PAPER B4

 

ISLE OF WIGHT COUNCIL DEVELOPMENT CONTROL COMMITTEE –

TUESDAY 14 MAY 2002

REPORT OF THE STRATEGIC DIRECTOR OF CORPORATE AND ENVIRONMENT SERVICES

 

 

 

TCP/13520/L   P/00287/02  Parish/Name:  Newport

Registration Date:  25/02/2002  -  Outline Planning Permission

Officer:  Mr. C. Boulter           Tel:  (01983) 823568

 

Outline for residential development & office accommodation

land at St. Cross Business Park, south of Lower St. Cross Farm and east of, Dodnor Lane, Newport, PO30

 

Members will recall that consideration of this application was deferred from the meeting on 23 April, at the applicant's request.  Since that date, a meeting has been held between Officers, the applicant and his agent as a result of which additional information is put forward.  The amendments to the report previously submitted are now set out in bold type.

 

Site and Location

 

Irregular shaped site of some 1.6 hectares, with frontage of 160 metres to Dodnor Lane and about 18 metres to Monksbrook.  Northern part of site (i.e. immediately south of Lower St Cross Farmhouse), has depth of some 43 metres, widening to a maximum of 105 metres roughly centrally on the Dodnor Lane frontage.  Northern part of site is currently occupied by barns and outbuildings formerly occupied in connection with Lower St Cross Farm.  Adjoining the site to the south are Enterprise House and the Innovation Centre whilst to the east is the remaining undeveloped part of the St Cross Business Park and, on the eastern side of a small stream and landscape corridor, buildings occupied by S P Systems.

 

Relevant History

 

Application for change of use of agricultural buildings south of Lower St Cross Farm to sales of sand, ballast, cement, ready mix concrete and plant hire submitted April 1995 and withdrawn in September of that year, without formal decision.

 

Development of a large part of current application site (excluding farm buildings in the north) and land to the south and east for industrial purposes granted outline consent in September 1996 with various detailed approvals for infrastructure provision and development of individual sites granted since that date.

 

Outline application for residential accommodation and speculative office building with access from Dodnor Lane and Monksbrook submitted June 1999 and withdrawn on 15 November 1999, prior to consideration by Planning and Countryside Committee on the following day.  

 

Outline for mixed use speculative office and executive housing development refused in April 2001 for reasons of policy, relationship between proposed residential accommodation and existing employment facilities.

 

Outline application for office and residential development recommended for conditional approval (with Section 106 Agreement regarding sequence of construction) but refused in April 2001 for reasons of policy and potential conflict between residential and industrial users.

 

Change of use of farm buildings (the buildings in the north west corner of the current application site) to Class B1 (Business) and/or B8 (Storage and Distribution) given conditional approval in August 2001.

 

Details of Application

 

Application is submitted in outline, with all matters reserved for future approval.

 

Site and proposal very similar to that refused consent in April 2001.  Current application site excludes a small car parking area fronting onto Morton Brook and although the same number of dwellings (twelve) is proposed, these are slightly rearranged and do not include the three "workshop" dwelling units previously considered.

 

Overall, proposal seeks consent for four separate office buildings giving some 2230 square metres gross of business floor space with associated car parking accessed from a new road constructed between Monksbrook and Dodnor Lane.  To the north of this new road would be the twelve detached dwelling units, of which six would front Dodnor Lane with vehicular access grouped in pairs.

 

As part of application, agent has submitted a series of comments together with separate document considering previous reasons for refusal.  Both these documents are attached for Members information.  A separate confidential financial appraisal has been submitted to explain why the development of the commercial floor space proposed requires the creation of twelve residential plots to cover the "gap" in funding.  Although not part of the public information, the appraisal is available for Members inspection at the Seaclose offices by arrangement with the Case Officer. 

 

The suggestion is that the development would be phased whereby at least 557 square metres of office space would be initially developed releasing the first six housing plots.  The actual numbers of housing plots released would depend on the floor space on the basis of one plot per 929 square metres of office space.  The next phase would be the construction of the next office block to a minimum of 1115 square metres in total with the release of the remaining house plots.  At that stage the infrastructure for the remaining office blocks would be done.

