Seale Hayne Rural Economy Centre Feasibility Study 1 Final Report EXECUTIVE SUMMARY 1.1 Overview and Context 1.1.1 Seale Hayne College was established in 1912 and became fully operational providing education and training for the agricultural industry in 1920. In this capacity it established a high reputation. Over the past century agriculture has changed radically – as has the role of the College. At its prime, in excess of 1000 full time students attended the Seale Hayne campus, resulting in considerable traffic movements across the local highway network. The site also generated considerable expenditure that was invested into the local economy. 1.1.2 Changes within the University structure announced in 2002 enabled a transfer of the academic studies undertaken at Seale Hayne to the Social Science and Business Faculty and the Science Faculty at the Plymouth site. All studies will cease at Seale Hayne at the end of the summer term in 2005. 1.1.3 The decision to vacate the site results in the site being surplus to long-term academic requirements and therefore an asset of the University that requires a strategy to be established to ensure that maximum capital receipts are secured on disposal. The manner in which the University must manage its estate must accord with financial accountability, guidance and best practice issued by the Higher Education Funding Council of England (HEFCE), National Audit Office (NAO) and the Public Accounts Committee (PAC). These financial arrangements are reflected in the terms of reference of the Steering Committee established to oversee and adopt the findings of this Feasibility Project and the scope of works of the Study Project Brief. 1.1.4 Given pressures to promote re-use and/or redevelopment at Seale Hayne in the period 2001-2011 as part of the Teignbridge Local Plan, the University needed to protect its long-term position. A submission made on behalf of the University in 2002 referred to a potential Rural Economy Centre at the site. The University were committed at that point to investigate associated deliverability issues. At the time of the Local Plan submission, no clear brief was prepared to inform the likely size, tenant mix or deliverability of such a concept. This is the purpose of the Feasibility Study Report. 1.1.5 The University consider that the redevelopment and re-use strategy for the future of the Seale Hayne site be informed by a specially convened Steering Committee comprising Governors of the University, selected individuals with an interest in the site and rural affairs and representatives of Teignbridge District Council. This Steering Committee first met on the 25th June 2004. 1.1.6 In advance of the June 2004 Steering Committee, Committee Members were presented with a Draft Project Brief and Background Planning Strategy papers prepared by the appointed team of advisors in conjunction with direction from the University. The Committee approved the preparation of the Feasibility Study, subject to the tenant demand study concentrating upon the opportunities for a rural based cluster development, in addition to, and as well as, a more traditional employment development (business park etc). 1.2 The Project Brief 1.2.1 In April 2004, the University of Plymouth commissioned a consultant team to undertake a feasibility study concerning the creation of a Rural Economy Centre Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 1 Seale Hayne Rural Economy Centre - Feasibility Study Final Report (REC) on the site of the Seale Hayne Campus, near Newton Abbot. The site is owned and currently occupied by the University of Plymouth. The study is therefore prepared to inform the strategy to be adopted to maximise capital receipt of disposal and to investigate the potential for the site to retain a role in the rural economy. 1.2.2 The scope of works identified in the Brief covers all material planning and property market considerations relevant to the delivery of a Rural Economy Centre. However, in the event that the feasibility study was to show that there was no tenant demand for a Rural Economy Centre, it was important that the study addressed the technical, environmental, planning and engineering issues which could be applied to other forms of development. 1.2.3 The appointed team of advisors have, therefore, produced a report which covers town planning, environmental, infrastructure and commercial property reports which combine to form a robust analysis of the opportunities raised by the development and capacity of the Seale Hayne site to accommodate alternative forms of development. 1.3 Communication 1.3.1 The University acknowledges the importance of establishing meaningful and effective communication with members of the public and third parties in addressing significant developments associated with its operations. It is important to note however that there needs to be a commonly agreed land use strategy or options) with which to consult in order to obtain constructive comments: there being only limited benefit in engaging with third parties on a development strategy which, following detailed investigations, is not considered to be a viable proposition. 1.3.2 Notwithstanding the importance placed upon communication by the University, in the event that the University is to promote a development option(s) for the campus, the provisions of the 2004 Planning and Compensation Act encourage proponents of major developments to engage with members of the community and local stakeholders in advance of submissions to Local Planning Authorities. 1.3.3 A detailed “Communication Matrix” has been prepared which suggests the most appropriate and effective way of consulting and engaging with the particular interests and groups. The information contained in the matrix is, therefore, available to the University to begin a detailed consultation programme should redevelopment, reuse or disposal options be pursued. 1.4 Planning Policy Framework 1.4.1 Teignbridge District Council made a strategic decision in early 2004 to abandon the draft Local Plan 2001-2011 in favour of the new Local Development Framework. The development of major sites will be considered in the form of site-specific policies which will need to have due regard to the overall development strategy for the area. At the time of writing, the Council has not published the “options and issues paper” for the general development strategy that will inform the development of individual development sites. 1.4.2 In order to maximise the chances of securing major development at Seale Hayne, it will be important to promote an integrated and deliverable development scheme to the Council in parallel with the preparation of their Local Development Framework. It is suggested that this be achieved through the preparation of a Development Brief in the event that a defined development scheme emerges as a result of the REC Feasibility Study. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 2 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 1.4.3 In relation to the application of planning policy, the Seale Hayne Campus is located in the open countryside where restrictive land use planning policies apply. On first inspection therefore, the policies of the adopted local plan applied to areas of open countryside are not helpful to the comprehensive redevelopment of the Seale Hayne campus. The site is remote from existing settlement boundaries where the Council have made it clear (during discussions in 2004) that they would not support a considerable net increase in new build activity. Their view is that such proposals would promulgate an unsustainable development form. 1.4.4 Given that the concept of a Rural Economy Centre requires a critical mass to be achieved (for marketing purposes and the attraction of key occupiers), the Council have not offered satisfactory comfort that a Rural Economy Centre would be welcomed in land use planning terms. 1.4.5 The Local Plan does, however, contain polices concerned with the conversion of existing buildings (rural or otherwise in a rural setting). These offer opportunities for alternative uses, the delivery of which would be subject to market demand and the ability of the University to promote an integrated and strong planning to support a planning application(s). 1.4.6 The uses identified as acceptable include those listed in Policy ENV7, namely, Purposes ancillary to agriculture, Community, recreation or tourist facilities, Crafts, light industrial or related business uses, Holiday accommodation Those uses that would otherwise be of benefit to the local rural economy 1.4.7 In the event that a Rural Economy Centre cannot be delivered on site, by virtue of either land use planning objection, or lack of tenant demand, the promotion of a mix of uses along the lines suggested above could satisfy planning policies. 1.4.8 The Project Study Brief anticipated a potential scenario that a Rural Economy Centre was not considered to be a viable proposition. If the study findings were such that the delivery of a REC was considered unviable, the Brief required an investigation of tenant demand from a more “traditional” form of employment use, such as that within the office and industrial sectors. The demand for space at Seale Hayne from such employers was carried out as part of the tenant demand survey. 1.4.9 It is not the purpose of the feasibility study to investigate more unique forms of development and land activities that might be accommodated within the Seale Hayne Campus – the Brief was firmly based upon testing the feasibility of a defined Rural Economy Centre concept. It is not the purpose of this feasibility study therefore to predict every potential user who might express an interest in taking all or part of the campus for their own purposes. Interest from developers and investors, that might include “unique purchasers”, could emerge in line with the implementation of any future disposal strategy for the Seale Hayne site. 1.4.10 The remit of the Consultant team, as set out in the Brief, excluded advice or guidance to the University in relation to aspects of future disposal. Issues relating to any decision to dispose of the site will be the subject of a separate decision making process, informed as appropriate by bespoke advice at the behest of the University. As such, this feasibility report does contain references or recommendations concerning disposal options and marketing. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 3 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 1.5 Environmental Considerations 1.5.1 There are no designated sites within the study area. However, two wildlife sites exist within the wider Seale Hayne site. The mosaic of habitats within the study area has the potential to support a number of breeding bird species. 1.5.2 The main landscape elements of significance include the Devon Hedgebank systems and farm woodlands, which act as boundary and shelter features. A number of viewpoints have been identified which will be affected by development proposals. However, with sensitive screening, adverse impacts could be significantly reduced. 1.5.3 Unless planned and delivered in a sensitive manner, redevelopment of the agricultural landscape surrounding the site has the potential to cause detrimental impact – development changing the character of the wider area. This could be mitigated to varying degrees of success by strategic landscaping and planting. 1.6 Highway and Engineering Issues 1.6.1 The highway assessment highlights the general inadequacy of the minor roads linking the campus to the main road network. This is likely to be a limiting factor on potential redevelopment. 1.6.2 The College itself, when fully operational, generated a significant amount of traffic movement. It is considered, by application of employment to floorspace density ranges, that that this level of movement would equate to a new office use of approximately 11,450sqm or a business park use of 17,930sqm. It is suggested that these figures be used as a guide to the size of development that could come forward without a requirement to carry out highway improvement works beyond the immediate vicinity (i.e. beyond Forches Cross). 1.6.3 If the development is kept within these limits it has been confirmed that the Highway Authority would require a contribution to an improvement to the Forches Cross junction. There detailed nature of works (junction design) required is unknown and hence it is difficult to estimate a cost. On the basis that traffic flows associated with the development would be around the same level as previously experienced it has been agreed that Seale Hayne would not be expected to fund the full cost of a scheme and hence a contribution of around £50,000 is suggested at this point in time. 1.6.4 If a form of development is proposed which significantly increases traffic flows then a detailed Transport Assessment will be required to demonstrate the impact of the increase. This Assessment will cover the highway network generally westwards out to the A38 via the A382 and A383 and generally eastwards to the road linking the A382 and A383 within Newton Abbot. The Highways Agency require that junction testing should consider the situation 15 years beyond the completion of the development and this takes into account background traffic growth unrelated to the development. This is a particularly onerous requirement. 1.6.5 It is difficult to envisage the scale or practicality of carrying out works to achieve a further capacity increase at the Drumbridges Interchange (A38/A382). It is suggested that the cost could be considerable and influence the price a developer may offer for the site as part of any disposal advice. Discussions with the Highways Agency have confirmed that that the westbound on-slip is shorter than desirable due to the presence of the minor road junction further to the west. Should the Highways Agency require improvements to the Caton Interchange (A38/A383), the cost is likely to be very substantial. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 4 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 1.6.6 The full cost of improving Forches Cross would fall on the Seale Hayne development. As no scheme has been identified – primarily because there is no obvious or cheap solution – a conservative estimate would be £250,000-£500,000. 1.6.7 The overall cost for the improvement to the local road network could be in the range £450,000-£900,000. This could be called for with even a modest increase in traffic generation. 1.6.8 As far as can be estimated at this stage, the contributions towards highway improvements (depending on the level of development within the campus) is set out below: development with a similar level of traffic generation as Academic use - £50,000. development with a minor increase in traffic generation - £450,000-£900,000. development with a significant increase in traffic generation (i.e. a resultant development of over 11,500sqm office use, or 18,000sqm business park use (or combination of uses resulting in similar traffic flows) are likely to be considerable. Any amendments to the A38 junctions are likely to be extremely expensive. 1.6.9 Further detailed cost schedules will need to be prepared in conjunction with any detailed design work to alter existing or create new access junctions. The figures referred to in this report are initial feasibility estimates and will need to be corroborated by technical studies in line with specific development or re-use proposals. Should the development industry come forward with land use proposals for the Seale Hayne site, developers/investors will wish to ensure that an accurate cost and planning risk register is undertaken in relation to their specific proposals. Such costs and liabilities will ultimately assist their financial offer to the University. 1.7 Overview of Rural Cluster Developments in the UK 1.7.1 The first phase of research was an overview of rural cluster developments in the UK. Various common themes were found in the majority of other rural cluster developments and considered in more detail within two specific case studies. One particular point of relevance was that university involvement a factor in these schemes although it was seemingly not vital for success. 1.7.2 Based upon the analysis of the various schemes a suggested definition for a Rural Economy Centre was arrived at, this being not dissimilar to a science/research park but with the focus of the tenant mix on businesses supporting, researching or administering the rural economy. 1.7.3 Consideration of the planned rural science and technology park at Stoneleigh Park in Warwickshire revealed that this proposed scheme was likely to satisfy national demand and, therefore, any scheme at Seale Hayne it could realistically only be a regional centre of excellence. Bearing in mind the definition of a Rural Economy Centre, competition for tenants would come from existing and planned business, science and research and development parks. On completion of the Rural Cluster Research paper, the recommendation to the University was to proceed to the property market survey to assess the strength of local competition. 1.8 Local Property Market Survey 1.8.1 The property market survey, undertaken by Savills, looked at the supply/demand balance for office and industrial space in Exeter, Plymouth and more locally to Seale Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 5 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Hayne. It was found that there is sufficient office and industrial accommodation in both Exeter and Plymouth, not only at present but also in the pipeline for the future. The only possible exception is in Exeter where it may be difficult to accommodate a single very large-scale office space requirement. It was also evident that there are already existing high quality science and business parks with capacity in the region. These include Plymouth International Business Park, Tamar Science Park. There are also plans for a new science park in Exeter. 1.8.2 More locally there is a demand for smaller areas of space but not to the degree that there is a significant imbalance between the current supply and demand. There is always demand for start up and incubator units although this demand is, to some extent, satisfied by various schemes. 1.8.3 In the light of the supply/demand balance, there is no realistic prospect for any form of successful speculative development. There is a fine balance in the market with no obvious unsatisfied demand. If a Rural Economy Centre were to work at Seale Hayne it would need to identify a unique selling point (USP) in order to be able to attract tenants. The tenant demand study was, therefore, carried out to determine the locational criteria of potential occupiers of space. 1.9 Tenant Demand Study – Property and Perception Survey 1.9.1 A survey of over 3,900 businesses across the region revealed that the majority of office occupiers are relatively small, on average occupying less than 2,500 sq ft, and these prefer to remain close to their established base. The majority of respondents who were considering additional space were seeking new or modern buildings but at an in town or edge of town location. 