3rd December 2012 Cabinet Agenda Item No_____10_______ Proposed designation of Local Development Order on land at Egmere to accommodate onshore support facilities related to offshore wind energy developments off the North Norfolk coast Summary: This report proposes the designation of approximately 30 hectares of land at Egmere for future development in support of offshore wind energy developments off the North Norfolk coast through the use of Local Development Order powers. This would directly support the Council’s Corporate Plan objectives of seeking to attract new jobs and investment associated with offshore wind energy developments to the district. Conclusions: The report identifies an area of land at Egmere on the B1105 road to the south of Wells-next-the-Sea which it is felt could accommodate new investment associated with offshore wind energy developments where a simplified planning regime could operate through approving a Local Development Order. Recommendations: Cabinet is recommended to:1. Note the contents of the report and accompanying documents as they relate to the proposed designation of a Local Development Order for 30 hectares of land at Egmere, so as to accommodate new job-creating investment in support of offshore wind energy schemes off the North Norfolk coast. 2. Authorises officers to undertake formal consultation on the proposed Local Development Order with statutory bodies and consultees, local Town and Parish Councils, the business community and general public during January and February of 2013. 3. Requests that at the end of the consultation process a further report is presented for consideration / endorsement by Cabinet before seeking approval of the Local Development Order from the Secretary of State. Cabinet member(s): Cllr Tom FitzPatrick, Cllr Rhodri Oliver Ward(s) affected: Primarily Walsingham, with some impact on the Priory ward Cllr Tom FitzPatrick 3rd December 2012 Cabinet Contact Officer, telephone number, and e-mail: Steve Blatch, Corporate Director Steve.blatch@north-norfolk.gov.uk Tel:- 01263 516232 1.0 Introduction 1.1 At the meeting of Cabinet held on 16th April 2012, Cabinet received and endorsed a report on the growing importance of and opportunities presented to the district through the development and operation of offshore wind energy schemes off the North Norfolk coast. 1.2 Since this report was debated, SCIRA, the developers and operators of the Sheringham Shoal offshore wind energy development have formally celebrated the completion of construction and commenced operation of the Sheringham Shoal development and licensing approval has been granted for two further wind energy developments off the North Norfolk coast – these being the Dudgeon scheme to the north of Cromer and the Race Bank scheme to the north of Wells-next-the-Sea. 1.3 Experience of working with SCIRA over a number of years during the planning and development of their investment has shown that significant opportunities exist for inward investment by specialist sub-contract companies as well as for local companies and residents to gain business and employment associated with offshore wind energy schemes, as well as there being demand for premises and facilities by wind energy companies and their sub-contractors within the district. Whilst during the early phases of the development of the Sheringham Shoal scheme much of the demand for premises was accommodated locally in Wells-next-the-Sea, as the sector has become more established, SCIRA has chosen to develop its Operations and Maintenance facility to serve the offshore development at Egmere, to the south of Wells. This location is seen as being able to accommodate future development in support of offshore wind energy developments as it lies outside of the Area of Outstanding Natural Beauty, builds upon an established area of employment development which is believed to have relatively few landscape or utility constraints and enjoys good road access by delivery and staff vehicles and visitors from the south without introducing additional volumes of traffic into Wells. 1.4 Officers have therefore given consideration to the potential of the Egmere location to accommodate future inward investment by companies taking forward or associated with wind energy developments off the North Norfolk coast. This would directly support the Council’s Corporate Plan objectives of seeking to “to increase the number of new businesses and support the growth and expansion of existing businesses”, through, amongst other actions, “seeking to maximise the opportunities for the district to benefit from investment in renewable energy developments off the North Norfolk coast”. 1.5 This report and accompanying reports / plans therefore propose the designation of land and approval of a Local Development Order at Egmere in support of these objectives. 2.0 Background 2.1 Historically there has been very limited demand for commercial land and premises in Wellsnext-the-Sea because of the town’s relatively peripheral location, and therefore the adopted Cabinet 3rd December 2012 North Norfolk Core Strategy proposed that Fakenham be the principal location in the west of the District where new employment-related development would be accommodated. The Core Strategy was developed in the period 2006 -2008, which preceded the approval of large-scale wind energy developments off the North Norfolk Coast, and therefore no provision or allocation of land was made within the Core Strategy or Site Allocations Plans to meet the future potential needs of the offshore wind energy sector. 2.2 In light of the experience the Council has gained in recent years through the SCIRA development and the recent licensing approvals granted to the Dudgeon and Race Bank offshore wind energy schemes, it is reasonable to anticipate that the promoters of these two further developments and their sub-contractors will wish to establish facilities in support of their offshore investments within the North Norfolk area. It is therefore recommended that the Council seeks to positively accommodate such investment through identifying land / premises for such businesses in the future. 