 

Development Plan Zoning and/or Policy

 

Majority of the site is within the development envelope for Newport defined in the Isle of Wight Unitary Development Plan and is allocated for employment purposes.  The northern extension of the site adjacent Dodnor Lane, currently occupied by former farm buildings (about 14% of the overall site) is outside the development envelope. 

 

Relevant UDP policies are:

 

S8 - Allocation of Employment Land.

 

G1 - Development Envelopes for Towns and Villages;

 

G5 - Development Outside Defined Settlements;

 

H4 - Unallocated Residential Development to Be Restricted to Defined Settlements;

 

H9 - Residential Development Outside Development Boundaries;

 

C1 - Protection of Landscape Character;

 

E3 - Resist Development of Allocated Employment Land for Other Uses;

 

E4 - Mixed Uses to Promote Employment Development;

 

TR16 - Parking Policies and Guidelines.

 

Although not within, site is, at its nearest, some 40 metres from the boundary of the Medina Valley SSSI.

 

Representations

 

Highways Engineer recommends conditions if approved. 

 

Chief Environmental Protection Officer recommends refusal because of potential for disamenity to residential occupiers through relationship with existing and proposed employment uses.  Has advised consultation with Environment Agency.

 

Contaminated Land Officer has no adverse comment.

 

Senior Planning Officer (Development Plan) sees no reason to determine application differently from previous decisions to refuse.  Policy issues arguably stronger since adoption of the UDP.

 

Isle of Wight Partnership welcomes further offices at St Cross but is extremely concerned at any residential development on site.  Not justified as relationship between houses and commercial could lead to conflict and recent commercial success suggests market might support speculative development in the near future.  Partnership therefore cannot support application.

 

Property Services Manager has taken consultant's advice which is that the financial assessment submitted by the applicant is valid; costs subsidy analysis broadly valid; there will be a market for the houses proposed bearing in mind location and anticipated selling prices.

 

Environment Agency has no objection in principle, but suggests conditions regarding surface water disposal, should application be approved.

 

The Head of Economic Development comments that St Cross Business Park has become successful and has enabled Island to attract new businesses and support growth of existing companies.  From an economic development perspective he concurs with views of Isle of Wight Economic Partnership that new office development of type proposed is to be welcomed.  It would compliment business park environment and provide additional and much needed modern accommodation.  Central issue to be resolved is that of residential use as enabling element of overall proposal.  Whilst there are examples on the Island where such development has been allowed, he considers this should only occur where demonstrably necessary and where planning policy would support such action.  In this application this is a matter which falls to the discretion of the Committee taking into account Council's planning policies. 

 

Letter on behalf of nearby manufacturing company lodging vehement objection on grounds of:

 

Gross violation of current planning guidelines;

 

Neglect of duty to protect needs of industry on Island;

 

Unemployment in manufacturing at crisis point;

 

Site is only employment land left at St Cross if new building as shown on application plan goes ahead;

 

Other companies on St Cross looking to expand - application site would be most appropriate place;

 

S P Systems has B2 classification, this was prime reason for relocating to St Cross - should residential development go ahead complaints from residents may limit industrial activities contrary to the aims of employment allocation in the UDP; and

 

Sets out information from PPGs 4, 12, 23 and 24 to support objection.

 

Two letters from three residents of Dodnor Lane and one letter signed by twenty one residents of Riverview Park, objecting on the following grounds:

 

Points out several errors in application form;

 

No objection to office buildings;

 

Precedent for residential use of employment land if approved;

 

If there is demand for offices as applicants claim, should be no difficulty in financing without need for houses;

 

Change to character of lane by access to houses;

 

Loss of hedgerows and habitat;

 

Additional traffic intolerable on lane 12 feet wide;

 

No pavements in Dodnor Lane and therefore hazard to pedestrians, including children who may live in new houses;

 

Change of use from farm buildings should not be a back door for residential use of site;

 

Offices built by applicants which are still vacant so question need for more;

 

Bullen Village is not the same and should not be regarded as precedent;

 

Most recent redundancies in manual not office jobs;

 

Thirty square metre reduction of office space proposed compared with 2001 refusal;

 

Loss of workshops from three plots have reduced by 180 square metres employment potential; and

 

Office buildings south west of Monksbrook shown on earlier submission now replaced by large industrial building - at least some of earlier office space could be located on land proposed for housing.