1.9.2 The survey was clear that there is not a significant amount of unsatisfied demand for business accommodation, including expansion space. In addition, the scale of this demand and the rents that occupiers are prepared to pay for new space are not significant enough to stimulate speculative development away from the major town/city centres. The demands from rural related businesses are not significant enough to justify a substantial development to cater for their business accommodation needs. Whilst the Seale Hayne site does satisfy some key locational factors, it is let down by poor accessibility which will act as a barrier to success. The survey also indicated that linkage with a university is deemed relatively unimportant. 1.10 Project Conclusions 1.10.1 The Consultant Team is satisfied that the work programmes adopted in accordance with the requirements of the Project Brief have been delivered. The Brief was agreed by the University and Steering Committee and reflects the Terms of Reference of the Steering Committee. This final report incorporates, where appropriate and relevant to the delivery of the project brief, issues raised by representations submitted by third parties. The report also takes into account comments received in relation to a Draft Progress Report issued to the Steering Committee Members in December 2004. 1.10.2 The basis upon which the Feasibility Study has been prepared is the 2002 decision of the University to transfer academic studies from Seale Hayne to Plymouth – this decision therefore resulting in the Seale Hayne campus being surplus to the longterm academic requirements of the University. As such, the University is required to ensure that a strategy is adopted that secures maximum capital receipt on disposal in accordance with best practice guidance. This report is therefore designed to present the findings of a bespoke series of work programmes which test the feasibility of Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 6 Seale Hayne Rural Economy Centre - Feasibility Study Final Report developing the Seale Hayne site as a Rural Economy Centre (and a traditional business park in the event that a Rural Economy Centre is not considered to be a viable proposition. 1.10.3 The conclusions to be drawn from both the local property market survey and tenant demand survey is that there is insufficient demand for significant amounts of new business space and that demand that does exist is at relatively low rental levels. This applies to general occupiers of space as well as to rural related businesses. 1.10.4 Reference is made above to the need to establish a USP for any proposal at Seale Hayne if it is to have any chance of success. The USP would need to be one, or a combination of, the most important factors affecting business location as revealed by the tenant demand study. However, the unchangeable physical factors of the site its distance from existing centres, lack of accessibility and constraints of the existing buildings on the site (including site topography) - mean that it is not possible, without incurring significant costs, to establish a satisfactory USP to overcome the lack of unsatisfied demand and attract a sufficient number of occupiers to Seale Hayne. 1.10.5 In light of the above Savills recommend that any form of speculative development at Seale Hayne, be it in the form of a Rural Economy Centre or more traditional form of business space, should not be contemplated. There is not the demand in the current market for a Rural Economy Centre at this kind of location. 1.10.6 Similarly, there is no significant demand for conventional types of business space at a site such as Seale Hayne that is subject to the negative locational factors previously referred to. Any demand that does exist for business space is of an extremely smallscale nature and at low rental levels. Any scheme catering for this form of demand would therefore be likely to suffer from low rental returns, high management costs and significant periods of rental voids. These would all combine to make any scheme unviable. 1.10.7 Our property research and studies have therefore revealed that neither a Rural Economy Centre nor a more conventional multi occupancy occupation (business park) at the Seale Hayne site is feasible or viable. Notwithstanding this, the Seale Hayne site does have potential for alternative uses but these are likely to be specialist in their nature. Identification of possible alternative uses beyond a Rural Economy Centre or traditional multi occupancy use of the site is beyond the scope of this feasibility study. It is understood that discussions between the University and interested parties such as Teignbridge District Council will continue in the pursuit of an appropriate and economically attractive land use and/or disposal strategy for the Seale Hayne site. 1.10.8 The information contained within this Feasibility Study can be utilised by the University in the pursuit of an agreed future strategy for the Seale Hayne campus site. Whilst the concept of a Rural Economy Centre or more traditional business park has been questioned, the University is required to pursue a strategy that secures maximum capital receipt on disposal in accordance with best practice guidance issued by HEFCE, National Audit Office and Public Accounts Committee. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 7 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 2 CONTENTS PAGE 1 EXECUTIVE SUMMARY ................................................................................................................ 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 OVERVIEW AND CONTEXT ............................................................................................................... 1 THE PROJECT BRIEF ...................................................................................................................... 1 COMMUNICATION............................................................................................................................ 2 PLANNING POLICY FRAMEWORK...................................................................................................... 2 ENVIRONMENTAL CONSIDERATIONS ................................................................................................ 4 HIGHWAY AND ENGINEERING ISSUES ............................................................................................... 4 OVERVIEW OF RURAL CLUSTER DEVELOPMENTS IN THE UK ............................................................. 5 LOCAL PROPERTY MARKET SURVEY ............................................................................................... 5 TENANT DEMAND STUDY – PROPERTY AND PERCEPTION SURVEY .................................................... 6 PROJECT CONCLUSIONS .............................................................................................................. 6 2 CONTENTS PAGE ......................................................................................................................... 8 3 INTRODUCTION AND BACKGROUND ...................................................................................... 13 3.1 3.2 3.3 3.4 3.5 4 OVERVIEW ................................................................................................................................... 13 CONTEXT ..................................................................................................................................... 14 FINANCIAL ACCOUNTABILITY AND MANAGEMENT OF UNIVERSITY ASSETS ........................................ 16 STEERING COMMITTEE ................................................................................................................. 16 COMMUNICATION.......................................................................................................................... 18 SITE LOCATION AND DESCRIPTION........................................................................................ 20 4.1 4.2 5 LOCATION .................................................................................................................................... 20 DESCRIPTION ............................................................................................................................... 20 PLANNING BACKGROUND ........................................................................................................ 21 5.1 5.2 5.3 5.4 5.5 6 PLANNING HISTORY ...................................................................................................................... 21 LAND USE SURVEY....................................................................................................................... 21 LISTED BUILDINGS AND CURTILAGES ............................................................................................. 22 TREE PRESERVATION ORDERS ..................................................................................................... 22 AGRICULTURAL LAND CLASSIFICATION ........................................................................................... 22 PLANNING POLICY FRAMEWORK ........................................................................................... 23 6.1 6.2 6.3 6.4 6.5 7 PLANNING AND COMPENSATION ACT 2004: PLANNING FRAMEWORK............................................... 23 COUNTRYSIDE POLICIES ............................................................................................................... 23 RESIDENTIAL POLICIES ................................................................................................................. 25 EMPLOYMENT POLICIES ................................................................................................................ 25 SUMMARY .................................................................................................................................... 26 BUILDING SURVEY INFORMATION .......................................................................................... 28 7.1 7.2 7.3 7.4 7.5 7.6 7.7 8 OVERVIEW OF BUILDING STOCK .................................................................................................... 28 PHASE 1 (1910-20)...................................................................................................................... 28 PHASE 2 (1930-40’S) ................................................................................................................... 28 PHASE 3 (1950-60’S) ................................................................................................................... 28 PHASE 4 (1970-80’S) ................................................................................................................... 29 PHASE 5 (1990’S) ........................................................................................................................ 29 SUMMARY .................................................................................................................................... 29 ECOLOGY AND NATURE CONSERVATION CONSIDERATIONS ........................................... 30 8.1 9 SUMMARY .................................................................................................................................... 30 LANDSCAPE AND VISUAL IMPACT APPRAISAL .................................................................... 31 9.1 9.2 9.3 10 DEVELOPMENT STRATEGY - OVERVIEW ......................................................................................... 31 REDEVELOPMENT OF EXISTING CAMPUS ....................................................................................... 31 DEVELOPMENT W ITHIN SURROUNDING AGRICULTURAL LANDSCAPE ............................................... 32 LAND QUALITY CONSIDERATIONS ......................................................................................... 33 Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 8 Seale Hayne Rural Economy Centre - Feasibility Study 10.1 11 EXECUTIVE SUMMARY ............................................................................................................... 55 AIMS AND METHODOLOGY.......................................................................................................... 55 RESULTS FROM THE BUSINESS ACCOMMODATION SURVEY ........................................................... 56 CURRENT PROPERTY OCCUPANCY.............................................................................................. 57 SUMMARY ................................................................................................................................. 60 MEETING FUTURE BUSINESS ACCOMMODATION NEEDS ................................................................ 60 SUMMARY ................................................................................................................................. 63 RESPONSES FROM RURAL-RELATED BUSINESSES ........................................................................ 63 SUMMARY ................................................................................................................................. 65 CONCLUSIONS........................................................................................................................... 65 THIRD PARTY REPRESENTATIONS ......................................................................................... 68 17.1 17.2 17.3 18 INTRODUCTION .......................................................................................................................... 47 LOCAL PROPERTY MARKETS - EXETER ....................................................................................... 47 LOCAL PROPERTY MARKETS – PLYMOUTH.................................................................................. 50 LOCAL PROPERTY MARKETS – TORQUAY AND NEWTON ABBOT ................................................... 51 CONCLUSIONS........................................................................................................................... 52 OVERALL SUMMARY .................................................................................................................. 54 TENANT DEMAND SURVEY ....................................................................................................... 55 16.1 16.2 16.3 16.4 16.5 16.6 16.7 16.8 16.9 16.10 17 INTRODUCTION .......................................................................................................................... 43 THE RURAL BUSINESS CENTRE AT MYERSCOUGH COLLEGE ........................................................ 43 RASE STONELEIGH PARK ......................................................................................................... 44 BEST PRACTICE/DEFINITION OF A REC ...................................................................................... 45 RECOMMENDATIONS .................................................................................................................. 46 LOCAL PROPERTY MARKET SURVEY .................................................................................... 47 15.1 15.2 15.3 15.4 15.5 15.6 16 OVERVIEW ................................................................................................................................ 38 EMPLOYMENT SITES .................................................................................................................. 38 EMPLOYMENT SITES - SUMMARY ................................................................................................ 39 RESIDENTIAL SITES ................................................................................................................... 40 SUMMARY ................................................................................................................................. 41 DEVELOPMENT AT KINGSTEIGNTON ............................................................................................ 41 OTHER POTENTIAL SITES NOT ALLOCATED IN THE DEPOSIT LOCAL PLAN ..................................... 42 REVIEW OF “CLUSTER DEVELOPMENT” RESEARCH .......................................................... 43 14.1 14.2 14.3 14.4 14.5 15 GAS.......................................................................................................................................... 37 ELECTRICITY ............................................................................................................................. 37 W ATER ..................................................................................................................................... 37 SUMMARY ................................................................................................................................. 37 REVIEW OF COMPETING DEVELOPMENT SITES ................................................................... 38 13.1 13.2 13.3 13.4 13.5 13.6 13.7 14 SUMMARY ................................................................................................................................. 35 UTILITY USAGE AND CAPACITY .............................................................................................. 37 12.1 12.2 12.3 12.4 13 SUMMARY ................................................................................................................................. 33 TRANSPORTATION CONSIDERATIONS .................................................................................. 35 11.1 12 Final Report LOCAL PLAN REPRESENTATIONS ................................................................................................ 68 STEERING COMMITTEE GUIDANCE .............................................................................................. 68 OVERVIEW ................................................................................................................................ 69 FEASIBILITY STUDY CONCLUSIONS ....................................................................................... 82 18.1 18.2 18.3 18.4 18.5 18.6 18.7 OVERVIEW ................................................................................................................................ 82 POLICY ISSUES.......................................................................................................................... 82 ENVIRONMENTAL ISSUES ........................................................................................................... 83 HIGHWAY AND ENGINEERING ISSUES .......................................................................................... 83 OVERVIEW OF RURAL CLUSTER DEVELOPMENTS IN THE UK ........................................................ 84 LOCAL PROPERTY MARKET SURVEY .......................................................................................... 84 TENANT DEMAND STUDY – PROPERTY AND PERCEPTION SURVEY ............................................... 85 Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 9 Seale Hayne Rural Economy Centre - Feasibility Study 18.8 Final Report PROJECT CONCLUSIONS ............................................................................................................ 