Retail Statement - Stadium for Cornwall
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Retail Statement On behalf of: In respect of: “Outline mixed use proposal for retail (Use Class A1) with associated petrol filling station and car parking (providing space for mobile library), food and drink (Use Classes A3, A4 and A5) / day nursery (Use Class D1) and residential (Use Class C3) alongside the provision of a community and sports facility (Use Classes D1 and D2), public open space (including formal playing pitch provision), and other associated infrastructure (inclusive of linkage to consented Langarth/Stadium sites). [Means of access to be determined only]” Date: August 2014 Reference: GH/MO/R0001 Cardiff Sophia House, 28 Cathedral Road, Cardiff CF11 9LJ Tel: 029 20660265
Executive Summary This application proposal will deliver the Western District Centre, residential units, community facilities and will enable the Stadium for Cornwall to be built. The application proposals meet the identified retail need and provide residents with a choice of retail offer. It meets this need at a site which is a natural extension to the approved Langarth mixed-use scheme and one which provides strong links to the Stadium for Cornwall and the wider development of the surrounding area, thereby meeting the requirements of the sequential test. The application proposal will principally compete with similar developments both within and outside of Truro. Whilst the city centre will experience some trade diversion, the over trading of existing shops and the annual growth in retail expenditure means that the impact will not be significantly adverse and the turnover of the city centre will still increase even with the proposals. Crucially, the application proposals will deliver economic, social and environmental benefits to the local community. The enabling of the construction of the Stadium of Cornwall will also deliver a once- in-a-lifetime opportunity for Cornish professional sport and community groups. The proposals represent a high quality comprehensive development generating hundreds of jobs and drawing people to the area. Crucially, the proposals do this without significant adverse impact on Truro City centre. As such, the proposals meet a number of long held objectives of the Council and have significant community support. The planning balance is clearly in favour of approving the proposals.
Contents 1.0 Introduction 3 2.0 The Proposal 4 3.0 Planning Policy Context 11 4.0 The Retail Context 15 5.0 The Sequential Test 20 6.0 The Impact of the Proposal 34 7.0 Summary and Conclusions 51 Appendices A Retail Impact Tables 56 Table 1 Population Estimates Table 2A Convenience Goods Per Capita Expenditure Estimate Table 2B Comparison Goods Per Capita Expenditure Estimate Table 3A Total Convenience Goods Expenditure Table 3B Total Comparison Goods Expenditure Table 4A Turnover of Foodstore Element of Proposal Table 4B Turnover of Non-Food Element of Proposal Table 5A Turnover of Existing Convenience Goods Stores and Centres 2014 Table 5B Turnover of Existing Convenience Goods Stores and Centres 2019 Table 5C Turnover of Existing Comparison Goods Stores and Centres 2014 Table 5D Turnover of Existing Comparison Goods Stores and Centres 2019 Table 6 Solus Convenience Goods Trade Diversion to Proposal Table 7 Convenience Goods Turnover in 2019 with Solus Impact Table 8 Solus Convenience Goods Impact Summary Table 9 Cumulative Convenience Goods Trade Diversion to Proposal Table 10 Cumulative Convenience Goods Turnover 2019 and Impact Table 11 Solus Comparison Goods Trade Diversion to Proposal Table 12 Comparison Goods Turnover in 2019 with Solus Impact Table 13 Solus Convenience Goods Impact Summary Table 14 Cumulative Comparison Goods Trade Diversion to Proposal Table 15 Cumulative Comparison Goods Turnover 2019 and Impact Table 16 Total Solus and Cumulative Impact on Truro City Centre West Langarth, Truro 2
1.0 Introduction 1.1 This retail statement has been prepared on behalf of Inox Group and Henry Boot Developments Limited in support of an outline planning application at West Langarth for: “Outline mixed use proposal for retail (Use Class A1) with associated petrol filling station and car parking (providing space for mobile library), food and drink (Use Classes A3, A4 and A5) / day nursery (Use Class D1) and residential (Use Class C3) alongside the provision of a community and sports facility (Use Classes D1 and D2), public open space (including formal playing pitch provision), and other associated infrastructure (inclusive of linkage to consented Langarth/Stadium sites). [Means of access to be determined only]” 1.2 Section 2 of this assessment sets out details of the site and the application proposals. Section 3 sets out the planning policy context. Section 4 sets out the retail context for the proposals. Section 5 considers the proposal against the sequential test and Section 6 assesses the application proposals against the policies relating to retail impact. Section 7 provides a summary and conclusions. West Langarth, Truro 3
2.0 The Proposal 2.1 The application is submitted in outline with all matters except access reserved for future consideration. The proposal comprises the following elements: • 1 no. Class A1 Foodstore (5,574 sq m gross); • 1 no. Petrol Filling Station (12 pumps); • Class A1 Comparison Goods Units (4,645 sq m gross); • Class A3, A4, A5, D1 Use (929 sq m gross); • Associated car parking with an area suitable to accommodate the mobile library; • Up to 130 Residential Units (Use Class C3); • 1 no. Community/Sports Building (Use Class D1/D2) (500 sq.m gross); and • 3 no. sports pitches and areas of public open spaces. 2.2 Whilst expressions of interest have been lodged, at this stage, there are no confirmed operators for any of the proposed A1/A3/A4/A5/D1 units. As such, the application is made in outline in order to agree the principle of development. Details of the exact nature, design and location of the units will be considered at the reserved matters stage. 2.3 As set out in detail in the Design and Access Statement which accompanies the planning application, the proposal creates direct physical link with the adjacent Langarth scheme and beyond to the approved Stadium for Cornwall and the existing park and ride facility. The commercial element of the application proposal has been designed to act a as ‘dumb-bell’ to the approved stadium and the local centre approved as part of the Langarth scheme. The provision of strong vehicular/public transport links and a ‘green’ route for pedestrians and cyclists will draw people east to west within the site. This linkage reflects that this application proposal should be read as one with the approved Langarth and stadium schemes. 2.4 The linkage between the existing approved stadium and Langarth schemes means that the proposals will benefit from linked trips between the different attractions. In addition, the proposals will encourage linked trips to the city centre, particularly those people who are drawn to the stadium for matches who might otherwise not visit Truro. 2.5 In light of the above, it is necessary when considering the proposals to also consider not only the elements specifically applied for as part of this application the approved Langarth scheme and the Stadium for Cornwall proposal, which is enabled by the application. West Langarth, Truro 4
