OFFICERS’ REPORTS TO DEVELOPMENT COMMITTEE – 21 AUGUST 2014 Each report for decision on this Agenda shows the Officer responsible, the recommendation of the Head of Planning and in the case of private business the paragraph(s) of Schedule 12A to the Local Government Act 1972 under which it is considered exempt. None of the reports have financial, legal or policy implications save where indicated. PUBLIC BUSINESS – ITEMS FOR DECISION 1. PLANNING APPLICATIONS ON BEHALF OF GRESHAMS SCHOOL FOR RESIDENTIAL DEVELOPMENTS IN HOLT This report concerns three outline planning applications for residential development in Holt on land associated with Greshams School. The report provides an overview of planning policy related issues and precedes individual reports on each application. Note This report is for informative purposes only. It is intended to assist members of the committee in their understanding of the principal issues relating to the planning applications which are subject to individual reports later on this agenda. Members are invited to ask questions of officers regarding the contents of the report, but it is not subject to public speaking. The opportunity for public speaking will take place when the individual reports on each planning application are considered. Introduction Three outline planning applications for residential development have been submitted for separate parcels of land owned partly by Greshams School and partly by the Worshipful Company of Fishmongers with which the school has historic ties. Each application approximates the number of dwellings proposed, and in the case of two of the applications, details of access are included at this stage. The applications are as follows: Ref: PO/14/0283 (referred to as Site 1) - Residential development for a maximum of 126 dwellings - Land south of Cromer Road and east of Grove Lane, Holt. Ref: PO/14/0284 (referred to as Site 2) - Residential development for a maximum of 19 dwellings - Land south of Cromer Road and west of Grove Lane, Holt Ref: PO/14/0274 (referred to as Site 3) Residential development for a maximum of 8 dwellings - Land to the north of Grove Lane, Holt. Each application represents a departure from the current development plan in that all three sites lie outside the development boundary for Holt. The Council will need to reach a separate decision in relation to each application. The case put forward in support of the applications is that with the benefit of planning permission, the revenue received from the sale of the sites will go towards funding new development and refurbishment improvements to the school. The purpose of this report is to draw attention to recent planning history relevant to Development Committee 1 21 August 2014 the current proposals and to address certain issues which are common to all three proposals, namely: The case being put forward in support of the applications The main planning policy implications of the proposals Development viability Proposed S.106 Obligation – Heads of Terms In addition as part of considering the current planning applications officers have sought Counsel‟s advice on a number of legal issues which are referred to in this report. A summary of Counsel‟s advice is attached in Appendix 1. Individual reports and recommendations for each application follow on from this report. The Case for Development put forward by the Applicants As referred to above, the reason put forward in support of the three applications is to provide funding for improvements at Greshams School. These specifically comprise: A new sixth form centre building (planning permission approved - 22 November 2013 - ref PF/13/1116) Improvements to boarding facilities (both internal and extensions). It is stated that the combined current cost of both of these projects is £9.541m (£4.412m for the 6th form centre and £5.129m for the boarding improvements). The applicants place great emphasis on the importance of these two projects for ensuring the successful future of the school, citing in particular the following factors: Greshams School has existed for over 450 years and occupies a key position in Holt's built form, its social history and local economy. It is one of the top private schools in the country, providing education for children between the ages of 3 - 18. The school employs 375 people in Holt and is the town's largest employer (including a £11m spend on wages) The school contributes significantly to the economy of Holt. Public consultation exercises show that the continued success of the school is viewed as important locally. The school contributes to the cultural life of North Norfolk. Private education is a highly competitive market and the school cannot stand still in such circumstances. It has to invest in new facilities in order to retain pupil numbers in the short to medium term and to increase numbers in the longer term. Compared to its competitors the school is in danger of falling behind in terms of new facilities. The school is unable to fund the necessary investments other than through the sale of land for development. A confidential Viability Assessment has been submitted in support of the applications. The applicants claim this demonstrates that the sale of the three sites, plus a limited amount of borrowing will just cover the £9.541m cost of the two projects along with the associated legal, planning and master planning fees and the 10% promoter‟s return. This is based on a maximum of 10% affordable housing being provided as a proportion of the total number of dwellings proposed. Development Committee 2 21 August 2014 Draft Heads of Terms (S.106 Planning Obligation) included with the applications include the 'ring-fencing' of funds from the sale of the three sites towards the capital works of the new 6th form building and boarding house improvements. The applicants contend that securing the future of Greshams School is a significant material consideration in determining the applications which outweighs the fact that approval would represent a departure from current development plan policy. In addition the applicants consider that the granting of permission in these cases would assist the Council in rectifying a shortfall in the district‟s five year land supply. A full version of the applicants' case („The Context for the Submission of the Applications‟) is attached in Appendix 2. Given that the principal reason put forward in support of these applications is to provide funds to facilitate development and improvements at Greshams School it is important to be clear on the legitimacy in planning terms of such „facilitating‟ development. The advice of Counsel (which is based on case law) is that the provision of finance towards enabling other development can be material to the determination of a planning application, provided that there is a relevant and sufficient connection between the two developments, and that real public benefits will flow from the linked development. Relevant Planning History Background Site 1 (ref: PO/14/0283) comprises an area of land (5.8 ha) of which a smaller portion (4.0 ha) was previously promoted as a site for residential development as part of the Draft North Norfolk Site Allocations Development Plan Document (DPD). Under draft Policy H15 the site was proposed for approximately 120 dwellings. Subsequently, following the public examination into the DPD, the Inspector in his report (December 2010) recommended that Site H15 be deleted in favour of another site in Holt (Site HO1 land to the west of Woodfield Road). The Inspector concluded that "... H15's peripherality to the town, its distance from the town centre, its inferior sustainability score, and its lack of advantages in terms of both landscape impact and traffic and transport considerations, make it an inferior choice compared with the similarly sized but better located and more sustainable site HO1". Regarding the rationale which was put forward for site H15 (which was in part its potential financial contribution to the future of Greshams School), the inspector commented as follows; " While no one doubts the longstanding and continuing contribution of this famous school to the economy and life of the town, that does not put it in a privileged position (vis a vis) other prospective developers) when seeking planning permission for non-education related development". In August 2010 an outline planning application was submitted by Greshams School for residential development on Draft Allocation Site H15, but was subsequently withdrawn following publication of the Inspector's report. The adopted version of the Site Allocations DPD includes two sites for residential development in Holt. These are: Site HO1 – Land west of Woodfield Road. (Outline planning permission granted for up to 85 dwellings of which 45% are to be affordable dwellings). Development Committee 3 21 August 2014 Site HO9 – Land at Heath Farm / Hempstead Road. An approved development brief provides for up to 290 dwellings plus commercial / employment uses. (Development Committee resolved on 17th April 2014 to grant outline planning permission on a large part of the site for up to 215 dwellings of which 24% are to be affordable dwellings). The question arises as to the status of the Inspector‟s report with specific reference to the determination of the current application on Site 1. Counsel has advised that the binding report does not form part of the development plan, but is potentially relevant as an “other material consideration” when reaching a decision in relation to the current proposals. In short, the decision maker is not bound by the previous comments of the inspector but should give them appropriate consideration (weight) alongside the other considerations which are relevant to the determination of the application. Development Plan Considerations Planning law requires that applications for planning permission must be determined in accordance with the development plan unless material considerations indicate otherwise. The development plan for North Norfolk comprises: The North Norfolk Core Strategy (adopted 2008), and The North Norfolk Site Allocations Development Plan Document (adopted 2011) As part of considering the current planning applications officers have sought Counsel‟s advice with regard to the primacy of the development plan, specifically in relation to the relevant policies on housing development. The advice received centres around guidance contained in the National Planning Policy Framework (NPPF) and in particular paragraph 14 which provides for a presumption in favour of sustainable development. In relation to decision-making, this requires that proposals which accord with the development plan should be approved without delay, and that permission should be granted where the “development plan is absent, silent or relevant policies are out-of-date”, unless “any adverse impacts of doing so would significantly and demonstrably outweigh the benefits, when assessed against the policies of this Framework taken as a whole". The relevance of this to the determination of the current planning applications is that if the Core Strategy housing policies are considered to be out of date then there is a presumption in favour of granting planning permission provided that a proposed development does not run contrary to the policies of the NPPF as a whole. The Council's Core Strategy (2008) pre-dates the publication of the NPPF (2012). The NPPF however makes it clear that the mere fact that policies in a local plan (I.e. Core Strategy) were adopted prior to the publication of the NPPF does not mean that they should be considered out of date (para. 211). In April 2012 the Council‟s Planning Policy & Built Heritage Working Party considered a report on the NPPF and its consequences upon the Core Strategy. Cabinet subsequently agreed the Working Party‟s resolution that pending further consideration of three specific policy areas the Council should continue to apply full weight to the adopted Core Strategy policies. These policy areas did not affect the principal housing policies relevant to the current applications. It is considered therefore that the relevant Core Strategy policies in relation to housing development in the district are not out of date and therefore the Development Committee 4 21 August 2014 circumstances where departures from adopted policies might be justified in paragraph 14 of the NPPF does not apply in the case of these applications. The primacy of the development plan prevails and to quote the NPPF: "Proposed development that accords with an up-to-date Local Plan should be approved, and proposed development that conflicts should be refused unless other material considerations indicate otherwise". The following therefore is an assessment of the current applications in relation to the housing policies of the Core Strategy: Core Strategy Policy SS3 (Housing) spells out the Council's strategy to provide for at least 8000 new dwellings during the plan period (2001-2021). In the case of Holt 700 new dwellings are proposed (also referred to in Policy SS9 – Holt). This figure is to be achieved by a combination of past and existing planning permissions, future windfall sites and land allocations. To date 304 new dwellings have been built in Holt since the start of the plan period1. The two allocations (sites HO1 and HO9) will provide up to a further 375 dwellings. With the addition of windfall sites coming forward during the remainder of the plan period and sites which already have planning permission but are yet to be built., it is predicted that the 700 new dwellings in Holt by 2021 should be easily achieved, without the addition of further large scale developments needing to come forward. It is important to note that dwelling numbers which are included with the adopted policies are expressed as minimums to be provided rather than upper limits which should not be exceeded. The sites subject to the current three applications are all outside of the development boundary for Holt. They are situated in the 'Countryside' policy area. Core Strategy Policy SS2 (Development in the Countryside) states that proposals which do not fall within a specified list of development types which require a rural location will not be permitted. The only types of housing developments which fall within this list are 'exception' affordable housing schemes and the re-use of existing buildings. Hence the three applications do not accord with the development plan. Notwithstanding the above or the case for Greshams School being put forward by the applicants, it is important to focus on the fact that these are applications for housing development and so they also need to be considered in terms of the key Core Strategy housing policies. Core Strategy Policy HO1 (Dwelling Mix and Type) requires on schemes of five or more dwellings, at least 40% of the dwellings incorporate 2 bedrooms or fewer. The purpose of this policy is to help re-balance a higher than average proportion of larger house types in the district and to help meet the demand for smaller, more affordable properties in all tenure types. Although the current applications are in outline form with full details reserved for future submission, in each of their supporting documents, a breakdown of the expected house types is provided. As these are also included as part of the submitted Viability Assessment it is both reasonable and relevant to consider the issue at this stage. The viability has been based on 126 dwellings on Site 1, 19 dwellings on Site 2 and 6 dwellings on Site 3. 1 North Norfolk Residential Land Availability Statement 2014 Development Committee 5 21 August 2014 Site 1 is the only application to include properties with 2 or less bedrooms. 59 such dwellings are indicated which corresponds to 46%, which more than meets the policy requirement. Sites 2 and 3 however do not include any properties with 2 or less bedrooms. Site 2 is exclusively for 4/5 bedroom units and Site 3 for 4 bedroom units. Across all three sites, properties with 2 or less bedrooms represent 39% of the total. Core Strategy Policy HO2 (Provision of Affordable Housing) requires on all schemes of 10 or more dwellings or sites of more than 0.33 hectares, that not less than 45% of the total number of dwellings are affordable (subject to viability). This policy is applicable to all three applications. The applications fail significantly to accord with this requirement with just 10% (i.e. 15 dwellings) being proposed as affordable, with all of these being proposed on Site 1. The applicants contend that any increase on this level would not provide the land sale value which they are seeking to achieve. Core Strategy Policy HO7 (Making the Most Efficient Use of Land) states that residential developments should optimise the density of the site in a manner that protects or enhances the character of the area. It goes on to state that densities in main settlements should not be less than 40 dwellings per hectare. The proposed densities of the three sites are as follows (dw/ha = dwellings per hectare): Site 1 - 29 dw/ha (the developable area excluding a surrounding tree belt which forms part of the application site). Site 2 - 12.4 dw/ha Site 3 – 12,5 dw/ha Whilst to achieve developments of 40 dw/ha may be challenging in balancing the efficient use of land with creating attractive and well-designed new communities (and several recently approved major housing developments in the district have densities more in the region of 30-35 dw/ha), the proposed densities for Sites 2 and 3 are particularly low. In this respect the failure to comply with Policies HO1 and HO7 are inter-related. Development Viability As referred to above a confidential development viability report has been submitted in support of the applications. The applicants have provided an Executive Summary of their viability report which is attached in Appendix 3. The report does not however adopt the conventional approach to assessing development viability. Specifically it does not accord with guidance provided by the Royal Institute of Chartered Surveyors guidance or the guidance which accompanies the NPPF relating to how land values should be established as part of considering development viability. In brief, a conventional development viability report will firstly assess all the costs involved in completing a housing development. These costs will in the main include construction, infrastructure, exceptional costs (such as land de-contamination), fees and S.106 contributions. Secondly an assessment will be made of sales values of the completed dwellings. A „residual‟ land value is then calculated by deducting the costs (which will also include a developer profit) from the total sales value. Issues often arise when the residual land value is below a level which the landowner is willing to sell. In these circumstances a developer will look at ways in which to reduce costs and increase values. This is usually the point when the developers will look at reducing the proposed amount of affordable housing provision and will submit a viability assessment in an attempt to justify this. In such circumstances the local Development Committee 6 21 August 2014 planning authority should be satisfied that the submitted viability report accurately reflects the financial variables of the development, is reasonable in terms of land value and developer profit, and does not unreasonably prejudice the level of affordable housing provision and other community related contributions. The significant difference with the viability report submitted with these applications is that the land value has been set as a starting point to reflect the costs associated with the building of the new sixth form centre (£4.412m) and refurbishment of the school boarding facilities (£5.129m). The need to generate this level of land value with the addition of planning fees, legal fees (£0.49m) and a 10% promoter‟s return (£1.03m), has resulted in a viability assessment which shows that it is only viable to provide 