 

One correspondent has requested that his letter is read out to Members at the meeting.  This letter is attached in full as an appendix to this report and Members' instructions are requested as to whether it should be read out as well.

 

Evaluation

 

The notes and comments submitted by the applicant's agent in conjunction with this application are attached for Members information and should be given due consideration.  Particular reference is made to the approval for change of use of existing farm buildings in the northern part of the site, that mixed development schemes have previously been approved at Westridge/Bullen Cross, that tenants of existing office buildings on the site are ready to move on and recent job losses on the Island make it even more critical that office development is forthcoming.

 

The question of the approval for the farm buildings will be addressed later in this report.  The mixed development at Westridge/Bullen Cross is seen to be a different circumstance in that the employment floor space being created was not speculative in nature but was required for named occupier/developer.  Members may equally recall the attempts to secure by Section 106 Agreement a link between residential development on employment land at Teknacron to allow the company to relocate, which have apparently been unsuccessful.  Similarly, if tenants of existing buildings are coming to the stage where they need to move on, then arguably a firm market is created therefore avoiding the need for speculative development and with some certainty of return from investment.  Whilst it is of course important to look at the overall picture, in terms of recent job losses, this is exactly what the UDP does in its allocation of employment land and Members must consider whether the type of mixed development now proposed is appropriate for such employment allocations.

 

The notes submitted on the applicant's behalf in relation to policy in my view simply confirm which policies have been referred to in the previous reason for refusal and recognise that the Council must use its discretion in accepting whether development meets policy requirements or not.  They invite Members to consider that the proposal meets certain policy requirements and that, where it may be said not to meet policy, to apply different weight to these factors in determining the application.

 

The financial appraisal submitted on behalf of the applicant is an essential part of the submission and is required under Policies E3 and E4, which have been set out in considerable detail in reports prepared in connection with previous applications and submitted to Members in November 1999 and April 2001.

 

Applicant's agents confirm that SEEDA will not subsidise the speculative office development proposed and therefore housing, as a means of cross subsidy is the only method by which the required floor space can be provided.  The financial appraisal submitted by the applicants, which has been analysed by the Property Services Manager's agent who concludes that:

 

"..... within the terms of reference and limitation of this assessment, that the financial information submitted is valid and accurately reflects land values which might be expected from the types of use proposed.  The cost subsidy is therefore considered to be broadly valid and I believe there is a market for the type of housing proposed, bearing in mind particularly its location, proximity to other industrial units and the anticipated selling prices."

 

I would therefore accept, as set out in the report to Members in April 2001, that the financial appraisal is soundly based and the proposal will not result in excessive developer profits, should it proceed on the basis as submitted.

 

However, this is not the only criterion which must be adopted in determining the application, and indeed when Members refused the previous application it was recognised that excessive developer profit would not occur.  However, it was resolved that the Officers "on balance" recommendation for refusal should not be accepted, because Members considered that the development outside the development envelope defined in the Deposit Draft UDP was not justified and that furthermore the proposal did not meet all the necessary criteria of Deposit Draft UDP Policies C1, E3, E4, G1, G5(h), G10, H4 and H9.  Notwithstanding the previous recommendation for approval, Members must now consider whether the proposal as submitted overcomes those policy objections reflected in the reasons for refusal of the previous application.

 

The application still involves development of dwellings outside the development envelope and no other alterations have been provided in answer to the reasons for refusal, other than an invitation from the applicant's agent to afford different weight now than in the previous determination.

