PAPER C2

Purpose : For Decision

REPORT TO THE EXECUTIVE

Date : 24 MARCH 2005

Title : COWES WATERFRONT INITIATIVE – NEWPORT HARBOUR REGENERATION DELIVERY PLAN

REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES

IMPLEMENTATION DATE : 6 April 2005

SUMMARY/PURPOSE

1. To approve a development plan that combines redevelopment opportunities and an investment programme to be the economic regenerators for the Cowes Waterfront Newport Harbour area.

BACKGROUND

2. On 31 July 2003 the Isle of Wight Council as Planning Authority adopted Supplementary Planning Guidance for Newport Harbour and Cowes Waterfront.

This guidance sets the tone and vision for some exciting opportunities to reinvigorate the area as a “harbour side quarter” building on the restoration of the Quay Arts, the Jubilee Stores and the Riverside Centre.

3. Newport Quays are sited close to the town centre occupying both east and west river banks at the head of the River Medina estuary. The mouth of the River Medina is some 5 kilometres to the north. The aim of this regeneration project is to make the best use of assets through mixed development and environmental improvements for the benefit of the local community, tourism and boating interests.

4. The Delivery Plan for the regeneration of Newport Harbour is comprised in three key plans. These are:

(i) Newport Harbour Supplementary Planning Guidance (SPG).

(ii) Newport Harbour Public Realm Guideline.

(iii) Newport Harbour Delivery Programme.

5. The SPG is approved planning policy and a copy of this policy document is available through www.iwight.com. As for the Public Realm Guideline, this design guidance is now drafted. It deals with the redevelopment of public zones between individual development sites and will help inform future planning decisions.

6. This leaves the strategy for a Delivery Programme to be approved by the Council as landowner, and is set out in Appendix A for approval.

STRATEGIC CONTEXT

7. By enabling the regeneration of Newport Harbour the Council will be fulfilling several corporate objectives and goals of the Local Strategic Partnership’s Island Futures Plan. Importantly these include building a quality environment, promotion of the economy, economic development and creating a safer environment whilst also promoting tourism and leisure activities.

8. Collaboration with other agencies such as the Isle of Wight Economic Partnership (IWEP) and the South East England Development Agency (SEEDA) aims to create sustainable regeneration under the Cowes Waterfront Initiative. Regeneration of the Medina Valley is one of the top 4 priorities in the Area Investment Framework.

9. The comprehensive nature of the regeneration delivery programme will help to build confidence through investment in a high quality environment with the aim of attracting substantial private sector inward investment.

10. By working under the banner of the Cowes Waterfront Initiative the aim is to make Cowes, the Medina and Newport a place of distinction with a sense of wellbeing and an exciting destination attracting visitors and residents to a range of vibrant Quayside Quarters.

CONSULTATION

11. The public engagement and consultation for the Cowes Waterfront Initiative Newport Harbour SPG has ranged across all parts of the community. This consultation included two public exhibitions where questionnaires were circulated and those returned helped formulate the draft SPG. Meetings were also held with the Harbour Users Association, local landowners and elected members for Newport.

BUSINESS CASE

12. Using the SPG to regenerate Newport Quays also provides an opportunity to review the ongoing management and business plan for the area. This review commenced with a paper to the Executive on 10 March 2004 when it was decided to enter into negotiations with Cowes Harbour Commissioners for the management of Newport Harbour. Whilst discussions remain ongoing it is already clear that key future goals in the plan will need to include:

· Dredging the river channel down to the Folly to re-establish an improved navigable course. Estimated cost £250,000. This will need to be appraised in the context of the potential impact on the European Conservation designation and may not prove to be acceptable.

· Repair of harbour side walling. Provisional cost £450,000.

· Public Realm infrastructure investment with sustainable materials creating quality landscape spaces linking individual sites. Priced at £1,400,000.

· To create additional boat users facilities and moorings along most frontages.

· The retention of a controlling management interest in both the water area and the eastern embankment.

· Improved harbour income through high quality facilities and increased demand.

· The removal of coach parking.

13. Because third parties other than the Council own several sites on the western side of the harbour and as some of the harbour wall repair obligations can be passed to developers the overall renewal and improvement capital costs are likely to be in the order of £1,750,000. A commitment to these essential works is being recommended as a prerequisite to attracting inward investment. It will also be better placed in the earlier years of the project to invigorate confidence from private funding sources and developers. Without the clear demonstration of such a commitment developers will be much less inclined to proceed.