10% of the proposed number of dwellings as affordable dwellings. The Council has commissioned an external consultant to comment on the submitted viability report. The conclusions reached are as follows: The sales values used for the proposed market dwellings are too cautious. The agent fees were out of kilter with the market. The planning and master planning fees are high in relation to what would be expected. The promoter‟s fee of 10% of the net land value (after planning, master planning and legal fees are deducted from the receipt from the sale of the three sites) is not a standard cost. Increasing the sales values increases the land value as a result there should be a strong argument to increase the percentage of affordable housing. Allowing for 45% social (affordable housing), would provide a positive capital receipt to the land owners – notwithstanding the specific issues relating to Gresham‟s School and their requirement to build new teaching and housing blocks. Subsequently following this initial consideration of the viability, the applicant submitted a revised viability assessment which increased the sales income to reflect sales values at June 2014 and also updated the build costs to reflect costs at June 2014 as the original viability assessment had used build costs for June 2013. The external consultant has commented further as follows: There remain issues with the planning and master planning fees. The achieved land value is favourable for its location. The promoter‟s return of 10% is not unrealistic. It should be noted however, that in using a promoter, a land owner would expect their return from the sale of the land to be reduced by the promoter‟s return, as the promoter has taken on the risk of not securing planning consent. In this case, the methodology used for the calculation of the land value, includes the promoter‟s return as a cost which the receipt from the sale of the land must cover and has served to increase the receipt which is required to be received. It is clear that the most notable factor affecting the viability of the three sites to provide more than 10% affordable housing is the land value, which is considered to be significantly higher than if a standard methodology for assessing land value had been used. For a further commentary on the viability issue the committee‟s attention is drawn to the comments of the Council‟s Housing Team Leader - Strategy in each of the application reports. Development Committee 7 21 August 2014 Five Year Land Supply The National Planning Policy Framework (NPPF) confirms that proposed development which accords with an up-to-date plan should be approved, and proposed development which conflicts should be refused unless other material considerations indicate otherwise. Where a development plan is out of date the NPPF requires that development proposals should be approved unless the adverse impacts of doing so would significantly and demonstrably outweigh the benefits or the proposals would be contrary to the policies of the NPPF. The guiding principle of the NPPF is that there should be a presumption in favour of sustainable development. The NPPF states that relevant policies for the supply of housing should not be considered up-to-date if the local planning authority cannot demonstrate a five-year supply of deliverable housing sites. In other words there is a presumption in favour of approving applications for housing development where there is an absence of a five year land supply and where the proposals represent a sustainable form of development. The applicant‟s Planning Statement refers to the Council‟s published Statement of Five Year Land & Housing Trajectory (April 2013) which indicated a supply equivalent to 4.68 years. On this basis it is contended that the Council should be granting planning permission to make up this shortfall. However the Council has recently published its Statement of Five Year Land & Housing Trajectory as of April 2014. This demonstrates a supply equivalent to 5.4 years. The Council has obtained legal advice from Counsel confirming that the relevance of the five year land supply position should be considered at the time of determining a planning application rather than at the time of the application‟s submission. On this basis it is not considered that there is currently a case to be made in terms of five year land supply, for the Council to permit new housing developments which do not accord with the development plan. Section 106 Heads of Terms The applicants have submitted draft heads of terms for a S.106 Obligation in the event of all three applications being granted permission (see Appendix 4).These include financial contributions towards the following: Education Libraries Health Service Visitor pressure mitigation Travel Planning Local „hopper‟ bus service Bus shelter maintenance Off-site public open space Also included would be an obligation to „ring fence‟ funds received from the land sales towards the capital works for the sixth form academic block and the boarding house refurbishments. This would be after deduction of the costs of obtaining planning permission and 10% promoters return. The monies are to be spent on these projects within 5 years. With reference to the provision of affordable housing the following terms are proposed: Development Committee 8 21 August 2014 1) Timed phasing of the 10% affordable dwellings on Site 1 during that site‟s development. 2) An „uplift‟ clause specifying that in the event of there being a surplus of funds from the final sale of land (i.e. not spent or committed on the capital works) this would be split 50/50 between affordable housing provision and bursaries for local children to attend Greshams School. 3) An additional „uplift‟ clause to provide a share of any gross development value uplift in the event of an overage mechanism agreed through land sales. 4) A requirement to ring fence money from the sale of Sites 2 and 3 equivalent to the value of providing 3 affordable dwellings until a similar number of affordable dwellings are delivered on Site 1. If after a (unspecified) period the 3 dwellings have not been delivered on Site 1, the monies to be paid to the Council for affordable housing elsewhere in the district. With reference to the above it should be made clear that (2) does not represent the normal form of development uplift as it is related to land sales as opposed to completed development sales. Whilst there is always a risk that uplift clauses linked to development sales will not deliver any funding towards affordable housing, this risk is increased with the form of uplift clause being proposed. Similarly with (3) the likelihood that this would bring forward any funding towards affordable housing is questionable. Summary and Conclusions The three planning applications under consideration all represent departures from the development plan. They depart from the plan not only in terms of their location but also with regard to key policies on the type and mix of housing development proposed, in particular with regard to the provision of affordable housing. Putting aside their location and momentarily supposing that the sites were allocated for residential use, it is more than likely that the applications would be recommended for refusal in view of the method of development viability used and the consequent significantly low proportion of affordable housing being proposed. This under provision is highlighted in comparison with what has been proposed elsewhere in the district and on the two allocated sites in Holt in particular. Because the development plan is regarded as up to date in relation to housing policies the presumption is that planning permission should be refused, unless there are material considerations to justify the grant of permission. The material considerations which can be taken into account in determining the applications are: The inspector's 2012 report with reference to site 1 Any public benefits perceived to arise from the facilitating development Policies of the NPPF where they are relevant to the proposed development Any other considerations relating to the use and development of land in the public interest The key issue is what level of weight should be attached to each of these material considerations, bearing in mind that they do not all pull in the same direction. The Development Committee 9 21 August 2014 weight to be attributed to a material consideration is entirely for the decision maker (subject to a possible challenge through the courts). Advice from Counsel is that the Council may reasonably attach weight to the facilitating development case but in doing so this should be assessed in terms of the real public benefits which will flow from the linked development. The view of officers is that first and foremost these applications are for housing development and the primary consideration should therefore be that they are assessed on this basis. Whilst weight may legitimately be attached to the facilitating development argument, it is considered that, as proposed, there is an imbalance between the interests of the school against the housing policies of the development plan and the overall public interest which should reasonably flow from housing developments of this nature. PLANNING APPLICATIONS 2. HOLT - PO/14/0283 - Residential development for a maximum of 126 dwellings; Land South of Cromer Road and East of Grove Lane for Endurance Estate Strategic Land Ltd and Gresham's School Major Development - Target Date: 10 June 2014 Case Officer: Mr J Williams Outline Planning Permission CONSTRAINTS Countryside C Road Within 60m of Class A road Controlled Water Risk - Medium (Ground Water Pollution) Archaeological Site Public Rights of Way Footpath RELEVANT PLANNING HISTORY PO/10/0921 PO Residential development Withdrawn by Applicant 07/12/2010 THE APPLICATION The application is to develop an open field which is surrounded on two sides by a substantial woodland belt (5.8 ha. in total). The only detail applied for at this stage is for access. The site which is triangular in shape borders Cromer Road to the north and Grove Lane to the west. The woodland belt extends the whole of the Cromer Road frontage and over half of the Grove Lane frontage. The site's curved south/eastern boundary backs onto the A148 (Holt by-pass) and land which is reserved for the potential extension of the North Norfolk steam railway. Vehicle access is proposed from approximately midway along the Cromer Road frontage. A new 1.8m wide footway is proposed between the site entrance and the junction of Cromer Road with Grove Lane. Further sections of new footway would extend further along Cromer Road to connect with an existing footway leading towards the town centre and along Grove Lane. 'Build-out' features are also proposed on Grove Lane intended as traffic calming measures. An indicative layout plan submitted with the application shows an estate style layout of 126 dwellings. The dwellings are based on a mix of 16 one/two bedroom Development Committee 10 21 August 2014 apartments, 42 two bedroom houses/bungalows, 38 three bedroom houses/bungalows and 29 four bedroom houses. Small pockets of public open space are indicated within the housing development and the surrounding woodland belts are proposed for public access. Two points of pedestrian / cycle / emergency vehicle access are shown linking with Cromer Road and Grove Lane respectively. Amended plans have been submitted with references to 'no dig' methods of footpath construction to protect tree roots. The applicants have confirmed in writing that the following financial contributions are being offered by means of a S.106 Planning Obligation: SPA/SAC visitor pressure Bus shelter maintenance Off-site public open space Healthcare (NHS) Education Libraries Hopper bus service Travel Planning - £50 per dwelling - £7,500 - £51,000 - £44,200 - £383,566 (approx) - £60 per dwelling - £35,000 - £20,000 (max) The application is supported by the following documents: Air Quality Assessment Arboricultural Impact Assessment Archaeological Assessment Design and Access Statement Ecological Appraisal Reptile Survey Bat Survey Energy Assessment Flood Risk Assessment Services Report Heritage Statement Noise Assessment Planning Statement Statement of Community Involvement Site Waste Management Report Ground Investigation Report Transport Assessment Sustainable Travel Report Travel Plan Cost Models for school capital works Viability Assessment (confidential) REASONS FOR REFERRAL TO COMMITTEE The application is a significant major development which represents a departure from current policy. A Committee site visit was held on 8th May. TOWN COUNCIL Supports with the following conditions: That the number of low cost properties i.e affordable homes is negotiated and increased Town Centre car parking is introduced. As a number of these new householders could potentially drive to Holt, car parking must be made available i.e extend the parking at Greshams Old School House. Development Committee 11 21 August 2014 A contribution to the 'hopper bus' to encourage residents to use this facility. Grove Lane is made access only, to allow residents and their visitors usage of the road, but restrict other traffic which should complement the proposed pinch points. To address the problem of the second half of Grove Lane having no pavement. NCC recently withdrew the scheme to make a footway at this point, but we feel some measures must be introduced, preferably a footway, or some other scheme to protect pedestrians. That the maximum number of dwellings on this site should never exceed 126 properties That the development should create new, safe and accessible environments which are visually attractive as a result of good architecture and appropriate landscaping. That the clustering of low cost (affordable) properties as illustrated on the indicative layout is avoided and that they are integrated throughout the site That the indicative additional tree line shown running between the site and the proposed Orbital Railway Line and Holt bypass should be substantially increased to provide a belt of appropriate landscaping to screen the site and act as a noise barrier. Consideration of a care home facility on this site Street lights on Cromer Road leading down to Station Road Street lights as required on Grove Lane REPRESENTATIONS 39 letters of objection received which are summarised as follows: Contrary to the development plan. The suitability of the site for housing has previously been rejected by a government inspector and there have been no subsequent changes in circumstances. The funding of Greshams School should not be a planning consideration and should not influence local housing decisions. The needs of Greshams School should not override the legality and merits of the application in planning terms. Modernisation of Greshams School should not be to the detriment of the local community. The housing growth for Holt as identified in the Local Development Framework has been satisfied by the two allocated sites in the town. Any further development should be based on a particular need and adequate infrastructure to support it. Need should be related to housing, not to achieve substantial private profit. Inadequate local infrastructure to cater for additional housing (e.g. schools, doctor's surgeries, car parks and sewage treatment). Holt has no secondary school and limited capacity at the primary school. Unsustainable development for Holt in terms of state schooling, health provision, local employment, transport and recreation. Lack of local employment opportunities to support additional housing. The housing is not planned for local people. Would result in the over-development of the town. Loss of farmland, woodland and open green space. Site is detached from the town and would result in an isolated estate. Site not within reasonable walking distance to the town centre. Site is remote from the town centre and primary school and would result in dependence on car use. Would exacerbate Holt's parking problems. Development Committee 12 21 August 2014 Adverse effect upon character of Holt. Represents urban sprawl. The attractive surroundings to Holt are important to retain. Development would be visible from the Holt bypass. Would join up Holt and High Kelling, changing their identities. Adverse impact upon local flora and fauna. Local traffic safety. Grove Lane is unsuitable to cater for further traffic. Would lead to increased traffic using Grove Lane as a 'rat run', which has a lack of continuous footpaths, resulting in a danger to pedestrians. Proposals assume footpath improvements to southern side of Grove Lane by Norfolk County Council, which have now been cancelled. Footpaths along Cromer Road are in many places narrow. Misleading statements made about local services available - Greshams School (private), Holt railway station (tourist), Kelling Hospital (mainly rehabilitation). Site better suited for employment or mixed use related development. Understand that the number of additional houses required for Holt has already been met. 30 signed copies of an identical letter received. The letter objects to the application on the following grounds: Over-development - site not allocated in the Local Development Framework. Would be larger than many Norfolk villages without any additional public services to make it sustainable. Inspector's decision - The 2010 decision by the Government Inspector made it clear that safeguarding Greshams School was not a planning consideration. Local identity - The development would join up Holt with High Kelling, changing the identity of the local area for ever. Road features to Grove Lane would change its semi-rural nature. Sustainability - Not sustainable in terms of state schooling, local employment opportunities, transport and recreation. Site is remote from the town centre and local services. Would increase dependency on the car. Road safety (Grove Lane) - Increased use as a rat run. Lack of footpaths / pedestrian safety. Green space - Loss of. Letter received from the RSPB objecting to the application on grounds that the potential for recreational impacts on the North Norfolk Coast SPA/SAC and Ramsar site has not been assessed. Quote: "The Appropriate Assessment (AA) of the Site Allocations DPD concluded that Adverse Effects on the Integrity (AEOI) of these sites as a result of increased visitor pressure from housing developments could not be ruled out without a scheme of mitigation in place. As a result, all housing allocations in the Holt area have a requirement for a scheme of mitigation in the relevant policies of the Site Allocations DPD. The RSPB consider that it is not possible to demonstrate that there is no AEOI from this site in combination with those in the Site Allocations DPD, and that a scheme of mitigation should therefore be required for this site." The letter concludes by recommending that an Appropriate Assessment is carried out, and that "prior approval of a scheme of mitigation" will be required. CONSULTATIONS Anglian Water - Confirms that there is at present available capacity in the foul sewerage network and at Holt Sewage Treatment Works to cater for the development. Requests a surface water drainage strategy is conditioned in the event of planning Development Committee 13 21 August 2014 approval. Environment Agency - No objection in terms of flood risk issues, subject to a condition requiring the submission of a surface water scheme to be submitted with any applications for reserved matters. In terms of sewage disposal comments as follows: 'Under the Water Framework Directive (WFD) both the Agency and local authorities have a duty to ensure there is no deterioration of a watercourse, in this case the River Glaven which currently has ‘very good’ status. To be compliant with the Directive a scheme must not cause deterioration in a waterbody’s status or prevent its achievement of good ecological status in the future. The additional loading on Holt Sewage Treatment Works from this