Part 1 ITEM NO. ___________________________________________________________________ REPORT OF THE STRATEGIC DIRECTOR FOR SUSTAINABLE REGENERATION ___________________________________________________________________ TO THE LEAD MEMBER FOR PLANNING ON 7 SEPTEMBER 2010 ___________________________________________________________________ TITLE: PATRICROFT BRIDGE MASTERPLAN: REVIEW OF PROGRESS ___________________________________________________________________ RECOMMENDATIONS: That Lead Member for Planning: 1. Receive the submitted Patricroft Bridge Masterplan. 2. Support the principles set out in the Masterplan, whilst acknowledging the impediments to early implementation as explained in the report. ___________________________________________________________________ EXECUTIVE SUMMARY: In light of redevelopment opportunities afforded by the desire of a key local employer to relocate within the city, approval was granted to commission a masterplan for the Patricroft Bridge area in Eccles. The preferred option, based on consultation with landowners, businesses, stakeholders and residents, proposed residential redevelopment with approximately 350 dwellings on Cawdor Street. However, in light of changed economic circumstances, the preferred option does not fit the revised plans of the key business in the area, which now plans to stay and invest in its site. Options were considered to realign the masterplan with these revised aspirations but were discounted for viability and value for money reasons. Therefore it is considered that the best way forward is to receive the Masterplan as a guide to medium to long term redevelopment of the area. ___________________________________________________________________ BACKGROUND DOCUMENTS: Salford Employment Land Review Final Report, November 2008 (published and available at http://www.salford.gov.uk/planning-employmentlandreview.htm) Patricroft Bridge Masterplanning Report, May 2010 (available for public inspection) ___________________________________________________________________ KEY DECISION: NO ___________________________________________________________________ DETAILS: 1. Background 1.1 The Patricroft Bridge area in Eccles has been identified as in need of regeneration for the last 20 years. Initially efforts to regenerate the area focussed on Liverpool Road. However, sites large enough for redevelopment to stimulate wider regeneration could not be found along Liverpool Road. Approximately 10 years ago, officers recognised the potential of the Bridgewater Canal rather than Liverpool Road as a catalyst for regeneration through redevelopment for housing at the canal’s edge. This had the potential for more widespread regeneration on Liverpool Road, for example, through the redevelopment of Bridgewater Mill for residential use. However, due to a number of factors, including the complex mix of industrial and residential uses and ownerships in the area, previous plans to regenerate the area have failed or not been pursued. 1.2 Approximately four years ago, through agents, two significant landowners in the area - Americhem and Barton Industrial Estate - jointly approached the council with a proposal to redevelop their canal-side sites for housing. This involved Americhem – an employer with a local workforce of approximately 50 people – relocating to another site in the area in order to expand its operation. Whilst officers were generally supportive of the desire to relocate and expand the business within the city, the applicants were unable to demonstrate that they could satisfy the policy tests set out by UDP Policy E5: “Development Within Established Employment Areas” required for redevelopment of the site for non-employment use, and never submitted a planning application. 1.3 The Council’s Employment Land Review 2007-2026 (ELR) identifies three employment sites within the Patricroft Bridge area: Legh Street, Vine Street and Cawdor Street. The ELR categorises Legh Street and Vine Street employment sites as swing sites, meaning they ‘will perform either poorly or very poorly in the future market, and future change of use may be considered appropriate’. Cawdor Street – where Americhem and Barton Industrial Estate are located – is identified as a management site defined in the review as ‘average or above average quality sites that make an important contribution to the portfolio of employment opportunities in Salford, and will continue to do so in the future’1. The ELR recommends a strategy for reviewing swing sites to ascertain which should be released which includes an analysis of the businesses occupying each location and the regeneration priorities of the surrounding area2. 1.4 The Liverpool Road Corridor Strategy and supporting baseline investigations have identified the Patricroft Bridge area as a key priority for regeneration within the city. Due to this recognised need for regeneration, known interest of landowners in the area to redevelop their sites for housing and the recommendations of the ELR, it was agreed that the future of the area should 1 2 Salford Employment Land Review Final Report November 2008, page xii Salford Employment Land Review Final Report November 2008, page 112 be examined in greater detail through the preparation of a masterplan (see annex 1 for masterplan boundary). Originally, Lead Members for Planning and Housing and the Leader supported the submission of the Patricroft Bridge site as part of the Europan Design Competition. However, due to the economic downturn, the competition did not go ahead. Instead, the £55,000 required to fund the masterplan was met from Housing Growth Point (£33,000) and Salford West (£22,000). It was envisaged that the resulting Masterplan could be adopted as a regeneration strategy for the area, guiding redevelopment in the area and helping to meet the requirements of UDP Policy E5: Development in Established Employment Areas. 2. Development of the Masterplan 2.1 In 2009 the council appointed URBED to develop a masterplan for Patricroft Bridge. As part of the baseline study for the masterplan, meetings were held with all key landowners to gain an understanding of their aspirations, current and likely future demand for sites for employment purposes, if relocation was possible and how redevelopment would impact on the operations of any remaining businesses. 2.2 Based on discussions with landowners and stakeholders, viability analysis and public consultation on options for the area, a preferred option was developed which proposed new housing to the south of Liverpool Road on the Cawdor Street employment site currently occupied by Americhem and Barton Industrial Estate (see Annex 2 for plan of preferred option). This site was identified as key to unlocking the area’s potential for transformational change of the area through housing-led regeneration. The sites identified as swing sites in the masterplan were not considered viable housing sites in the short or medium term. However, the preferred option was in line with Americhem’s aspirations for a cost-neutral relocation to larger premises elsewhere in the local area expressed during the baseline study. 