85 Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 10 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Schedule of Appendices Number Description Source Date VOLUME 1 - BACKGROUND AND NONTECHCNIAL APPENDICES 1.1 Location and Context Plans Stride Treglown Limited 1.2 Local Plan Representation - Rural Economy Centre Swallow and Hopwood Project Brief (as augmented by Steering 1.3 Committee Minutes) Stride Treglown Limited 1.4 Steering Committee Guidance Note Stride Treglown Limited 1.5 Steering Committee Papers and Minutes Stride Treglown Limited 1.6 Planning Permission History Records (Summary) Teignbridge District Council 1.7 Land Use Survey Stride Treglown Limited 1.8 Listing Schedule Teignbridge District Council DEFRA correspondence relating to Agricultural 1.9 Land issues (including Plan) DEFRA 1.10 Extracts from Teignbridge Local Plan Teignbridge District Council 1.11 Building Condition Survey Stride Treglown Limited Selected Press Cuttings re: 2002 Local Plan 1.12 objection Various Media Publications Stride Treglown Limited and 1.13 Communication Matrix University of Plymouth 1.14 Third Party Representations Various Nov-04 Feb-02 Mar-04 Jun-04 Jun-04 Jul-04 Nov-04 n/a Sep-04 Apr-96 Aug-04 n/a Nov-04 n/a VOLUME 2 - TECHNICAL APPENDICES 2.1 Ecology Report 2.2 Landscape and Visual Impact Assessment 2.3 Land Quality Report 2.4 Traffic Impact Assessment 2.5 Summary of Local Development Frameworks 2.6 Review of Rural Cluster Developments 2.7 University Participation in Cluster Developments Scott Wilson Kirkpatrick Scott Wilson Kirkpatrick Scott Wilson Kirkpatrick Scott Wilson Kirkpatrick Stride Treglown Limited Savills Savills Nov-04 Nov-04 Nov-04 Jan-05 Nov-04 Nov-04 Nov-04 Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 11 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Preface This Feasibility Report has been prepared, in part, as a reference document for the University of Plymouth in relation to reuse and redevelopment issues relevant to the Seale Hayne Campus. Given the importance of the input from Savills in respect of the commercial viability of a Rural Economy Centre, their primary reports have been incorporated within the main body of the report as Chapter 15 and 16. We have summarised their research report dealing with factors influencing the performance of “Rural Cluster Developments” as Chapter 14. The full texts of their reports are set out in Appendix Volume 2. The Feasibility report is accompanied by, and should be read in conjunction with, a set of bound appendices. These include; A Background and Non-technical appendix. This is bound as Volume 1 with contents referred to within the report as having the prefix 1. (1.1,1.2 etc). The content of this document primarily relates to the background papers and illustrative and other material drawn from a wide range of sources. Given the quantum of information contained therein, a single copy of Volume 1 will be held by the Department of the Vice Chancellor at the University of Plymouth. A Technical appendix. This is bound as Volume 2 with contents having the prefix 2 (2.1, 2.2 etc). This document contains the technical environmental and engineering reports prepared by Scott Wilson Kirkpatrick and the commercial property reports prepared by Savills. The consultant team are working under instructions from the University of Plymouth (“the Client”). The scope of the study was presented and endorsed by a special Steering Committee, facilitated by the University of Plymouth on the 25th June 2004. This group comprises 11 individuals, including representatives of Teignbridge District Council Members, Governors of the University and key University personnel. At the June 2004 meeting, the Steering Committee requested that the focus and findings of any tenant demand study concentrate upon rural based practices and employers. This request has been delivered as part of the tenant demand study undertaken by Savills. Due to pagination error there is no page 34 in this document. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 12 Seale Hayne Rural Economy Centre - Feasibility Study 3 Final Report INTRODUCTION AND BACKGROUND 3.1 Overview 3.1.1 In April 2004, the University of Plymouth commissioned a consultant team to undertake a feasibility study concerning the creation of a Rural Economy Centre (REC) on the site of the Seale Hayne Agricultural Campus, near Newton Abbot, Devon. The site is owned and currently occupied by the University of Plymouth. The study is therefore prepared to inform the strategy to be adopted to maximise capital receipt of disposal and to investigate the potential for the site to retain a role in the rural economy. 3.1.2 The feasibility study is predicated upon the decision of the University to vacate the site following the completion of undergraduate studies in the summer of 2005 at which time academic studies will be transferred to Plymouth. 3.1.3 The area of the campus estate covered by the Study is highlighted on the plan attached as Plan 1 at Appendix 1.1. 3.1.4 The concept of a Rural Economy Centre (REC) originated from the University in 2001/2 as part of an overall vacation and redevelopment/reuse strategy. At that time, no clear brief was prepared to inform the likely size, tenant mix or deliverability of such a concept. However, given pressures to promote the concept of redevelopment at Seale Hayne in the period 2001-2011 as part of the Teignbridge Local Plan (see below) the University were required to protect their long-term position and promote an alternative use strategy for the site. The University were committed at that point to investigate the issues and deliverability of a Rural Economy Centre. This is the purpose of this report. 3.1.5 The Project Team was requested to consider the viability of a rural (land based industries and technology) centre in the first instance. In the event that a Rural Economy Centre was not considered to be a viable proposition, alternative uses in the form of a more traditional business / science / industrial development were to be considered. 3.1.6 The project team of advisors brought together for this commission are set out below: 3.1.7 Stride Treglown Limited Project Co-ordination Strategic Town Planning Masterplanning and Design consultants (as required) Savills Commercial Property Consultants Market Appraisals Tenant Demand analysis Scott Wilson Kirkpatrick Environmental and Engineering Consultants Highway and Infrastructure Capacity Landscape and Visual Impact Appraisals Utility capacity and delivery Environmental Audits At the time of the consultant team appointment, the end goals of the wider Seale Hayne Project, which encompassed the Feasibility Study as a part, were: Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 13 Seale Hayne Rural Economy Centre - Feasibility Study Final Report To undertake a detailed site and property market baseline assessment in order to inform the University as to the viability of a Rural Economy Centre (or traditional employment redevelopment) located within the Seale Hayne Campus. Subject to clear conclusions reached in the feasibility study, to prepare a Draft Development Brief to highlight the way in which the likely quantum and mix of employment tenants identified in the property market assessment and other uses could be accommodated on the site. To secure the necessary outline planning permissions to enable re-use and/or redevelopment of the site in order to reduce developer / investor uncertainties and promote the development opportunities to the marketplace. To adopt a multi-disciplinary professional consultancy approach through the implementation of the above tasks to ensure that the University are informed as to the most appropriate mechanism to secure best consideration for the land at the time of disposal. 3.1.8 These issues were also addressed in the Terms of Reference of the Steering Committee, facilitated by the University of the Plymouth. The terms of reference are set out in Section 3.4 below. 3.1.9 The Consultant Team is satisfied that the work programmes adopted in accordance with the requirements of the Project Brief have been delivered. The University is aware that a discrete work task anticipated to be undertaken by Savills in respect of potential residential rental values has been omitted from the report. This is considered to be a matter for the University to consider outside the scope of any Rural Economy Centre Feasibility Study. The result of such research would not have influenced the overall study findings. Savills have prepared an additional paper, not covered in the original Brief relating to “University participation in Cluster Developments” as a consequence of discussions with the University and in the interests of considering this issue in the context of the Rural Economy Centre concept at Seale Hayne. This background paper is set out in full as Appendix 2.7. 3.2 Context 3.2.1 Seale-Hayne College was established in 1912 and became fully operational providing education and training for the agricultural industry in 1920. In this capacity it established a high reputation. Over the past century agriculture has changed radically – as has the role Seale Hayne plays in the rural economy. 3.2.2 At its prime, in excess of 1000 full time students attended the Seale Hayne campus, generating considerable traffic movements and expenditure that was invested into to the local economy. 3.2.3 Changes within the University structure agreed in 2002 enabled a future transfer of the academic studies undertaken at Seale Hayne to the Social Science and Business Faculty and the Science Faculty at the Plymouth site. All studies will cease at Seale Hayne at the end of the summer term in 2005. 3.2.4 The University is keen to ensure that appropriate and reasonable steps are taken to ensure the best future is secured for Seale Hayne and the local area (See Section 3.3 below). The University has given instructions that it did not wish to embark upon a “quick-win” strategy if this is considered to prejudice a more attractive viable solution Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 14 Seale Hayne Rural Economy Centre - Feasibility Study Final Report that will offer more far-reaching benefits. The feasibility study is designed to inform a preferred strategy which could lead to an appropriate disposal process. 3.2.5 The long-term role of the Seale Hayne Campus was being considered at a time when an opportunity existed to promote the long-term development options for the site as part of the Teignbridge Local Plan 2001-2001. The [then] Local Plan process contained a six-week window for representations to be submitted to promote development for the next 10 years. If this opportunity were not taken, the University would have lost the opportunity to promote the redevelopment options at the Local Plan Inquiry that at that time was to be held in late 2004. 3.2.6 In order to ensure that the flexibility existed to promote the future redevelopment and re-use of the site, representations to the First Deposit Teignbridge Local Plan were made by Hopwood Swallow Architects on behalf of the University in February 2002. This is attached at Appendix 1.2. The representation made reference to the concept of a mixed use development comprising a variety of educational, residential, business, employment and community uses. Whilst discussions on the future of Seale Hayne had begun, no formal decisions had been made. It is therefore important to acknowledge that the representation was considered to be a ‘holding objection’ in order that a further opportunity to present a case to the Public Local Inquiry existed. 3.2.7 Stride Treglown Limited were approached in September 2003 to comment upon the practical options open to the University in progressing a redevelopment and/or re-use strategy for the Seale Hayne Campus. In particular, advice was sought as to how best to promote the representation submitted by Hopwood and Swallow Architects. Upon investigation it became evident (in land use planning terms and in relation to Local Authority strategic housing targets – supported by subsequent discussions with Teignbridge District Council) that the proposal that had been submitted to the Inquiry was untenable due to the substantial element of housing that had been included. Such a proposition would have been unlikely to be supported because the level of housing proposed was equal to the residual strategic requirement for housing for the whole District as calculated by the Council. Concerns were also raised as to the sustainable advantages of such a concept that would be contrary to Government guidance and Local Planning Policy. 3.2.8 In September 2003, the University were advised that there was no need for an immediate input to the Local Plan process and that the most appropriate way forward would be to investigate the feasibility of promoting a Rural Economy Centre on the site in advance of making further submissions to Teignbridge District Council. The results of the Feasibility Study were therefore intended to be used in the formulation of a detailed case to the Local Plan Inquiry. 3.2.9 The feasibility study, which at that point (September 2003) was envisaged to be prepared internally within the University, would attempt to define what the constituent parts of such a concept development might be, and the options for redevelopment of parts of the site to accommodate commercial research and development, light industrial and office uses. The feasibility study would also address the scope for introducing the principle of residential development on the site to support an integrated development mix. 3.2.10 In the spring of 2004, the University advised that it would be appropriate for the Feasibility Study to be prepared by consultants. Stride Treglown were requested to seek expressions of interest from selected consultants able to offer engineering, highways, environmental and rural business and property commercial services to Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 15 Seale Hayne Rural Economy Centre - Feasibility Study Final Report support their own Town Planning and Masterplanning skills. The resultant team, managed by Stride Treglown, defined, in agreement with the University and the Steering Committee, the scope of the Feasibility Study. 3.3 Financial Accountability and Management of University Assets 3.3.1 The University of Plymouth are duty bound to work within the parameters of the “Model Financial Memorandum between the Higher Education Funding Council of England (HEFCE) and institutions”, published by HEFCE in October 2003. 3.3.2 Under the terms of the Memorandum, the University must ensure that it has a sound system of internal management and control. This provision requires the governing body of the University to plan and conduct its financial and academic affairs to ensure that it remains solvent and that in any accounting period its total expenditure is not greater than its total income. In addition, the governing body is responsible for delivering value for money from public funds. It must implement and keep under review its arrangements for managing all the resources under its control, taking into account guidance on best practice issued by HEFCE, National Audit Office or the Public Accounts Committee. 3.3.3 In relation to the management of its estate, the University “shall manage and develop its estate with regard to the guidance issued from time to time by the Council [HEFCE] on estate procedures”. 3.3.4 Paragraph 50 of the Memorandum requires that the University “shall maintain its estate in accordance with a maintenance plan, covering its long term and routine maintenance requirements”. 3.3.5 In summary, the University is required to manage its estate in a cost effective way and in accordance with the academic objectives of the institution – in essence as a tool to deliver academic performance. The October 2002 decision to consolidate the academic activities offered at Seale Hayne to a central facility/facilities in Plymouth confirmed that the Seale Hayne campus is surplus to academic requirements. As such, the University is expected to ensure that a strategy is in place to ensure that best consideration (financial) is secured for the site after vacation occurs. 3.3.6 This feasibility study aids a wider discussion as to the future strategy to be adopted to ensure that capital receipt on disposal is achieved. It is not the remit of this feasibility to comment on or recommend to the University any advice or guidance relating to specific disposal advice. This will be a matter for the University Governors to discuss in due course. 3.3.7 Notwithstanding the above, third party comment has been made referring to the long term “uplift” in land value at Seale Hayne which might be generated by the securing of planning permission for significant development: this assumes a sale to a third party and their subsequent pro-activity to deliver a high value development scheme. In response to this point, the University, under a duty of financial responsibility, would be able to seek legal safeguards to share in any resultant uplift in land value by the actions of a third party purchaser. This issue would need to be examined in further detail and in support of any future decision of the University to adopt an active marketing campaign. 3.4 Steering Committee 3.4.1 The way in which the decision to vacate the Seale Hayne campus was taken generated criticism toward the University: this criticism being concentrated upon the Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 16 Seale Hayne Rural Economy Centre - Feasibility Study Final Report lack of consultation with third parties. The University is conscious of the need to avoid a repetition of this and has requested the project team of advisors, working with the University, suggests an appropriate consultation implementation strategy as part of future redevelopment proposals that might emerge as a result of the findings of the Feasibility Study. 3.4.2 It is important to acknowledge that the University has made a clear and corporate decision to vacate the site. This cannot be reversed. The University is intent on moving forward by reaching a solution for the campus that will be justified and transparent within the context of a robust financial framework. The University are required to ensure that due processes are followed which can be audited: the University being an accountable organisation that is required to manager its assets in a responsible manner. 3.4.3 The University considered that the redevelopment and re-use strategy for the future of the Seale Hayne site should be informed by a specially convened Steering Committee comprising Governors of the University, selected individuals with an interest in the site and rural affairs and representatives of Teignbridge District Council. This Steering Committee met on the 25th June 2004. 3.4.4 It is the purpose of the Steering Committee to discuss and ratify the methods employed by the Consultant Team in the delivery of the Feasibility Report, to comment upon draft project findings and drafts as appropriate and adopt the Final Report. 