MAIDSTONE BOROUGH COUNCIL
PLANNING COMMITTEE
03 FEBURARY 2011
REPORT OF HEAD OF DEVELOPMENT MANAGEMENT
Report prepared by Steve Clarke
1. Proposed variation of s106 agreement dated 1 August 2006 in respect of planning application reference MA/05/2350: (Erection of class B1 offices comprising 3 No. buildings, residential accommodation comprising 192 No. flats, retail unit for class A1 and A3 use and additionally for use as a community hall and as a crθche on the ground floor of the retail unit only, together with associated car parking, landscaping and amended access arrangements)
Land at Springfield Park, Royal Engineers Road, Maidstone.
1.1 Issue for Decision
1.1.1 To consider a proposed Deed of Variation to the s106 agreement dated 1 August 2006 in respect of planning application MA/05/2350 to amend the order in which the office blocks permitted under the permission must be constructed.
1.2 Recommendation: That the proposed Deed of Variation be Approved
1.2.1 That a Deed of Variation be completed deleting and replacing with a newly worded version existing clause 3.2 of the s106 agreement dated 1 August 2006 in respect of planning application MA/05/2350.
1.2.2 The current clause 3.2 states as follows:
3.2 The Owner undertakes that:
3.2.1 it will complete the construction of Office Block C as defined on Plan C of Schedule 1 to this Deed before the first occupation of any of the residential units to be constructed as permitted by the Planning Permission;
3.2.2 it will commence and thereafter complete the construction of the Office Block B as defined on Plan C of Schedule 1 to this Deed once the owner has exchanged contracts for arrangements for lease for 75% or more of the units in the Office Block C to be constructed as permitted by the Planning Permission; and
3.2.3 the Retail Unit shall be constructed and completed and made ready for occupation upon the earlier of:
(a) the first occupation of Office Block C; or
(b) the first occupation of the 50th residential unit to be constructed as permitted by the Planning permission.
1.2.3 It is proposed to replace it with the following clause:
3.2 The Owner undertakes that:
3.2.1 it will complete the construction of Office Block A as defined on Plan C of Schedule 1 to this Deed before the first occupation of any of the residential units to be constructed as permitted by the Planning Permission and that Office Block A shall not be occupied until first occupation of the first residential unit; and
3.2.2 the Retail Unit shall be constructed and completed and made ready for occupation upon the earlier of:
(a) the first occupation of Office Block A; or
(b) the first occupation of the 50th residential unit to be constructed as permitted by the Planning Permission.
1.2.4 Therefore, the difference is that the current agreement requires the completion of Office Block C (7200m of gross external area) prior to the first occupation of any residential units, whereas the proposed agreement requires the completion of Office Block A (3697m gross external area) prior to the first occupation of any residential units.
1.3 Reasons for Recommendation
Background
1.3.1 On 1 August 2006 a s106 agreement was completed and planning permission was granted under planning application reference MA/05/2350 for land at Springfield Park, Royal Engineers Road, Maidstone. The permission was for the:
Erection of class B1 offices comprising 3 No. buildings, residential accommodation comprising 192 No. flats, retail unit for class A1 and A3 use and additionally for use as a community hall and as a crθche on the ground floor of the retail unit only, together with associated car parking, landscaping and amended access arrangements.
The permitted Class B1 offices in total amounts to approximately 16,750m² (gross external area) that comprises, as stated above, three separate buildings.
Attached at Appendix One is a site plan showing the development as approved.
1.3.2 Subsequent to the granting of planning permission, all precedent conditions (those that require discharging prior to the commencement of the development) relating to application MA/05/2350 have been discharged. Part of the roadway serving the approved scheme as well as Springfield Mansion was constructed in 2007. However, the applicant company subsequently went into administration, leaving the site in the hands of a receiver, who instigated the demolition of the remaining buildings on the site necessary for the development to be constructed. This work was undertaken in July 2009.
1.3.3 Under application MA/10/1327 on 23 September 2010, a Certificate of Lawful Development was issued certifying that the development approved under planning application MA/05/2350 had been implemented within the three year period from the date of the original planning permission because of the demolition and construction of the roadway that had occurred.
Proposal
1.3.4 Clause 3.2 of the s106 agreement as currently drafted states as follows;
3.2 The Owner undertakes that:
3.2.1 it will complete the construction of Office Block C as defined on Plan C of Schedule 1 to this Deed before the first occupation of any of the residential units to be constructed as permitted by the Planning Permission;
3.2.2 it will commence and thereafter complete the construction of the Office Block B as defined on Plan C of Schedule 1 to this Deed once the owner has exchanged contracts for arrangements for lease for 75% or more of the units in the Office Block C to be constructed as permitted by the Planning Permission; and
3.2.3 the Retail Unit shall be constructed and completed and made ready for occupation upon the earlier of:
(a) the first occupation of Office Block C; or
(b) the first occupation of the 50th residential unit to be constructed as permitted by the Planning Permission.
1.3.5 The new owners of the site are currently in discussion with a potential tenant in respect of their occupation of the entirety of office building A on the approved scheme. These discussions have reached the stage of an exchange of draft heads of terms, which took place in December 2010 and the owners are hoping for a formal commitment to the project in early March. However, there is no guarantee with regard to this timescale and no specific timescales built into the proposed legal agreement. Should the potential tenant take up the building this would entail building the approved scheme in a different order to that prescribed in the existing s106 agreement. This phase of the development would see the construction of office building A, the associated undercroft car parking, the external plaza area, the foundations of office building B and the retail unit.