2.3 The Government is also encouraging local planning authorities to create a positive environment for businesses wishing to make investments in employment generating projects and the District Council believes that a positive “open for business” message can be promoted to businesses involved in the offshore wind energy sector through identifying land and agreeing a simplified planning framework for specified types of development through the development and approval of a Local Development Order. 3.0 The proposal 3.1 Through the relationships the Council has developed with the Wells Harbour Commissioners and the Holkham and Walsingham Estates in recent times with regards accommodating the project planning, construction and operational and maintenance phases of the SCIRA / Sheringham development, the potential of the Egmere location to accommodate future commercial and business development is recognised. 3.2 Consideration has therefore been given to allocating / designating further land at this location for future development by businesses associated with the offshore wind energy sector. Whilst there are some areas of vacant land and under-used premises within the existing commercial development at Egmere, it is felt that areas of greenfield and brownfield land should be designated for future development, so as to provide a degree of choice to potential investors. 3.3 An area of approximately 30 hectares is therefore proposed for designation under Local Development Order powers comprising approximately 14 hectares of previously developed land, 14 hectares of greenfield (undeveloped) land and just over 1 hectare of land currently under development to provide SCIRA’s operational and maintenance facilities (comprising a two storey office block, warehouse and car parking). The existing area of development at Egmere extends to approximately 14 hectares, of which perhaps 4 hectares offers the potential for re-use / redevelopment; with the remaining 10 hectares largely in use. 3.4 A paper and associated plans outlining the LDO proposal are attached as an appendix to this report. 3.5 Initial discussions regarding the proposed Local Development Order have been held with the two principal landowners – the Holkham and Walsingham Estates and both are supportive of the proposed LDO designation. Initial consultations have also been held with officer colleagues in Norfolk County Council’s Environment, Economy and Transport Department particularly with regards the need for improvements to the B1105 which passes through the middle of the area proposed for LDO designation so as to provide safe means of access into any development sites etc. County officers have commented that the B1105 is an appropriate road to serve the level of development proposed through the LDO and are Cabinet 3rd December 2012 preparing detailed comments on potential access / egress arrangements which would be incorporated into any public consultation on the LDO. Similarly initial discussions have been held with the County Council’s Historic Environment Team, recognising Egmere’s historic role as a Second World War airbase which has requested that prior to any development a photographic record is made of any development site / existing buildings. 3.6 Given the generally positive comments made by the principal landowners and County colleagues / consultees regarding the proposed Local Development Order, it is recommended that officers undertake further work in developing the proposal and then undertake formal consultation on the LDO with local communities early in the New Year, with the objective of inviting the Secretary of State to consider approval of the Egmere Local Development Order by the middle of 2013. 4.0 Financial Implications and Risks 5.1 There are few direct financial implications arising from the recommendations made within this report in the short-term – other than the officer costs associated with the further development of the LDO proposal and undertaking public consultation on the proposal. 5.2 As further consultation is undertaken and deeper understanding gained regarding highway issues, availability of utilities etc it might be that the Council wishes to consider whether any investment required to bring the land forward for development under an LDO should be met by inward investors, developers, the landowners and/or through the Council taking some form of equity stake in any development through contributing towards any site servicing costs. Any such model will be explored further in the coming months and a further report presented to Cabinet for consideration. 5.3 The growth and development of the renewable energy sector and the potential opportunities this offers to the district’s economy in terms of new investment, skilled employment opportunities at rates of pay above those currently on offer locally, and contract / supply chain opportunities for existing businesses, are considered to be significant. The actions proposed in this report seek to position the Council positively in terms of the district being able to realise the benefits of this emerging economic sector for many years to come. In this respect it is considered that there are few if any risks, but many potential benefits, from the actions proposed in this report in terms of bringing quality jobs and investment to North Norfolk. 6.0 Sustainability 6.1 At a strategic level the growth of renewable energy technologies is seen as a fundamental component of the UK energy supply mix moving forward. In this respect the actions proposed in this report seek to place the North Norfolk District in a strong position to benefit from the growth of this sector both within and off the coast of North Norfolk into the future. 7.0 Equality and Diversity 7.1 This report does not raise any equality and diversity issues, but does seek to secure new business and employment opportunities for local people in a sector where skilled positions will offer rates of pay above the district average. 8.0 Section 17 Crime and Disorder considerations 8.1 This report does not raise any issues relating to Crime and Disorder.