FINANCIAL/BUDGET IMPLICATIONS

14. The delivery programme set out below provides for a series of capital receipts generated from incremental land disposals over a development period of between 5 to 10 years. The minimum total capital income target is currently expected to be in the order of £4,000,000. The pace of disposals will proceed site by site the Council will know the size of likely income generation and will be able to plan environmental and structural improvements.

15. The Council will need to make a long term commitment to set off capital from receipts to fund the essential works to maximise the impact of economic regeneration. Whilst the whole programme is an incremental process the Council is being recommended to proceed on the basis of a 50% commitment from receipts in the first three years or until the programme of improvements are achieved and to receive progress reports every six months. The Executive will thus continue to take strategic decisions as to the direction of travel.

LEGAL IMPLICATIONS

16. The Council is a substantial landowner in the area of Newport Harbour. The proposed Delivery Programme seeks to utilise those land holdings to deliver a regeneration programme while, having regard to the Community Strategy, is consistent with the power to promote the economic, social and environmental well being contained with Part 1 Local Government Act 2000. Future reports will set out the legal implications of individual disposals.

OPTIONS

17. That the Council goes forward with the regeneration of the Cowes Waterfront Initiative Newport Harbour as outlined in this report by releasing for sale site 1, site 3 and site 4 named in the schedule appended with 50% of contracted capital receipts being used for repairs renewals and public realm investment.

18. That the Council sells all of the Local Authority property assets around Newport Harbour to one developer.

19. That the Council does nothing.

EVALUATION/RISK MANAGEMENT

20. The market demand for new building space by users and services will be varied during the life cycle of the regeneration delivery programme. As such the flexibility of an incremental approach to land sales will fit best with the aim to attract private sector inward investment. As the SPG provides for mixed use it will be preferable to allow the sites where the mix includes the stronger demand for residential use to come forward first to start regeneration momentum in front of purely commercial redevelopment sites. Therefore the sites at Carpenters Quay (site 1) and at Blackhouse Quay (site 3) provide the best opportunity to deliver quick wins and pump prime the delivery programme. Members will also recall the new boatyard lease arrangements that regenerate Odessa Boatyard (site 2) are in place and this work is underway.

21. The Vectis Building (site 4) is about to be vacated and has detailed planning consent for conversion to offices. It is surplus to Council requirements and is likely to provide the next opportunity to continue the regeneration momentum. The latest engineering advice unfortunately indicates that the refurbishment of the Vectis Building to modern standards that minimise flood risk and flood damage is not viable. As a result developers will be invited to bid for this site on the basis of an opportunity to clear the site and rebuild with new offices for sale or let. This new build approach will help make repairing this harbour wall frontage easier to undertake and allow the new building to be set back to allow improved public waterfront access.

22. To become a Quayside Quarter of distinction it will be necessary to develop a mix of activities supporting leisure, tourism and cultural development within a safe friendly night time economy. This will require forward planning on other sites in particular Seaclose Quay (site 6) and at Corporation Yard (site 8) at the heart of the Quays. To bring these sites forward it is further recommended that planning applications should be prepared and submitted to establish the use, scale and capacity of development to help further clarify potential opportunities.

23. Much of the ground fronting the Newport Quays has been reclaimed over many years from the original river flood plain and embankments. These parts have been built up by use of various infill materials then put to various industrial uses most of which have ended. This has left behind certain ground contamination that needs remediation work to be carried out prior to new development. There are also services deficiencies that need resolving. To address these issues specialist engineering reports have been produced and first time sewerage and first time water supply provision is commissioned. This will help inform developers, the Environment Agency and English Nature. Funding for these issues have been taken into account in the recommendations.

24. Marketing of sites shall ensure that all potential developers have the opportunity to put forward proposals in an open market competition with recommendations being brought back to the Council for a decision.

25. Bringing forward SPG, Public Realm Guideline and a Development Programme has taken several years. During that time development schemes have been proposed for several individual small and large parcels of Council owned land. However none of these schemes have promoted development embracing the totality of all sites because of mixed ownership varying site complexities and market demand. The Council should also consider whether or not to assemble all third part land ownerships to become one site for one developer. From discussions with those landowners the indications are that they wish to pursue improvements to their property through the SPG without the Council resorting to use of statutory powers. For these reasons development of the whole area by one developer is not being recommended.

26. Doing nothing will fail to secure private investment; fail to create permanent jobs; and miss the improvement of open spaces, the provision of commercial space and residential housing. Having now encouraged public aspirations for change through development doing nothing would not be viable.