and other new developments within the catchment may individually or cumulatively necessitate Phosphate removal at the works in order to maintain the very good status of that waterbody. As such there may be an issue with accommodating the full quantum of growth proposed for Holt in the LDF over the longer term. This site was not allocated in the LDF and so these housing figures could be over and above those considered at that time - these extra houses could therefore limit the number of allocated houses that can be built.' Recommends a condition requiring that no development shall begin until a report demonstrating that there is sufficient foul water capacity for the development has been submitted and approved by the local planning authority. Where necessary the report should include a scheme for improvement of the sewerage system and the condition should require that no dwellings shall be occupied until the scheme as approved has been implemented. County Council (Highways) - No objection subject to a number of conditions including the prior submission and approval of detailed plans for both on-site and offsite highway works, as well a financial contribution towards future maintenance of the proposed bus shelter to be secured as part of a S.106 Obligation. County Council (Planning Obligations Co-Ordinator) - Requires the following financial contributions to be secured via a section 106 Obligation: £465,760 towards primary education (a combined sum relating to Sites 1,2 & 3). £2,676 for 4 fire hydrants £60 per dwelling for library provision. County Council (Minerals and Waste) - No objection subject to a condition requiring the prior submission and approval of a Materials Management PlanMinerals (MMP-M), the purpose of which will be to establish the extent to which onsite materials which could be extracted and used during the course of development. County Council (Historic Environment Service) - If planning permission is granted, requests a condition requiring an agreed archaeological investigation to be undertaken on the site. County Council (Public Rights of Way) - Holt footpath no.9 is within the development site. The submitted plan states that the short east-west section of this route from Grove Lane into the proposed development is to be a shared pedestrian and cycle access. As this is designated as a public footpath, there is no public right for cycling on this section. The status of this short section of the footpath will need to be appropriately upgraded to accommodate cycles. The north-south section of footpath currently has unobstructed views eastwards Development Committee 14 21 August 2014 across the field. This view will be restricted by the development, and presumably by fences at the rear of the houses. It is not clear from the plans how wide the area with the public footpath will be between the existing hedge and the rear gardens. The width will need to be discussed with a public rights of way officer . NHS England (NHSE) - Raises a 'holding objection'. Comments that: "a residential development of up to 126 dwellings is likely to have a significant impact on the NHS funding programme for the delivery of healthcare provision within the local area, and specifically within the health catchment area of the development. NHSE would therefore expect these impacts to be fully assessed and mitigated by way of a developer contribution secured through a Section 106 planning obligation. The planning application does not include an assessment of the likely healthcare impacts arising from the proposed development. A Healthcare Impact Assessment (HIA) has therefore been prepared by NHSE to provide the basis for a developer contribution towards capital funding to increase capacity within the GP Catchment Area". On the above basis NHSE request that a developer contribution of £44,200 should be secured by a S.106 Planning Obligation. This calculation is based on an optimum capacity of 1800 patients per GP. There are currently 8 GPs at the Holt practice equating to an overall optimum capacity of 14,400 patients. This number is currently exceeded by 163 patients and the additional estimated number arising from 126 new homes is a further 312 patients. The sum of £44,200 equates to the addition of 0.17 of a GP and 22.1 sqm floorspace to respond to this additional demand. Environmental Health - Recommends conditions in respect of surface water, sewage disposal, noise insulation measures (traffic noise) and land contamination. Strategic Housing Comments relate to the three applications submitted on behalf of Greshams School and the single submitted development viability assessment: There is a need for affordable housing in Holt with 100 households on the Housing Register and in addition there are a further 109 households on the Transfer Register and 646 households on the Housing Options Register who have stated that they require housing in Holt. The proposed development would therefore assist in meeting some of the proven housing need. It is noted that all three sites are outside of the settlement boundary for Holt. The applicants are seeking planning permission on the basis that a material consideration is the need for Gresham‟s School to expand its education provision and the associated benefits to the economic prosperity of Holt of this. The submitted viability assessment adopts a non-standard approach, as the land value used in the viability assessment reflects Gresham‟s School‟s requirement that it receives a receipt from the sale of the three sites which will fund (with some borrowing) the construction of a new sixth form academic block (£4,412,000), improvements to its boarding houses (£5,129,000) and the costs of planning, master planning, legal costs and the promoters fee, totalling £11,062,215. The need to generate this level of land value has resulted in a viability assessment which shows that it is only viable to provide 10% of the proposed number of dwellings as affordable dwellings. The approach taken to the assessment of what is an appropriate land value for the three sites conflicts with the Royal Institute of Chartered Surveyors guidance and Planning Practice Guidance on financial viability in planning on how land values should be established. Development Committee 15 21 August 2014 The proposal that the affordable housing is only be provided on site 1 is reflective of the desire to maximise the land value across all three sites. Gresham‟s School has stated that they are not able to borrow to fully fund the cost of the construction of the sixth form block and improvements to boarding houses and are only able to borrow part of the cost. A review of the financial information submitted by Gresham‟s School in the viability assessment has concluded that school can only borrow a proportion of the costs of the proposed works. The submitted viability assessment was considered internally and by an external consultant. The initial consideration of the submitted viability by the external consultant showed that: The sales values used for the proposed market dwellings are too cautious. The agent fees were out of kilter with the market. The planning and master planning fees are high in relation to what would be expected. The promoter‟s fee of 10% of the net land value (after planning, master planning and legal fees are deducted from the receipt from the sale of the three sites) is not a standard cost. The land value can increase and there should be a strong argument to increase the percentage of affordable housing. Allowing for 45% social (affordable housing), would provide a positive capital receipt to the land owners – notwithstanding the specific issues relating to Gresham‟s School and their requirement to build new teaching and housing blocks. It was therefore clear that all of the factors identified above are impacting negatively on the viability of the three sites and the amount of affordable housing which they can support. In addition there was concern that site 3, which the outline application proposes is developed to provide up to 8 dwellings was not maximising the value of this site. 6 larger dwellings would be more beneficial to the viability. These views were discussed with the applicant who subsequently submitted a revised viability assessment to reflect the sales values identified by the external consultant. As these sales values reflected values at June 2014, the applicant also updated the build costs within the viability assessment to reflect build costs at June 2014, as the original submitted viability assessment used June 2013 build costs. In addition site 3 was amended to reflect 6 larger dwellings and the total number of dwellings across the three sites reduced to 151. The revised viability assessment however, still showed that it was only viable to provide 10% of the total number of dwellings as affordable (15 dwellings). The external consultant has considered the revised viability assessment and stated that: The promoters return at 10% is not unrealistic to reflect the risk associated with the scheme and the uncertainty that planning consent will be granted. Further clarification is needed of the planning and master planning fees which are excessive. The increase in build costs has countered the increase in sales values, however, the achieved land value per acre is favourable for its location. The argument put forward is looking at viability in reverse, as X {the cost of the works and associated costs - £11,062,215} is needed to make it work. If the school had no capital expenditure to make, the discussion would be different. It should be noted, that whilst the promoter‟s fee at 10% of the net land receipt is not Development Committee 16 21 August 2014 considered to be unrealistic, in normal practice this fee would be deducted from the landowner‟s receipt for the land and so would reduce the return they receive. This is not the case here. The sum the applicants need to achieve from the sale of the three sites has been calculated as the cost of the proposed works to the school plus the planning, master planning and legal fee and the promoters return. Therefore, the total sum needed to be received from the sale of the three sites has been increased by the requirement to pay the promoter‟s return of 10% of net land value. The revised viability assessment shows that with 10% affordable housing, this sum is almost achieved, leaving only a small amount which the applicant would need to fund through a loan. It is clear that had a standard approach been used in the viability assessment to the value of the land for each of the three sites that it would be viable to provide more than 10% affordable housing or 15 out of 151 new dwellings. The fact that Gresham‟s School require such an extensive receipt from the sale of the site has significantly affected the viability of these sites. In addition the issue around the planning and master planning costs and the promoters return are contributing to the viability issue. If a standard approach to the valuing of these three sites had been used, it would be viable to provide more affordable housing. It is proposed that if these three sites are granted planning permission, that there will be a Section 106 Agreement which will contain an uplift arrangement to provide for a possible contribution for affordable housing. The proposed uplift arrangement is not the standard affordable housing uplift which the Council has used elsewhere. Affordable housing uplifts are used where the Council has accepted a lower percentage of affordable housing due to viability issues at the point of application in order to capture any increase in viability once the site is developed. The Council‟s standard wording captures increases in viability due to changes in costs and increases in the sales values achieved for the completed market dwellings where this results in more profit for the developer. The proposal for the three sites is instead, that the receipt from the sale of the three sites will be placed into a ring fenced pot for the works to build a sixth form college and remodel the boarding houses. After 5 years from the receipt of the final payment, the applicants will submit a viability statement showing how the land receipt has been spent on the works and associated on costs. Any funding left over would then be split 50/50, with the Council receiving 50% up to a cap of £2,000,000 for affordable housing and the remaining 50% being used to support bursaries for local people to attend Gresham‟s School. This proposal would limit the uplift available for a financial contribution for affordable housing, as it is dependent on an increase in the receipt from the sales of the three sites beyond what is shown in the viability assessment as required. In addition the ability to receive a payment for affordable housing would be dependent on the costs of the construction of the sixth form college and improvement works to the boarding houses not increasing above the cost currently shown by the applicant. There is always a risk that the Council will not receive any funding for affordable housing through the operation of an Affordable Housing Uplift, however, the proposed arrangement for this site does increase that risk as the uplift does not relate to the costs of the development of the site, but instead to the land receipt and costs incurred by the applicant on works to Gresham‟s School. The applicants have also offered an additional affordable housing uplift clause which would enable a share of any uplift in the sales income from the completed dwellings to be provided to the Council. The share the Council would receive is not stated and the exact detail of what is proposed is not known. However, this offer is reliant on the applicants negotiating the inclusion of this clause as part of the sale of the three sites with the purchaser(s). It is therefore, not possible to comment on whether this would Development Committee 17 21 August 2014 be a more acceptable uplift clause to the Council or whether this would increase the likelihood of receiving monies to provide additional, offsite, affordable housing. To conclude, assessment of the original and revised viability assessments has shown that the viability of the site has been constrained by the non-standard methodology used to establish the land values for the three sites and has resulted in a lower level of affordable housing than it would otherwise be possible to provide. The applicant‟s proposal for an affordable housing uplift is again non-standard and would increase the risk that the Council would not receive a financial contribution for affordable housing. Strategic Housing therefore objects to the approval of the planning applications as they will not deliver the viable amount of affordable housing. Conservation, Design Officer - No substantive comments at this stage on the basis that the proposed development would; a) not impact upon any designated heritage assets, and b) is in outline form with only access to be considered. Nonetheless makes the following two points: 1. If the illustrative layout is intended to be a demonstration that any future scheme would be locally distinctive and provide a strong sense of place, it appears less than successful in its aims. Instead, the impression given is of a fairly conventional suburban layout with rows of standard house types laid out in less than imaginative ways. 2. As existing, Cromer Road marks the transition out of the town into the countryside. It therefore seems rather unfortunate to introduce a new footway all the way along the southern side of the road. Particularly with alternatives available on the northern side of the road and within the boundaries of the site, the further suburbanisation of this rural route is not something that should be encouraged. Landscape Officer - Comments are divided into four issues: landscape/visual impact, trees (arboriculture), ecology and cumulative impact: Landscape and Visual Impact The site lies within the „Wooded with Parkland‟ landscape as defined in the North Norfolk Landscape Character Assessment. Any development in this location should seek to retain the wooded character which is so distinctive of this part of Holt. This woodland edge to the town reflects its Anglo-Saxon origins (the word Holt means „wooded‟). The proposals appropriately retain the 40m wide woodland strip along the north and west boundaries of the site. The illustrative layout proposes a high density settlement that is not typical of this part of Holt. The tree and shrub belt along the southern boundary would require substantial enhancement and widening if it is to provide an effective visual and noise screen from the by-pass. A lower density allowing for much more tree and shrub planting within the site reflecting the mature woodland surrounds and a higher proportion of open space would be a more appropriate solution. The proposed footway along Cromer Road will reduce the semi-rural character that typifies this part of the outskirts of Holt. It will probably require the removal of trees. Given that there is an existing footway on the other side of the road, the requirement for another footpath is questioned. Arboricultural Issues The proposed access off Cromer Road will require the loss of a number of trees. Given the density and extent of the mature woodland belts making up this site, this loss can be accommodated, so long as there is extensive replacement planting within Development Committee 18 21 August 2014 the whole scheme. The area within the woodland proposed for the public open space does give rise to concern. This will inevitably necessitate the loss of more trees in a prominent part of the site where the mature woodland presently provides important and effective screening. It is suggested that the open space could be accommodated elsewhere within the site, perhaps adjacent to the inner edge of the woodland belt, providing a part wooded, part open public landscape. The loss of trees from the woodland belt would have to be mitigated by substantial planting within the proposed development. This would be an opportunity for the developer to provide a quality scheme that would blend in with the surrounding area. In the event of outline planning permission being granted, any subsequent detailed application would need to include an updated arboricultural method statement, a long term management plan and details of supporting funding for managing the northern tree belt as recreational open space, plus a landscaping plan with details of establishment and longer term management. Ecological Issues The application is accompanied by an Ecological Appraisal, a Bat Survey, and a Reptile Survey. The reports have been prepared by qualified ecologists in accordance with recognised standards and procedures. The Ecological Appraisal indicates that the strip of plantation woodland on the Cromer Road (and to a lesser degree Grove Lane) has the greatest ecological value on the site. The woodland has significant potential for bats (specifically Barbastelle) as both a roosting location but also for commuting and foraging. The grassland holds some potential for reptiles. The Bat Survey report records a variety of six species of bat using the woodland for foraging and commuting. The report concludes that the trees within the woodland area affected by the proposed access route did not at the time of survey hold any significant bat roosts (i.e. maternity colonies). However, the transient nature of the species means that it remains a possibility that an individual tree could potentially have a roost at any given time. The importance of the woodland belt along the Cromer Road for foraging bats is significant. Some foraging activity was observed along the northern side of the belt (under the canopy alongside the road), whilst other foraging activity was observed to the south of the belt up to 20m into the field. There is the possibility that by opening up the woodland canopy (creation of the access road and open space) the activity of the bats will be disrupted. However, the