Deliverability of the Proposal 2.6 As outlined above, at this stage, there are no operators contractually tied to the application proposal. We contend that this does not weaken the case in support of the application, not least because the applicants have confirmed interest from two supermarket operators are interested occupying a store in this part of Threemilestone/Truro. Given that there are four current opportunities for supermarkets in close proximity to one another, it is inevitable that the supermarket retailers will wait to see which scheme is approved before committing. Equally, whilst Asda are a named operator on the Willow Green application, this will almost certainly be a subject to planning contract, meaning that if planning permission is not secured, Asda will be able to ‘jump-ship’ to the successful site. 2.7 In terms of the non-food floorspace and A3/A4/A5/D1 units, the applicant has identified a number of operators with live requirements for floorspace in Truro, who have confirmed that subject to the granting of planning permission, they would take space at the development. These operators are those typically found at similar sites to that proposed rather than in city centre locations. Moreover, where operators who occupy city centre locations have expressed potential interest, they see the application site as complementary to the city centre offer, rather than instead of it. 2.8 On the basis of an outline planning application and in the absence of a named operator, the ability of the applicant to deliver the proposals could be a concern for the LPA. Clearly, in a competitive ‘either-or scenario’ such as that present in Threemilestone, the LPA need confidence that the approved scheme can and will be delivered. This need for certainty of delivery is why Inox Group entered into a joint venture with Henry Boot Developments Limited (HBDL); a leading force in the UK property development market, and are vastly experienced in delivering schemes like this. 2.9 HBDL have delivered mixed-use schemes throughout the UK. They are not reliant on external funding to deliver schemes meaning that they are not as exposed as other developers to the difficulties in securing finance to deliver projects. In addition, their track record of delivering development schemes since 1886 means that they have exceptionally good links with retailers and commercial occupiers. As such, we contend that HBDL’s involvement in this project means that if planning permission is granted, occupiers will be confirmed and the scheme will be delivered without delay. 2.10 In light of the absence of any named operators, in order to assess the impact of the retail elements of the proposal a number of assumptions have been made. These are set out West Langarth, Truro 5
below: The Proposed Food Store 2.11 The proposed foodstore will meet the need identified in the Cornwall Retail Study and will fulfil the long held aspiration of Cornwall Council for the provision of a new district centre to the west of Truro, serving existing residents and the planned residential growth of the city around Threemilestone. 2.12 The following assumptions have been applied when assessing the impact of the proposed foodtstore: 2.13 Net Floorspace – As the food store operators all have different net to gross ratios, we have adopted a high net to gross ratio in order to ensure that the proposed store meets the needs of all potential occupiers. As such, we have adopted the net to gross ratio of 65%. This gives a net floorspace figure of 3,623 sq.m. (38,998 sq.ft.). 2.14 Floorspace Split – Each of the supermarket operators has a different convenience/comparison goods split. As such, in the absence of a named operator, we have opted for a 70/30 convenience/comparison floorspace split. This results in a convenience goods floorspace of 2,536 sq.m. (27,297 sq.ft) and a comparison goods floorspace of 1,087 sq.m. (11,700 sq.ft). 2.15 Sales Density - As there is no operator currently associated with the proposal, we have adopted an average of the convenience goods benchmark density of the four main foodstore operators according to Verdict 2014 (expressed at 2007 Prices). This gives a convenience goods sales density of £9,308 per sq.m. 2.16 For comparison goods, in the same way as we have for convenience goods, we have adopted an average of the comparison goods benchmark density of the four main foodstore operators according to Verdict 2014 (expressed at 2007 Prices). This gives a comparison goods sales density of £9,340, per sq.m. 2.17 The table below sets out the respective benchmark sales densities of the ‘big four’ supermarket operators (Source: Verdict 2014): West Langarth, Truro 6
Food Non-Food 2007 Price Base (£ per sq.m) (£ per sq.m) Tesco 8,072 12,431 Sainsbury’s 10,009 6,244 Asda 9,949 8,344 Morrison’s 9,202 10,342 Average 9,308 9,340 2.7 Turnover - Based on the above assumptions the proposal is assessed on the following basis: Net Floorspace Benchmark Sales Density Turnover (£M) (sq.m.) (£ per sq.m.) Convenience Goods 2,536 9,308 23.61 Comparison Goods 1,087 9,340 10.15 TOTAL 3,623 - 33.76 The Non-food Retail Units 2.18 The proposed non-food retail units will meet the need for additional floorspace identified in the Cornwall Retail Study. The proposed units will serve Truro and the surrounding area, reducing the overtrading currently experienced by existing comparison goods stores in the city. Recent planning consents outside of Truro will claw back trade from the city and, to a lesser extent, divert it from Truro. As such, the application proposals will also claw back expenditure which would otherwise be lost to the recently approved schemes elsewhere. 2.19 The following assumptions have been applied when assessing the impact of the proposed foodstore: West Langarth, Truro 7