RECOMMENDATIONS

27. That the Executive determines to deliver the regeneration of Newport Harbour by:

i) Adopting the Delivery Programme.

ii) Offering for sale within 6 months the sites identified with the Delivery Programme at Carpenters Quay, Little London Quay and Black Horse Quay.

iii) To review future reports proposing further property disposals and infrastructure investment.

iv) To recommend to Full Council future capital programmes which commit 50 % of capital receipts to find repairs, renewals and public realm investment within the Newport Harbour regeneration area, until the Delivery Programme is complete.

BACKGROUND PAPERS

28. Previous Executive Reports about Newport Harbour

ADDITIONAL INFORMATION

29. Professional advice about ground conditions, feasibility, harbour walls and marketing from Consulting Architects Engineers and Surveyors.

Contact Point : Tony Flower, Head of Property Services ' 823263.

TONY FLOWER Head of Property Services

REG BARRY Portfolio Holder for Resources

NEWPORT HARBOUR REGENERATION: DELIVERY PROGRAMME

INTRODUCTION

The Newport Harbour covers an area of some 10 hectares situated at the head of the Medina River estuary approximately 5 kilometres south of the main Cowes Waterfront development area. As part of the Cowes Waterfront Project the Newport Harbour offers the opportunity of regeneration through urban renewal and improvements on 10 sites plus the water. Land ownership is mixed as are liabilities, obligations and possibilities. In most parts infrastructure is either run down or completely absent.

Overall the total new development in terms of floor space will amount to some 20,000 square metres of new buildings and potential account for £20,000,000 of new investment to the area. The speed and capacity of this investment will be related to market conditions and investors confidence. As such given the size of development this is most likely to progress incrementally over a period of 5 to 10 years.

Given a regeneration period over many years and given the Council is the major landowner the Council needs to establish its strategic overview based on four themes, namely: the identification of opportunities; the development of infrastructure; the delivery of public realm investment linking individual sites; and release of Council assets. Proposals for each of the themes are set out below. These principles will guide and inform the ongoing Land Management for the regeneration and be the subject of periodic report and ongoing review.

1. OPPORTUNITIES

THE HARBOUR AS A NEW AREA

Newport Quays occupy an attractive and prominent waterfront location close to Newport Town Centre, close to public transport links and other amenities. During the last decade the area has begun to transform from redundant industrial use to new offices, leisure attractions and hotel. However, some parts still remain disused and detract from the general appearance of the area. Key sites have been identified as poorly utilised and providing an opportunity for comprehensive restructuring of the area to create a sustainable, integrated mixed use with a more vibrant and welcoming complexion. Important goals:

· Create a balanced land use with positive relationships.

· Respect established uses.

· Improve services to create a sustainable area.

· Raise the area’s profile to create an attractive and cultural destination.

· Encourage appropriate activities and attractions that add to the area’s vibrancy.

· Support local services and employment.

· Encourage wide ranging activities during the day, evening and weekend.

ACTIVE WATER USE

Redevelopment of this area presents an opportunity to maximise the benefit of a striking water frontage. Public access is important and there is an opportunity to improve public access through various links. Active ground floor uses and public accessible buildings will help and enliven the quayside spaces and create a lively destination. Important goals:

· Establish Newport Harbour as a vibrant, diverse, distinctive destination.

· Create generous open areas of public open space and public realm.

· Create new views and vistas.

· Organise streets to feel like a water frontage location.

· Re-establish greater harbour use through dredging.

· Seek provision of active ground floor uses.

· Repair harbour infrastructures such as walls and walkways.

· Promote leisure and art uses to enliven the area.

· Enhance key leisure, industrial and economic uses.

· Promote maritime, leisure and tourism related retail in addition to catering.

· Introduce mixed dwelling, type/sizes, affordable/key worker housing and mixtures of tenure.

· Establish opportunities for flexible living/work accommodation.

· Promote innovative public art and integration.

INTEGRATED AREA

Improving physical access to and around the harbour will create a significant amenity and attraction for the local community and visitors alike. Important goals:

· Create and improve connections to integrate with the wider area.

· Improve safe pedestrian accessibility along water frontages and particularly to cycleways.

· Break down barriers to pedestrianisation.

· Explore opportunities of physical links to both sides of the harbour.

· Rationalise signage.

RESPECT FOR HERITAGE

The historic development patterns, uses, mixes and maritime heritage have left Newport Harbour with a variety of buildings, features and materials of historic interest. The provenance of the area to visitors and its contribution to the town’s identity demands that new development compliments the historic setting. Important goals:

· Create high quality landscape reflecting the historic grain of the area.

· Seek to retain key structures.

· Use lighting to sympathetically enhance landmark sites.

· Improve interpretation of historic information.

CREATING A SAFE ACCESSIBLE ENVIRONMENT THAT PUTS PEDESTRIANS AND CYCLISTS FIRST

Important goals:

· Provide safe routes for pedestrians and cyclists.