 

In my view, there is a difference between the current application and that previously refused in that the previous application was supported by the Isle of Wight Partnership, but the current application is not.  Similarly, although the Principal Planning Officer (Policy) did not actively support the previous application, he did consider that the provisos of E3 and E4 would need to be met and appropriate conditions imposed.  He did point out that part of the site was outside the development envelope/employment allocation and that a different design/layout solution could achieve development wholly within the envelope.  The Principal Planning Officer (Policy) now sees no reason to determine the current application differently from the previous decision to refuse and indeed suggests that policies are now arguably stronger since the formal adoption of the UDP.  The previous report recognised that although not all criteria of E3 and E4 were complied with, there may be benefits to the Island economy through the "kick-starting" of office development on this site and Members must once again give due consideration to this issue.

 

It must however be pointed out that the refusal decision of the Local Planning Authority is a material consideration along with the current views of the Partnership and the views of the Principal Planning Officer (Policy).

 

The applicant's agent has suggested that the consent for conversion of the farm buildings in the north of the site to employment uses has "changed the balance of the application" from that which was previously refused.  I do not agree with this view.  If the applicant's agents view were accepted, any group of farm buildings which receives consent for conversion to employment use would then be appropriate for demolition and development for residential purposes, without policy objection.  To accept this argument in my view stretches the interpretation of Policy C17 beyond breaking point.

 

In conclusion, notwithstanding the fact that the submitted financial information is realistic and acceptable, the previous objections to the proposal expressed in Members reasons for refusal of the earlier application and particularly bearing in mind the expressed opposition from the Isle of Wight Partnership, the Chief Environmental Protection Officer and the Principal Planning Officer (Policy) do not render the proposal acceptable in policy terms.  I therefore continue to recommend refusal, for the same reasons as adopted in respect of the previous application, determined in April 2001.

 

At the meeting on 29 April, the applicants undertook to submit additional information in writing, which Officers agreed to incorporate into a revised report which would also address in more detail points raised in the letter submitted with the original application and which were copied to Members with the original report.

 

A major issue is the fact that the Officer's recommendation for this application is for refusal, whilst that for the previous application considered by Committee was for approval.  The major reason for this change is two-fold.  First of all, Members decision to refuse the previous application is a part of the planning history and a material consideration in determination of this and other subsequent applications on the site and that a major consultee (The Isle of Wight Partnership) now takes the opposite view from that expressed when it supported the earlier proposal.  Whilst the applicant has his own ideas as to why the Partnership has changed its stance on this proposal, and has asked that Members should be informed, that is not, in my opinion a material consideration in determining this application.  The fact remains that the views of the Isle of Wight Partnership are important in determining this application and it is not for the Planning Authority or its Officers to investigate the reasons for this change of view.

 

The applicant and agent point out that SEEDA is unable now to offer any financial support or grant aid for this type of development.  A copy of a letter from SEEDA to the applicant has been provided and whilst pleased to note the proposal to develop, without assistance, the north east corner of the St Cross Business Park as a mixed use development, SEEDA confirms it has no direct or intended interest in the site for this proposal other than requiring the development to continue to be in accordance with the high design standards and quality already delivered at St Cross Business Park.

 

Additional funding will be necessary to "bridge the gap" if this high standard is to continue.  There is a demand for purely industrial units but the applicants view, and this is a view which Members may share, is that this would compromise the high standards of development achieved on the rest of the site.  Whilst speculative office developments on the mainland are supported by rental values of between £18 and £20 per square foot, Island rates (£12 - £13 per square foot) do not justify the risk of speculative development.

 

The area outside the development envelope, which is identified as a reason for refusal of the application, supports only three of the twelve dwellings proposed.  The financial appraisal accepted by Officers recognises the need for twelve dwellings to subsidise the amount of office floor space proposed and whilst the applicants have indicated their preparedness to bring these three dwellings within the development envelope, this would be at the cost of reducing the amount of land available for employment use.  The redevelopment of the farm buildings (upon which the three dwellings would be sited) will be a positive gain and, by comparison with their present condition, enhance the proposals and ambiance of the business park.

 

Members will have to consider whether the development of the business park in the manner proposed justifies development outside the envelope.  On that basis, I accept that fears regarding UDP Policy C17 expressed earlier in this report are less critical, as the situation regarding relationship of uses (ie employment site, residential development and converted former farm buildings) is unlikely to arise in quite this way in the future.