3.4.5 In advance of the June 2004 Steering Committee, members were presented with a Draft Project Brief (Appendix 1.3) and Guidance Note (Appendix 1.4), prepared by the team of advisors in conjunction with direction from the University. Following a presentation of the draft methodology for progressing the feasibility study (the Brief), the Committee approved the preparation of the study, subject to the commercial property advisors concentrating upon the opportunities for a rural based cluster development, rather than a more traditional employment area in the first instance. 3.4.6 The Agenda and Minute of the first Steering Committee Meeting is attached as Appendix 1.5. 3.4.7 The terms of reference of the Steering Committee are also included at Appendix 1.5. These differ from the Feasibility Study Project Brief. The Steering Committee, whilst ensuring that the Feasibility Study is prepared in a timely and appropriate way, is also asked to ensure that the University discharges its public duty to maximise the value of its assets and reinvests to promote and achieve its mission. 3.4.8 This latter objective is at the heart of the feasibility study. The consultant team have been requested to consider the viability and deliverability of a Rural Economy Centre, or in the event that such as concept is undeliverable/unviable, to consider the delivery of a more traditional business park of critical mass in order to achieve maximum capital receipt on disposal. It is not for this feasibility study to assess the viability of development options that would not promote this objective. 3.4.9 Third party representations have been submitted during the course of the Feasibility Study which support a retained University presence on site, or which support an altruistic approach to estate management on the part of the University. These comments have been acknowledged and summarised in Section 17 below. However, detailed comment and/or responses to these suggestions are made only in the context of the scope of the Brief and the Terms of Reference of the Steering Committee, namely that such suggestions are not to be assessed or considered in Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 17 Seale Hayne Rural Economy Centre - Feasibility Study Final Report detail in this feasibility study in the light of the decision to vacate the Seale Hayne site and the requirements to adopt financially robust estate management practices in accordance with HEFCE, National Audit Office and Public Accounts Committee guidelines. 3.5 Communication 3.5.1 The University acknowledges the importance of establishing meaningful and effective communication with members of the public and third parties in addressing significant developments associated with the University. It is important however that there is a commonly agreed strategy with which to consult: there being little point engaging with third parties on a development strategy which is not considered, following detailed investigations, to be a viable proposition. 3.5.2 In order to assist the delivery of an effective future communications strategy, the University’s public relations team and Stride Treglown have formulated a dedicated and comprehensive approach to consultation and communication. A “Communication Matrix” has been prepared which identifies those parties that are likely to have an interest in the delivery of redevelopment and/or reuse of the Seale Hayne site. This is drawn from a number of sources, including; Historic Press Cuttings Local Plan Representations submitted to Teignbridge District Council Statutory Consultee responses. We have also included a number of potential consultees drawn from the following categories: 3.5.3 Political, Government and Non-Governmental Organisations Teignbridge District Council Departments Business Sector The University of Plymouth Education interests Community Groups Service providers and Governors of Seale Hayne / University A number of informed assumptions have been made to highlight one of more “topic issues” which these parties are likely to have a future interest. The “Topics” identified include; Agriculture Housing Employment and Economy Tourism Environmental / Ecological Listed Building / Built Heritage Visual Impact Community Facilities Recreation Transportation Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 18 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 3.5.4 Notwithstanding the importance placed upon communication by the University, in the event that the University are to promote a development option(s) for the campus, the provisions of the 2004 Planning and Compensation Act encourage proponents of major developments to engage with member of the community and local stakeholders in advance of submissions to Local Planning Authorities. 3.5.5 The Communication Matrix (which is referred to in Chapter 17 and attached at Appendix 1.12) also suggests the most appropriate and effective way of consulting and engaging with the particular interests and groups. The information contained in the matrix is therefore available to the University to begin a detailed consultation programme should such proposals be pursued. 3.5.6 The consultation “strategy” as set out within the Communications Matrix has not been implemented. The communication matrix (Appendix 1.13) was designed to inform the promotion of an integrated or single land alternative land use strategy for the site. This strategy was to involve the preparation of a Development Brief for the site. As the project developed, and as the results of the tenant demand indicated, the promotion of a clearly defined land use strategy was called into question. 3.5.7 Notwithstanding the above, the information contained in the Communication Matrix is valuable in the sense that those parties identified are deemed by the Consultant Team to have an interest in the future use or redevelopment of the site. The University may wish to use the contacts listed as part of any land use or associated strategy for the site. 3.5.8 On a final note, the project team consider it important to draw the University’s attention to the fact that the detailed business survey undertaken by Savills (referred in detail in Chapter 16) highlighted that 44% of respondents were aware of the “proposals” being considered at the Seale Hayne site. We take this to refer to the preparation of the Feasibility Study in relation to the long-term use of the campus. It is also conceivable that some of these respondents were referring to, or were aware of “proposals” being promoted in the press by the Seale Hayne Future Group as a Rural Economy Centre (or similar). Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 19 Seale Hayne Rural Economy Centre - Feasibility Study 4 Final Report SITE LOCATION AND DESCRIPTION 4.1 Location 4.1.1 The site that is the subject of this Feasibility Study is highlighted on Plan 1 at Appendix 1.1. The study area excludes land at Darracombe Farm which is also under the ownership of the University. 4.1.2 Seale Hayne Campus comprises 186 hectares of land comprising the academic buildings, arable farmland, pasture and set aside land to the north west of Newton Abbot off A383. The land rises up towards the northwest and can be clearly seen from the western limits of Newton Abbot and A383. Further west and beyond the higher land is the eastern extent of the Dartmoor National Park. 4.1.3 The campus of Seale Hayne College sits in the approximate centre of a triangle of roads formed by: A38(T) primary route to the northwest A382 principal route to the northeast A383 principal route to the south. 4.1.4 In planning policy terms, the site is located outside a defined settlement boundary and therefore is within “open countryside” where restrictive land use policies apply. These are discussed in Section 5 below. 4.2 Description 4.2.1 On the northeast part of the estate is a nucleus of buildings utilised for teaching, administration and student accommodation. In the centre of this grouping is the historic core, an ornate quadrangle and tower designed by Gutheridge and Gutheridge which was completed in 1914 within a landscaped setting. Adjacent to this are a complex of more modern buildings and laboratories having all been developed in 20th Century. 4.2.2 South of the main quadrangle is a collection of barns and other store buildings associated with the agricultural activities being carried out on the site. To the west, and devoid from the main campus but within the site, is the college farm which comprises a number of buildings dating from c1900, along with some more modern barns. Surrounding uses include open areas of farmland, woodland and a disused quarry. 4.2.3 The minor road links between the college campus and the A382 and A383 are narrow with generally poor horizontal alignment. 4.2.4 Topographical surveys have not been prepared at this stage of the wider redevelopment project. There is however a significant height differential across the site from the higher northern area falling steadily to the south. The main quadrangle is situated on a small, relatively narrow plateau. Indeed, the main educational core can be described as being built on a series of small terraces, well below the skyline. The core site enjoys panoramic views across the Lemon Valley and east to Newton Abbot and Shaldon beyond. 4.2.5 The boundaries of the campus extend from around the very highest contours of the ridge to the lowest, alongside the River Lemon. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 20 Seale Hayne Rural Economy Centre - Feasibility Study 5 Final Report PLANNING BACKGROUND 5.1 Planning History 5.1.1 The campus has an extremely detailed planning history with approximately 100 Planning and Listed Building Consent applications having been submitted for the site since it began use as an agricultural college in 1912. 5.1.2 Teignbridge District Council has supplied a full schedule of all development proposals submitted. This is attached as Appendix 1.6. In summary, the key applications are considered to be: Library Block (May 1971) Sports Hall (February 1972) Construction of North Wing to the Frank Parkinson block (June 1972) Science building including four laboratories (October 1978) A dining hall and kitchen block (July 1981) 5.2 Land Use Survey 5.2.1 There a number active uses on the campus. These are identified on Plan 1 at Appendix 1.7. 5.2.2 The Seale Hayne campus extends to some 186 hectares, the vast majority being agricultural fields, centred upon a complex of farm buildings within the estate. The core academic campus, 5.2.3 Principal buildings include: 5.2.4 The main quadrangle, put to a mix of teaching, office, residential, catering and medical uses. Frank Parkinson House, comprising 170 bed spaces, with shared bathroom and kitchen facilities. Chapel Lecture Theatre (400 seat capacity) Thompson Laboratories (single open plan space) Library (with mezzanine floor) Food Technology Unit (Laboratories) Hayter-Hames Building (Previously use for examination and display of large agricultural machinery – divided space with undercroft rooms and stores) Science Laboratories Howton House. Formerly the Deans House, now put to research uses. Refectory: vehicular access achieved through the farm-building complex. Agricultural Laboratory Sports Hall, Playing fields and Pavilions (on land measuring some 5.9 hectares). Outlying cottages, barns and agricultural storage. Residential properties, on land measuring some 1.7 hectares. Formal car parking areas are spread across the site. Operational Farm Buildings comprise: Howton Farm, located immediately below the main campus area. Bradmores Farm located in the midst of the estate. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 21 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 5.2.5 Residential properties owned by the University are tenanted by either staff or students. Some are protected tenancies. 5.3 Listed Buildings and Curtilages 5.3.1 In March 2000, the historic quadrangular core of the college was Listed (Grade II). The Listing (attached as Appendix 1.8) notes that the college building was designed by Gutheridge and Gutheridge and makes specific reference to the large central gatehouse tower and notable octagonal corner turrets. No other buildings on the site are Listed. 5.4 Tree Preservation Orders 5.4.1 Teignbridge Council has confirmed that none of the trees on the site are protected by preservation orders. 5.5 Agricultural land classification 5.5.1 DEFRA have confirmed (Appendix 1.9) that the majority of the agricultural land within the site is Grade 3 standard with some Grade 2 quality land located near to Bradmores Wood as shown on Plan 1 at Appendix 1.9. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 22 Seale Hayne Rural Economy Centre - Feasibility Study 6 Final Report PLANNING POLICY FRAMEWORK 6.1 Planning and Compensation Act 2004: Planning Framework 6.1.1 In May 2004, the fundamental basis of Town and Country Planning in England changed with the Royal Assent of the Planning and Compensation Act 2004. In practical terms the historic two-tier system of Structure and Local Plans will switch to a new single-tier 'Local Development Framework' in accordance with Regional Spatial Strategies. Local Planning Authorities will now be required to prepare a portfolio of Local Development Documents which will include an overall vision and strategy for their district: this will include key policies and proposals for development throughout the area. 6.1.2 For those Local Authorities whose Local Plan process is far enough advanced (i.e. Local Plan adoption within the next 12 months), Local Plan documents will be fully prepared and adopted. For the remainder, a three-year transitional period has been introduced for Local Authorities to move towards the new system. In such cases, Local Plans are being abandoned to make way for the preparation of Local Development Frameworks. 6.1.3 Teignbridge District Council made a strategic decision in early 2004 to abandon the draft Local Plan 2001-2011 in favour of the new Local Development Framework: this decision being in advance of the new Planning Act. The way in which the Council will implement transitionary arrangements was adopted in July 2004. 6.1.4 Under the new planning system, large redevelopment sites and areas under great development pressure are to be promoted by ‘Area Action Plans’. This was considered by the project team of advisors to be the most appropriate manner in which to address the development of the Seale Hayne Campus. 6.1.5 Teignbridge District Council however will not be looking at individual sites in the context of area action plans, which they have defined as main urban settlements, such as Newton Abbot. The development of major sites will be considered in the form of site-specific policies which will need to have due regard to the overall development strategy for the area. At the time of writing, the Council has not published the “options and issues paper” for the general development strategy that will inform the development of individual development sites. 6.1.6 The transition from one planning system to another does not prevent the promotion of the Seale Hayne campus as the use of site Development Briefs are still considered appropriate. Development Briefs can be used for a number of purposes, but ultimately they seek to reduce developer uncertainty though detailed site investigations and therefore inform the potential scale and land use mix of development which will in turn assist the marketing of the site as part of a disposal strategy. 6.2 Countryside Policies 6.2.1 The Council formally adopted the Teignbridge Local Plan in October 1996. This is the first statutory Local Plan for the whole of Teignbridge, but excludes the part of the district situated within the Dartmoor National Park. The Dartmoor National Park Authority is responsible for the preparation of its own Local Plan. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 23 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 6.2.2 The Teignbridge Local Plan sets out the Council’s policies and proposals for the development and use of land. It shapes the future development of Teignbridge, and provides a firm basis for rational and consistent planning decisions and a measure of certainty to indicate the kind of development that will or will not be permitted. 6.2.3 Although the Teignbridge Local Plan covers the period from 1989 to 2001, it still remains in force for the purpose of guiding development and the determination of planning proposals. 6.2.4 The Seale Hayne Campus is designated as being located with the Countryside, subject of Policy ENV4. Policy ENV 4 states; “In the Countryside, as defined on the Proposals Map, Policy CDE1 of the Devon County Structure Plan – Third Alteration applies. Wildlife interests will also be taken into account. In considering development proposals, particular attention will be paid to the scale of development and to its siting, layout and appearance”. 6.2.5 In relation to the change of use and conversion of buildings in the countryside, proposals will be considered in accordance with the criteria set out in Policy ENV7 (see below). The Council consider the successful conversion of buildings will be achieved through compliance with these criteria. The Council accept that the re-use of buildings can provide opportunities for the economic diversification of the rural economy and encourage new enterprises to provide jobs in rural areas. Uses of value to the local rural economy are listed in the adopted plan – see Criterion 1 of ENV7 below. 6.2.6 Buildings in the countryside which do not have easy access to community facilities and services will, in most cases, be considered unsuitable for permanent residential uses in accordance with the strict controls over housing in the open countryside. Residential conversions are considered by the Council to have particular detrimental effects on the character of buildings and any new use should be sympathetic to the rural character of the area. 6.2.7 In the context of Seale Hayne, the visual impact created by the existing development has resulted in the site being part of the wider character of the area and therefore conversion of certain parts of the buildings to residential use will be considered in the context of sustainable development criteria and the proximity to local shops and services. The Council have, during discussions with the team of advisors, suggested that the site is remote and divorced from any settlement boundary and as such, considerable residential use would not be welcome. 6.2.8 Policy ENV 7 refers to the conversion and change of use of buildings in the countryside. In summary, the policy states, at al, that “…proposals for the change of use or conversion of buildings will be permitted provided that: a) the proposed use is either for: purposes ancillary to agriculture, community, recreation or tourist facilities, Crafts, light industrial or related business uses, Holiday accommodation Would otherwise be of benefit to the local rural economy In the case of residential conversion, easy access to community facilities and services. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 24 Seale Hayne Rural Economy Centre - Feasibility Study Final Report b) their form, bulk and general design are in keeping with their surroundings, c) the building is structurally sound to allow successful conversion without significant alteration, rebuilding or extension. d) the new use is sympathetic to the rural character of the building, e) satisfactory drainage can be achieved, f) the use does not give rise to unacceptable traffic conditions and does not prejudice the amenities of adjoining neighbours, g) the protection of existing residential amenities, h) Wildlife protection, i) where proposals relate to the conversion of a proliferation of agricultural buildings, permitted development rights would be removed.” 6.3 Residential Policies 6.3.1 In relation to residential development, the adopted plan contains policies that direct new major housing developments towards and within main settlements (Policies H1 and H2). The plan makes an allowance for limited residential development in other areas provided they are located within defined village envelopes as shown on the proposals map (Policies H3 and H4). 6.3.2 Residential development in the countryside (outside settlements) will not be permitted unless it is: Essential to the needs of agriculture, horticulture, forestry or other rural business. Related to the conversion of suitable buildings in accordance with Policy ENV7 (above), Housing for local needs (affordable housing) Alterations and extensions to existing buildings where no new dwellings are proposed Replacement dwellings (in certain circumstances) And where environmental, landscape impact, nature conservation and infrastructure arrangements can be protected or provided for as appropriate. 6.4 Employment Policies 6.4.1 In relation to employment development, the Council have stated objectives of encouraging employment opportunities to meet local need and to provide a healthy economy for the district. The Council are also obliged to promote and encourage the most effective use and environmental improvement of existing employment land and to permit employment development of an appropriate scale in or on the periphery of rural settlements provided that the proposal does not have a detrimental impact upon the visual or physical environment. 6.4.2 Policy E3 states that outside existing, permitted or allocated sites, employment development will be permitted provided that the Council is satisfied that the proposed development: Is well related to an existing settlement Is in scale and harmony with its surroundings Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 25 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Will not cause environmental concerns Will not create unacceptable traffic conditions. 6.4.3 Particular attention will also be given to the development of small industrial units. (Policy E3) 6.4.4 Proposals for the alteration and conversion of existing rural buildings for employment purposes will be permitted in accordance with Policy ENV7 (See above) (Policy E5). 6.4.5 The Revised Deposit Local Plan, published in April 2000 and covering the period 2001-2011 is not yet adopted. The sentiments of the policies set out in the adopted 1996 Plan are relevant to the revised plan. For this reason we have not replicated the polices at this conjuncture. Extracts taken from both the adopted and revised deposit plans are attached at Appendix 1.10. 6.5 Summary 6.5.1 At first inspection, the policies of the adopted local plan applied to areas of open countryside are not helpful to the comprehensive redevelopment of the Seale Hayne campus. The site is remote from existing settlement boundaries where the Council have made it clear (during discussions in 2004) that they would not support a considerable net increase in new build activity on the site given that, in their opinion, such proposals would promulgate an unsustainable development form. 6.5.2 Given that the notion of a Rural Economy Centre requires a critical mass to be achieved, the Council have not offered satisfactory comfort that a Rural Economy Centre would be welcomed in land use planning terms. 6.5.3 However, on closer inspection, polices concerning the conversion of existing buildings (rural or otherwise in a rural setting) would appear to offer opportunities for alternative uses. The delivery of these uses would be subject to market demand and the ability of the University to promote an integrated and strong planning case linked to a planning application(s). 6.5.4 The fact that policies refer to the principle of the conversion of such buildings for alternative uses does not negate the need for formal applications to be submitted. 6.5.5 The uses identified as acceptable include those listed in Policy ENV7, namely, purposes ancillary to agriculture, community, recreation or tourist facilities, Crafts, light industrial or related business uses, Holiday accommodation Those uses that would otherwise be of benefit to the local rural economy 6.5.6 In the event that a Rural Economy Centre cannot be delivered on site, by virtue of either land use planning objection, or lack of tenant demand, the promotion of a mix of uses along the lines suggested above would appear to offer potential, all other things being equal. 6.5.7 However, as Scott Wilson have reported, the change of use of existing accommodation to commercial business uses would alter the theoretical traffic flows to and from the site. Whilst it is accepted that different uses will generate different levels of traffic, the conversion of the existing building stock at Seale Hayne to a mix of uses as set out above could cumulatively result in a level of traffic that would Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 26 Seale Hayne Rural Economy Centre - Feasibility Study Final Report require either marginal or major (expensive) highway improvements to the local network. 6.5.8 This has not been investigated as this stage given that the report is concentrated upon the delivery of a Rural Economy Centre and it would not be cost-effective to calculate numerous iterations of land use mix without a clear indication of the attractiveness of the site to the market for these uses. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 27 Seale Hayne Rural Economy Centre - Feasibility Study 7 Final Report BUILDING SURVEY INFORMATION 7.1 Overview of Building Stock 7.1.1 In order to appreciate the potential of the existing building stock to be re-used in association with alternative land use proposals, in July 2004 a survey of the site was undertaken by a qualified Building Surveyor within Stride Treglown Limited. The purpose of the study was not to prepare a detailed schedule of building condition, but rather a cursory inspection to ascertain key potential constraints to re-use. As such, no intrusive interior surveys were undertaken. A detailed building survey would be recommended in association with, and in advance of, any disposal strategy. 7.1.2 A summary of the survey is set out below. The detailed survey is attached as Appendix 1.11. 7.1.3 In essence, the building stock reflects a number of distinct development phases that have combined to form the current building arrangement. The key phases are as follows; Original construction phase: 1910-20 Phase 2: 1930-40’s Phase 3: 1950-60’s Phase 4: 1970-80’s Phase 5: 1990’s 7.1.4 The agricultural buildings span across all the above phases. 7.1.5 The phases of development are shown on plan form at Appendix 1.11. This should be read in conjunction with the Schedule of Accommodation Report, also attached at Appendix 1.11. 7.2 Phase 1 (1910-20) 7.2.1 The original construction is of loadbearing masonry construction employing facing brickwork with ashlar stone dressings to openings and other features. The roofs are generally covered with natural slate roofing. Due to the quality of the original construction these buildings remain in generally sound condition. Internally the buildings are generally well maintained but the facilities are in places still original and thus dated. 7.3 Phase 2 (1930-40’s) 7.3.1 This period of construction is limited to a few buildings on the farm site but generally reflect the original construction albeit in a slightly less ornate fashion – it is possible that these date from the period of original construction. 7.3.2 These buildings appear in sound condition, although they were not inspected internally. 7.4 Phase 3 (1950-60’s) 7.4.1 This phase of construction, which provided further buildings in all areas, again reflects the original load-bearing masonry design with slate, copper or flat roof coverings, all with increasingly simplified detailed design. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 28 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 7.4.2 These buildings remain in generally fair condition, although there are instances of significant outstanding maintenance particularly in respect of some roof coverings, which appear to be problematic. 7.5 Phase 4 (1970-80’s) 7.5.1 This group of buildings includes more of the previous forms of architecture but also includes examples of emerging forms of design, notably the Sports Hall, the Science Laboratories and the Refectory. 7.5.2 The Sports Hall introduces large uninterrupted loadbearing masonry panels together with pre-cast concrete panels at high level. There appear to be problems with the weather-tightness of certain elements of this building together with some signs of movement in the ancillary accommodation. 7.5.3 The Science Building employs some elaborate brickwork detailing and a ‘complicated’ roof form. The parapets appear to be problematic and the roofs are reported to have leaked since the building was originally constructed. 7.5.4 Similarly the roof to the Refectory shows signs of leakage – certainly the quality of some of the slates employed in its construction are suspect. 7.6 Phase 5 (1990’s) 7.6.1 There was limited development in the 1990’s, which relates mainly to extensions of existing buildings including extensions to the Students Union and the Great Hall – here the extensions have reverted to construction reflecting the original form, but with isolated 1990’s influences e.g. the glazed canopy to the Student’s Union Building. 7.6.2 The quality of this construction whilst obviously meeting the improved standards of the 1990’s does in fact show signs of deterioration due perhaps to being ‘built to a price’. 7.7 Summary 7.7.1 The agricultural buildings span across all the above phases. These buildings are, as would be expected, generally of a utilitarian quality, again reflecting the periods of construction outlined above as the farm was developed in tandem with the College. 7.7.2 With the exception of the Agriculture Laboratory and the Maintenance Building, which are in reasonable condition (although these were not inspected internally), the remainder are in only of a satisfactory-poor condition. 7.7.3 Overall the buildings generally appear to be well maintained where of traditional construction. Where there are problems inherent in the later forms of construction these appear to remain unresolved. 7.7.4 With the exception of the very latest work, most of the building stock will be uninsulated or only insulated to a very low level. This could prove to be a very costly element to improve. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 29 Seale Hayne Rural Economy Centre - Feasibility Study 8 Final Report ECOLOGY AND NATURE CONSERVATION CONSIDERATIONS 8.1 Summary 8.1.1 Scott Wilson were commissioned to carry out a baseline ecological appraisal of land within a 50m radius of the campus site. A Phase 1 Habitat survey of this study area was undertaken during August 2004. The aim of the survey was to identify the type, quality and extent of habitats present within the site and to identify the potential of the site to support notable or protected species. Records of statutory and non-statutory designated sites and notable species within the site were requested from relevant organisations. A copy of the survey is attached at Appendix 2.1. 8.1.2 Campus buildings vary in age and construction, and not all are occupied. The habitats in the immediate vicinity of these buildings mainly include semi-improved grassland, poor semi-improved grassland, scrub and a pond. There is much landscaping and ornamental planting evident across the site. 8.1.3 There are no designated sites within the study site, however two local wildlife sites within the wider Seale Hayne estate exist. These are Bradmores Wood to the west of the study site, and Higher Staplehill Quarry to the north. 8.1.4 Although the habitats on the site are, at best, of no more than local importance for nature conservation, there is potential for some protected species to be present. There is evidence that bats are roosting within a number of buildings. Many of the other buildings and mature trees within the study site are thought to have the potential to support bat roosts. An internal search by a licensed bat worker would be recommended as part of any future detailed assessment of development potential – and in any event prior to any demolition or significant alteration. Should a bat roost be located, a licence will be required from the Department for Environment Food and Rural Affairs (DEFRA) prior to the commencement of works. 8.1.5 The mosaic of habitats at the study site has potential to support a number of breeding bird species. Further survey work may be required to determine the importance of the site as a breeding bird habitat. The pond, and areas of scrub, bare ground and shorter grassland have potential to support amphibian and reptile species. Further survey work to establish the use of the site by Great Crested Newts (Triturus cristatus) and reptile species is also recommended, depending on the plans for redevelopment. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 30 Seale Hayne Rural Economy Centre - Feasibility Study 9 Final Report LANDSCAPE AND VISUAL IMPACT APPRAISAL 9.1 Development Strategy - Overview 9.1.1 The study area consists of a mix of a varying age structure campus style development, situated within an agricultural landscape, of arable and pastoral activities. The text below is a summary of the landscape and visual impact report, prepared by Scott Wilson Kirkpatrick. This is included within Appendix 2.5. 9.1.2 The main landscape elements of significance are the Devon hedgebanks systems and farm woodlands, which act as boundary and shelter features. Visually the site is well contained by the natural topography and screening function of the Devon Hedgebanks, with the main views out of the site being to the south and east. 9.1.3 A number of visual receptors and viewpoints were identified which will have direct views into the site, however, the majority of these receptors, could have any adverse visual impacts significantly reduced through landscape mitigation proposals; for example views from receptors in the secondary ZVI egg Hele Golf Centre could be reduced by allowing the existing vegetation within the Devon Hedgebanks to grow, increasing the screening function of these elements. New screen belts could also be planted which would not only reduce the visual impact but would also aid the conservation and wildlife value of the site. 9.1.4 Receptors within the primary ZVI could also receive similar mitigation along with the sensitive placement of any new development to establish the best fit into the existing landscape. 9.2 Redevelopment Of Existing Campus 9.2.1 Any future development strategy would be likely to be divided into two separate areas. Firstly, the redevelopment of the existing built forms of the campus and, secondly, any new development within the surrounding landscape. 9.2.2 Any redevelopment of the existing campus, including any replacement of older buildings with new ones of a similar scale, will have the following perceived impacts: - 9.2.3 Landscape: It the event of re-provision of accommodation of a higher standard, it is likely that any new buildings will be on a similar scale to existing ones. It is considered therefore that there will be an insignificant impact. However, indirect impacts are also likely to take place during the period of construction including stock pilling of materials on site, creation of temporary hard standings, contractor compounds and a significant increase in vehicle movements to and from the site. 9.2.4 Visual: Due to the fact that any new development will replace existing built forms, if designed sympathetically and of a similar scale and massing it will have a limited visual impact. 9.2.5 However if the scale of the new built form was to increase then the impacts upon the landscape and visual receptors would also increase, choice of materials, design, position and associated landscape proposals would all help to limit any detrimental affects. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 31 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 9.2.6 It should also be noted that many parts of the existing campus are of limited architectural merit of design and as such redevelopment of such areas could result in beneficial impacts on both the landscape and visual amenity. 9.3 Development Within Surrounding Agricultural Landscape 9.3.1 Redevelopment within the surrounding agricultural landscape will have the following perceived impacts: 9.3.2 Landscape: There will be a severe impact upon LCA 2 (Agriculture), due to the fact that the development is likely to take place on a green field site containing little built forms. Any development will therefore result in a change of character. Impacts will be greatest during construction although it would be anticipated to reduce, following construction and during the maturation of the development. As the campus site takes in a small section of an area of local amenity importance, it is imperative that the setting and character of this site is not detrimentally affected by any new development located close by. 9.3.3 It will be necessary to carry out a range of landscape mitigation measures including the setting of built forms within the development, colour, scale, lighting and landscape treatments to ensure that any negative impacts are reduced. 9.3.4 Visual: Any development within existing green field sites where visual receptors have been identified will have a negative impact. These impacts as previously stated are likely to be most significant during the construction phase of the development reducing following the day of opening, as mitigation measures mature. 9.3.5 Due to these impacts upon visual receptors a range of mitigation measures including size, scale, reflectivity and colour of buildings to lighting proposals and screen planting need to be mitigated within any future development proposals. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 32 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 10 LAND QUALITY CONSIDERATIONS 10.1 Summary 10.1.1 A Land Quality Assessment was conducted in accordance with the agreed Project Brief. Information concerning the site and surrounding area was collected during the period 14th June to 11th August 2004. The full results of the assessment are attached at Appendix 2.3. 