report suggests that most bat species will habituate to small gaps if left unlit. Barbastelle bats are particularly sensitive to light and are locally listed as a Priority Species; therefore mitigation will be required to ensure that the site remains an attractive foraging and commuting area for them. The report recommends that no artificial lighting is directed towards the woodland belt along the west and northern boundaries. In addition the report recommends that no artificial light is used to illuminate the new access roads and that excessive light spill from the new dwellings is kept to a minimum. Whilst such mitigation measures are in theory possible, the indicative layout leaves very little room for a buffer strip to be provided along the woodland belt to the north. A marginal strip of land adjacent to the woodland is shown to be given over to an access road, which is likely to be required to be lit for safety reasons. Therefore the recommended levels of light reduction would not be achievable on the basis of the indicative layout. If the number of dwellings were reduced then it may be possible to develop the site without impacting upon bats using the woodland. Otherwise it is considered that it would be difficult to conclude that the development would achieve a net gain in biodiversity as per the requirements of the NPPF. The site is within 1.5km of the Holt Lowes Site of Special Scientific Interest (SSSI) Development Committee 19 21 August 2014 which is part of the Norfolk Valley Fens Special Area of Conservation (SAC) and just over 5km from the North Norfolk Coast Special Area of Conservation (SAC) and the North Norfolk Coast Special Protection Area (SPA). These sites are under extreme pressure and risk of disturbance from increasing numbers of visitors, which is having a negative impact on some of the conservation interests of those sites. As the proposed development is not located on one of the site allocations in the Local Development Framework it has not previously been subject to a Habitats Regulations Assessment. Accordingly an Appropriate Assessment has been undertaken by the Council (as a 'competent authority' under the Conservation of Habitats and Species Regulations 2010) in respect of the current proposals. The Appropriate Assessment has concluded that the proposed development would not adversely affect the integrity of the Norfolk Valley Fens SAC; however, without mitigation, the development would adversely affect the integrity of the North Norfolk Coast sites. The applicants are offering a financial contribution towards a scheme of monitoring and mitigation to minimise impacts on the North Norfolk Coast SPA/SAC arising as a result of increased visitor pressure, similar to that achieved on sites which have been allocated for residential development. This together with on-site comprehensive green infrastructure/public open space, will ensure that adverse effects on the integrity of the North Norfolk Coast sites are avoided. Cumulative Impact This is one of three sites proposed for residential development in close proximity to one another. Their combined cumulative effect will be extend the built form of the town eastwards into its woodland setting. Given that these sites are all outside the defined settlement boundary and are therefore contrary to policy, there should be greater design emphasis than that already demonstrated on retaining the „edge of town‟, woodland character and thus to minimise the „suburban‟ effects of the three adjacent developments. Natural England - Initial comments received referred to the proximity of the proposed sites to both national and international designated habitat sites which are afforded protection under the 'Habitats Regulations', namely the Holt Lowes Site SSSI (national) and the North Norfolk Coast Special Protection Area (international), and the issue of visitor pressure from new residential developments which may impact upon the sensitivity of these sites. The advice received was that it is not possible to conclude that the proposals are unlikely to result in significant effects upon these sites. Accordingly Natural England advised that the District Council should not grant permission before, in its role as competent authority under the Habitats Regulations, it has received sufficient information to screen the proposals for the likelihood of significant effects. Following the applicants subsequent response and offer to contribute £50 per dwelling towards a scheme of mitigation for impacts upon these sensitive sites in combination with those of allocated sites within the wider area Natural England have commented as follows: "I have reviewed the documents that the applicant has provided and am pleased with the approach that they have taken. It is my view that it is still not possible to determine no Likely Significant Effect at the initial stage of Habitats Regulation screening; whilst we accept that the application is only a relatively small proportion of development planned for the District, recreational disturbance and therefore its effects are a cumulative issue. Whilst it is for you as the competent authority to determine whether or not you have the information needed to complete a Habitat Regulations Assessment, my advice is that the proposed mitigation is likely to be sufficient to enable a conclusion of no adverse effect on integrity to be reached. I Development Committee 20 21 August 2014 would suggest, should you be minded to grant consent, that you include an appropriately worded planning condition (and possibly S1.06 agreement) which ensures the mitigation measures, including the contribution towards delivery of strategic green infrastructure are secured." Countryside and Parks Manager - Advises that a development of 126 dwellings generates an open space requirement of 0.92ha. This requirement is satisfied as the developers are proposing about 1.3Ha if both the woodland and open space land within the development is included. In terms of children's play provision the areas indicated within the development itself are too small. Play areas need to be of sufficient size to allow recreational use without adjacent residents being inconvenienced through noise and disturbance generated by users. As the development proposes few affordable houses (and as such there will be low numbers of children), it would make sense for an off-site contribution to be made rather than implementing play provision on-site. The 126 dwelling site would generate a contribution of £51,000 which could be used in improving the Peacock lane recreation ground and play area in Holt. The Council‟s approach to the future management and maintenance of public open space relates to its likely future use. Where open space is of benefit to the new residents only, then the Council would not normally adopt the land. Where the open space has a greater potential use in that it would provide an amenity and resource for the wider community, then the Council would be prepared to adopt the land. In this case the open space and woodland is likely to be used by residents of the development only. Therefore, should the scheme proceed, the developer should make arrangements for the woodland and open space to be managed independently of the Council. HUMAN RIGHTS IMPLICATIONS It is considered that refusal of this application as recommended may have an impact on the individual Human Rights of the applicant. However, having considered the likely impact and the general interest of the public, refusal of the application is considered to be justified, proportionate and in accordance with planning law. CRIME AND DISORDER ACT 1998 - SECTION 17 The application raises no significant crime and disorder issues. POLICIES North Norfolk Core Strategy (Adopted September 2008): Policy SS2: Development in the Countryside (prevents general development in the countryside with specific exceptions). Policy SS 3: Housing (strategic approach to housing issues). Policy SS 9: Holt (identifies strategic development requirements). Policy CT 5: The transport impact on new development (specifies criteria to ensure reduction of need to travel and promotion of sustainable forms of transport). Policy CT 2: Development contributions (specifies criteria for requiring developer contributions). Policy EN 2: Protection and enhancement of landscape and settlement character (specifies criteria that proposals should have regard to, including the Landscape Character Assessment). Policy EN 9: Biodiversity and geology (requires no adverse impact on designated nature conservation sites). Policy HO 1: Dwelling mix and type (specifies type and mix of dwellings for new housing developments). Policy HO 2: Provision of affordable housing (specifies the requirements for provision of affordable housing and/or contributions towards provision). Development Committee 21 21 August 2014 Policy HO 7: Making the most efficient use of land (Housing density) (Proposals should optimise housing density in a manner which protects or enhances the character of the area). MAIN ISSUES FOR CONSIDERATION 1. Development plan policy. 2. Landscape and ecological impacts / settlement character. 3. Dwelling mix, density and affordable housing. 4. Access. APPRAISAL This report should be read in conjunction with the preceding report on this agenda which relates both to this application and the other two applications submitted on behalf of Greshams School (refs: 14/0284 & 14/0274). The application site is located beyond the eastern built up fringe of Holt. The main part of the site comprises a single open field. It also includes woodland belts on two sides bordering with Cromer Road and Grove Lane. A smaller part of the site was proposed as a housing allocation at the draft version stage of the North Norfolk Site Allocations Development Plan Document (DPD). However following the examination in public the inspector rejected the site in favour for an alternative site off Woodfield Road (Site HO1). In coming to this decision the inspector described the site and compared it to site HO1 in the following terms: '.... the site is about 1 km. from Holt town centre, and is located within a peripheral, semi-rural area which is detached from the main built-up parts of Holt. It is largely surrounded by other farmland, woodland, and school playing fields. As a result it has a significantly lower sustainability score in the Sustainability Appraisal compared with site HO1. It is much less well integrated with the town, and the proposed 120 dwellings would appear as a somewhat detached, even anomalous outlying residential estate.' The site lies within the 'countryside' policy area where under Policy SS2 of the Core Strategy housing development is not permitted (apart from 'exception' affordable housing developments and the re-use of existing buildings). The application therefore represents a departure from the development plan. Core Strategy Policy EN2 which is applicable to this application states that development proposals should protect, conserve and, where possible enhance, amongst other issues, settlement character and distinctive landscape features (such as watercourses, woodland and ecological corridors for wildlife). In terms of the physical impact of housing development in this location, the site is well screened by the woodland belts on two sides and to a lesser extent by trees / hedgerows around its remaining borders, so it would not be visible in the wider landscape. However the comments of the previous inspector are still relevant in that the proposed development '... would appear as a somewhat detached, even anomalous outlying residential estate'. Furthermore the indicative layout plan submitted with the application provides little confidence that development of the site would provide sufficient quality or mitigation to counter the loss of this part of Holt's undeveloped rural fringe. For example the plan makes no suggestion that any tree planting would be integrated within the development itself to soften what, as shown, would otherwise resemble a fairly characterless suburban estate. In addition the absence of any significant landscaping Development Committee 22 21 August 2014 buffer along the boundary with the A148 Holt by-pass would result in the existing landscaped approach to the town taking on a much more urban appearance, as well as raising amenity issues to future residents of the site. The layout would also appear to contradict the recommendations of the submitted bat survey in terms of avoiding artificial lighting towards the woodland. In terms of open space the layout shows no practical provision within the housing development itself, but rather relies on this being provided within the surrounding woodland including an area where trees are indicated to be removed for this purpose. These factors only add to the more fundamental misgivings regarding the proposal, although this is not to say that a more acceptable form of layout could not be designed. In terms of the specific housing policies of the Core Strategy, Policy HO2 requires that on schemes of 10 dwellings or more, not less than 45% of the total number of dwellings should be in the form of affordable housing (subject to viability). The proposal falls well short of this requirement. The applicants are proposing that 10% of the combined total of dwellings on both this site and Sites 2 & 3 (refs: 14/0284 & 14/0274) are delivered solely on this site. As proposed this would equate to a maximum of 15 affordable dwellings. This maximum offer of affordable housing is derived from the submitted development viability assessment which assumes a total land value from the three sites in the region of £11.067m. The committee's attention is drawn to the comments of the Council's Strategic Housing Officer (above) with specific reference to the submitted viability assessment, the conclusions reached by the Council's independent consultant regarding development viability and the consequences upon the low provision of affordable housing. Core Strategy Policy HO1 requires that new housing developments should comprise at least 40% of dwellings with no more than one or two bedrooms. Whilst details of the house types are not applied for at this stage the submitted design and access statement (revised) refers to a housing mix comprising 46% properties with two bedrooms or less which would more than meet the policy requirement. Core Strategy HO7 advocates housing densities of not less than 40 dwellings per hectare (dw/ha) in Principal Settlements such as Holt, but this is subject to the proviso that the density of a site 'protects or enhances the character of an area'. Maximum densities approved on allocated greenfield sites over the last year or so have tended to be more in the region of up to 35 dw/ha. On this site, excluding the area of woodland belt which borders it, 126 dwellings would equate to a density of 29 dw/ha. Whilst this is not a particularly high density, as referred to above, the submitted indicative layout plan fails to provide any particular comfort that 126 dwellings would result in a development which would respect the landscape character of the area, provide adequate relief between the housing and adjacent main road, properly address issues of wildlife mitigation and provide a reasonable amount and type of public open space. Core Strategy EN9 states that development proposals that would cause a direct or indirect adverse effect to nationally designated sites or protected species will not be permitted unless the benefits of the development clearly outweigh the adverse impacts and suitable prevention, mitigation and compensation measures are provided. The issue relates to increased visitor pressure arising from new residential development in the district, in particular upon the North Norfolk Coast SAC/SPA. Natural England has subsequently advised that the applicants' offered payment of £50 per dwelling (secured by S.106 Obligation) towards measures to mitigate against the effects of increased visitor pressure should be sufficient to address this particular concern. Similarly the Appropriate Assessment (Conservation of Habitats and Species Regulations 2010) undertaken by the Council has reached the same Development Committee 23 21 August 2014 conclusion. Finally the only physical detail being applied for at this stage relates to the access arrangements to serve the proposed development. These involve both the road access onto Cromer Road as well new footway provision along lengths of Cromer Road and Grove Lane. Technically these details are acceptable to the highway authority, although visually they will have an impact upon the wooded character of this approach into the town, including the loss of certain trees. In the case of the footway along the Cromer Road frontage, there is the possibility that an alternative route could be directed within the development site, subject to it meeting the highway authority's adoption standards. Conclusions Planning law requires that applications for planning permission must be determined in accordance with the development plan unless material considerations indicate otherwise. The principle of housing on this site does not accord with the development plan (Policy SS2 - Development in the Countryside). Neither does the proposal accord in terms of specific housing policy (Policy HO2 - Provision of affordable housing). In addition it is considered that the site is a far from ideal one to develop for housing (a fact concluded by the previous planning inspector), one which would have a potentially negative effect upon the rural character of the area and ecology of the site (Policies EN2 and EN9). Whilst these latter impacts represent the sort of compromises which sometimes have to be made in circumstances where there is a recognised need to provide new sites for housing or other forms of development, this is not currently the case with this site. The submission put forward by the applicants (referred to in detail in the preceding report) is that the interests of Greshams School (and in turn the benefits which accrue from the school to the economy of Holt) represent a material consideration sufficient enough to outweigh the development plan in this case. Notwithstanding the arguments put forward by the applicants, first and foremost this is a planning application for residential development and as such it should be determined on that basis. For the reasons referred to both in this report and the preceding report it is not considered that the case put forward by the applicants is sufficient to outweigh the significant departures from the development plan which this application represents. Accordingly the application is recommended for refusal. RECOMMENDATION: Refusal for the following reasons: The District Council adopted the North Norfolk Core Strategy on 24 September 2008 for all planning purposes. The following policy statements are considered relevant to the proposed development: SS 1 - Spatial Strategy for North Norfolk SS 2 - Development in the Countryside SS 3 - Housing SS 9 - Holt HO 2 - Provision of affordable housing EN 2 - Protection and enhancement of landscape and settlement character The proposal would result in an unsustainable form of development which would be contrary to the development plan in the following respects: (a) The application site lies outside of the development boundary for Holt in an area designated as 'countryside' in the adopted Core Strategy. Housing development Development Committee 24 21 August 2014 (apart from 'exception' affordable housing developments and the conversion of existing buildings) is not a use permitted in the countryside policy area under Core Strategy Policy SS 2. The proposal would lead to the creation of an outlying residential estate detached from the existing built up area of Holt and most of the town's services and facilities. (b) The proposal fails to provide for an appropriate proportion of affordable housing, contrary to the objectives of Core Strategy Policy HO 2. (c) Contrary to the objectives of Core Strategy Policy EN 2, the applicants have failed to demonstrate that the proposed development would not result in an adverse impact upon the character and appearance of the rural fringe to Holt, and in particular the approach into the town along the A148. In the opinion of the Local Planning Authority there are no material considerations or public benefits associated with the proposed development, of sufficient weight, to indicate that the application should be determined other than in accordance with the development plan. 3. HOLT - PO/14/0284 - Residential development for a maximum of 19 dwellings; Land South of Cromer Road and West of Grove Lane for Endurance Estates Strategic Land Ltd and Greshams School Major Development - Target Date: 10 June 2014 Case Officer: Mr J Williams Outline Planning Permission CONSTRAINTS Countryside Unclassified Road C road Tree Preservation Order Controlled Water Risk - Medium (Ground Water Pollution) RELEVANT PLANNING HISTORY PLA/20001224 PF Change of use from agricultural land to school playing field Approved 29/01/2001 THE APPLICATION The application is to develop an existing school playing field (1.53ha) for 19 dwellings. The only detail applied for at this stage is for access. The site which is rectangular in shape has road frontages to three sides (Cromer Road to the north and Grove Lane to the east and south) and its western boundary borders the grounds of a listed building (The Grove). Vehicle access is proposed from the eastern side of the site onto Grove Lane. New 1.8m wide footways are proposed alongside the site‟s three road frontages, extending beyond the site‟s Cromer Road frontage linking with an existing footway beyond the western boundary of The Grove. Similarly the footway would be extended along Grove Lane to link with the footway proposed along the frontage of site 3 (application ref: 14/0274). 