Agenda Item No____12________
NORTH WALSHAM RETAIL AND LEISURE DEMAND, CAPACITY AND
FEASIBILITY STUDY
Summary:
This report outlines the findings of investigations into the
possible development opportunities in North Walsham,
following on from the Retail Demand and Capacity
Study Reported to Cabinet in December 2012.
Evaluations have taken place into the potential for retail
development at two key sites in North Walsham: Paston
College’s Lawns site and Vicarage Street Car Park.
Whilst in both cases it would appear that development
opportunities are likely to be viable, due to the absence
of an express demand from potential retail developers
and operators, and in the former case, the College’s
express commitment to go ahead with its own
investment on the Lawns site, it is impossible to
conclude that such development is deliverable at the
current time.
Options considered:
The site appraisals that form the background to this
report provide an up-to-date position in respect of the
site options. There are, realistically, no alternative
options at this point in time for the reasons set out in this
report, as to pursue development of these sites at
present,
with
no
demonstrable
prospect
of
implementation, would not be practical or economically
prudent.
Conclusions:
The Council has been committed to utilising its own
assets and its powers where appropriate to create
opportunities and the right kind of environment to attract
investment in North Walsham town centre; however the
two viability reports undertaken on behalf of the Council
to-date demonstrate that this is far from a
straightforward exercise. On the basis of this evidence it
is impossible at this time to make a positive
recommendation in relation to the sites considered.
Officers will continue to work with the appointed
property consultants to explore opportunities and to
market sites as appropriate. Once the outcome of the
planning application for out-of-town development of a
foodstore is known a strategy for the town centre will be
developed; this may be predicated on a predominantly
service function for the town, or a retail investment
strategy, depending on circumstances.
Recommendations:
It is recommended that the Council, through its
property consultants, continues to investigate the
opportunities
to
provide
investment
and
development which will support the overall vitality
and viability of North Walsham Town Centre and
that any relevant actions or interventions are
brought to Cabinet at the appropriate time for
decision.
Reasons for
Recommendations:
To provide the information necessary to make decisions
about future investment and development in North
Walsham
LIST OF BACKGROUND PAPERS AS REQUIRED BY LAW
(Papers relied on to write the report and which do not contain exempt information)
NNDC Cabinet Papers – March 2012
North Walsham Retail and Leisure Demand, Capacity and Feasibility Study – SPA
(http://www.northnorfolk.org/community/8373.asp)
Cabinet Member(s)
Ward(s) affected
Cllr T Ivory
North Walsham Wards
Cllr W Northam
Contact Officer, telephone number and email:
R Young ex. 516162 robert.young@north-norfolk.gov.uk
1.
Introduction
1.1
In response to a recognition of the problems faced by North Walsham town
centre, voiced through the North Walsham Leadership of Place initiative,
Cabinet considered a report (in March 2012) which recommended that
evidence should be gathered and resources used to help realise opportunities
for the town in order to:
i) reinvigorate North Walsham Town centre, reducing the number of
vacant units and increasing the presence of multiple retailers;
ii) make more effective use of key town centre sites, potentially including
St. Nicholas’s Court precinct, Vicarage Street car park, New Road car
park, Bank Loke/ Black Swan Loke and other land and buildings
owned by NNDC; and
iii) establish a dialogue with owners of key town centre businesses to
identify synergy between their aspirations and those of NNDC and
other stakeholders.
1.2
Cabinet Considered a further report at its December meeting into retail (and
commercial leisure) demand and capacity in the town. In summary this
suggested that by focusing the apparent demand for food retailing in the town
on an appropriate site close enough to the town centre to increase footfall
within the centre generally, this could help drive a process of ‘progressive
regeneration’. Cabinet therefore agreed to further investigations into the
opportunities to provide investment and development which will support the
overall vitality and viability of North Walsham Town Centre. Viability
assessments have consequently been undertaken for two key sites within the
town: Paston College’s Lawns site and a site centred on the Vicarage Street
car park. This report outlines the results of those investigations and identifies
the implications for the council.
2.
Summary of the key findings of retail report and its implications
2.1
Paston College Lawns Site
2.2
The viability assessment into the development potential of the Paston
College’s Lawns site is attached as Appendix F. The financial figures relating
to this have, however, been omitted for the sake of commercial confidentiality.
2.3
The overall conclusion of the investigation is that the development of the site
for a foodstore of circa 50-60,000 square feet (together with requisite car
parking and ancillary development) is likely to be viable. The revenue
generated by such a scheme is likely to be sufficient to fund the consolidation
of the college onto its Griffon site, although this might also entail the inclusion
of parcels of third party land in order to fully meet the needs of the foodstore
and the college. The scheme would be expected to generate a comfortable
surplus (even if undertaken by a developer taking its own profit); if the
scheme were to be negotiated directly with an end user then the marginal
profitability would of course be substantially greater.
2.4
The investigation included an attempt to elicit the likely interest from potential
retail operators. The response from the main supermarkets most likely to be
attracted to this proposition, however, has not been positive (see page 13 of
Appendix F). Given that an alternative ‘out-of-town’ site on the Cromer Road
is currently being proposed for a speculative development of a 60,000 sq ft
foodstore (at the site of the Former Marricks Wire Rope works) and that a
planning application for this is still pending, this is bound to have influenced
the response received. Being vacant (and largely clear) the Cromer Road site
will undoubtedly be (in practical terms) more straightforward to develop, and
probably therefore more profitable, and store operators are highly likely
therefore to favour that site, unless and until it fails to gain planning consent.