2.20 Net Floorspace – As there is no end occupier for the non-food units at present, we have had to assume the net to gross floorspace ratio. As such, we have used a conservative 80% ratio, giving a total net floorspace for the three non-food retail units of 3,716 sq.m. (39,999 sq.ft.). 2.21 Floorspace Split – In the absence of named operators, we have assumed that the proposed floorspace will be restricted to the sale of comparison goods. We have also assumed that the floorspace will not be restricted to the sale of bulky-goods. We have also assumed that the minimum floorspace of any unit would be 929 sq.m (10,000 sq.ft). 2.22 Sales Density – The location and nature of the proposed development means that the proposed comparison goods units are most likely to be occupied by typical out-of-centre retailers. This view is supported by the commercial agent’s findings on retailer interest for the site. However, as there are no named operators for the proposed development and at this time, we are not suggesting any restrictive conditions on the operation of the units, we have tested an impact scenario whereby the development could be occupied by retailers who also operate town centre stores. 2.23 The tables below sets out the benchmark sales densities of the types of retailers who generally occupy out-of-centre proposals according to Verdict 2014 (expressed at 2007 Prices). This gives an average comparison goods sales density of £2,697 per sq.m: Retail Type £ per sq.m Stationery 1,377 Carpet Retailers 806 Clothing/General Household 2,305 Electrical 6,304 Furniture 3,118 Homeware Retailers 1,632 Miscellaneous 2,927 Sports, Camping and Leisure Goods 5,811 Toy Retailers 1,983 DIY Retailers - Main Multiples 1,521 DIY Retailers - Other Traders (10 or less outlets) 1,278 Garden Centres 3,297 OVERALL AVERAGE 2,697 2.24 However, for robustness and to assess the potential impact of the proposed comparison goods units being occupied by retailers who are also found on the high street, we have taken into account the higher potential turnover as set out in the table below derived from Verdict West Langarth, Truro 8
2014 (2007 Prices): Retail Type £ per sq.m Book sellers and Stationers 2,826 Clothing Retailers 4,172 Department Stores 4,630 Other Department Stores 2,620 Electrical Retailers 9,491 Mobile Phone Retailers 16,130 Footwear Retailers 7,735 Furniture Retailers (Main) 2,254 Furniture Retailers (Other) 2,759 Health and Beauty 10,549 Homeware 2,398 Jewellers 13,427 Mixed-Goods Retailers 5,793 Music and Video Games Retailers 3,463 Sports, Camping and Leisure Goods 4,612 Toy Retailers 1,983 OVERALL AVERAGE 5,928 2.25 Given the nature of the development proposed, there is no prospect of the units being occupied by jewellers or mobile phone retailers. As such, it is legitimate for these retailers, who have a higher benchmark sales density due to their smaller footprints, to be excluded from the average benchmark sales density used to assess the proposals. On this basis, the average town centre retailer benchmark sales density is £4,352 per sq.m. 2.26 Based on the above, we have assumed that the turnover of the proposed comparison goods units is an average of the typical out-of-town retailers benchmark (£2,697) and the typical town centre retailer (excluding jewellers and mobile phone retailers) (£4,352 per sq.m.), which gives an average of £3,525 per sq.m. This figure is considered higher than the actual turnover is likely to be, but tests the ‘worst case’ impact scenario, demonstrating the robustness of the assessment. West Langarth, Truro 9
2.27 Turnover - Based on the above assumptions the non-food retail units are assessed on the following basis: Net Floorspace Benchmark Sales Density Turnover (£M) (sq.m.) (£ per sq.m.) Comparison Goods 3,716 3,525 13.10 2.28 As set out above, the use of a combined typical ‘out-of-centre’ and ‘town centre’ sales densities means that the above turnover figure is highly likely to be an over-estimate of the turnover of proposed comparison goods units. As such, in assessing the resultant trade diversion and ‘impact’ we consider the assessment to be extremely robust. Total Turnover of the Proposed Development 2.29 Based on the above assumptions, the turnover of the proposals will be as follows: Net Sales Sales Density Turnover (Sq.m) (£ per Sq.m) (£M) Foodstore Convenience 2,536 9,308 23.61 Foodstore Comparison 1,087 9,340 10.15 Comparison Goods Units 3,716 3,525 13.10 Total 7,339 - 48.86 2.30 Use of benchmark sales densities and the ‘composite’ out-of-town/town centre benchmark used to calculate the turnover of the comparison goods units, means that the turnover set out below is likely to represent an overestimate of the actual turnover generated by the store. This is due to a combination of the competitive retail environment in which the development will be entering and, for the comparison goods element, a robust assumption about the nature of the retailers who might occupy the development. As such, in assessing the trade diversion associated with the above turnover, it should be considered a worst-case scenario. West Langarth, Truro 10
3.0 Planning Policy Context 3.1 This section sets out the planning policy context of the proposed development. National Planning Policy 3.2 National planning policy is set out in the National Planning Policy Framework (“NPPF”) published in March 2012. 3.3 The NPPF states that the Government is committed to securing economic growth in order to create jobs and prosperity, building on the country’s inherent strengths, and to meeting the twin challenges of global competition and of a low carbon future. 3.4 The NPPF goes on to state that the Government is committed to ensuring that the planning system does everything it can to support sustainable economic growth. It highlights that planning should operate to encourage and not act as an impediment to sustainable growth. It concludes that, significant weight should be placed on the need to support economic growth through the planning system. 3.5 In the context of the above statements, the NPPF states that where the development plan is absent, silent or relevant policies are out‑of‑date, planning permission should be granted unless: • any adverse impacts of doing so would significantly and demonstrably outweigh the benefits, when assessed against the policies in this Framework taken as a whole; or • specific policies in this Framework indicate development should be restricted. 3.6 Crucially, the NPPF states that local planning authorities should look for solutions rather than problems, and decision-takers at every level should seek to approve applications for sustainable development where possible. It goes on to state that local planning authorities should work proactively with applicants to secure developments that improve the economic, social and environmental conditions of the area. 3.7 When assessing applications for retail, leisure and office development outside of town centres, which are not in accordance with an up-to-date Local Plan, local planning authorities should require an impact assessment if the development is over a proportionate, locally set floorspace threshold (if there is no locally set threshold, the default threshold is 2,500 sq m).This should include assessment of: West Langarth, Truro 11