'Build-out' features are also proposed on Grove Lane intended as traffic calming measures. Amended plans have been submitted with references to 'no dig' methods of footpath construction to protect tree roots. Development Committee 25 21 August 2014 Illustrative plans submitted with the application indicate 19 detached dwellings served from an access road running north/south centrally within the site. The dwellings are based on a mix of six 4 bedroom properties and thirteen 4/5 bedroom properties. No public open space is indicated. The applicants have confirmed in writing that the following financial contributions are being offered by means of a S.106 Planning Obligation: SPA/SAC visitor pressure Off-site public open space Education Libraries - £50 per dwelling - £7,000 - £57,839 (approx) - £60 per dwelling The application is supported by the following documents: Arboricultural Impact Assessment Archaeological Assessment Design and Access Statement Ecological Appraisal Energy Assessment Flood Risk Assessment Services Report Heritage Statement Noise Assessment Planning Statement Statement of Community Involvement Site Waste Management Report Ground Investigation Report Transport Assessment Sustainable Travel Report Travel Plan Cost Models for school capital works Viability Assessment (confidential) REASONS FOR REFERRAL TO COMMITTEE The application is a significant major development which represents a departure from current policy. A Committee site visit was held on 8th May. TOWN COUNCIL Supports with the following conditions: That the maximum number of dwellings on this site should never exceed 19 properties That the development should create new, safe and accessible environments which are visually attractive as a result of good architecture and appropriate landscaping. That the garage blocks for Plot 1, Plot 4, Plot 10 and Plot 14 as shown on the indicative layout, are repositioned away from the extreme edges of the site to enable a substantial belt of appropriate landscaping to screen and fully encompass the site. That all existing trees are retained. The number of affordable homes should be negotiated and increased. REPRESENTATIONS 24 letters of objection received which are summarised as follows: Contrary to the development plan. Development Committee 26 21 August 2014 The funding of Greshams School should not be a planning consideration and should not influence local housing decisions. (As per inspectors decision). The needs of Greshams School should not override the legality and merits of the application in planning terms. Consent has been granted for approximately 700 new houses in Holt under the strategic plan. Holt has not got the infrastructure to cope with even more houses. Modernisation of Greshams School should not be to the detriment of the local community. The housing growth for Holt as identified in the Local Development Framework has been satisfied by the two allocated sites in the town. Any further development should be based on a particular need and adequate infrastructure to support it. Need should be related to housing, not to achieve substantial private profit. Inadequate local infrastructure to cater for additional housing (e.g. schools, doctor's surgeries, car parks and sewage treatment). Limited capacity at the primary school. Unsustainable development for Holt in terms of state schooling, health provision, local employment, transport and recreation. Lack of local employment opportunities to support additional housing. The housing is not planned for local people. Would result in the over-development of the town. Loss of open green space which should be retained for sport. Site is detached from the town and would result in an isolated estate. Site not within reasonable walking distance to the town centre. Site is remote from the town centre and primary school and would result in dependence on car use. Would exacerbate Holt's parking problems. Adverse effect upon character of this part of Holt. Represents urban sprawl. The attractive surroundings to Holt are important to retain. Would join up Holt and High Kelling, changing their identities. Local traffic safety. Grove Lane is unsuitable to cater for further traffic. Would lead to increased traffic using Grove Lane as a 'rat run', which has a lack of continuous footpaths, resulting in a danger to pedestrians. Footpaths along Cromer Road are in many places narrow. Loss of sports field. Loss of attractive open space. Insensitive impact upon adjacent listed building. 30 signed copies of an identical letter received. The letter objects to the application on the following grounds: Over-development - site not allocated in the Local Development Framework. Inspector's decision - The 2010 decision by the Government inspector made it clear that safeguarding Greshams School was not a planning consideration. Local identity - Road features to Grove Lane would change its semi-rural nature. Sustainability - Not sustainable in terms of state schooling, local employment opportunities, transport and recreation. Site is remote from the town centre and local services. Would increase dependency on the car. Road safety (Grove Lane) - Increased use as a rat run. Lack of footpaths / pedestrian safety. Green space - Loss of. Development Committee 27 21 August 2014 CONSULTATIONS County Council (Highways) - No objection subject to a number of conditions including the prior submission and approval of detailed plans for both on-site and offsite highway works. Anglian Water - Confirms that there is at present available capacity in the foul sewerage network and at Holt Sewage Treatment Works to cater for the development. Requests a surface water drainage strategy is conditioned in the event of planning approval. Environment Agency - No objection in terms of flood risk issues, subject to a condition requiring the submission of a surface water scheme to be submitted with any applications for reserved matters. In terms of sewage disposal comments as follows: 'Under the Water Framework Directive (WFD) both the Agency and local authorities have a duty to ensure there is no deterioration of a watercourse, in this case the River Glaven which currently has „very good‟ status. To be compliant with the Directive a scheme must not cause deterioration in a waterbody‟s status or prevent its achievement of good ecological status in the future. The additional loading on Holt Sewage Treatment Works from this and other new developments within the catchment may individually or cumulatively necessitate Phosphate removal at the works in order to maintain the very good status of that waterbody. As such there may be an issue with accommodating the full quantum of growth proposed for Holt in the LDF over the longer term. This site was not allocated in the LDF and so these housing figures could be over and above those considered at that time - these extra houses could therefore limit the number of allocated houses that can be built.' Recommends a condition requiring that no development shall begin until a report demonstrating that there is sufficient foul water capacity for the development has been submitted and approved by the local planning authority. Where necessary the report should include a scheme for improvement of the sewerage system and the condition should require that no dwellings shall be occupied until the scheme as approved has been implemented. County Council (Planning Obligations Co-Ordinator) - Requires the following financial contributions to be secured via a section 106 Obligation: £465,760 towards primary education (a combined sum relating to Sites 1,2 & 3). £892 for 1 fire hydrant £60 per dwelling for library provision. County Council (Minerals and Waste) - No objection subject to a condition requiring the prior submission and approval of a Materials Management PlanMinerals (MMP-M), the purpose of which will be to establish the extent to which onsite materials which could be extracted and used during the course of development. County Council (Historic Environment Service) archaeological work. Confirms no requirement for Sport England Objects on grounds that the proposal would result in the permanent loss of an existing playing field without being replaced by a new playing field. Accordingly it is considered that the proposal would not satisfy Sport England's Development Committee 28 21 August 2014 policy on the loss of playing fields, or the advice contained within para. 74 of the National Planning Policy Framework. Should the Council be minded to grant planning permission the application should be referred to the Secretary of State in accordance with the Town and Country Planning (Consultation) (England) Direction 2009. Environmental Health - Recommends conditions in respect of surface water, sewage disposal and land contamination. Strategic Housing - Comments relate to the three applications submitted on behalf of Greshams School and the single submitted development viability assessment: There is a need for affordable housing in Holt with 100 households on the Housing Register and in addition there are a further 109 households on the Transfer Register and 646 households on the Housing Options Register who have stated that they require housing in Holt. The proposed development would therefore assist in meeting some of the proven housing need. It is noted that all three sites are outside of the settlement boundary for Holt. The applicants are seeking planning permission on the basis that a material consideration is the need for Gresham‟s School to expand its education provision and the associated benefits to the economic prosperity of Holt of this. The submitted viability assessment adopts a non-standard approach, as the land value used in the viability assessment reflects Gresham‟s School‟s requirement that it receives a receipt from the sale of the three sites which will fund (with some borrowing) the construction of a new sixth form academic block (£4,412,000), improvements to its boarding houses (£5,129,000) and the costs of planning, master planning, legal costs and the promoters fee, totalling £11,062,215. The need to generate this level of land value has resulted in a viability assessment which shows that it is only viable to provide 10% of the proposed number of dwellings as affordable dwellings. The approach taken to the assessment of what is an appropriate land value for the three sites conflicts with the Royal Institute of Chartered Surveyors guidance and Planning Practice Guidance on financial viability in planning on how land values should be established. The proposal that the affordable housing is only be provided on site 1 is reflective of the desire to maximise the land value across all three sites. Gresham‟s School has stated that they are not able to borrow to fully fund the cost of the construction of the sixth form block and improvements to boarding houses and are only able to borrow part of the cost. A review of the financial information submitted by Gresham‟s School in the viability assessment has concluded that school can only borrow a proportion of the costs of the proposed works. The submitted viability assessment was considered internally and by an external consultant. The initial consideration of the submitted viability by the external consultant showed that: The sales values used for the proposed market dwellings are too cautious. The agent fees were out of kilter with the market. The planning and master planning fees are high in relation to what would be expected. The promoter‟s fee of 10% of the net land value (after planning, master Development Committee 29 21 August 2014 planning and legal fees are deducted from the receipt from the sale of the three sites) is not a standard cost. The land value can increase and there should be a strong argument to increase the percentage of affordable housing. Allowing for 45% social (affordable housing), would provide a positive capital receipt to the land owners – notwithstanding the specific issues relating to Gresham‟s School and their requirement to build new teaching and housing blocks. It was therefore clear that all of the factors identified above are impacting negatively on the viability of the three sites and the amount of affordable housing which they can support. In addition there was concern that site 3, which the outline application proposes is developed to provide up to 8 dwellings was not maximising the value of this site. 6 larger dwellings would be more beneficial to the viability. These views were discussed with the applicant who subsequently submitted a revised viability assessment to reflect the sales values identified by the external consultant. As these sales values reflected values at June 2014, the applicant also updated the build costs within the viability assessment to reflect build costs at June 2014, as the original submitted viability assessment used June 2013 build costs. In addition site 3 was amended to reflect 6 larger dwellings and the total number of dwellings across the three sites reduced to 151. The revised viability assessment however, still showed that it was only viable to provide 10% of the total number of dwellings as affordable (15 dwellings). The external consultant has considered the revised viability assessment and stated that: The promoters return at 10% is not unrealistic to reflect the risk associated with the scheme and the uncertainty that planning consent will be granted. Further clarification is needed of the planning and master planning fees which are excessive. The increase in build costs has countered the increase in sales values, however, the achieved land value per acre is favourable for its location. The argument put forward is looking at viability in reverse, as X {the cost of the works and associated costs - £11,062,215} is needed to make it work. If the school had no capital expenditure to make, the discussion would be different. It should be noted, that whilst the promoter‟s fee at 10% of the net land receipt is not considered to be unrealistic, in normal practice this fee would be deducted from the landowner‟s receipt for the land and so would reduce the return they receive. This is not the case here. The sum the applicants need to achieve from the sale of the three sites has been calculated as the cost of the proposed works to the school plus the planning, master planning and legal fee and the promoters return. Therefore, the total sum needed to be received from the sale of the three sites has been increased by the requirement to pay the promoter‟s return of 10% of net land value. The revised viability assessment shows that with 10% affordable housing, this sum is almost achieved, leaving only a small amount which the applicant would need to fund through a loan. It is clear that had a standard approach been used in the viability assessment to the value of the land for each of the three sites that it would be viable to provide more than 10% affordable housing or 15 out of 151 new dwellings. The fact that Gresham‟s School require such an extensive receipt from the sale of the site has significantly affected the viability of these sites. In addition the issue around the Development Committee 30 21 August 2014 planning and master planning costs and the promoters return are contributing to the viability issue. If a standard approach to the valuing of these three sites had been used, it would be viable to provide more affordable housing. It is proposed that if these three sites are granted planning permission, that there will be a Section 106 Agreement which will contain an uplift arrangement to provide for a possible contribution for affordable housing. The proposed uplift arrangement is not the standard affordable housing uplift which the Council has used elsewhere. Affordable housing uplifts are used where the Council has accepted a lower percentage of affordable housing due to viability issues at the point of application in order to capture any increase in viability once the site is developed. The Council‟s standard wording captures increases in viability due to changes in costs and increases in the sales values achieved for the completed market dwellings where this results in more profit for the developer. The proposal for the three sites is instead, that the receipt from the sale of the three sites will be placed into a ring fenced pot for the works to build a sixth form college and remodel the boarding houses. After 5 years from the receipt of the final payment, the applicants will submit a viability statement showing how the land receipt has been spent on the works and associated on costs. Any funding left over would then be split 50/50, with the Council receiving 50% up to a cap of £2,000,000 for affordable housing and the remaining 50% being used to support bursaries for local people to attend Gresham‟s School. This proposal would limit the uplift available for a financial contribution for affordable housing, as it is dependent on an increase in the receipt from the sales of the three sites beyond what is shown in the viability assessment as required. In addition the ability to receive a payment for affordable housing would be dependent on the costs of the construction of the sixth form college and improvement works to the boarding houses not increasing above the cost currently shown by the applicant. There is always a risk that the Council will not receive any funding for affordable housing through the operation of an Affordable Housing Uplift, however, the proposed arrangement for this site does increase that risk as the uplift does not relate to the costs of the development of the site, but instead to the land receipt and costs incurred by the applicant on works to Gresham‟s School. The applicants have also offered an additional affordable housing uplift clause which would enable a share of any uplift in the sales income from the completed dwellings to be provided to the Council. The share the Council would receive is not stated and the exact detail of what is proposed is not known. However, this offer is reliant on the applicants negotiating the inclusion of this clause as part of the sale of the three sites with the purchaser(s). It is