrangements, October 2019,1 and balanced our section 4 duties given to us under the Railways Act 1993. In doing so we have given particular weight 1 Available from https://orr.gov.uk/__data/assets/pdf_file/0007/1996/land-disposal-regulatory-arrangements.pdf. Page 1 of 2 Head Office: 25 Cabot Square, London E14 4QZ T: 020 7282 2000 www.orr.gov.uk to our duty to exercise our functions in a manner which we consider best calculated to “protect the interests of users of railway services”. 7. We have concluded that the proposed disposal is not against the interests of users of railway services. In light of that and our understanding of the transaction as set out above, we grant our consent to the proposed disposal of the land. Les Waters Duly authorised by the Office of Rail and Road Page 2 of 2 2020-07-22 C17 land disposal Coal Road decision doc Property Disposal – Specific Consent Application by Network Rail Infrastructure Limited to dispose of land in accordance with the Land Disposal Condition of the Network License 1. Disposal Type of disposal Freehold sale of approximately 17,701 m2 of land to Cunninghame Housing Association. Rationale for disposal Cunninghame Housing Association who propose to develop the neighbouring site for social housing have approached Network Rail regarding the possibility of a freehold sale to extend and improve their development. This would allow Network Rail to dispose of an unused liability with very limited access thus reducing maintenance costs and producing capital receipt. 2. Clearance Type Reference Date CR/38264 Clearance Details Business Clearance Certificate No.46848 20-11-2018 Technical Clearance Certificate No.47546 16-01-2019 3. Site The site is located in the village of Auchinleck which lies 5 miles Description of property for southeast of Mauchline and 2 miles north west of Cumnock in east disposal Ayrshire. The site is located on the eastern outskirts of the village between the railway line and parallel with Back Rogerton Crescent with Coal Road bounding the right-hand side. The site of a disused railway is covered in trees and generally shrubland. Attached plans and photographs: Attached plans and photographs: Drawing No: 6839682 (all site plans should be in Auchinleck aerial.JPG JPEG format, numbered Auchinleck aerial2.JPG and should clearly show the L(20)SK1 Proposed Site Layout Feb 2019_rev A.pdf sites location approximate IMG_0207.JPG to the railway) IMG_0211.JPG IMG _0214.JPG IMG_0218.JPG Ordnance survey 2555534 EAST, 621925 NORTH coordinates Postcode : KA18 2AL 4. Proposal Proposed party taking Cunninghame Housing Association Ltd. disposal Proposed use / scheme Cunninghame Housing Association plan to develop the site for social housing and the purchase of this site would allow them to enhance their scheme and allow better access to local utilities. Cunninghame Housing Association was in the process of developing a scheme neighbouring Network Rail’s property. The initial request was to lay pipes under our property however through discussions with the proposed purchasers it was decided a disposal would be a better option as this would relieve Network Rail of a liability, produce capital income and any drainage works may diminish any future use of the property. The purchaser, a housing association, has already identified a lack of affordable rentable accommodation within the area. By acquiring this property this enables them to enhance their scheme of 56 dwellings by 25 properties to 81, with better access for residents to amenities within Auchinleck, an improved layout of the scheme and better access to mains utilities connections. The proposed development would be for social rentable accommodation and not for private dwellings to be sold on the open market. The housing association is a not-for-profit registered social landlord and charity who benefit from government grants. Proposed land disposal evaluation form – Version 5.0 20 January 2020 Access to Network Rail’s property is in isolation, very restrictive and Access arrangements to / should the purchaser proceed with their existing scheme would from the disposal land result in limited or no access to the property. As part of the revised scheme a new access would be obtained from Coal Road as part of the wider residential development. Replacement rail facilities Not applicable as no rail facilities would be lost as part of the (if appropriate) proposed disposal. Anticipated rail benefits include capital income to the network which Anticipated rail benefits can be re-invested. This sale also allows the disposal of an unused asset with its liability and maintenance obligations. Since the site was delisted as a strategic freight site and the very restricted access to the site there are no viable alternative railways uses. The sale agreement with the housing association will include a right of access from Coal Road for railway maintenance where previous access was not possible. It is proposed that the property is sold to a housing association and Anticipated non-rail benefits registered charity. This allows unutilised railway land to be made available for social housing. The proposed development would create good quality, affordable rentable accommodation for families which is much needed across the country. A residential scheme of this nature is also beneficial for the local businesses of Auchinleck. The purchase of the property allows the housing association to increase their rental income which can be re-invested elsewhere and reduce their spending on utilities infrastructure. 5. Timescales Comments on timescales It is anticipated that the purchase of the land will complete at the end of Spring 2020 subject to receipt of the ORR consent to the disposal. 6. Railway Related Issues History of railway related The proposed disposal area is a disused railway forming part of the use old Muirkirk Junction which ceased to operate in 1976 and has been redundant ever since and is not operational. The site was listed as strategic freight site but was delisted and consent was granted for this to be removed was granted on the 7th of February 2018. This section of track was used the Muirkirk branch serving towns When last used for railway such as Lugar and Cronberry however these stations were closed in related purposes the 1950s with the line in use until 1976 serving a colliery at Gasswater. Advanced plans existed to re-open the line from Auchinleck to an open-cast mine at Powharnel near Cronberry however these were eventually abandoned following the decision to close the power station this was to supply. Proposed land disposal evaluation form – Version 5.0 20 January 2020 Any railway proposals Following on from the clearance and consultation process we have affecting the site since that not been made aware of any such proposals. The proposed disposal last relative use area is heavily vegetated. There is no infrastructure on this site. Impact on current railway There are no known impacts on current railway proposals. Business related proposals and technical clearance has been granted within Network Rail with internal stakeholders consulted. Proposed land disposal evaluation form – Version 5.0 20 January 2020 Potential for future railway The Route Utilisation Strategy has been reviewed and this has not related use revealed any specific strategic plans that require the use of the disposal land. Any closure or station There are no closure, station or network change relating to this sale. change or network change related issues The site is remote from Auchinleck Railway Station which is approximately 0.75 miles away. Whether disposal affects This disposal would not affect any railway or operator access. any railway (including train operator) related access This sale does not affect any railway related access as most of the needs, and how these are property does not share a boundary with the railway, however a to be addressed in future servitude right of way will be agreed to ensure Network Rail can access through the newly developed residential scheme. The disposal includes arrangements under which Cunninghame Position as regards safety / Housing Association will install new boundary fencing along the operational issues on railway boundary and be installed under supervision from Network severance of land from Rail’s Asset Protection team.