The true level of interest in alternative sites is thus unlikely to be known until
the planning application for the Marrick site has been finally determined.
2.5
Whilst viability is a key issue in the further consideration of the development
potential of the Lawns site, it is vital also to consider the position of the
college itself. Paston is a successful sixth-form college and is competing
strongly against other colleges in a wide catchment. The college relies upon
the town to help it to attract students and the town’s vitality and viability
undoubtedly benefits from having the college so close to its centre. The
college is keen to nurture this symbiotic relationship; however, it must keep
an eye on its key role – as an education provider. Given that on average
students only spend two years at the college, there is concern that even a
short-term disruption can have a significant impact on the student experience
and the prediction of such disruption can consequently influence future
student numbers. Any uncertainty about the future of the college (even if it is
likely to result in long-term improvements) can also have a negative influence
on student numbers in the short-term. In order to entertain a project such as
that currently being mooted, the college would need to be completely satisfied
that substantial benefits will accrue and that these will clearly outweigh any
adverse impacts. The college needs certainty that a sustainable project can
be delivered before any speculation begins to have a negative influence on
the college roll.
2.6
Given the uncertainty over the deliverability of the potential scheme, Paston
has now stated publicly that it is to pursue a substantial investment and
improvement programme (including premises on the Lawns site) in order for
the college to remain competitive and that there is little merit in considering
further the potential of the Lawns site for retail development. The college
clearly cannot allow uncertain development proposals to jeopardise its
immediate future investment plans or student intake and the site must
therefore be considered to be unavailable.
2.7
In summary, the viability of the development opportunity at the Lawns site can
be demonstrated but its deliverability cannot; consequently the site cannot be
considered to be available. It is not practical therefore for the site to be
promoted for development. The site is, however, designated as ‘Town Centre’
on the LDF proposals Map and is allocated for ‘mixed use’ development in the
North Norfolk LDF site Allocations Document; both of which would generally
support the development of retail uses if functionally well-related to the
remaining town centre area. Not actively promoting the site at this moment in
time will not change its policy status or indeed its development potential;
however, it does for the time being remove the option which was expected to
be the catalyst to the progressive regeneration of the town. An alternative
strategy will need to be formulated, depending upon the outcome of the
application for development of the Marricks Ropes site.
2.8
Vicarage Street Car Park site
2.9
A site based on the Vicarage street car park is allocated in the LDF Site
Allocations Document as a ‘retail Opportunity Site’. The potential viability and
deliverability of a development of non-food (comparison) retailing based on
this site has been investigated. The viability report confirms that, in
accordance with the LDF site allocation, development of the site for retail
development comprising up to seven units of between 1200 and 5000 sq ft, is
likely to be viable on the site, if augmented by adjacent land such as the
adjacent Foundry Cars site (together with the possible addition of residential
garden land, if available). The report has not been provided due to
commercial sensitivity and the inclusion of third party land, which has yet to
be the subject of consultation with landowners.
2.10
This evaluation demonstrates that although the scheme is viable in financial
terms, the poor response from the retailers approached suggests that the
scheme is undeliverable in the current market due to a lack of sufficient
retailer demand. The responses received mentioned the size of the
catchment, unsuitable demographics and leakage of spend, which is partly
due to the close proximity of Norwich. The future potential of this site is
undoubtedly linked to the overall vitality and viability of the town centre, which
in turn may hinge upon the location of major foodstore developments.
3.
Options considered
3.1
The site appraisals that form the background to this report provide an up-todate position in respect of the site options. There are, realistically, no
alternative options at this point in time for the reasons set out in this report, as
to pursue development of these sites at present, with no demonstrable
prospect of implementation would not make sense.
4.
Conclusion
4.1
It is clear that if North Walsham is to attract retail development it must have
sites or premises that are a suitable size and are attractive in other respects.
The development of such sites needs to be viable and the sites need to be
available in order to facilitate their development. The catchment also needs to
be commercially attractive to retail operators. The Council has been
committed to utilising its own assets and its powers where appropriate to
create opportunities and the right kind of environment to attract investment;
however the two viability reports undertaken on behalf of the Council, which
are the subject of this Cabinet report, demonstrate that this is far from a
straightforward exercise. On the basis of this evidence it is impossible at this
time to make a positive recommendation in relation to the sites so far
considered. Officers will continue to work with the appointed property
consultants to explore opportunities and to market sites as appropriate. Once
the outcome of the planning application for out-of-town development of a
foodstore is known a strategy for the town centre will be developed; this may
be predicated on a predominantly service function for the town or a retail
investment strategy, depending on circumstances.
5.
Implications and Risks
5.1
This report is based on a sound investigation of the potential of sites within
North Walsham. The future vitality and viability of North Walsham town centre
depends upon sound decisions in relation to sites such as these under
consideration, however the recommended approach is a cautious one, which
does not expose the Council to risks or wider implications.
6.
Financial Implications and Risks
6.1
There are no financial implications resulting from this report. The cost of the
investigations has been met within the allocated budget and the resources for
further work of a similar nature have been identified and the property
consultants have already been appointed to undertake this, as necessary.
7.
Sustainability
7.1
This report relates to the exploration of options to reinforce and improve the
retail role of North Walsham town centre. Supporting services and businesses
in this central and accessible location is likely to bring sustainability benefits.
No sustainability issues arise from the recommendations set out in this report.
8.
Equality and Diversity
8.1
No diversity and equality implications stem from this report
9.
Section 17 Crime and Disorder considerations
9.1
No crime and disorder implications stem from this report.