• the impact of the proposal on existing, committed and planned public and private investment in a centre or centres in the catchment area of the proposal; and • the impact of the proposal on town centre vitality and viability, including local consumer choice and trade in the town centre and wider area, up to five years from the time the application is made. For major schemes where the full impact will not be realised in five years, the impact should also be assessed up to ten years from the time the application is made. 3.8 The NPPF states that local planning authorities should apply a sequential test to planning applications for main town centre uses that are not in an existing centre and are not in accordance with an up-to-date Local Plan. It states that LPA’s should require applications for main town centre uses to be located in town centres, then in edge of centre locations and only if suitable sites are not available should out of centre sites be considered. 3.9 The NPPF states that when considering proposals not within a town centre, preference should be given to accessible sites that are well connected to the town centre. The NPPF highlights that the requirement for flexibility of format and scale is on local planning authorities as well as applicants. Development Plan Policy 3.10 Further to the revocation of the Regional Strategy for the South West and the Cornwall Structure Plan, the extant development plan for the site comprises the saved policies of the Carrick District Local Plan (adopted April 1998). However, it is important to note that these Policies are now over 15 years old and, therefore, in accordance with the advice at paragraph 215 of the NPPF, the NPPF is plainly a material consideration. Local Plan 3.11 Policy 7A identifies that retail developments within Truro will be consolidated within or adjoining the central shopping areas identified on the Proposals Map. Proposals for significant development outside of these areas will be required to show that the needs of the area cannot be adequately provided for within or adjoining the Central Shopping Area having regard for the need for flexibility in respect of the format, design and scale of development (including the amount of car parking) and that it would have no significant adverse impact upon the long term viability and vitality of the centre as a whole. Within Truro, no further retail uses will be allowed to front onto the Inner Circuit Road or Morlaix Avenue in the interest of road safety and accessibility. West Langarth, Truro 12
3.12 Policy 7G states that proposals for supermarkets and superstores located outside of the town centres (including Truro) will only be permitted where the needs of the area cannot be accommodated within or adjoining the central shopping areas identified in Policy 7A and where a series of criteria are complied with (no conflict with environmental or built environment policies; no significant adverse impact upon the vitality and viability of the centre as a whole when considered on its own or together with other relevant proposals in the locality; adequate parking; no loss of industrial premises; acceptable access and no adverse impact on surrounding highway network; satisfactory landscaping; scale and design compatible with surrounding land uses; no issues with the provision of essential services). Where any future changes to the retail character of such developments would threaten the vitality and viability of a town centre shopping area, the district planning authority will seek an obligation under section 106 of the Town and Country Planning Act 1990 to limit the range of goods sold and to restrict future sub-divisions. Emerging Local Plan 3.13 The policies detailed in the emerging Cornwall Local Plan are not yet part of the development plan in advance of formal adoption. Discussions with a member of the local authority’s Planning Policy team confirmed that following a further round of consultation on the submission version, it is expected that the Plan will be submitted towards the end of 2014. Therefore, at this stage the relevant retail policy (Policy 4) may only be afforded very limited weight in the decision making process. Neighbourhood Plan for Truro and Kenwyn 3.14 Whilst there has been Panel discussion on the emerging Neighbourhood Plan, it has yet to be subject of a formal referendum and therefore carries minimal weight in planning decisions. Land North of the A390 Development Brief 3.15 It is the opinion of Christopher Lockhart-Mummery QC, whose opinion accompanies the planning application that the Land North of the A390 Development Brief “is not, and cannot be, a planning policy document.”. This view is supported by James Findlay QC on behalf of the LPA: “The Brief should not be treated like a development plan document but it can justifiably be had regard to”. West Langarth, Truro 13
3.16 James Findlay QC has also set out his view on the purpose of the Development Brief, stating: “What the DB has done is gather the relevant principles, goals and objectives and has undertaken consideration of these against the specific circumstances of the location. The DB sets out at least one view as to what might constitute good planning of the area and to that extent is entitled to weight”. 3.17 James Findlay’s view supports our own that the brief was no more than a response to schemes put to the council at the time of drafting the document in 2012. It is not underpinned by any technical survey work and does not even appear directly related to the advice on the provision of a district centre contained in the Cornwall Retail Study (“CRS”). 3.18 The boundary adopted by the Brief is contiguous with the boundaries of those schemes and, therefore, we contend, that had West Langarth been put to the Council at that time it is highly likely that the area of the Brief would have included it. Thus, in our view the boundaries of the brief have little credence. West Langarth, Truro 14
4.0 The Retail Context 4.1 The Cornwall Retail Study produced by GVA (“the CRS”) on behalf of Cornwall Council and published in 2010 sets the context for retail development within the County. 4.2 The CRS examines the current shopping patterns in Cornwall and sets out recommendations for accommodating further retail provision. To inform its recommendations, the CRS examines the availability of expenditure within Cornwall and the current performance of existing stores. We set out below conclusions drawn from the CRS in the context of the subject proposal. Convenience Goods 4.3 The household shopping survey undertaken to inform the CRS demonstrated that Zone 10 (Truro) retains the vast majority of it’s convenience goods expenditure (84%). For Zones 9, 11 and 12 which abut Truro, the expenditure accounted for in Truro was less at 21%, 69% and 74%, but remained high, reflective of the retail hierarchy in this part of Cornwall. 4.4 The CRS examined the need for further convenience goods floorspace in Truro. It examined the extent of additional floorspace required to meet needs based on four population scenarios ranging from high growth based on the National Housing and Planning Advice Unit, through to a zero new residential development across Cornwall. The need for additional convenience goods floorspace (sq.m.) for each growth scenario for the years 2009-2031 are set out in the extract from the Study below: West Langarth, Truro 15