therefore, not possible to comment on whether this would be a more acceptable uplift clause to the Council or whether this would increase the likelihood of receiving monies to provide additional, offsite, affordable housing. To conclude, assessment of the original and revised viability assessments has shown that the viability of the site has been constrained by the non-standard methodology used to establish the land values for the three sites and has resulted in a lower level of affordable housing than it would otherwise be possible to provide. The applicant‟s proposal for an affordable housing uplift is again non-standard and would increase the risk that the Council would not receive a financial contribution for affordable housing. Strategic Housing therefore objects to the approval of the planning applications as they will not deliver the viable amount of affordable housing. Conservation and Design Officer The site lies well outside the Holt Conservation Area and there is no apparent archaeological interest in the area. Therefore the only heritage asset which needs to be considered is the Grade II Listed building 'The Grove' which borders the western Development Committee 31 21 August 2014 boundary of the site. This is an early 19th century building which mixes Tudor and Gothic detailing to create an attractive and elegant end result. Despite the college buildings having encroached to the northwest, it still stands in relative isolation within its own grounds – a fact which is clearly pertinent given the development now proposed on both sides. Looking at historic maps, it would appear that the Grove has always had a relatively insular existence based upon its well defined curtilage. Certainly there is no suggestion of it having ever addressed the wider landscape to either the west or east. Hence, Conservation & Design concur with the submitted heritage statement which states that “the open character of the asset‟s wider surroundings is therefore an incidental part of the setting rather than a designed aspect”. However, there has always been a narrower tree belt on the eastern side of The Grove (which has been further thinned recently). Hence existing views towards and out from The Grove would clearly be affected by the proposed scheme. Whilst these views may well be incidental and intermittent, they have nonetheless now opened The Grove up to wider appreciation and have helped it establish new connections with the countryside beyond. With the proposed development potentially creating two banks of housing, it is probable that these views would be largely lost with the new build taking centre stage and affectively hemming in the heritage asset on its eastern side. On this basis it is concluded that the scheme would result in “less than substantial harm” being caused to the setting of the heritage asset (as defined by the NPPF). More generally, as the application is in outline form with only access to be considered, it is not necessary at this stage to delve too deeply into the illustrative layout. This said, it is certainly worth noting that the indicative scheme presents a far from convincing case for the development sitting comfortably within its semi-rural setting. Instead it appears to depict an essentially suburban layout where the buildings have been laid out less than imaginatively around a central roadway and a pair of hammerheads. Therefore, should the public benefits accruing from the scheme be considered to outweigh the heritage harm (and any other material considerations), Conservation and Design would certainly look for a more informal layout which befits its location. This should provide for greater variations in built form and grouping, and should be based around a more informal arrangement of private drives and courtyards. Finally, it is considered unfortunate that the informal verge and semi-rural character of Grove Lane should be sacrificed in order to provide a new footpath around the perimeter of this development. . Re-routing these paths through the development would be much preferred - as would deleting the two artificial islands within the carriageway which would have a similarly damaging impact upon the rural feel of the area. Landscape Officer - Comments that the site has a distinctly rural character, by virtue of the surrounding mature woodland and soft road verges which along Grove Lane create a „country lane‟ appearance. Retention of this distinct character should be a key aim of any development proposals in this area. The submitted proposals fail to emulate this and offer a rather suburban development by virtue of the layout and the highway elements. The eastern end of Grove Lane currently works well as a shared surface. The inclusion of footpaths, kerbing, associated gullies and traffic calming measures would seem to be unnecessary and expensive elements that would have a negative impact on the semi-rural character of this part of Holt. The development proposes the removal of the eastern and southern hedgerows Development Committee 32 21 August 2014 which is regrettable. This is a positive feature of the site and should be retained to give established character to any finished scheme. It provides a soft boundary that is in keeping with this area on the outskirts of Holt and is of ecological value. It would be difficult to replicate this with replacement planting. The loss of a section of the hedgerow and grassed verge to accommodate visibility splays is acceptable, however there should be extensive soft landscape planting within the site in recognition of the woodland nature of the area. Trees on the site have been described as important in the arboricultural report and their retention as part of the proposed development is welcomed. Suburban close board fencing would not be appropriate in this location. Design details should reflect the edge of settlement location and pick up on local building vernacular from buildings in the locality, such as the former agricultural buildings on Cromer Road and the older dwellings at the eastern end of Grove Lane. The illustrative layout submitted presents a somewhat suburban arrangement inappropriate for this setting. A more mixed approach based on clusters of dwellings within a landscape setting would be more fitting. The site is within 1.5km of the Holt Lowes Site of Special Scientific Interest (SSSI) which is part of the Norfolk Valley Fens Special Area of Conservation (SAC) and just over 5km from the North Norfolk Coast Special Area of Conservation and the North Norfolk Coast Special Protection Area (SPA). These sites are under extreme pressure and risk of disturbance from increasing numbers of visitors, which is having a negative impact on some of the conservation interests of those sites. As the proposed development is not located on one of the site allocations in the Local Development Framework it has not previously been subject to a Habitats Regulations Assessment. Accordingly an Appropriate Assessment has been undertaken by the Council (as a 'competent authority' under the Conservation of Habitats and Species Regulations 2010) in respect of the current proposals. The Appropriate Assessment has concluded that the proposed development would not adversely affect the integrity of the Norfolk Valley Fens SAC; however, without mitigation, the development would adversely affect the integrity of the North Norfolk Coast sites. The applicants are offering a financial contribution towards a scheme of monitoring and mitigation to minimise impacts on the North Norfolk Coast SPA/SAC arising as a result of increased visitor pressure, similar to that achieved on sites which have been allocated for residential development. This will ensure that adverse effects on the integrity of the North Norfolk Coast sites are avoided. Natural England Initial comments received referred to the proximity of the proposed sites to both national and international designated habitat sites which are afforded protection under the 'Habitats Regulations', namely the Holt Lowes Site SSSI (national) and the North Norfolk Coast Special Protection Area (international), and the issue of visitor pressure from new residential developments which may impact upon the sensitivity of these sites. The advice received was that it is not possible to conclude that the proposals are unlikely to result in significant effects upon these sites. Accordingly Natural England advised that the District Council should not grant permission before, in its role as competent authority under the Habitats Regulations, it has received sufficient information to screen the proposals for the likelihood of significant effects. Following the applicants subsequent response and offer to contribute £50 per dwelling towards a scheme of mitigation for impacts upon these sensitive sites in combination with those of allocated sites within the wider area Natural England have commented as follows: " I have reviewed the documents that the applicant has provided and am pleased with the approach that they have taken. It is my view that it is still not possible to Development Committee 33 21 August 2014 determine no Likely Significant Effect at the initial stage of Habitats Regulation screening; whilst we accept that the application is only a relatively small proportion of development planned for the District, recreational disturbance and therefore its effects are a cumulative issue. Whilst it is for you as the competent authority to determine whether or not you have the information needed to complete a Habitat Regulations Assessment, my advice is that the proposed mitigation is likely to be sufficient to enable a conclusion of no adverse effect on integrity to be reached. I would suggest, should you be minded to grant consent, that you include an appropriately worded planning condition (and possibly S.106 agreement) which ensures the mitigation measures, including the contribution towards delivery of strategic green infrastructure are secured." Countryside and Parks Manager As the site does not include any on-site provision of open space suggests that a contribution of £7,000 is made towards off site play provision. HUMAN RIGHTS IMPLICATIONS It is considered that the proposed development may raise issues relevant to Article 8: The Right to respect for private and family life. Article 1 of the First Protocol: The right to peaceful enjoyment of possessions. It is considered that refusal of this application as recommended may have an impact on the individual Human Rights of the applicant. However, having considered the likely impact and the general interest of the public, refusal of the application is considered to be justified, proportionate and in accordance with planning law. CRIME AND DISORDER ACT 1998 - SECTION 17 The application raises no significant crime and disorder issues. POLICIES North Norfolk Core Strategy (Adopted September 2008): Policy SS2: Development in the Countryside (prevents general development in the countryside with specific exceptions). Policy SS 3: Housing (strategic approach to housing issues). Policy SS 9: Holt (identifies strategic development requirements). Policy CT 1: Open space designations (prevents inappropriate development and loss of open space). Policy CT 2: Development contributions (specifies criteria for requiring developer contributions). Policy CT 5: The transport impact on new development (specifies criteria to ensure reduction of need to travel and promotion of sustainable forms of transport). Policy EN 2: Protection and enhancement of landscape and settlement character (specifies criteria that proposals should have regard to, including the Landscape Character Assessment). Policy EN 8: Protecting and enhancing the historic environment (prevents insensitive development and specifies requirements relating to designated assets and other valuable buildings). Policy EN 9: Biodiversity and geology (requires no adverse impact on designated nature conservation sites). Policy HO 1: Dwelling mix and type (specifies type and mix of dwellings for new housing developments). Policy HO 2: Provision of affordable housing (specifies the requirements for provision of affordable housing and/or contributions towards provision). Policy HO 7: Making the most efficient use of land (Housing density) (Proposals should optimise housing density in a manner which protects or enhances the Development Committee 34 21 August 2014 character of the area). MAIN ISSUES FOR CONSIDERATION 1. Development plan policy. 2. Dwelling mix, density and affordable housing. 3. Landscape and ecological impacts / settlement character. 4. Loss of playing field 5. Setting of listed building. 6. Access. APPRAISAL This report should be read in conjunction with the preceding report on this agenda which relates both to this application and the other two applications submitted on behalf of Greshams School (refs: 14/0283 & 14/0274). The application site is located just beyond the eastern built up fringe of Holt. It comprises a rectangular playing field surrounded on three sides by Cromer Road and Grove Lane, and borders 'The Grove' on its remaining side. The site lies within the 'countryside' policy area where under Policy SS2 of the Core Strategy housing development is not permitted (apart from 'exception' affordable housing developments and the re-use of existing buildings). The application therefore represents a departure from the development plan. In terms of the specific housing policies of the Core Strategy, Policy HO2 requires that on schemes of 10 dwellings or more, not less than 45% of the total number of dwellings should be in the form of affordable housing (subject to viability). The proposal falls well short of this requirement. The applicants are proposing that 10% of the combined total of dwellings on both this site and Sites 1 & 3 (refs: 14/0283 & 14/0274) are delivered solely on Site 1. As proposed this would equate to a maximum of 15 affordable dwellings. This maximum offer of affordable housing is derived from the submitted development viability assessment which assumes a total land value from the three sites in the region of £11.067m. The committee's attention is drawn to the comments of the Council's Strategic Housing Officer (above) with specific reference to the submitted viability assessment, the conclusions reached by the Council's independent consultant regarding development viability and the consequences upon the low provision of affordable housing. Core Strategy Policy HO1 requires that new housing developments should comprise at least 40% of dwellings with no more than one or two bedrooms. Whilst detailed house types are not applied for at this stage, it is clear from the submitted indicative layout plan and accompanying documentation, that this is a proposal wholly comprising 4/5 bedroom detached dwellings. Core Strategy HO7 advocates housing densities of not less than 40 dwellings per hectare (dw/ha) in 'Principal Settlements' such as Holt, but this is subject to the proviso that the density of a site 'protects or enhances the character of an area'. Maximum densities approved on allocated greenfield sites over the last year or so have tended to be more in the region of up to 35 dw/ha. This proposal is for a very low density development equating to approximately 12 dw/ha. This low density reflects the type of housing proposed and absence of smaller more affordable properties. Core Strategy Policy EN2 which is also applicable to this application states that development proposals should protect, conserve and, where possible enhance, Development Committee 35 21 August 2014 amongst other issues, settlement character and distinctive landscape features. The site at present provides an attractive open transition between the eastern built up perimeter of Holt and the adjoining countryside. Grove Lane which borders the site on two sides has a distinctly semi-rural character. This will irrevocably change as a result of the proposed development, not just as a result of the housing development itself, but also as a result of the engineered highway works (including formalised footways) which are proposed and are a requirement of the highway authority. The proposed development will result in the loss of an existing sports field which has been used as a senior size football pitch. Formerly in agricultural use the field was granted planning permission for the change of use to a school playing field in 2001. The committee will note the objection raised by Sport England to the loss of this playing field. In terms of planning policy Core Strategy Policy CT1 states that the whole or partial loss of open space will not be permitted unless the space does not contribute to the character of the settlement and is surplus to requirements (in terms of its function), or where provision of equal or greater benefit is provided in the locality. Similarly the NPPF states that sports land should not be built on unless it is demonstrated that the land is surplus to requirements; or the loss is replaced by equivalent or better provision; or the development is for alternative sports / recreation provision. The applicants have responded to Sport England's objection by stating that the playing field is surplus to requirements having regard to its location on the "wrong side" of Cromer Road to the school's main campus and other sports facilities. They have also demonstrated that the pitch can be capable of being provided within the school's main playing fields area (doubling up with cricket pitches). Sport England have however maintained their objection on the basis of the net loss of playing field provision and they point out the requirement to refer the application to the Secretary of State in the event of the Council being minded to grant planning permission. Core Strategy EN9 states that development proposals that would cause a direct or indirect adverse effect to nationally designated sites or protected species will not be permitted unless the benefits of the development clearly outweigh the adverse impacts and suitable prevention, mitigation and compensation measures are provided. The issue relates to increased visitor pressure arising from new residential development in the district, in particular upon the North Norfolk Coast SAC/SPA. Natural England has subsequently advised that the applicants' offered payment of £50 per dwelling (secured by S.106 Obligation) towards measures to mitigate against the effects of increased visitor pressure should be sufficient to address this particular concern. Similarly the Appropriate Assessment (Conservation of Habitats and Species Regulations 2010) undertaken by the Council has reached the same conclusion. The site borders with the eastern boundary of 'The Grove' a grade 2 listed building. The conclusions of the Council's Conservation and Design Officer (see above) are that when considered against the advice provided in the National Planning Policy Framework (NPPF) the scheme would result in 'less than substantial harm' upon the setting of the listed building. The NPPF makes a distinction between proposed developments which would lead to 'substantial harm' to a heritage asset and those which would result in 'less than substantial harm'. In the case of the latter the NPPF advises that the harm caused should be weighed against the public benefits of the proposal. The implication being that planning permission can legitimately be refused where the public benefits of a proposal are considered to be of lesser 'weight' than the harmful impact upon a heritage asset. Development Committee 36 21 August 2014 Finally the only physical detail being applied for at this stage relates to the access arrangements to serve the proposed development. These involve the road access onto Grove Lane, the provision of visibility splays, new footways along the three roadside boundaries of the site (and extending beyond the site along Grove Lane and Cromer Road), together with small sections of 'build outs' on Grove Lane with the effect of reducing the carriageway width at these points to single lane