· Encourage travel modes that make in town car transport unnecessary.

· Consider revised traffic management to achieve pedestrian priority.

· Create an accessible environment for people with special needs.

· Rationalise and integrate street furniture and signage.

· Improve public realm.

· Rationalise car parking.

· Examine access needs for emergency services and suppliers.

HIGH QUALITY BUILDINGS

Introduce high quality architecture. The quality of architecture in an area has a significant bearing on the quality of the environment and should be excellent, robust, adaptable and provide a positive legacy for the future. Important goals:

· Seek delivery of high quality, sustainable up-to-date architecture.

· Encourage innovative, inspirational world class buildings.

· Encourage competition of building design.

· Promote design collaborations.

· Buildings should be orientated and addressed to reinforce streets and spaces.

· Relate height and bulk of new buildings to surrounding buildings and landscape.

· Ensure buildings are robust and flexible as well as adaptable for a variety of uses.

· Seek sustainable building designs such as solar panels and south-facing windows.

· Ensure use of local/recycled materials from environmentally responsible and renewable sources.

2. INFRASTRUCTURE

The development of any new built environment places demand against building utility services and public services. Additionally today new development should be sustainable to either good or if possible excellent standards. Newport Harbour has deficiencies in several respects, namely:

· The remediation of different contamination levels on various sites.

· Safeguards that protect against flooding.

· Comprehensive power capacity provision.

· Foul water drainage treatment.

· The condition of harbour walls.

· Dredging of river siltration.

· Dry side boating facilities.

The Isle of Wight Council proposes that these deficiencies be a made good through the implementation of the following principles:

Remediation of Contamination

This is a matter to be addressed by the owner(s) of each site. On the eastern embankment the development of the new Hotel and the Riverside Centre has already remediated contamination on these sites. On the western embankment independent professional reports are available for Carpenters Quay and Blackhouse Quay. The Council will be happy to make these extensive reports available and it will be for the developers of these sites to undertake the remediation.

Flooding

The Council is liaising with the Environment Agency and the advice received generally for Newport Harbour is that:

· Highway drains must not have direct access into the adjacent watercourse.

· Clean surface water roof run off can be discharged into the River.

· Details of foul and surface water drainage arrangements for new buildings are likely to be requested at planning stage.

· A projected extreme sea level for the area of 3.2 metres above Ordnance Datum Newlyn should be allowed when setting design levels.

Power Supply

Both Southern Electricity and British Gas are aware of the regeneration proposed and adverse concerns have been made known.

Foul Drainage

On the eastern embankment a new pumping sewer has been installed with lateral connections available for each development sites. The pumping capacity is known and considered sufficient for the new development envisaged and schemes here will be subject to verification by the Council.

Unfortunately on the western embankment no public sewer is available. A solution is planned in conjunction with Southern Water for a public service to facilitate the area. Current estimates have costed the provision of the new sewer including associated works in the order of £320,000. The Council believes that by sharing this cost throughout all the developing sites this investment can be financed by new development.

3. PUBLIC REALM

There is a great opportunity to restructure the public realm throughout the harbour in a comprehensive and meaningful way. The creation of well designed, integrated spaces have a positive impact on the quality of the environment. Broadly the important goals are:

· Create a high quality urban form with a well defined landscape and positive relationships between buildings and spaces.

· Create attractive, safe, human-scale streets.

· Create a series of meaningful public spaces.

· Create a strategically positioned large public space for gatherings, performances and events.

· Enhance ground floor uses to enliven the quayside.

· Ensure overlooking of public spaces to promote natural surveillance.

· Seek to provide a broad integrated quayside promenade.

· Create distinctive street furniture and signage.

· Establish a rigorous public realm maintenance regime.

· Minimise on-site parking.

· Encourage provision of secure cycle parking.

4. PUBLIC INVESTMENT

The Council plans to invest some £1,750,000 in the Newport Harbour area over several financial years to improve and renew: the river channel to the Folly to re-establish an improved navigable course; repair of harbour side walling; invest in Public Realm infrastructure with sustainable materials creating quality landscape spaces linking individual sites; create additional boat users facilities and moorings along most frontages.

5. PROPERTY DISPOSAL/ DELIVERY PROGRAMME

The following location plan identifies individual development sites and by reference to each site number the table further below outlines the current programme details.