 

The formal adoption of the UDP since the determination of the previous application is a relevant issue, although Members may consider that, as the draft policies used in determining the earlier application were similar to those now in place, the weight to be put on this point may be limited.

 

The agent recognises that the proposal does not meet all criteria of UDP Policy E4.  As identified in this report, five of the nine points are not complied with, but the amendment of layout to bring dwellings within the development envelope and an agreement regarding phasing, would make the proposal compliant with six of them.

 

I recognise that a scheme can be in accordance with the Development Plan even if it only complies with some of its policies.  Members accepted this advice from the barrister when approving the B & Q/College applications.  However, it must be shown that the proposal is broadly achieving the overall aims of the plan and Members will have to consider the amount of weight to be put on this particular point.  Both the applicants and the agent have provided additional letters, following the meeting with Officers.  Both these letters are copied and attached for Members information including letters from the Isle of Wight Partnership supporting the previous application and which were attached to the applicants additional submission.

 

Clearly a major issue from these letters is overall compliance with the UDP and the applicants and agent's view that a wide view should be taken of the development proposals, taking into account the overall economic benefit of the application, rather than "narrower land use policies alone."

 

It must be reaffirmed that the Isle of Wight Partnership welcomes provision of offices of the type proposed and this view is supported by the Council's Economic Development Officer whose views are now available and referred to above.  The sole area of concern is the residential development element, part of which is outside the development envelope, and the Economic Development Officer rightly identifies this as an area which the Development Control Committee has to address in the light of the Council's adopted planning policies.

 

An important point made by the applicant is that if the "enabling" residential development is not permitted, the Island will lose its only business park.  Ten redundancies will be forced if the application is not approved and industrial space will fill the remaining land at St Cross, rather than quality office space.  Clearly there are difficult issues to resolve and balances to be struck in the determination of this application.  Officer's view remains that the recommendation should be for refusal, but if Members apply different weight to the various issues and accept that the proposal could be approved, it will be necessary to impose conditions similar to those previously recommended, eg use restriction to Class B1, landscaping including maintenance of hedges, submission of details of materials, access, drainage etc and most importantly a phasing scheme for the overall development.  This would be to ensure that the dwellings are not constructed without the requisite amount of office space.  The applicants suggest at least 560 square metres (6,000 square feet) of office space would be developed initially, releasing the first six housing plots.  Actual numbers of housing plots released would depend on floor space on the basis of one house plot per 93 square metres (1,000 square feet) of office.  The next phase would be the next office block, to a minimum of 1,115 square metres (12,000 square feet) in total leading to the release of the remaining housing plots.  At that stage, infrastructure for the remaining office blocks would be provided.

 

Recognising the degrees of weight to be placed on the various issues in this matter, my belief is that the areas of conflict with the adopted UDP, bearing in mind the views of the Isle of Wight Partnership, are such that my recommendation remains for refusal.  

 

Reason for Recommendation

 

Having given due regard and appropriate weight to all material considerations referred to in this report, it is considered that the proposal for mixed development, involving residential development outside the defined development envelope, is not acceptable for policy reasons set out below.

 

                        Recommendation  -  Refusal   

 

Conditions/Reasons:

 

1

Whilst the Local Planning Authority will accept mixed uses in certain circumstances to encourage development of allocated employment sites, it is not satisfied in this case that the proposed development accords with Policies E3 and E4(b), (c), (d), (f) and (g) of the Isle of Wight Unitary Development Plan.

 

2

Part of the site proposed for residential development is outside the development envelope defined in the Unitary Development Plan and the Local Planning Authority is not satisfied that there is any justification to warrant the approval of dwellings in this particular location.  The proposal is therefore contrary to Policies G1, G5(h), H4, H9 and C1 of the Unitary Development Plan.

 

3

The proposal involves development for residential purposes in close proximity to buildings/land with authorisation for unrestricted Class B2 General Industrial Use and the Local Planning Authority considers that this may lead to unacceptable nuisance to occupiers of the residential properties and/or undue constraint on the operators of B2 Uses, contrary to Policies E4(b) and (c) and G10 of the Unitary Development Plan.

 

 

 

M J A FISHER

Strategic Director

Corporate and Environment Services