1.3.6 The new owners are therefore seeking a Deed of Variation to the original agreement to enable office building A to be constructed first. They have submitted a draft deed to the Council for consideration, (attached at Appendix Two). The proposed new clause would read as follows
3.2 The Owner undertakes that:
3.2.1 it will complete the construction of Office Block A as defined on Plan C of Schedule 1 to this Deed before the first occupation of any of the residential units to be constructed as permitted by the Planning Permission;(repeat suggested amendment) and
3.2.2 the Retail Unit shall be constructed and completed and made ready for occupation upon the earlier of:
(a) the first occupation of Office Block A; or
(b) the first occupation of the 50th residential unit to be constructed as permitted by the Planning Permission.
Assessment
1.3.7 The permitted development scheme as outlined above comprised (in addition to the 192 residential apartments and the shop-crθche/community facility building), three separate B1 office buildings. Building A was 3697m gross external area, Building B 5853m gross external area and Building C, 7200m gross external area.
1.3.8 The original s106 agreement sought to secure the provision of an element of the commercial B1 office floorspace on the site prior to the occupation of any of the residential units. This was to safeguard against the repetition of what happened in the earlier phase of the Springfield redevelopment when only residential development was completed.
1.3.9 Block C was chosen because it was the largest (7200m2) of the three office buildings and represented a significant commitment to delivering the project by the then applicant and also was a significant contribution at around 5% of the employment guidelines in the then deposit draft of the Kent & Medway Structure Plan.
1.3.10 There has been a technical start to the development, however, the construction of the buildings have not followed and the site remains derelict. The construction of a building, albeit the smallest office building of the three, would represent a significant start to the development and the introduction of development on this derelict urban site would improve the area. The floorspace of 3697m2 still equates to a major investment in the Maidstone Office market where there has been very little growth over the last 3 years.
1.3.11 Whilst building A is smaller than the previously agreed Building C, it is only marginally smaller, by 146m at 3697m than the recently completed Towergate building at Eclipse Park (3843m) the most significant new office development completed in the Borough since 2006.
1.3.12 Building A is larger than other approved (but not commenced) B1 office buildings on Plots 6, 7 and 8 at Eclipse Park which have detailed approval which are 2288m, 2749m and 2034m gross external area respectively. The provision of Building A on the Springfield site would therefore in my view still represent the provision of a significant element of B1 employment floorspace on the site.
1.3.13 As proposed, the revised clause would still ensure that an element of B1 floorspace, the retail unit as well as the car parking serving buildings A and B and the foundations of building B would be completed prior to the occupation of any of the residential units, so the original intent behind the clause would not be lost and still represents a significant investment on the site.
1.3.14 In addition, given the current economic situation and the general downturn in the property market it is considered that providing a degree of flexibility to facilitate the delivery of at least part of the approved B1 office development and the commencement of construction on this key gateway site at the entrance to the Town Centre that has lain dormant for a number of years should be encouraged.
1.4 Alternative Action and why not Recommended
1.4.1 Not entering into the Deed of Variation as proposed is likely to result in this key site at the gateway to the town centre remaining undeveloped for a further indeterminate period.
1.5 Impact on Corporate Objectives
1.5.1 Agreeing to the Deed of Variation would facilitate the provision of part of a previously approved B1 office development scheme that enhances the Boroughs commercial floorspace offer and the range of employment floorspace available in the Borough in accordance with the Councils economic development strategy.
1.6 Risk Management
1.6.1 The greatest risk is that the prospective tenant and the owners of the site do not reach agreement and the construction of building A does not proceed. However, if this is the case, the Council would still have an appropriate s106 agreement in place that would ensure the provision of office floorspace prior to the occupation of any of the residential apartments also approved under the 2005 planning application.
1.7 Other Implications
1.7.1
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1. Financial
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2. Staffing
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3. Legal
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4. Equality Impact Needs Assessment
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5. Environmental/Sustainable Development
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6. Community Safety
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7. Human Rights Act
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8. Procurement
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9. Asset Management
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1.7.2 The legal implications are dealt with in the report.
1.8 Conclusions
1.8.1 The proposed deed of variation could facilitate the commencement of construction of an element of the office floorspace approved under MA/05/2350 albeit in a different sequence to that envisaged in the existing s106 agreement. Varying the agreement would allow the owners of the site a degree of flexibility in seeking to carry out the development to meet the requirements of a prospective tenant whilst maintaining the previously agreed mechanism to ensure that an element of the B1 office floorspace is provided prior to the occupation of any of the residential units also approved under planning application MA/05/2350.
1.9 Relevant Documents
1.9.1 Appendices
One: Site layout plan as approved for application MA/05/2350
Two: Draft proposed Deed of Variation received 14 January 2011
1.9.2 Background Documents
Planning application reference MA/05/2350 and related s106 agreement dated 1 August 2006
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IS THIS A KEY DECISION REPORT?
Yes No
If yes, when did it first appear in the Forward Plan?
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This is a Key Decision because: ..
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Wards/Parishes affected: ..
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