3. Change in landowner aspirations 3.1 However, in the period between the consultants meeting with landowners and the preferred option being finalised for further public consultation, Americhem came to the view that, in the changed economic climate, relocating the businesses locally would be too costly. In spite of the constraints of the current site, Americhem has decided to remain on Cawdor Street for a minimum of five years and invest in the site. 3.2 The consultants revisited Americhem to present the preferred option and to gain a better understanding of their plans for expansion, which include investing £3-4 million in a new production line which will both safeguard the existing 50 jobs and create an estimated 25-30 new jobs. It will also involve a temporary lease of a large industrial warehouse on Barton Industrial Estate which has been vacant for a number of years. Colleagues in Development Control have advised Americhem these plans are in line with planning policy. 3.3 Americhem’s willingness to invest and expand its workforce during uncertain economic times is clearly welcome. However, as a result, the preferred option no longer has the support of key landowners and is no longer viable in the foreseeable future. 4. Options considered for taking masterplan forward 4.1 Americhem’s change in aspirations came after the preferred masterplan option had been developed but before it had been subjected to public consultation. Therefore, the council and consultants explored a number of options for changing the direction of the masterplan to produce a document in line with the aspirations of businesses within the study area and the local community. 4.2 The options explored included redeveloping the Legh Street employment site for housing and improving Bridgewater Mill and surrounding public realm. However, redeveloping Legh Street was discounted during the baseline study due to viability issues and improving Bridgewater Mill would not bring about the transformational change and new housing required. In addition, changing the direction of the masterplan at this late stage would have required additional fees on potentially abortive work. Therefore, it was agreed that the consultants should do no additional work but complete the masterplan report based on the preferred option. 5. Conclusions 5.1 The masterplan was commissioned and developed at a time when Americhem were planning to relocate within the area and was in line with emerging regeneration options for residential led regeneration along the Bridgewater Canal Corridor at Patricroft Bridge. Americhem are now proposing to stay for a minimum of five years, to invest in the site and create additional local jobs, meaning the masterplan is not realistically deliverable at present and could not be implemented in the short term. In the future, if Americhem reconsider relocation as an option, the masterplan could be reviewed to assess if the proposals remain the most appropriate solution for the regeneration of the area and if so, could be implemented at that time. 5.2 The masterplan includes proposals such as public realm improvements in the study area that are closely aligned with two of the priorities identified in the Salford West Strategic Regeneration Framework: the Liverpool Road Corridor and Bridgewater Canal Corridor. Therefore, proposed improvements to Barton Road and Worsley Road to enhance the canal environment, and improvements to the public realm on Liverpool Road could be taken forward even if the Masterplan itself is not implemented immediately. 5.3 It is proposed therefore that Lead Member supports the principles set out in the Masterplan, but recognises that implementation in the short term is unrealistic. It is recognised that businesses, ward members, stakeholders and residents who took the time to engage with the process will be disappointed by the delay in moving to implementation and will need to be kept informed of progress in future. ___________________________________________________________________ KEY COUNCIL POLICIES: Unitary Development Plan, Salford West Strategic Regeneration Framework and Action Plan 2008 – 2028, Liverpool Road Corridor Strategy ___________________________________________________________________ EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: Implementation of the masterplan would require further public consultation and an equality impact assessment. However, due to the proposal not to implement the Masterplan at the present time, it is not intended to undertake further work on the EIA at this time. ___________________________________________________________________ ASSESSMENT OF RISK: Low – An explanation why implementation is unrealistic in the short term needs to be given to businesses, ward members, stakeholders and local residents who took the time to engage as it is likely that the masterplanning process raised aspirations about the future of the area. It is proposed a letter explaining the situation is sent to everyone who participated in the masterplan. ___________________________________________________________________ SOURCE OF FUNDING: The masterplan cost £55,000 in total. Of this, £22,000 came from the 2008/2009 Salford West Programme Fund and £33,000 was secured from the Council’s 08/09 Housing Growth Point funding allocation. A copy of the final masterplan report will need to be sent to AGMA along with an explanation of why early implementation is delayed. There will not be a requirement to repay the funding. It was originally envisaged that further Growth Point funding would be required for site investigations and land assembly. There is now no need to apply for further funding. ___________________________________________________________________ LEGAL IMPLICATIONS Supplied by Richard Lester, Outstationed Locum Solicitor, ext 2129, on 27th July 2010. There are no legal implications in taking a decision not to proceed with the masterplan. ___________________________________________________________________ FINANCIAL IMPLICATIONS Supplied by Frank O’Brien ext 2585 There are no direct financial implications from the proposals contained within the report. ___________________________________________________________________ OTHER DIRECTORATES CONSULTED: Views of other directorates were taken in account in the preparation of the masterplan. It is not considered that a decision to put the masterplan on hold will raise any issues or concerns from other directorates. ___________________________________________________________________ CONTACT OFFICER: Catriona Swanson TEL. NO. 3646 ___________________________________________________________________ WARD(S) TO WHICH REPORT RELATE(S): Barton ___________________________________________________________________ Paul Walker Strategic Director for Sustainable Regeneration Patricroft Bridge press release.doc Patricroft Bridge MasterplanV3_Email.pdf Annex 1 – Masterplan boundary Annex 2 – Preferred Option