4.5 The extract above shows that assuming a constant marketshare, there would sufficient available expenditure to support the convenience goods element of the application proposal by 2021 under two of the four population scenarios tested. Comparison Goods 4.6 The household shopping survey undertaken in support of the CRS demonstrates that Truro acts a regional centre for comparison goods shopping. The household survey results show that Truro accounts for 20% of the comparison goods expenditure from the CRS Study Area, which encompasses the whole of Cornwall and western Devon. Applying a primary catchment to the household survey, encompassing zones 1-17 and 22, which excludes the most easterly zones which fall in Devon, Truro’s market share of comparison goods expenditure increases to 41% of total available expenditure. The second largest market- share is accounted for by St Austell (11%), closely followed by Penzance (10%). As such, it is clear that Truro is the dominant comparison goods retail centre in Cornwall. 4.7 Based on the CRS, the turnover of existing comparison goods stores in Truro from Zones 1-17 and Zone 22 equates to £581.63M per annum at 2014, which by 2019, will increase to £673.92M per annum. In assessing the current planning applications for retail floorspace in Truro, GVA have assumed that 80% of this expenditure is accounted for by the city centre, the remainder comprising out-of-centre retail stores and centres. As such, the city centre turnover is assumed to be £539.14M at 2019. 4.8 GVA examine the need for further floorspace in Truro in the CRS. They examine the ‘need’ for additional floorspase based on four population scenarios, ranging from high growth based on the National Housing and Planning Advice Unit, through to a zero new residential development across Cornwall. The need for additional comparison goods floorspace (sq.m.) for each growth scenario for the years 2009-2031 are set out in the extract from the Study below: West Langarth, Truro 16
4.9 The above demonstrates that for all scenarios, there is a need for considerable additional comparison goods floorspace. We contend that the most robust population scenario is the trend based growth which, according to GVA, results in a need for an additional 34,144 sq.m of comparison goods floorspace by 2021. 4.10 Whilst there has been comparison goods floorspace approved as part of a number of planning permissions across Cornwall since the CRS was prepared, the vast majority of these are outside of Truro. As such, whilst GVA highlight in their latest advice to the LPA that the need for additional comparison goods floorspace in Truro has been reduced by schemes such as the Trevithick Manor and Treloggan Road sites in Newquay clawing back expenditure from Truro, this has had the effect of reducing the need for additional floorspace in Truro rather than removing the need altogether. Overtrading of Existing Stores 4.11 The table below is derived from the Study and sets out the floorspace composition of Truro city centre in 2008 and 2009: West Langarth, Truro 17
4.12 Based on the above and the average benchmark sales densities for typical town centre operators derived from Verdict (2014), it is possible to calculate a broad benchmark sales density of the comparison and convenience goods floorspace in Truro city centre. The table below summarises our estimates of these: Floorspace (based on Benchmark Sales Benchmark 2009 derived from Density (£ per sq.m.) Turnover (£M) Study) (2007 Prices) Convenience Goods 9,792 £1,750 £17.1 Comparison Goods 47,464 £5,928 £281.37 Total 57,256 N/A £298.5 4.13 Whilst the above is very crude as it is based on dated floorspace figures and our estimate of a realistic convenience goods benchmark sales density, it provides a useful barometer to assess the current performance of the city centre and the likely impact of the proposed development on it. West Langarth, Truro 18
4.14 As set out above, the market share in the CRS indicates that at 2014, the turnover of Truro City Centre is £474.25M. As can be seen from the above table, very crudely the comparison goods turnover of the city centre equates to approximately 133% the benchmark turnover estimate. Whilst this is a very crude estimate, it is clear that even with sensitivity applied to the level of floorspace present in the city centre or the benchmark sales density assumed, the city centre is performing well above ‘benchmark’ and can be said to be ‘over-trading’. West Langarth, Truro 19
5.0 The Sequential Test 5.1 The NPPF requires the assessment of proposals against the sequential test to site selection. 5.2 The NPPF requires applicants for all retail proposals outside of an existing centre to demonstrate that there are no sequentially preferable sites that are available, suitable and viable that could accommodate the application proposal. Suitable sites or buildings within existing centres should be considered first, then edge of centre locations and finally out of centre sites. In applying the sequential test, the decision taker has to have regard to accessibility and connectivity to the relevant town/city centre. 5.3 Before considering the proposals against the sequential test, it is important to consider the implications of the application proposals being directed to an alternative site. As set out in the Enabling Development Statement which accompanies the planning application, profit from the proposed development will fund the development of the approved stadium. As such, in applying the sequential test, any requirement for the application to be accommodated on an alternative site would, by virtue of the need to purchase it, reduce the profit from the proposed development. This is because any site which was identified as being sequentially preferable to the application site would attract a premium value compared to the application site. In such circumstances, the ability of the application proposal to enable the construction of the approved stadium would be severely compromised. 5.4 In light of the above, we contend that the enabling development benefit of the proposal should be a factor in the consideration of the application of the sequential test. This is best assessed against the viability criteria in the test, as the economic case in support of the proposed development needs not only to support the proposed development, but also the construction of the stadium. 5.5 Before considering the proposals against the sequential test, it is important to assess the relative merits of the application site and the need it is meeting. It is also crucial to be clear on the requirements of alternative sites to be able to accommodate the application proposals. The Application Site 5.6 Prior to considering whether there are sequentially preferable sites to accommodate the application proposals, it is important to consider the relative ‘sequential’ merits of the application site. West Langarth, Truro 20