Description/Issues	Option/Risk	Action/Timing	Lead/Influence
Site 1 Carpenters Quay Mixed development site with public access ground floor and public access to river. For planning policy see SPG. A sketch scheme is drawn showing three retail units and twenty flats.	Ground conditions report available. New sewerage/sewer required. Council to retain mooring rights. Survey guidance on wall condition available. Details from EA available.	Open market freehold sale subject to repair of harbour wall frontage.	Isle of Wight Council (IWC) Property, Planning, Coastal Management Market conditions
Site 2 Little London Quay New Odessa Marine and Boat Yard. Detailed planning permission granted for refurbishment of buildings new infrastructure moorings and pontoons.	New sewer needed in part plus repairs to building and walls. Part of site owned by Odessa Marine part already leased. Odessa Marine produced new business case.	Business case has driven partnership between Council and Odessa for the surrender of existing lease and renewal of long term lease to enable investment.	Private investment by Odessa Marine. New lease granted and first stage of refurbishment underway.
Site 3 Black house Quay Major redevelopment site of 100 plus mixed residential live/work units and separate employment floor space. The scheme as drawn included a new hotel and countryside footpath and cycleway access.	Ground conditions report available. New sewerage/sewer required. Council to retain mooring rights. Survey guidance on wall condition available. Details from EA available. Three landowners.	Outline planning application being submitted. Land owners collaboration agreement is prepared. Marketing proposals in place to sell freehold to a major developer, subject to planning and planning agreement.	IWC Property, Planning and Coastal Management plus two third party private landowners Market conditions
Site 4 Vectis Building Seaclose Quay Disused two storey former offices and harbour stores all in poor condition. Outline planning permission is granted for conversion to about 100 squares metres of office accommodation.	A survey of the building is available as is a feasibility scheme. There is a new sewerage connection available plus some adjacent parking and other parking at Seaclose Park. Council is to retain mooring rights. Survey guidance as to the harbour wall condition also available.	The site will be marketed shortly on the open market by way of formal tender with the benefit of a draft 125 year lease proposal with bids being sought from suitable developers.	IWC Property, Planning and Coastal Management Market conditions
Site 5 Buildings Seaclose Quay Two former warehouse buildings in poor repair occupied by the Isle of Wight Classic Boat Museum Trust for classic boat display and boat/life boat renovation and storage. The museum is registered. The Belfast Shed is distinguished by its curved structural timber roof.	Both buildings require significant investment to attain modern standards. A new sewer connection is available and parking available at Seaclose Park to the south.	The Classic Boat Museum Trust has a short term lease enabling the exploration of options to sustain the museum as an Isle attraction. These options currently include relocation to Cowes Waterfront. A decision is expected shortly.	Classic Boat Trust, South East Economic Agency (SEEDA), IWC Museums Heritage.
Site 6 Land Seaclose Quay This is the site for a potential new build development with a public zone/access on the ground floor and with leisure/recreation/office use on floor(s) above,	Utility services are available and the site enjoys open aspects both east and west. A business case for development is to be proposed.	A proposal has been made to build a new facility including display/retail/meeting rooms and offices for a combination of voluntary organisations all sharing resources. Whilst a sketch drawing is prepared the organisations involved need time to build a business case.	Rural Community Council (RCC) SEEDA IWC
Site 7 Store Seaclose Quay This former covered yard is now a steel portal frame building clad in corrugated sheeting currently leased to the Classic Bus Museum Trust. This museum is currently considering its future.	The site has all services available but sewerage is yet to be connected. Given the Trust did relocate then the Council would need to consider whether or not to keep this building or clear the area. The form scale and appearance of this building may best be displaced to make way for boating facilities and over wintering of boats.	The Classic Bus Museum Trust has a short term lease enabling the exploration of options to sustain the museum as an Isle attraction. These options currently include relocation to Cowes. A decision is expected soon.	Classic Bus Museum Trust IWC Museum Heritage Land Owner Cowes
Site 8 Old Yard Corporation Quay This former Council Yard site is currently a temporary public car park and is identified for mixed development. This will be a key site fronting a proposed public square and events area. The building form envisaged will have public use/access on ground floor and possibly residential use above.	All services are available and a detailed development scheme has yet to be brought forward. The site is also temporarily used to park coaches on Tuesdays. The relocation of this use is being investigated currently.	The proposal is to market the freehold of this development site with the availability of a detailed planning brief.	IWC
Site 9 Sea Street Newport A key development site proposal with public access ground floor and possible offices over.	Details pending	Details pending	IWC
Site 10 Sea Street Newport Proposed residential development.	Details pending	Details pending	IWC
Site 11 Little London Newport Proposed mixed significant employment and some residential development.	Details pending	Details pending	Various private landowners
Site 12 Little London Newport Proposed mixed development with significant residential and some employment.	Details pending	Details pending	Various private landowners