only. Technically these details are acceptable to the highway authority, although visually they will have an impact upon the semi-rural character of Grove Lane. At present this section of Grove Lane gives the impression of a relatively quietly trafficked, partcountry lane where vehicles and pedestrians use the carriageway in relative harmony. The resulting highway works will create a much more urban environment. Conclusions Planning law requires that applications for planning permission must be determined in accordance with the development plan unless material considerations indicate otherwise. The principle of housing on this site does not accord with the development plan (Policy SS2 - Development in the Countryside). Neither does the proposal accord in terms of specific housing policies (Policies HO1, HO2 and HO7). In addition it is considered that the proposed development would adversely impact upon the existing semi-rural character of the area (Policies EN2). Whilst such an impact represents the sort of compromise which sometimes has to be made in circumstances where there is a recognised need to provide new sites for housing or other forms of development, this is not currently the case with this site. The impact on the adjacent listed building is less measurable. When balanced against the public benefits provided by new housing development per se and the fact that an appropriately designed development on the site could mitigate any harmful impacts upon the listed building, it is not considered that this particular aspect represents a sufficient objection to the application. The submission put forward by the applicants (referred to in detail in the preceding report) is that the interests of Greshams School (and in turn the benefits which accrue from the school to the economy of Holt) represent a material consideration sufficient enough to outweigh the development plan in this case. Notwithstanding the arguments put forward by the applicants, first and foremost this is a planning application for residential development and as such it should be determined on that basis. For the reasons referred to both in this report and the preceding report it is not considered that the case put forward by the applicants is sufficient to outweigh the significant departures from the development plan which this application represents. Accordingly the application is recommended for refusal. RECOMMENDATION: Refusal for the following reasons: The District Council adopted the North Norfolk Core Strategy on 24 September 2008 for all planning purposes. The following policy statements are considered relevant to the proposed development: SS 1 - Spatial Strategy for North Norfolk SS 2 - Development in the Countryside SS 3 - Housing SS 9 - Holt HO 1 - Dwelling mix and type HO 2 - Provision of affordable housing HO 7 - Making the most efficient use of land (Housing density) EN 2 - Protection and enhancement of landscape and settlement character Development Committee 37 21 August 2014 CT 1 - Open space designations In the opinion of the Local Planning Authority the proposal would result in an unsustainable form of development which would be contrary to the development plan in the following respects: (a) The application site lies outside of the development boundary for Holt in an area designated as 'countryside' in the adopted Core Strategy. Housing development (apart from 'exception' affordable housing developments and the conversion of existing buildings) is not a use permitted in the countryside policy area under Core Strategy Policy SS 2. The proposed development (together with the associated highway works) would have an adverse impact upon the existing open appearance of the site and the semi-rural character of the immediate area contrary to the objectives of Core Strategy Policies EN 2 and CT 1. (b) The proposal fails to provide for an appropriate proportion of affordable housing, contrary to the objectives of Core Strategy Policy HO 2. (c) The proposal would result in a low density development of relatively large dwelling types, contrary to Core Strategy Policies HO 1 and HO 7. In the opinion of the Local Planning Authority there are no material considerations or public benefits associated with the proposed development, of sufficient weight, to indicate that the application should be determined other than in accordance with the development plan. 4. HOLT - PO/14/0274 - Residential development for a maximum of eight dwellings; Land north of Grove Lane for Endurance Estates Strategic Land Ltd and Greshams School Minor Development - Target Date: 06 May 2014 Case Officer: Mr J Williams Outline Planning Permission CONSTRAINTS Countryside Unclassified Road Listed Building Grade II - Consultation Area Controlled Water Risk - Medium (Ground Water Pollution) Tree Preservation Order THE APPLICATION The application is to develop a linear strip of land (0.48ha) which fronts on to the northern side of Grove Lane. The site is currently part of a larger recreational field within school grounds. All matters of detail are reserved at this stage. An illustrative plan submitted with the application indicates eight detached dwellings each with individual driveways onto Grove Lane. Subsequently the applicants have indicated that they envisage a more likely layout would involve six 4 bedroom dwellings. Plans also indicate a new 1.8m wide footway along the frontage of Grove Lane with the corresponding section of Grove Lane widened to 5.5m. A number of trees are shown to be removed. Amended plans have been submitted with references to 'no dig' methods of footpath construction to protect tree roots. Development Committee 38 21 August 2014 The applicants have confirmed in writing that the following financial contributions are being offered by means of a S.106 Planning Obligation: SPA/SAC visitor pressure - £50 per dwelling Education - £24,353 (approx) Libraries - £60 per dwelling The application is supported by the following documents: Arboricultural Impact Assessment Archaeological Assessment Design and Access Statement Ecological Appraisal Energy Assessment Flood Risk Assessment Services Report Heritage Statement Planning Statement Statement of Community Involvement Site Waste Management Report Transport Statement Sustainable Travel Report Travel Plan Cost Models for school capital works Viability Assessment (confidential) REASONS FOR REFERRAL TO COMMITTEE The application represents a significant departure from current policy. A Committee site visit was held on 8th May. TOWN COUNCIL Supports subject to the following conditions: That the maximum number of dwellings on this site should never exceed 8 properties. That the development should create, new safe and accessible environments which are visually attractive a s a result of good architecture and appropriate landscaping. That the dwelling shown as Plot 7 on the indicative layout is repositioned to prevent the loss of a category A tree described as “ a significant loss” in the Arboricultural impact assessment report. That prior to the site being sold for development a substantial belt of appropriate landscaping is provided by Gresham‟s School along the entire length of the North boundary to screen the proposed properties from Cromer Road and to mitigate for the loss of category A, B and C trees and hedges scheduled for removal from Grove Lane. REPRESENTATIONS 14 letters of objection received which are summarised as follows: Contrary to the development plan. The funding of Greshams School should not be a planning consideration and should not influence local housing decisions. As per inspectors decision. Modernisation of Greshams School should not be to the detriment of the local community. The housing growth for Holt as identified in the Local Development Framework has been satisfied by the two allocated sites in the town. Any further development Development Committee 39 21 August 2014 should be based on a particular need and adequate infrastructure to support it. Need should be related to housing, not to achieve substantial private profit. Inadequate local infrastructure to cater for additional housing (e.g. schools, doctor's surgeries, car parks and sewage treatment). Holt has limited capacity at the primary school. Lack of local employment opportunities to support additional housing. Loss of open green space. Should be kept for sport. Site not within reasonable walking distance to the town centre. Site is remote from the town centre and primary school and would result in dependence on car use. Would exacerbate Holt's parking problems. Adverse effect upon character of this part of Holt in combination with the other two applications. Local traffic safety. Grove Lane is unsuitable to cater for further traffic. Would lead to increased traffic using Grove Lane as a 'rat run', which has a lack of continuous footpaths, resulting in a danger to pedestrians. Proposals assume footpath improvements to southern side of Grove Lane by Norfolk County Council, which have now been cancelled. Loss of trees. Loss of outlook. Should be retained for sports/recreation field. 30 signed copies of an identical letter received. The letter objects to the application on the following grounds: Site not allocated in the Local Development Framework. Would be larger than many Norfolk villages without any additional public services to make it sustainable. The 2010 decision by the Government inspector made it clear that safeguarding Greshams School was not a planning consideration. Road safety along Grove Lane. Road features along Grove Lane would change it‟s rural identity. Sustainability - Not sustainable in terms of state schooling, local employment opportunities, transport and recreation. Site is remote from the town centre and local services. Would increase dependency on the car. Road safety (Grove Lane) - Increased use as a rat run. Lack of footpaths / pedestrian safety. Loss of green space. CONSULTATIONS County Council (Highways) - No objection subject to a number of conditions including the prior submission and approval of detailed plans for both on-site and offsite highway works. Environment Agency - No objection in terms of flood risk issues, subject to a condition requiring the submission of a surface water scheme to be submitted with any applications for reserved matters. In terms of sewage disposal comments as follows: 'Under the Water Framework Directive (WFD) both the Agency and local authorities have a duty to ensure there is no deterioration of a watercourse, in this case the River Glaven which currently has „very good‟ status. To be compliant with the Directive a scheme must not cause deterioration in a waterbody‟s status or prevent its achievement of good ecological status in the future. The additional loading on Holt Sewage Treatment Works from this and other new Development Committee 40 21 August 2014 developments within the catchment may individually or cumulatively necessitate Phosphate removal at the works in order to maintain the very good status of that waterbody. As such there may be an issue with accommodating the full quantum of growth proposed for Holt in the LDF over the longer term. This site was not allocated in the LDF and so these housing figures could be over and above those considered at that time - these extra houses could therefore limit the number of allocated houses that can be built.' Recommends a condition requiring that no development shall begin until a report demonstrating that there is sufficient foul water capacity for the development has been submitted and approved by the local planning authority. Where necessary the report should include a scheme for improvement of the sewerage system and the condition should require that no dwellings shall be occupied until the scheme as approved has been implemented. County Council (Planning Obligations Co-ordinator) - Requires the following financial contributions to be secured via a section 106 Obligation: £465,760 towards primary education (a combined sum relating to Sites 1,2 & 3). £60 per dwelling for library provision. County Council (Historic Environment Service) - Confirms no requirement for archaeological work. Environmental Health - Recommends conditions in respect of surface water and sewage disposal. Strategic Housing - Comments relate to the three applications submitted on behalf of Greshams School and the single submitted development viability assessment: There is a need for affordable housing in Holt with 100 households on the Housing Register and in addition there are a further 109 households on the Transfer Register and 646 households on the Housing Options Register who have stated that they require housing in Holt. The proposed development would therefore assist in meeting some of the proven housing need. It is noted that all three sites are outside of the settlement boundary for Holt. The applicants are seeking planning permission on the basis that a material consideration is the need for Gresham‟s School to expand its education provision and the associated benefits to the economic prosperity of Holt of this. The submitted viability assessment adopts a non-standard approach, as the land value used in the viability assessment reflects Gresham‟s School‟s requirement that it receives a receipt from the sale of the three sites which will fund (with some borrowing) the construction of a new sixth form academic block (£4,412,000), improvements to its boarding houses (£5,129,000) and the costs of planning, master planning, legal costs and the promoters fee, totalling £11,062,215. The need to generate this level of land value has resulted in a viability assessment which shows that it is only viable to provide 10% of the proposed number of dwellings as affordable dwellings. The approach taken to the assessment of what is an appropriate land value for the three sites conflicts with the Royal Institute of Chartered Surveyors guidance and Planning Practice Guidance on financial viability in planning on how land values should be established. The proposal that the affordable housing is only be provided on site 1 is reflective of the desire to maximise the land value across all three sites. Development Committee 41 21 August 2014 Gresham‟s School has stated that they are not able to borrow to fully fund the cost of the construction of the sixth form block and improvements to boarding houses and are only able to borrow part of the cost. A review of the financial information submitted by Gresham‟s School in the viability assessment has concluded that school can only borrow a proportion of the costs of the proposed works. The submitted viability assessment was considered internally and by an external consultant. The initial consideration of the submitted viability by the external consultant showed that: The sales values used for the proposed market dwellings are too cautious. The agent fees were out of kilter with the market. The planning and master planning fees are high in relation to what would be expected. The promoter‟s fee of 10% of the net land value (after planning, master planning and legal fees are deducted from the receipt from the sale of the three sites) is not a standard cost. The land value can increase and there should be a strong argument to increase the percentage of affordable housing. Allowing for 45% social (affordable housing), would provide a positive capital receipt to the land owners – notwithstanding the specific issues relating to Gresham‟s School and their requirement to build new teaching and housing blocks. It was therefore clear that all of the factors identified above are impacting negatively on the viability of the three sites and the amount of affordable housing which they can support. In addition there was concern that site 3, which the outline application proposes is developed to provide up to 8 dwellings was not maximising the value of this site. 6 larger dwellings would be more beneficial to the viability. These views were discussed with the applicant who subsequently submitted a revised viability assessment to reflect the sales values identified by the external consultant. As these sales values reflected values at June 2014, the applicant also updated the build costs within the viability assessment to reflect build costs at June 2014, as the original submitted viability assessment used June 2013 build costs. In addition site 3 was amended to reflect 6 larger dwellings and the total number of dwellings across the three sites reduced to 151. The revised viability assessment however, still showed that it was only viable to provide 10% of the total number of dwellings as affordable (15 dwellings). The external consultant has considered the revised viability assessment and stated that: The promoters return at 10% is not unrealistic to reflect the risk associated with the scheme and the uncertainty that planning consent will be granted. Further clarification is needed of the planning and master planning fees which are excessive. The increase in build costs has countered the increase in sales values, however, the achieved land value per acre is favourable for its location. The argument put forward is looking at viability in reverse, as X {the cost of the works and associated costs - £11,062,215} is needed to make it work. If the school had no capital expenditure to make, the discussion would be different. It should be noted, that whilst the promoter‟s fee at 10% of the net land receipt is not considered to be unrealistic, in normal practice this fee would be deducted from the landowner‟s receipt for the land and so would reduce the return they receive. This is Development Committee 42 21 August 2014 not the case here. The sum the applicants need to achieve from the sale of the three sites has been calculated as the cost of the proposed works to the school plus the planning, master planning and legal fee and the promoters return. Therefore, the total sum needed to be received from the sale of the three sites has been increased by the requirement to pay the promoter‟s return of 10% of net land value. The revised viability assessment shows that with 10% affordable housing, this sum is almost achieved, leaving only a small amount which the applicant would need to fund through a loan. It is clear that had a standard approach been used in the viability assessment to the value of the land for each of the three sites that it would be viable to provide more than 10% affordable housing or 15 out of 151 new dwellings. The fact that Gresham‟s School require such an extensive receipt from the sale of the site has significantly affected the viability of these sites. In addition the issue around the planning and master planning costs and the promoters return are contributing to the viability issue. If a standard approach to the valuing of these three sites had been used, it would be viable to provide more affordable housing. It is proposed that if these three sites are granted planning permission, that there will be a Section 106 Agreement which will contain an uplift arrangement to provide for a possible contribution for affordable housing. The proposed uplift arrangement is not the standard affordable housing uplift which the Council has used elsewhere. Affordable housing uplifts are used where the Council has accepted a lower percentage of affordable housing due to viability issues at the point of application in order to capture any increase in viability once the site is developed. The Council‟s standard wording captures increases in viability due to changes in costs and increases in the sales values achieved for the completed market dwellings where this results in more profit for the developer. The proposal for the three sites is instead, that the receipt from the sale of the three sites will be placed into a ring fenced pot for the works to build a sixth form college and remodel the boarding houses. After 5 years from the receipt of the final payment, the applicants will submit a viability statement showing how the land receipt has been spent on the works and associated on costs. Any funding