5.7 The application proposal is located to act as the ‘western district centre’, the need for which is identified in the GVA Cornwall Retail Study and is carried through into the Land North of the A390 Truro/Threemilestone Development Brief (“the Brief”), although as set out earlier in this assessment, the weight afforded to that document is limited. 5.8 Whilst the application site falls outside, but adjacent to the site boundary of the Brief, the proposals are fully integrated with the adjacent Langarth approved scheme. The application proposal is in effect an extension of the Brief area, increasing the level of residential development provided to meet the need beyond that identified in the Brief, but also making provision for public open space to facilitate the delivery of the Langarth approved scheme and the stadium proposal. As such, we contend that the proposal should be viewed as delivering the vision of the Brief. In this sense, we contend that the retail element of the application proposals meet the identified need and are in line with the spirit of the Brief, if not the specified boundary. 5.9 The Brief should not be treated as a development plan document, but rather an indication of what the LPA, at the time of preparing it in early 2012, considered to be ‘good planning of the area’. As set out earlier, the Brief directly reflected the planning applications submitted at that moment in time. As such, had the West Langarth proposal been submitted at that time, it is highly likely that it too would have been included within the boundary. 5.10 Since the Brief was prepared there have been a number of material changes in circumstances including the approval of the Langarth and stadium applications, and, crucially, the shortfall in funding for the delivery of stadium, which forms an integral part of the Brief. As such, we believe that in considering this application, the boundary of the Brief should be considered as being expanded to take account of the need for further development beyond that envisaged at the time of its preparation. 5.11 In terms of the application of the sequential test, the Brief does not specify the location of the anticipated district centre. As such, it can be said that any site within the Brief boundary is meeting the identified need for the western district centre. It is reasonable, therefore, to conclude that in applying the sequential approach within the area, all sites should be considered as being ‘equal’. Applying this principle to the assertion that the application proposal represents an evolution of the brief to reflect a material change in circumstances since it was prepared, means that the application site fulfils the requirements of the Western district centre and, therefore, satisfies the sequential approach. West Langarth, Truro 21
5.12 Our contention that the application site is meeting the need for the Western district centre is supported by an assessment of the application proposals against the criteria that GVA set out in the Cornwall Retail Study for the assessment of suitable sites to meet this need. GVA’s criteria are set out below: “In order to ensure that any new centre is located where it can provide easily accessible facilities for the resident population, we consider that the decision on should be informed by geographical and accessibility factors. Given its importance, it is likely that convenience retail provision will form the basis for any new provision, supplemented by other day-to-day shopping and service facilities. We set out below (not in any order of importance) a basket of factors which we feel may be appropriate for the Council to take into account when considering the scale and location of a new defined centre: (i). Geographical distribution of retail floorspace. This can identify which areas are best/worst served by retail provision. (ii). Dominant shopping facilities, by area. Using shopping survey data, the analysis can identify which facilities are attractive to the residents and can establish the distances which local residents currently travel for convenience and comparison shopping. (iii). Walk-in catchments. It is vital that new residential development in Truro/Threemilestone has easy and convenient access to retail facilities, especially convenience retail provision. Walking distances of 500 metres to 1km can be modelled to show areas which have good/poor accessibility on foot. (iv). Drive-time catchments. Given the dominance of car-borne journeys, particularly for bulk/main-food shopping trips, it will be important to model 5 minute drive time catchments from existing stores and centres. (v). Public transport accessibility. The walk-in and drivetime catchments should also be accompanied by an analysis of public transport routes which can establish the proximity of residential areas to public transport routes which serve retail provision. The outputs from the above can then be mapped to show potential suitable locations for a new centre. Where such areas are identified, then the Council can consider other factors which cannot be mapped but may nevertheless be important factors. Such factors are likely to be individual to local area and the West Langarth, Truro 22
areas/developments concerned, although may include: impact on existing local businesses, accessibility, contribution to community vitality, contribution to local economy, visibility to passing trade and deliverability.” 5.13 In assessing the application proposals against GVA’s criteria, we conclude the following: • The application is located such that will serve the existing and proposed community in Threemilestone in the same way that the alternative sites will; • In terms of distance from the city centre, we contend as an expansion of Langarth, the site is equal to the alternative sites; and • The CRS shows that there is a currently leakage of convenience goods expenditure from Truro to shops and centres further afield. This is largely to do with the limited choice of convenience goods provision and the over-trading of existing stores making them unattractive shopping destinations. This qualitative deficiency is particularly relevant to Threemilestone. Whilst comparison goods expenditure is largely retained by Truro and the city draws expenditure from a wide catchment, there remains a need for further floorspace, which we contend, cannot be accommodated within the city centre; 5.14 The application proposal is embedded within the approved Langarth residential scheme and the wider Threemilstone Development Brief area. The application has been designed to maximise linkage between the retail units and the surrounding residential areas, with a particular emphasis on creating a ‘boulevard’ style link and a ‘green’ pedestrian/cycle to the heart of the Langarth and beyond to the approved stadium proposal. As such, whilst it is to the west of Threemilestone, the attraction of the mix of uses and the physical linkages mean that the application site is delivering the vision set out in the development brief. 5.15 The application proposal is located within easy driving distance of a large proportion of the residents of Truro, but also, by virtue of its location directly adjacent to the A390, to people living to the west of Truro who are currently underserved by convenience and comparison goods floorspace. Of the ‘alternative sites’, the application site being situated to the west of the growth area means that it arguably best serves this element of the population. 5.16 The application proposal incorporates significant improvements to public transport provision which will serve the retail development but also the wider residential and leisure provision at the site. As such, we contend that the site is very well catered for by public transport links. West Langarth, Truro 23