10.1.2 The overall site covers an area of approximately 186 hectares and is centred on National Grid Reference SX 827 730. The site generally slopes at an angle of 20 to 30o to the south and is situated to the west of Newton Abbot and south of the A38. Existing buildings are situated on a number of “plateaux” within the context of a graded site. 10.1.3 The geological map for the Newton Abbot area shows that the ground beneath the site consists of slates, shales, mudstones and localised limestone of Upper Devonian age. 10.1.4 Water abstractions in the area are generally for farming and domestic purposes. No integrated pollution control licences; air pollution authorisations or enforcement or prohibition licences are registered within a radius of one kilometre of the site. There are no particular sensitive sites from a ecological, scientific or landscape viewpoint and only one landfill site is recorded, 629 metres distant. 10.1.5 There are areas of the site where there is a potential for minor contamination, however, these areas are predominantly covered in hardstanding so the risk to end users is significantly reduced. What is more of a concern on the site is the potential for diffuse pollution from agrochemicals and manure which is harder to assess and quantify. Information regarding the past and current use; storage and disposal of pesticides, fungicides and herbicides would be particularly useful to determine the risk to end users and the environment. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 33 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 11 TRANSPORTATION CONSIDERATIONS 11.1 Summary 11.1.1 A full transportation assessment has been completed for the site and is attached at Appendix 2.4. The highway assessment highlights the general inadequacy of the minor roads linking the campus to the main road network. This is likely to be a limiting factor on potential redevelopment. The College itself, when fully operational, generated a reasonable amount of traffic movement and it is assessed that this equates to an office use of approximately 11,450sqm or a business park use of 17,930sqm. It is suggested that these figures be used as a guide to the size of development that could come forward without a requirement to carry out highway improvement works beyond the immediate vicinity (i.e. beyond Forches Cross). 11.1.2 If the development is kept within these limits it has been confirmed that the Highway Authority would require a contribution to an improvement to the Forches Cross junction. There is currently no in-house design and hence it is difficult to estimate a cost. On the basis that traffic flows associated with the development would be around the same level as previously experienced it has been agreed that Seale Hayne would not be expected to fund the full cost of a scheme and hence a contribution of around £50,000,00 would appear prudent at this stage. 11.1.3 It should be borne in mind that Seale Hayne has no influence over the land either side of the minor road route between the Campus and Forches Cross and the inadequacy of this route will act as a restraint to its use. The Howton Lane junction is considered to operate satisfactorily at current flow levels and no improvement is suggested here. 11.1.4 If a form of development is proposed which significantly increases traffic flows then a detailed Transport Assessment will be required to demonstrate the impact of the increase. This Assessment will cover the highway network generally westwards out to the A38 via the A382 and A383 and generally eastwards to the road linking the A382 and A383 within Newton Abbot. The Highways Agency require that junction testing should consider the situation 15 years beyond the completion of the development and this takes into account background traffic growth unrelated to the development. This is a particularly onerous requirement. 11.1.5 Improvements have recently taken place to the slip roads at the Drumbridges Interchange (A38/A382). It is difficult to envisage the scale or practicality of carrying out works to achieve a further capacity increase. At the Caton Interchange (A38/A383) it is apparent that the westbound on-slip is shorter than desirable due to the presence of the minor road junction further to the west. Should the Highways Agency require that this situation is improved the cost is likely to be very substantial. Highway capacity assessments will need to be undertaken in the context of individual development future use proposals for the site. For the purposes of this feasibility study, an assessment has been carried out in relation to a REC or more traditional business park of “critical mass”. 11.1.6 Closer in to the site, the full cost of improving Forches Cross would fall on Seale Hayne. As no scheme has been identified – primarily because there is no obvious or cheap solution – a conservative estimate would be £250,000-£500,000. There would be a need to provide a number of passing places on the minor route between the Campus and Forches Cross. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 35 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 11.1.7 The land required for these is not within the control of the University. The cost is estimated at between £100,000-£200,000. While no detailed analysis has been undertaken of the A382/A383 link within Newton Abbot a figure of £100,000-£200,000 might not be unrealistic. The overall cost for the improvement to the local road network could be in the range £450,000-£900,000. This could be called for with even a modest increase in traffic generation. 11.1.8 In summation, as far as they can be estimated at this stage, the contributions towards highway improvements depending on the level of development could be as follows: development with a similar level of traffic generation to existing - £50,000 development with a minor increase in traffic generation - £450,000-£900,000 development with a significant increase in traffic generation – not quantifiable at this stage. Any amendments to the A38 junctions are likely to be extremely expensive. 11.1.9 Further detailed cost schedules will need to be prepared in conjunction with any detailed design work to alter existing or create new access junctions. The figures referred to in this report are initial feasibility estimates and will need to be corroborated by technical studies in line with specific development or re-use proposals. Should the development industry come forward with land use proposals for the Seale Hayne site, they will wish to ensure that an accurate cost and planning risk register is undertaken in relation to their specific proposals. Such costs and liabilities will ultimately assist their financial offer to the University. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 36 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 12 UTILITY USAGE AND CAPACITY 12.1 Gas 12.1.1 Gas-fired and oil-fired heating plants predominantly provide space heating and domestic hot water heating. Currently, gas accounts for approximately 60% of the total heating requirements with the remainder being oil-fired. 12.1.2 The peak-heating load for the buildings currently heated by oil has been estimated using the oil consumption information provided by the Client. 12.1.3 If the buildings currently heated by oil were converted to gas Transco have advised that the existing 180mm PE low-pressure gas main could supply the total heating demand of the site as it currently exists. 12.1.4 As an alternative, the available gas capacity could be utilised to supply any further additional development and the existing oil-fired plant retained. 12.2 Electricity 12.2.1 Five transformer sub-stations serve the site with a combined capacity of 750kVA. 12.2.2 Historically, the maximum demand of the site has been in the order of 550 to 600 kVA. 12.2.3 Should the site be re-developed as a Rural Economy Centre the estimated load could be as high as 960kVA. This however, does not take account of possible further development of the site in the form of new buildings. 12.2.4 Consideration may need to be given to reinforcement of the existing supply but this will depend upon the nature of any future redevelopment. 12.3 Water 12.3.1 The site is served by a mains water supply. Within the confines of the site water is distributed to various buildings. Should the site be re-developed as a Rural Economy Centre it is considered that the existing water supply would be adequate. To reduce demand on the existing supply, additional storage within buildings could be provided. This however, does not take account of possible further development of the site in the form of new buildings. 12.4 Summary 12.4.1 The site is well served by the existing incoming gas, water and electricity supplies. Historically, there appears to have been no difficulty in meeting the demands of the site. 12.4.2 The existing incoming services should be capable of serving the site should it be redeveloped as a rural economy centre. If however, the site is further developed with additional buildings then some reinforcement may be necessary. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 37 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 13 REVIEW OF COMPETING DEVELOPMENT SITES 13.1 Overview 13.1.1 The Seale Hayne campus site is one of many sites in the District that offers redevelopment potential to come forward in the emerging Local Development Framework period to 2011. Teignbridge Council are in the process of preparing an “Options and Issues” report, which is due for publication in late Spring/ early summer 2005. This report will highlight the various development strategies that are capable of coming forward over the next 6-10 years in order to meet strategic development targets in a sustainable manner. 13.1.2 There are a number of strategies that appear open to the Council at this point in time. They include: “Concentration” – targeting all development to main settlements “Dispersal” – spreading the development to a larger number of towns and villages in a pro-rata fashion. “Single Growth Strategy” – concentrating the majority of all new development in one location as part of a new Community scheme able to provide a mix of residential, employment and service uses. 13.1.3 At the time of writing, the Project Team are not aware of the range of options which are to be presented for consultation. Understanding the options and the political and local support for each one will be important in due course in order to shed light on the chances of the Seale Hayne site to form part of the overall development strategy for the District. 13.1.4 Representations in support of alternative development uses which may be informed by the results of this feasibility study may be required as part of the consultation period in the summer of 2005. At that point in time, it is advisable to actively promote the principle of re-use and /or redevelopment on site to come forward in the next 6-10 years. This will increase the chances of securing a favourable allocation or policy foundation in the new Local Development Framework that in turn will increase developer interest in the opportunities presented by the site. 13.1.5 The Council are likely to draw upon those sites allocated for development in the Local Plan Deposit Draft as part of the future overall strategy. This is the view taken by a number of Authorities. These sites have already been considered acceptable for development and would have been supported by the Council at any future Inquiry. There may be additional new sites which are considered appropriate, hence the need to review emerging documentation. 13.1.6 Set out below is a schedule of employment and residential sites that may be competing with the development potential represented by the opportunities that may be presented at the Seale Hayne site. 13.2 Employment Sites 13.2.1 The First Deposit Teignbridge District Local Plan has been used to identify those sites that are competing for employment development in the local area. Whilst this information is not taken from the adopted Local Plan, it provides the latest available list of those sites that are preferred for employment use by the Local Planning Authority. Indeed, sites allocated in the adopted Local Plan would have now been developed out. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 38 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 13.2.2 The settlements that are to be of closest relevance to the Seale Hayne campus are Newton Abbot, Kingsteignton, Bovey Tracey and Heathfield. 13.2.3 The sites of relevance are identified as follows: 1. Newton Abbot – Two sites at Collett Way, Brunel Road (0.60ha and 0.55ha). Brownfield site close to A380 identified for B1, B2 and B8 development (Commercial, light industrial, general industrial and storage and distribution uses). 2. Newton Abbot - Jetty Marsh (4.53ha) Brownfield Site allocated for B1 development only and requiring substantial contributions to the Jetty Marsh Northern Link Road as well as comprehensive screen landscaping. 3. Newton Abbot - Long Lane (5.98ha) This is a greenfield site comprising existing playing fields on the eastern extent of Newton Abbot. Allocated for B1, B2 and B8 uses although not offices unless supported by a Green Travel Plan and a Transportation Assessment. The allocation indicates that the developer must provide compensatory playing fields and contributions to highways improvements as well as screen landscaping. 4. Kingsteighton - WBB Clays Abbrook Works (3ha) This is a "brownfield" former clay extraction site on the west of Kingsteignton. Allocated for B1, B2 and B8 uses although not offices unless supported by a Green Travel Plan and a Transportation Assessment. The allocation indicates that the developer must demonstrate that the underlying clays are worked out or that they are uneconomic to work further and that contributions to highways improvements as well as screen landscaping will be required. 5. Bovey Tracey/Heathfield – British Ceramic Tiles/ Land adjacent to Heathfield Station (3.9ha) A former manufacturing site next to the railway line south east of Bovey Tracey. B2 and B8 uses are allocated south west of the railway line, and B8 use only north east of the line. There is also a requirement to safeguard adjoining land to north west of British Ceramic Tiles for a Playing Field and provide a new vehicular access to Old Newton Road and across the railway line. 13.3 Employment Sites - Summary 13.3.1 Except for the Long Lane site, all of these sites are situated on brownfield land (previously developed sites) and whilst the Long Lane site would result in the development of greenfield land, the allocation requires that provision be made for replacement playing fields. 13.3.2 All of the sites are within or closely related to settlement boundaries; in that respect, they are higher in the sequential hierarchy of sites (previously developed within settlements, previously developed peripheral locations, previously developed out of settlement, greenfield) when compared to the re-development of land at Seale Hayne. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 39 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 13.3.3 The preference for previously developed sites in or adjacent to a development boundary refers to the transportation implications of situating employment uses in an isolated out of settlement location. This would be more damaging in environmental and sustainable development terms than if the site were located within or adjacent to an existing settlement where access to goods, services and public transport networks are greater. 13.4 Residential Sites 13.4.1 The settlements that are to be of closest relevance to the Seale Hayne campus are Newton Abbot, Kingsteignton, Bovey Tracey and Heathfield. 13.4.2 The sites of relevance are identified as follows: 1. Newton Abbot - Mile End (11.8ha) Provision of 443 dwellings on extensive area of mainly greenfield land (7% brownfield) at the western extent of Newton Abbot off A483. A primary school, community facility/shop and playing field are also required together with highways improvements to provide a through route to/from Ashburton Road, pedestrian and cycle access to Mile End Road and the need to provide a high quality design to create a gateway into Newton Abbot. 2. Newton Abbot - Drake Road (1.8ha) Allocation for 72 dwellings on greenfield land adjacent to the northeast boundary of Newton Abbot. The allocation includes the need to provide a contribution towards proposed playing fields at Long Lane and off site highway improvements. 3. Newton Abbot - Jetty Marsh (3.5ha) 140 dwellings are to be provided on greenfield land to the north of Newton Abbot which include the need to provide a through-route forming Jetty Marsh northern link, as well as traffic calming measures on A382 Bovey Tracey Road. Again, a high quality design to create a gateway into Newton Abbot is sought. 4. Newton Abbot - Whitehill Road (4ha) A further 140 dwellings are to be provided on greenfield land to the north of Newton Abbot which includes the need to provide a through-route forming Jetty Marsh northern link, as well as traffic calming measures on A382 Bovey Tracey Road. 5. Newton Abbot - Reynell Road, Ogwell Cross (6.3ha) An allocation for 221 dwellings on greenfield land at Ogwell Cross south of Newton Abbot. Detailed designs required to ensure that development would avoid breaching the skyline and maintain upper slopes for amenity area. The provision of a community facility/shop adjacent to Reynell Road is sought as well as an internal loop road and pedestrian and cycle links to adjacent residential areas. Contribution to improved transport links to town centre, education provision and proposed playing field at the Nursery, Coach Road are also required. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 40 Seale Hayne Rural Economy Centre - Feasibility Study 6. Final Report Bovey Tracey - Bonds Meadow (1.8ha) 63 dwellings are allocated on land at Bonds Meadow a Greenfield site that is to the north of Bovey Tracey. Provision of through-route across Southbrook Lane and linking to an adjacent site and Moretonhampstead Road is sought as part of the development. 7. Bovey Tracey - Moretonhampstead Rd (2ha) 70 dwellings are allocated at this greenfield site to the north of Bovey Tracey. Provision of a through-route from Moretonhampstead Road (as above) is required. 13.5 Summary 13.5.1 Many of the deposit plan housing sites are proposed to be provided on greenfield sites and there is therefore some weight in suggesting that there may be other sites, such as the brownfield elements of the Seale Hayne site, that are more appropriate to satisfy the District Council’s housing provision targets. That said, all of the allocated sites are near to existing Settlement Boundaries, where sustainable policies support new development on the grounds of access to goods, services and public transport networks. . 