left over would then be split 50/50, with the Council receiving 50% up to a cap of £2,000,000 for affordable housing and the remaining 50% being used to support bursaries for local people to attend Gresham‟s School. This proposal would limit the uplift available for a financial contribution for affordable housing, as it is dependent on an increase in the receipt from the sales of the three sites beyond what is shown in the viability assessment as required. In addition the ability to receive a payment for affordable housing would be dependent on the costs of the construction of the sixth form college and improvement works to the boarding houses not increasing above the cost currently shown by the applicant. There is always a risk that the Council will not receive any funding for affordable housing through the operation of an Affordable Housing Uplift, however, the proposed arrangement for this site does increase that risk as the uplift does not relate to the costs of the development of the site, but instead to the land receipt and costs incurred by the applicant on works to Gresham‟s School. The applicants have also offered an additional affordable housing uplift clause which would enable a share of any uplift in the sales income from the completed dwellings to be provided to the Council. The share the Council would receive is not stated and the exact detail of what is proposed is not known. However, this offer is reliant on the applicants negotiating the inclusion of this clause as part of the sale of the three sites with the purchaser(s). It is therefore, not possible to comment on whether this would be a more acceptable uplift clause to the Council or whether this would increase the likelihood of receiving monies to provide additional, offsite, affordable housing. Development Committee 43 21 August 2014 To conclude, assessment of the original and revised viability assessments has shown that the viability of the site has been constrained by the non-standard methodology used to establish the land values for the three sites and has resulted in a lower level of affordable housing than it would otherwise be possible to provide. The applicant‟s proposal for an affordable housing uplift is again non-standard and would increase the risk that the Council would not receive a financial contribution for affordable housing. Strategic Housing therefore objects to the approval of the planning applications as they will not deliver the viable amount of affordable housing. Conservation and Design Officer - The site lies well outside the Holt Conservation Area and there is no apparent archaeological interest in the area. Therefore the only heritage asset which needs to be considered is the nearby Grade II Listed building 'The Grove'. which borders the western boundary of the site. Part of the application site comprises a section of garden land which appears originally to have been a discrete, enclosed space within the landscaped surroundings of this listed building. The Grove is an early 19th century building which mixes Tudor and Gothic detailing to create an attractive and elegant end result. Despite the college buildings having encroached to the northwest, it still stands in relative isolation within its own grounds – a fact which is clearly pertinent given the developments now proposed on both sides. Historic maps indicate that the Grove has always had a relatively insular existence based upon its well defined curtilage. Certainly there is no suggestion of it having ever addressed the wider landscape to either the west or east. Hence, Conservation & Design concur with the submitted heritage statement which states that “the open character of the asset‟s wider surroundings is therefore an incidental part of the setting rather than a designed aspect”. Therefore, in this particular case, with the tree belt providing strong visual separation between the application site and The Grove, it is not considered that development here would result in any demonstrable harm being caused to the setting and significance of the heritage asset. As the application is in outline form with all matters reserved, no substantive comments need be made on the illustrative layout at this stage. This said, it is certainly worth noting that the regimented row of building-drive/building-drive, etc presents a far from convincing case for the development sitting comfortably within its context. Whilst there may well be a precedent for ribbon development along Grove Lane, it is for more incremental in nature and generally lacks the kind of suburban rhythm shown in the submitted layout plan. Should the principle of development ever be accepted here, Conservation and Design would look for a more informal layout which befits this rural part of the lane; i.e. by introducing some shared drives and greater variations in built form. There would also be a preference for any future development respecting the original western boundary of The Grove rather than cutting through it as shown on the indicative plan. Currently defined by a low hedge, this space may have been a walled garden in the past and would in theory better support an individual property within it. Finally, it is considered unfortunate that the informal verge and semi-rural character of Grove Lane should be sacrificed in order to provide a new footpath past the development. Landscape Officer - Refers to the fact that a tree preservation order (TPO) was recently served on the site. Whilst it would be acceptable to fell some of the trees which front onto Grove Lane it would not be acceptable to fell an oak tree within the site which is shown to be removed on the submitted plan. The defined garden area at the eastern end of the site should remain as a feature Development Committee 44 21 August 2014 and accommodate a single plot. Detailed proposals should include soft landscaping (trees and hedging) along the rear (northern) boundary. As with Site 2 (ref:14/0284) further along Grove Lane, the issue of suburbanisation through highway features such as footpaths, kerbing and traffic calming measures is an issue and should be minimised. Every effort should be made to retain the informal semi-rural character of this part of Grove Lane. In terms of ecology the oak tree shown to be removed may well have bat roosting potential which is another reason for its retention. Any detailed proposals for the site should be informed by a bat survey on this tree. The site is within 1.5km of the Holt Lowes Site of Special Scientific Interest (SSSI) which is part of the Norfolk Valley Fens Special Area of Conservation (SAC) and just over 5km from the North Norfolk Coast Special Area of Conservation and the North Norfolk Coast Special Protection Area (SPA). These sites are under extreme pressure and risk of disturbance from increasing numbers of visitors, which is having a negative impact on some of the conservation interests of those sites. As the proposed development is not located on one of the site allocations in the Local Development Framework it has not previously been subject to a Habitats Regulations Assessment. Accordingly an Appropriate Assessment has been undertaken by the Council (as a 'competent authority' under the Conservation of Habitats and Species Regulations 2010) in respect of the current proposals. The Appropriate Assessment has concluded that the proposed development would not adversely affect the integrity of the Norfolk Valley Fens SAC; however, without mitigation, the development would adversely affect the integrity of the North Norfolk Coast sites. The applicants are offering a financial contribution towards a scheme of monitoring and mitigation to minimise impacts on the North Norfolk Coast SPA/SAC arising as a result of increased visitor pressure, similar to that achieved on sites which have been allocated for residential development. This will ensure that adverse effects on the integrity of the North Norfolk Coast sites are avoided. Natural England - Initial comments received referred to the proximity of the proposed sites to both national and international designated habitat sites which are afforded protection under the 'Habitats Regulations', namely the Holt Lowes Site SSSI (national) and the North Norfolk Coast Special Protection Area (international), and the issue of visitor pressure from new residential developments which may impact upon the sensitivity of these sites. The advice received was that it is not possible to conclude that the proposals are unlikely to result in significant effects upon these sites. Accordingly Natural England advised that the District Council should not grant permission before, in its role as competent authority under the Habitats Regulations, it has received sufficient information to screen the proposals for the likelihood of significant effects. Following the applicants subsequent response and offer to contribute £50 per dwelling towards a scheme of mitigation for impacts upon these sensitive sites in combination with those of allocated sites within the wider area Natural England have commented as follows: " I have reviewed the documents that the applicant has provided and am pleased with the approach that they have taken. It is my view that it is still not possible to determine no Likely Significant Effect at the initial stage of Habitats Regulation screening; whilst we accept that the application is only a relatively small proportion of development planned for the District, recreational disturbance and therefore its effects are a cumulative issue. Whilst it is for you as the competent authority to determine whether or not you have the information needed to complete a Habitat Regulations Assessment, my advice is that the proposed mitigation is likely to be sufficient to enable a conclusion of no adverse effect on integrity to be reached. I Development Committee 45 21 August 2014 would suggest, should you be minded to grant consent, that you include an appropriately worded planning condition (and possibly S1.06 agreement) which ensures the mitigation measures, including the contribution towards delivery of strategic green infrastructure are secured." HUMAN RIGHTS IMPLICATIONS It is considered that the proposed development may raise issues relevant to Article 8: The Right to respect for private and family life. Article 1 of the First Protocol: The right to peaceful enjoyment of possessions. It is considered that refusal of this application as recommended may have an impact on the individual Human Rights of the applicant. However, having considered the likely impact and the general interest of the public, refusal of the application is considered to be justified, proportionate and in accordance with planning law. CRIME AND DISORDER ACT 1998 - SECTION 17 The application raises no significant crime and disorder issues. POLICIES North Norfolk Core Strategy (Adopted September 2008): Policy SS2: Development in the Countryside (prevents general development in the countryside with specific exceptions). Policy SS 3: Housing (strategic approach to housing issues). Policy SS 9: Holt (identifies strategic development requirements). Policy CT 1: Open space designations (prevents inappropriate development and loss of open space). Policy CT 2: Development contributions (specifies criteria for requiring developer contributions). Policy CT 5: The transport impact on new development (specifies criteria to ensure reduction of need to travel and promotion of sustainable forms of transport). Policy HO 1: Dwelling mix and type (specifies type and mix of dwellings for new housing developments). Policy HO 2: Provision of affordable housing (specifies the requirements for provision of affordable housing and/or contributions towards provision). Policy HO 7: Making the most efficient use of land (Housing density) (Proposals should optimise housing density in a manner which protects or enhances the character of the area). Policy EN 2: Protection and enhancement of landscape and settlement character (specifies criteria that proposals should have regard to, including the Landscape Character Assessment). Policy EN 8: Protecting and enhancing the historic environment (prevents insensitive development and specifies requirements relating to designated assets and other valuable buildings). Policy EN 9: Biodiversity and geology (requires no adverse impact on designated nature conservation sites). MAIN ISSUES FOR CONSIDERATION 1. Development plan policy. 2. Dwelling mix, density and affordable housing. 3. Landscaping / trees / settlement character. APPRAISAL This report should be read in conjunction with the preceding report on this agenda which relates both to this application and the other two applications submitted on behalf of Greshams School (refs: 14/0283 & 14/0284). Development Committee 46 21 August 2014 The application site fronts on to Grove Lane and comprises a linear section of land, which forms the periphery to an existing school playing field and a small part of which is a former garden area. The site lies within the 'countryside' policy area where under Policy SS2 of the Core Strategy housing development is not permitted (apart from 'exception' affordable housing developments and the re-use of existing buildings). The application therefore represents a departure from the Development Plan. In terms of the specific housing policies of the Core Strategy, Policy HO2 requires that on schemes of 10 dwellings or more or sites of more than 0.33ha (the latter applies in this case), not less than 45% of the total number of dwellings should be in the form of affordable housing (subject to viability). No affordable housing is proposed as part of this application. The applicants are proposing that 10% of the combined total of dwellings on both this site and Sites 1 & 2 (refs: 14/0283 & 14/0284) are delivered solely on Site 1. Core Strategy Policy HO1 requires that new housing developments should comprise at least 40% of dwellings with no more than one or two bedrooms. Whilst detailed house types are not applied for at this stage, it has been established through the revised viability assessment and revisions to the design and access statement that a total of six 4 bedroom dwellings are now proposed. Core Strategy HO7 advocates housing densities of not less than 40 dwellings per hectare (dw/ha) in 'Principle Settlements' such as Holt, but this is subject to the proviso that the density of a site 'protects or enhances the character of an area'. Maximum densities approved on allocated greenfield sites over the last year or so have tended to be more in the region of up to 35 dw/ha. This proposal is for a low density development equating to approximately 16 dw/ha. This low density reflects the type of housing proposed and absence of smaller more affordable properties. Such a density would be comparable to existing housing development on the opposite side of Grove Lane to the site. Core Strategy Policy EN2 which is also applicable to this application states that development proposals should protect, conserve and, where possible enhance, amongst other issues, settlement character and distinctive landscape features. This part of Grove Lane marks a transition from the denser suburban part of Holt and the semi-rural edge of the town. In order for residential development on the site to sensitively relate to the character of the area, it would need to avoid the regimented linear layout and loss of existing landscape features which the submitted indicative plan presents. Core Strategy EN9 states that development proposals that would cause a direct or indirect adverse effect to nationally designated sites or protected species will not be permitted unless the benefits of the development clearly outweigh the adverse impacts and suitable prevention, mitigation and compensation measures are provided. The issue relates to increased visitor pressure arising from new residential development in the district, in particular upon the North Norfolk Coast SAC/SPA. Natural England has subsequently advised that the applicants' offered payment of £50 per dwelling (secured by S.106 Obligation) towards measures to mitigate against the effects of increased visitor pressure should be sufficient to address this particular concern. Similarly the Appropriate Assessment (Conservation of Habitats and Species Regulations 2010) undertaken by the Council has reached the same conclusion. Development Committee 47 21 August 2014 Conclusions Planning law requires that applications for planning permission must be determined in accordance with the development plan unless material considerations indicate otherwise. The principle of housing on this site does not accord with the development plan (Policy SS2 - Development in the Countryside). The proposal also does not accord in terms of specific housing policies (Policies HO1, HO2 and HO7). The submission put forward by the applicants (referred to in detail in the preceding report) is that the interests of Greshams School (and in turn the benefits which accrue from the school to the economy of Holt) represent a material consideration sufficient enough to outweigh the development plan in this case. Notwithstanding the arguments put forward by the applicants, first and foremost this is a planning application for residential development and as such it should be determined on that basis. For the reasons referred to both in this report and the preceding report it is not considered that the case put forward by the applicants is sufficient to outweigh the significant departures from the development plan which this application represents. Accordingly the application is recommended for refusal. RECOMMENDATION: Refusal for the following reasons: The District Council adopted the North Norfolk Core Strategy on 24 September 2008 for all planning purposes. The following policy statements are considered relevant to the proposed development: SS 1 - Spatial Strategy for North Norfolk SS 2 - Development in the Countryside SS 3 - Housing SS 9 - Holt HO 1 - Dwelling mix and type HO 2 - Provision of affordable housing HO 7 - Making the most efficient use of land (Housing density) The proposal would result in an unsustainable form of development which would be contrary to the development plan in the following respects: (a) The application site lies outside of the development boundary for Holt in an area designated as 'countryside' in the adopted Core Strategy. Housing development (apart from 'exception' affordable housing developments and the conversion of existing buildings) is not a use permitted in the countryside policy area under Core Strategy Policy SS 2. (b) The proposal fails to provide for an appropriate proportion of affordable housing, contrary to the objectives of Core Strategy Policy HO 2. (c) The proposal would result in a low density development of relatively large dwelling types, contrary to Core Strategy Policies HO 1 and HO 7. In the opinion of the Local Planning Authority there are no material considerations or public benefits associated with the proposed development, of sufficient weight, to indicate that the application should be determined other than in accordance with the development plan. Development Committee 48 21 August 2014 5. APPLICATION RECOMMENDED FOR A SITE INSPECTION A site inspection by the Committee is recommended by Officers prior to the consideration of a full report at a future meeting in respect of the following application. The application will not be debated at this meeting. Please note that additional site inspections may be recommended by Officers at the meeting or agreed during consideration of report items on this agenda. HOLT – PO/14/0846 – Erection of up to 170 dwellings and associated infrastructure; land south of Lodge Close for Gladman Developments Limited REASON FOR REFERRAL TO COMMITTEE At the request of the Head of Planning as this is a significant major development proposal which represents a departure from current policy. RECOMMENDATION:The Committee is recommended to undertake the above site visit. Development Committee 49 21 August 2014