5.17 In reality, it is evident that there is very little, if any, difference between the alternative sites when assessed against the above criteria. However, GVA also set out a number of other factors which might influence the choice of the location of the district centre. In considering these, the application proposal offers something above and beyond the alternative district centre proposals. 5.18 Firstly, the application is a mixed-use proposal, anchored by a supermarket, but also comprising non-food retail units, a public house/restaurant, a petrol filling station and a community sports facility. As such, the proposals make a significant contribution to community vitality and the local economy. In addition, as set out in the accompanying Enabling Development Statement, the application proposals will fund the delivery of the approved stadium proposal at the heart of the Brief site. As such, we assert that the wider benefit for the local community and economy resulting from this application is far greater than any of the alternative proposals. 5.19 In light of the above, the application proposal fulfils the western district centre role outlined in the brief. We assert that the proposals reflect the evolution of the growth of Threemilestone since the brief was prepared and that the difference between the alternative sites is so little that the brief area is not a particularly important consideration. Crucially, the brief also did not identify a specific location for the foodstore. 5.20 In light of the lack of weight afforded to the brief, the location of the foodstore should have more regard to the wider locational issues that GVA suggest should be taken into account when assessing the location of the district centre. Assessing the proposal against these criteria, we contend that the proposal comes out better than the alternative sites, particularly when the enabling development argument for the stadium, which is at the heart of the vision for the area, is taken into account. 5.21 In summary, we conclude that as the western district centre, the application meets the aspirations of the LPA and satisfies the requirements of the sequential test. Notwithstanding this view, for completeness, we have undertaken an assessment of the application proposals against the sequential approach. The Search Area 5.22 In applying the sequential approach, it is important to consider the appropriateness of the area of search for alternative sites. The NPPF is silent on this matter, however, it is evident that the requirement for the site to be ‘suitable’ to accommodate the application proposals means that it must be suitable to meet the identified need. West Langarth, Truro 24
5.23 In this case, the proposed development fulfils the stated objective of the LPA to provide a district centre to meet the retail need identified in the Land North of the A390 Truro/Threemilestone Development Brief. This states that there is a need for the provision of “new retail floorspace to meet the needs of existing and future residents in a form and of a size consistent with the findings of the Study of Retail provision in Cornwall carried out for the Council by consultants GVA Grimley in 2010 and to include a single medium sized new Foodstore.” The Brief goes on to highlight that the 2010 GVA retail study indicates the need for a store “probably not less than 2,500 sq.m. net but principally on the basis of geography, walking etc to serve fully the convenience needs of development on the whole of the area covered by the Brief and reduce need to travel to other stores.” 5.24 The CRS confirms that there are “likely to be opportunities for improved quality of provision both within the city centre and possibly to serve new large residential communities which are created by the extension of the Truro/Threemilestone urban area.” It goes on to confirm that “The current successful trading performance, and potential overtrading of the main supermarkets in Truro, also contributes to the need for qualitative improvements in provision in the city.” 5.25 In light of the above, it is clear that there is an acceptance by the LPA and their retail advisors, GVA, that the identified retail need can only be met by a site located in Truro, and more specifically in the Threemilestone area. As such, in considering the sequential approach, our search has been restricted to this area. To do otherwise would result in unsuitable sites being considered. 5.26 Having considered the search area, alternative sites are assessed against three criteria: availability, suitability and viability. These are considered in more detail below: Availability 5.27 In relation to the availability of alternative sites, the NPPF requires the consideration of any edge or town centre sites which might be ‘available’. It does not seek to suggest that sites should be available during the remainder of the plan period or over a period of any specified number of years. Given the ethos of the NPPF, which is to “look for solutions rather than problems” and to facilitate and not frustrate economic growth, we contend that it is entirely reasonable to suggest that in the absence of any specific requirement to predict future availability, any alternative sites must be available to meet the identified need now. West Langarth, Truro 25
Suitability 5.28 Suitability, relates to whether the proposals can reasonably and successfully be located at a particular site. In considering the Dundee case, the Supreme Court ruled that ‘suitable’ means ‘suitable for the development proposed by the applicant’. Moreover, the principle that an applicant should alter or reduce the proposal so as to fit onto an alternative site has been explicitly rejected. These principles were explored in the recent Rushden Lakes call-in decision, where the Inspector stated: “The policy concerning the sequential approach as set out in the NPPF, and (to the extent that it is still relevant) the non-policy PG that accompanied PPS4, must be applied in a manner which complies with the legally binding case law on the meaning of the sequential approach.” 5.29 The Rushden Lakes call-in decision provides a very clear statement on the balance between suitability and flexibility. It States: “if a site is not suitable for the commercial requirements of the developer in question then it is not a suitable site for the purposes of the sequential approach; and [b] that in terms of the size of the alternative site, provided that the Applicant has demonstrated flexibility with regards to format and scale, the question is whether the alternative site is suitable for the proposed development not whether the proposed development could be altered or reduced so that it can be made to for the alternative site.” 5.30 The Rushden decision also provides clear guidance on the principle of flexibility and, in particular, disaggregation of proposals when considering the suitability of alternative sites. The Inspector stated (para 8.47): “A related submission concerns the differences between national policy as now stated in the NPPF and as previously stated in PPS4. The last sentence of NPPF states that: “Applicants and local planning authorities should demonstrate flexibility on issues such as format and scale.” This contrast strikingly with what was said previously in PPS4 in policy EC15.1 at (d) (iv) and 15.2 which contained an explicit requirement for disaggregation. There is no longer any such requirement stated in the NPPF. It is no answer to this to refer to the words “such as” in the last sentence of NPPF. These words cannot be read so as to imply that a major, and extremely controversial, part of previously stated national policy lives on by implication in the NPPF. Had the Government intended to retain disaggregation as a requirement it West Langarth, Truro 26
would and should have explicitly stated this in the NPPF. If it had been intended to carry on with the requirement then all that would have been required is the addition of the word “disaggregation” at the end of NPPF.” 5.31 The Rushden decision is clear, “There is no requirement to disaggregate” (para 8.51). In relation to what constitutes ‘flexibility’, the Rushden decision (para 8.49) highlights the absence of any clarification within the NPPF, but suggest guidance be drawn from the Guidance which accompanied PPS4: “The NPPF requires developers to demonstrate flexibility on issues such as format and scale. No indication as to what degree of flexibility is required is contained in the NPPF. Such a requirement was previously contained in PPS4 and so any relevant PG advice continues to be material. PPS4 PG is of assistance: flexibility in a business model, use of multi level stores, flexible car parking requirements or arrangements, innovative servicing solutions and a willingness to depart from standard formats.” Viability 5.32 Finally, in assessing sites ability to accommodate the application proposals, they should not present any obvious economic obstacles. As set out above, the application proposal will fund the construction of the approved stadium on the adjacent site. As such, in this instance, as it forms the premise of the application proposal, we contend that in assessing the financial viability of an alternative site, the need for the scheme to result in a profit which would fund the stadium should be a consideration. Assessment parameters 5.33 For the purposes of the sequential test, sites have been which will be able to accommodate the below floorspace as proposed: West Langarth, Truro 27
Site Area 17.64 hectares – 4.65 hectares to accommodate 11,648 sq.m. (gross) of A1/A3/A4/A5/D1/D2 floorspace parking and servicing. Parking Provision Up to 650 spaces Operational Requirements Located within the Threemilestone area in order to meet the identified qualitative and quantitative need of existing and future residents of the western part of the city. 5.34 In line with the requirements of the NPPF, the applicant has adopted a flexible approach to above requirements. In considering the scale of development, the applicant has demonstrated flexibility by virtue of the fact that the applicant could have provided far greater retail floorspace than the site than is proposed. This is demonstrated by the fact that a large part of the site is taken up by public open space provision. In addition, whilst the application proposal does not currently propose any mezzanine floorspace, in assessing alternative sites, this option has been considered in order to reduce the footprint on the proposed development, maximising flexibility. 5.35 In relation to demonstrating flexibility through a reduction in the level of commercial development proposed, it is important to have regard to the enabling case being presented by the application proposal. As outlined in the Enabling Development Statement, which accompanies the application, profit from the proposed commercial development will be used to fund the development of the approved stadium on the adjacent. As such, reducing the size of the development proposed would reduce the profit generated from the scheme, which in turn would mean that there would be a shortfall in the funding required to develop the stadium. Accordingly, we contend that in this instance, there is good reason for the overall floorspace of the proposed development not being reduced in order that it might be accommodated on an alternative site. 5.36 In addition to examining the potential to reduce the overall floorspace of the proposed development, the applicant has also considered reducing the car parking requirement for the site. The applicant has also examined whether the introduction of different servicing arrangements to those proposed would enable the proposed development to be West Langarth, Truro 28
accommodated on alternative sites. Conclusions Drawn from Other Applications 5.37 Prior to assessing the potential of other sites to accommodate the proposals, it is useful to consider the conclusions reached on sequentially preferable sites in respect of the three current planning applications in Threemilestone and, prior to them, the Taste of Cornwall/Waitrose application. 5.38 Whilst the conclusions reached on these applications are specific to the respective proposals, which differ from this application, their nature is identical; all being supermarket anchored schemes. Moreover, similar to the application proposal, the three current planning applications are all centred around Threemilestone. The only difference between the applications is the inclusion of additional non-food units. However, on the basis of the above assessment of the requirements of a site to be ‘suitable’, and the clear statement that proposals are no longer required to be disaggregated, we contend that comparison with the previously reached conclusions on the sequential test are valid, not least because even adopting a flexible approach, the size of the proposed development is considerably larger than any of the other proposals assessed. 5.39 In assessing the other retail applications in Truro, the Council’s retail consultants, GVA, and the Council have made a series of conclusions on the sequential test, which are relevant to this application. Crucially, the following sites were not considered suitable, available or viable alternatives to the Taste of Cornwall/Waitrose application: • Pydar Street; • Moorfield car park/former Sommerfield unit; • Pannier Market; • Old Bridge Street Car Park; • Fairmantle Street Car Park; • Halfords; • High Cross Car Park; • Garras Wharf; and • TA Hall West Langarth, Truro 29
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