13.6 Development at Kingsteignton 13.6.1 At present it is evident that there are proposals for the development of a substantial area of rural land to the north west of Kingsteignton. It is understood that a mixed-use scheme comprising mainly residential development (approximately 2000 units) is being promoted for the land. Such a development would constitute an urban expansion area capable of “bolting onto” the existing settlement pattern, expanding the residential, employment, retail and infrastructure provision in the wider area. 13.6.2 Teignbridge Council have confirmed that the proposals are being promoted entirely by a private development team and not by the Council. While the Council have met with the developers, they have not agreed to any form of allocation to safeguard the land for development. Furthermore, the proposals do not feature as part of the policy framework for the land which is in fact currently covered by a number of designations seeking to safeguard countryside and wildlife interests, mineral extraction and public open space. 13.6.3 It is further understood that the development team are currently engaged in a public consultation exercise to promote the scheme but that as yet no formal Planning Application for development has been submitted. 13.6.4 On a general note, it must be acknowledged that a development of the magnitude suggested would lead to considerable financial contributions which could be targeted towards the local transport network (roads and public transport provision), the Council must weigh up such advantages with the disadvantages such a scheme would have upon the landscape quality of the area and environmental concerns raised by local residents. Such a scheme will not be accepted unless subject to considerable public debate at a future Local Development Framework Examination. As such, the delivery of such a scheme is likely to be towards the end of the emerging plan period (2011) and into the next (beyond 2011). Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 41 Seale Hayne Rural Economy Centre - Feasibility Study 13.7 Final Report Other Potential Sites Not Allocated in the Deposit Local Plan 13.7.1 In addition to those sites that have been formally identified and allocated for development by the Local Planning Authority in their Local Plan, a large number of sites have been proposed by parties making representations to the deposit Local Plan. Whilst the detail of these sites or their potential for development is scarce at this stage, they should nonetheless be highlighted as potentially competing sites. 13.7.2 A full schedule of all residential and employment sites identified by third parties is included in Appendix 1.10 however, significant sites include: Residential: 1. Newton Abbot – Wolborough Barton (7.82ha) 2. Newton Abbot – Buckland Barton (13.18ha) 3. Newton Abbot – Totnes Road/Denbury Road (8.49ha) 4. Kingsteignton – Rydon Depot/Rocky Acres (6.44ha) 5. Bovey Tracey – Challabrook Farm (9.85ha) Employment: 1. Newton Abbot – Land adjacent to Decoy Industrial Estate (3.03ha) 2. Kingsteignton – Sands Copse (2.14ha) 13.7.3 Whilst the programme to adopt the First Deposit Local Plan has now been abandoned it is considered that the Local Planning Authority will take forward the information on Omission Sites for consideration when preparing proposals for the new Local Development Framework. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 42 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 14 REVIEW OF “CLUSTER DEVELOPMENT” RESEARCH 14.1 Introduction 14.1.1 The purpose of this phase of the research was to develop a definition of what a Rural Economy Centre would comprise, and from that start to evolve a list of criteria that contribute to their success, locational criteria etc. In particular this phase of the research will be used to identify the types of businesses/organisations that operate from such centres. This can then be used as the basis for the selection of the types of businesses who might be contacted as part of the tenant demand survey. 14.1.2 Based on a literature review and the market knowledge of Savills’ rural and commercial offices a long list of 30 existing or planned schemes was identified that seemed to fit the definition of a Rural Economy Centre (REC). The selection included rural cluster developments, relevant science/research/innovation parks (mainly those with links to universities) and food technology centres. Eight schemes were then selected for more detailed analysis using the list below as a framework. Location (include transport links). Ownership (including funding where known). Types of units and mix. Type of businesses/tenants. Size (sq ft) Indication of rental levels. Degree of links with research/teaching facilities. 14.1.3 A detailed analysis of the issues raised by each of these is set out in the full Savills report that is attached as Appendix 2.5. 14.1.4 The analysis undertaken by Savills highlights two “competing” sites to a Seale Hayne scheme. These sites are either operational or are currently being promoted as Rural Cluster developments. They provide a useful indicator as to how such a facility at Seale Hayne could be managed, subject to sufficient tenant demand: this being dealt with in latter Chapters of the report. A short summary is set out below: these are included within Appendix 2.5. 14.2 The Rural Business Centre at Myerscough College 14.2.1 Myerscough College is 6 miles north of Preston in Lancashire. Myerscough College has strong links with the farming and business communities, which delivers training in agriculture and horticulture, both full and part time, on various sites. The Rural Business Centre opened in October 1998 on the college campus, which provides support to develop rural businesses in the North West of England. Services include Farm Business Advice, set up in October 2000, which is an analytical service assessing strengths and weaknesses of the business and identifying opportunities and support available. 14.2.2 During 2002, the centre obtained a grant of £750,000 from the North West Development Agency (NWDA) to help build a Rural Business Incubator Centre (RBIC). The Rural Business Centre moved into the RBIC on completion in May 2003. The NWDA are partners in the RBIC, with workspace and business support for an initial group of 12 companies. The benefit for companies based within the RBIC is Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 43 Seale Hayne Rural Economy Centre - Feasibility Study Final Report that they will have easy access to expertise within the Rural Business Centre and have access to other college resources including laboratory and testing equipment, engineering workshops, library and on-site catering. 14.2.3 The owner’s vision is to offer affordable, flexible workspace to aid business growth and development. 14.2.4 The RBIC has 14 offices ranging from 140 sq ft to 285 sq ft. The RBIC comprises: Individual furnished offices for incubator businesses with Internet access and telephone. State of the art accommodation for meetings, seminars, training, promotional events and company gatherings Work areas with wireless facilities to allow group work activities Manned reception and lobby Administration services Access to business support and training provided by the Rural Business Centre and partner organisations 14.2.5 There are two options for rental charges, which enables easy entry for support and development. The first option offers a reduced rent with the balance deferred to the end of the lease or a straight rental with no deferred payment. The level of rent is also dependent upon the life stage of the company. Conceptual and early stage companies are charged at £8 per sq ft in year one, £12 per sq ft in year two and £14 per sq ft in year three. With this option the balance of payment to a full rental equivalent will be calculated and deferred to the end of the lease period, with a credit charge of 5% added. Companies at a more advanced stage of development will pay £20 per sq ft annually. In all cases the maximum stay within the incubator is three years. 14.2.6 The scheme offers no spinout space once businesses have outgrown the RBIC. However we would imagine that the majority of successful start-ups would be likely to stay within ten miles of the scheme once they have left it. 14.3 RASE Stoneleigh Park 14.3.1 Stoneleigh Park lies approximately four miles south of Coventry. The wide range of facilities includes a variety of conference rooms, 75,000 sq ft of exhibition space and a 58-bed hotel, all set in over 200 acres. Stoneleigh Park has been the home of the Royal Agricultural Society of England (RASE) since 1963 when the site was developed as a venue for the Royal Show, other exhibitions and several centres of technical excellence. However, as agriculture has changed, practical farming on site has been replaced by a concentration on the business of farming and rural enterprise. 14.3.2 Currents tenants on the site include: Barclays Bank Biotech and Biological Sciences Research Council British Horse Society DEFRA Grant Thornton HSE Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 44 Seale Hayne Rural Economy Centre - Feasibility Study JCD Sales NFU Mutual Reed Business Information Royal Agricultural College Royal Bank of Scotland Royal Pharmaceutical Society of Great Britain Sports Industries Federation Final Report 14.3.3 The planned Rural Science and Technology Park is a business support and technology transfer initiative of around 500,000 sq ft. The driving force behind the development of this scheme is the view that that the rural economy cannot stand still, and a drive towards multifunctional use of the countryside will rely upon science and technology transfers. The belief is that businesses, within a rural ‘cluster’, can benefit enormously from closer collaboration and the sharing of research, knowledge and skills. Stoneleigh Park will encourage and support the development of innovation-led, knowledge-based businesses and the nature of the site makes it ideal for incubator activities. 14.3.4 Other planned facilities include the International Livestock Centre, which will provide purpose built accommodation for companies involved in all aspects of the livestock industry. The aim is to transfer best practice through access to practical support. The centre’s remit includes the identification of gaps in current knowledge, specifically looking at other industry sectors, and research institutions for relevant techniques and scientific developments to improve established practices. 14.3.5 It is the view of the Savills that should this scheme proceed then it will become the premiere REC in the UK. This is supported by the RASE’s own proposal documents which sets out their plan to make it the “national centre of rural enterprise in the UK”. 14.4 Best Practice/Definition of a REC 14.4.1 Based on our analysis of the various schemes listed above we would suggest that the definition of a REC is not dissimilar to a science/research park. 14.4.2 The United Kingdom Science Park Association (UKSPA), in defining the concept of a science park, suggests it is a business support and technology transfer initiative that: “Encourages and supports the start-up, incubation and growth of innovation-led, high growth, knowledge-based business. Provides an environment where larger and international business can develop specific and close interactions with a particular centre of knowledge creation for their mutual benefit. Has formal and operational links with centres of knowledge creation such as universities, higher education institutes and research” 14.4.3 Also, the International Association of Science Parks (IASP) defines science parks as: “A property based initiative which has formal operational links with a university or other higher educational or research institution, is designed to encourage the formation and growth of knowledge based businesses and other organisations” Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 45 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 14.4.4 However the focus of the tenant mix for a REC will be on businesses supporting, researching, or administering the rural economy. Key criteria for success (in no particular order) would include: 14.5 Flexibility in space offered to accommodate business growth e.g. incubator units, varying sizes of spinout space. Also flexibility of lease terms on offer Latest communication technology available to all occupiers, with shared facilities for smaller businesses. Administration, business, security and on-site maintenance support. Availability of retail and leisure facilities on-site or nearby Ample car parking, and highly accessible by road and/or public transport Good quality local workforce Conference, seminar and meeting facilities available for short term let by tenants and external businesses. Environment to facilitate knowledge transfer and networking. Links to research and teaching facilities. Coherent brand and prestigious location Recommendations 14.5.1 Following the research undertaken into rural cluster developments, there is a greater awareness of the potential mix of uses, size and function of such developments. This understanding assists in the formulation of a tenant demand survey. Such a survey can then be undertaken to provide more detailed information on the needs and requirements of the types of businesses likely to locate on a REC. 14.5.2 Savills consider that the proposed scheme at Stoneleigh Park represents significant competition to a potential REC on the Seale Hayne campus. Because of its central location, critical mass, and broad base of support we would expect this scheme to attract the majority of footloose national demand for such space. As a result of this it may be more useful to develop the concept of Seale Hayne as a regional centre of excellence that is smaller in size than the scheme proposed for Stoneleigh Park. 14.5.3 Having developed an understanding of the concept of a REC through this phase of the research we believe that, locally and regionally, competition for tenants is likely to come from existing and planned business, science, and research and technology parks. Because of this we would recommend that the property market survey (as proposed in the initial brief for this study) be carried out prior to any tenant demand survey. 14.5.4 The property market survey will allow the project team to assess the strength of local competition and to develop a view on the viability of any proposed scheme on the Seale Hayne campus. If the current and projected supply/demand balance of similar commercial space in the region is not favourable it may not be worth proceeding to the tenant demand survey. . 14.5.5 In the event that the local market survey did not provide conclusive results, the University were given the opportunity to consider, in liaison with Savills, the geographical scope of any tenant demand survey. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 46 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 15 LOCAL PROPERTY MARKET SURVEY 15.1 Introduction 15.1.1 The initial research carried out by Savills as part of the feasibility study provided an overview of rural cluster developments in the UK. Various existing or planned schemes that seem to fit the definition of a Rural Economy Centre (REC) were identified and analysed in detail to identify the key requirements of successful centres. 15.1.2 The research went on to suggest a definition for a REC, being similar to a science/research park but with a tenant mix supporting, researching or administering the rural economy. Consequently, competition for tenants for a REC at Seale Hayne is likely to come from existing and planned business, science and research and technology parks. The research found that this was likely to come from the local and regional area, rather than nationally, because a proposed large scheme at the Royal Show site in Warwickshire would fulfil national demand. 15.1.3 In light of the above the local property market survey has considered the main regional centres of Exeter and Plymouth together with the more local centres of Torquay and Newton Abbot. The survey has considered both office and industrial space in these locations, looking both in town and out of town. We have looked at the current supply/demand balance in order to assess the strength of the local office and industrial market. Consideration has also been given to specific competing and forthcoming schemes. 15.1.4 The focus of the local property market survey has been on the office and, to a lesser degree, industrial market. This is for 2 main reasons. Firstly, as touched upon above, competition for tenants is likely to come from business, science and research and technology parks where office, and to a lesser extent industrial, uses predominate. Secondly, the rural economy is a small part of the overall commercial property market and businesses operating within the rural sector are relatively few and far between. It is therefore far more difficult to accurately identify the supply/demand balance for these kinds of rural businesses. Furthermore, if the tenant demand study does not indicate that there is likely demand for an REC then office/industrial uses at Seale Hayne maybe the more feasible alternative. 15.2 Local Property Markets - Exeter 15.2.1 Exeter is approximately 17 miles to the north of Seale Hayne, via the A38 and M5. It is a small city, but acts as the administrative centre for Devon and is largely a service sector settlement. In 2002, the most recent year for which figures were available, there were around 78,800 employees with 10,300 within the primary sector, 7,500 within the secondary industrial sector and 61,000 within the tertiary service sector. Within the service sector, public services accounted for the single greatest sector of employment reflecting the city’s chief role as the administrative centre for Devon, as well as the presence of the university and a number of hospitals. Offices 15.2.2 Office occupiers in Exeter have one main choice to make in terms of location – either to be in town or out of town. In town, the main districts are Southernhay and Dix’s Field, to the south of the retail centre, and the area around the New North Road/Longbrook junction, to the north of the city centre. Out of town there are a number of business parks, all to the south and east of the city centre, close to the M5. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 47 Seale Hayne Rural Economy Centre - Feasibility Study Final Report These include Exeter Business Park, Pynes Hill Office Campus, Peninsula Park, Woodwater Park and Matford Business Park. 15.2.3 On the demand side, research indicates that the take up of office space in Exeter was 165,000 sq ft in 2003. This was down from 456,000 sq ft in 2002, a figure boosted by 3 particularly large deals. The 5-year average take-up figure stands at 334,000 sq ft, a figure boosted by the space taken by the Meteorological Office (366,000 sq ft). Early indications are that in 2004 take up will be slightly up on 2003. The majority of take up has been of pre-let and purpose built space due to the lack of suitable high quality second hand space. This is particularly the case in the town centre and the majority of take up has occurred out of town. 15.2.4 On the supply side, Exeter had an estimated office stock of 3.5m sq ft at the end of 2003. Approximately 1/5th of this space has been constructed since the end of 1999 and can therefore be classified as “new”. The level of building over the past 5 years has led to an increase in total office stock in Exeter of around 25%. Over the past 5 years office space completions have averaged 149,000 sq ft with a slight increase expected in 2004. In recent years only 7% of this development has been speculative and 99% has been out of town. 15.2.5 Still on the supply side, availability of office space (i.e. vacant) at the end of 2003 stood at approximately 269,000 sq ft, a figure similar to recent years. Compared to other cities this is a relatively low figure reflecting reasonable take up in recent years which has absorbed much of the second hand office space. Coupled with this is the restricted amount of speculative office development and also the conversion of poorer quality office stock in the city centre to residential uses. 15.2.6 Looking to the future there is approximately 182,000 sq ft of office space currently under construction of which just over 100,000 sq ft is speculative and therefore available. There is a further 1.2m sq ft in the pipeline (i.e. planned space, with and without planning permission) of which 0.7m sq ft has planning permission. 15.2.7 As a short term measure, the amount of space under construction or with planning permission equates to 6 years of development at the rate seen over the past 5 years or 2½ years of take up. Longer term, the total pipeline equates to 8 years of development or 3½ years of take up. 15.2.8 Included within both the pipeline space above and the existing space figures is Exeter University’s Innovation Centre. Phase 1 is fully operational and let and provides 15,000 sq ft of accommodation to 18 high-tech businesses from the biomedical, environmental, software, advanced manufacturing and internet sectors. Tenants receive a support package including flexible lease terms, business advice and help with accessing academic expertise and facilities. Phase 2 is now beginning and will provide further space in units ranging from 183 sq ft to 3,766 sq ft. 15.2.9 Not accounted for in the pipeline space above, because it is at too early a stage, is the proposed Exeter Science Park. Various sites have been identified within the County Structure Plan and City Council Local Plan but the favoured site is adjacent to Junction 29. Between 12 and 29 hectares of land have been identified. A focus group made up of Exeter University, the Meteorological Office, Exeter City and East Devon District Councils and the Rural Development Agency, amongst others, is currently formulating proposals. The intention is that, through planning conditions and restrictions, the park will be a specific science park as opposed to a “glorified” business park. Part of the park would be dedicated to providing space so that occupiers of Exeter University’s Innovation Centre can move to larger premises. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 48 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Industrial 15.2.10 The sector title “Industrial” is something of a misnomer given that following years of industrial decline distribution functions dominate. Nowadays the industrial market can be split between manufacturing and transport and distribution. As far as the latter category is concerned, Exeter has a relatively low proportion of employees in this sector compared to other towns due to its distance from the hub of the national motorway ne2rk and the main population centres of Britain. Within the region, Bristol is the dominant area for distribution companies, although Exeter is of significance on a sub-regional and local scale as a convenient point for breaking down bulk loads prior to their onward distribution across Devon and Cornwall. 15.2.11 Exeter’s modern industrial estates are concentrated to the east of the city, adjacent to the M5, whilst its older estates tend to be located to the south (near the A30) and the northeast. There are 3 principal industrial areas in Exeter - Marsh Barton Trading Estate, Sowton Industrial Estate and Exeter Business Park. The latter is also a key office location where the Meteorological Office is situated. 15.2.12 In terms of demand, take up of industrial space in 2003 was estimated at 119,000 sq ft, down from the 196,000 sq ft recorded for 2002. Take up in 2003 has been the lowest level recorded with the quantity of both speculative and pre-let/purpose built space taken declining. As an indication, the average level of take up over the past 5 years has been 208,000 sq ft. 30% of this space has been in the 10,000 sq ft or under bracket. 15.2.13 On the supply side, Exeter had an estimated industrial stock of 7.4m sq ft at the end of 2003. Of this space, 35% can be defined as factories and 65% as warehouses. Compared with offices, the proportion of new stock is very low at 7.5% but this is reflected across the industrial market in the whole of the UK. Completions of new space averaged 112,000 sq ft per annum over the past 5 years, a historically high figure. Of this space just under one third has been speculative. 15.2.14 Still on the supply side, availability in Exeter was estimated at 147,000 sq ft at 2003. With the exception of a couple of years, availability levels in Exeter have been declining since peaking in 1993. Speculative development has been limited in recent years with most schemes requiring pre-sales or pre-lets prior to starting. Much of the new space has been quickly absorbed meaning that the majority of available space is in small to medium sized second hand units. Speculative space currently underway currently consists of mostly small units and availability is, therefore, unlikely to rise significantly in the short term. 15.2.15 There is currently just 32,000 sq ft of space under construction in Exeter, well below the average figure for the past 5 years. Of this space only 30% is speculative, i.e. available. Looking further into the future there is currently 3.5m sq ft of space in the Exeter development pipeline, excluding space currently underway. Of this, 0.8m sq ft has planning permission and 2.7m sq ft is more preliminary (i.e. planning application or earlier stage). 15.2.16 As a short term measure, the amount of space under construction or with planning permission equates to 7 years of development at the rate seen over the past 5 years or 4 years of take up. Longer term, the total pipeline equates to 25 years of development or 17 years of take up. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 49 Seale Hayne Rural Economy Centre - Feasibility Study 15.3 Final Report Local Property Markets – Plymouth 15.3.1 Plymouth is 32 miles to the south west of Exeter, via the A38. It is the largest city on the south coast of England and second largest in the southwest. As such it is the hub of the local and sub regional economy with a population of 250,000 and 114,000 in employment. Just over ¼ of employees work in public administration, education and health, partly reflecting the city’s role as the sub regional centre. Offices 15.3.2 Like Exeter, office locations within the Plymouth area are either classified as in town or out of town. In town there is no dedicated office centre and space tends to be spread among small suites in buildings throughout the city centre. Out of town, there are various locations including Langage Park Office Campus, Plymouth International Business Park, Neptune Park, the Marsh Mills area and Tamar Science Park. 15.3.3 In terms of demand, take up of office space in Plymouth in 2003 was estimated at 213,000 sq ft, up from 154,000 sq ft in 2002 and the 5-year average of 152,000 sq ft. The 2003 figure was boosted by the Land Registry agreeing to take 90,000 sq ft at the International Business Park. Only in the last couple of years has pre-letting become a significant part of the Plymouth office market. In the past 5 years there has been a slightly greater take up of office space in town as opposed to out of town, in contrast to Exeter. However, a lot of the in town take up of space has simply been the internal relocation of companies already present in the Plymouth office market. 15.3.4 On the supply side, Plymouth office stock in 2003 stood at 2.2m sq ft, less than 10% of which was classified as “new”. As far as completions are concerned, an average of 35,000 sq ft has been completed over the past 5 years, although the most recent figure (2003) is 64,000 sq ft. Over the past 5 years 45% of completed space has been speculative and 100% has been out of town at the various business and science parks referred to above. 15.3.5 Still on the supply side, availability at the end of 2003 stood at 383,000 sq ft, above the 5-year average of 300,000 sq ft. This reflects the relatively high proportion of speculative space that has been built out of town in recent years. The available space is a mix of this out of town space and also city centre space vacated both by firms leaving the area (e.g. insurance and financial services) and those moving out of town. 15.3.6 In terms of the future, 135,000 sq ft is currently under construction and due for completion this year. It consists of just 2 buildings, at Plymouth International Business Park and Tamar Science Park for the Land Registry and Peninsular Medical School respectively. All of this is out of town and has been pre-let – with the amount of available space it is not currently economic to build on a speculative basis. There is a further 1.8m sq ft of office space in the pipeline of which 1.3m sq ft has planning permission. Of the space without planning consent, a proportion is part of various mixed-use schemes within the city centre. An element of office accommodation is often required by the Local Planning Authority even if there is no proven market demand and consequently the remainder of the scheme – usually retail and residential, effectively subsidises the office element. The relationship between land values (high) and rents (low) is such that it is difficult to justify some of these office developments without cross-subsidisation. 15.3.7 As a short term measure, the amount of space under construction or with planning permission equates to 41 years of development at the rate seen over the past 5 years Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 50 Seale Hayne Rural Economy Centre - Feasibility Study Final Report or 9½ years of take up. Longer term, the total pipeline equates to 48 years of development or 11 years of take up. 15.3.8 Included within the pipeline figures above is space at both the Plymouth International Business Park and Tamar Science Park. Both parks are operational but have significant amounts of further space available. Plymouth International is a South West RDA backed scheme and the 33 ha site will ultimately provide over 1 million sq ft of business space for offices, technology, research and development, healthcare and medical related business. The Tamar Science Park is a scheme founded by the University of Plymouth, the City Council and Business Link. It aims to be a true science park rather than general business park and includes 2 Innovation and Technology Transfer Centres for “incubating” small knowledge-based start-up businesses. Industrial 15.3.9 Key locations for Plymouth’s industrial space are Langage Business Park, Estover Industrial Estate and Burrington Way Industrial Estate with smaller business units closer to the city. 15.3.10 In terms of demand, take up in 2003 was estimated at 276,000 sq ft, up on the previous year and also up on the 5-year average of 187,000 sq ft. Nearly half the take up in 2003 was accounted for by one transaction on the Estover Industrial Estate. Looking at the previous 5 years, 20% of take up has been in the size bracket 0 – 10,000 sq ft with the single largest proportion of take up being in the 10,000 – 25,000 sq ft bracket, approximately 30%. Take up in the past couple of years has been almost exclusively of available space, rather than pre-let/pre-build. 15.3.11 On the supply side, total industrial stock at the end of 2003 in Plymouth was estimated at 14.7m sq ft. Of this, less than 10% was “new” and 10.5m sq ft was industrial with the remainder being warehouse space. As far as completions are concerned, 70,000 sq ft was completed in 2003 against a 5-year average of 150,000 sq ft. Just under half of this space was speculatively built. 15.3.12 Still on the supply side, availability at the end of 2003 was approximately 900,000 sq ft, slightly up on the 5-year average of 800,000 sq ft. Looking to the future, there is currently no industrial space under construction but 1.4m sq ft in the pipeline of which 1.1m sq ft has planning permission. 15.3.13 As a short term measure, the amount of space under construction or with planning permission equates to 7½ years of development at the rate seen over the past 5 years or 6 years of take up. Longer term, the total pipeline equates to 9 years of development or 7½ years of take up. 15.4 Local Property Markets – Torquay and Newton Abbot 15.4.1 Torquay is 10 miles away and Newton Abbot is 3 miles from Seale Hayne. Both are much smaller settlements than either Exeter or Plymouth and have far smaller commercial markets, both in terms of offices or industrial. In general, office demand in both towns, and indeed others around south Devon, is not particularly strong. That demand which exists is generally for city centre locations although some professional firms such as solicitors are looking for larger suites with parking and are therefore having to move to out of town locations. 15.4.2 Supply, and indeed demand, is greater in the Torbay area than Newton Abbot, reflecting the greater size of the settlement. In Newton Abbot there is limited office Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 51 Seale Hayne Rural Economy Centre - Feasibility Study Final Report stock available and a fair demand for that which is. Although there is limited stock there are not large areas of new office space currently being developed, indicating that the market is relatively balanced. Annual turnover of space is relatively low and unquantified but one of the more significant recent deals was approximately 14,500 sq ft on Brunel Road that was pre-let to a Housing Association. There is also office space available on a couple of business parks at Heathfield near Newton Abbot and a major office park planned in the Torbay area which will ultimately provide over 500,000 sq ft of office accommodation 15.4.3 As far as the industrial market is concerned this is currently healthier than the office market with stronger levels of demand, particularly in the Torbay towns. Here demand can exceed supply to the extent that local agents report applicants looking for industrial space in Torquay having to settle for Paignton due to a lack of availability in the former. Newton Abbot is less strong as an industrial centre. 15.5 Conclusions 15.5.1 The table below summarises the number of years of development and take up (based upon average rates over the past 5 years) needed to account for all the space currently under construction or with the benefit of planning permission: Exeter office Exeter industrial Plymouth office Plymouth industrial Years of development 6 7 41 7½ Years of take up 2½ 4 9½ 6 15.5.2 These details are the headline figures from the research that covers the office and industrial markets in Exeter and Plymouth. As a general rule, if there is more than 2½ years of take up of space currently under construction or with planning permission then the market is heading towards a situation of over supply; it would not be advisable to develop anything on a speculative basis in these circumstances. 15.5.3 All of the figures in the table above suggest a tendency towards over supply with the least over supply being in the Exeter office market with 2½ years take up. This figure is based upon the average take up over the past 5 years. If you look solely at the take up of office space in Exeter in 2003 there is 5 years of take up in the pipeline. 15.5.4 However, it is important not to be purely reliant upon the statistical research. Although in all the markets there is an indication of over supply, this may not necessarily be as bad as indicated because a proportion of the space will be dated or in the wrong location, i.e. verging on being obsolete. Such space can lay empty for long periods of time with no realistic prospect of being occupied for its current use. Alternatively it may be redeveloped. As an example, a significant proportion of the industrial stock in Plymouth consists of large former manufacturing units that are not suited to current transport and distribution requirements. In both Exeter and Plymouth city centres certain obsolete office blocks have been redeveloped for residential use. Whilst obsolete space may account for a proportion of the existing vacant space it will obviously not account for any of the new space under construction or in the pipeline. 15.5.5 The key characteristics of the various markets are: Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 52 Seale Hayne Rural Economy Centre - Feasibility Study Final Report The office market in Exeter has picked up slightly over the past year. Smaller second hand space in town lets reasonably well. Out of town there is similarly good demand for small suites in new office buildings but the demand picture is less good for second hand space. There is a marked absence of successful speculative building work in the city. The Exeter industrial market is relatively quiet with currently limited supply of suitable space matching restricted demand. There is a lot of space in the pipeline but only a limited amount currently has planning permission. The Plymouth office market is relatively weak and made up predominately of either internal movement of existing companies or Government/Local Authority departments. The city centre has seen a reduction in the amount of office space due to residential redevelopment but there are some schemes in the pipeline as part of mixed-use redevelopments in the city centre. There is a lot of space available in the pipeline on the out of town business parks, particularly Plymouth International. The industrial market in Plymouth is mixed. There is a significant over supply of large former manufacturing units, which, without significant alteration, are not suitable for current uses. There is a good demand for smaller units (up to 10,000 sq ft) both in and out of town. Outside the region’s 2 cities the market is far smaller. Consequently, the supply/demand balance is much finer and any significant change in either has a proportionally greater effect. Demand for offices is concentrated in town with the exception of those occupiers looking for larger space with parking where town centre restrictions force them out of town. Nonetheless, proximity to towns is important to these occupiers. Like the office market, the regional industrial market favours smaller units in established locations. On a county basis, Devon has been successful over the past 3 years in attracting Government departments relocating from London. This move to the regions follows completion of the Lyons Report that was commissioned by the office for the Deputy Prime Minister. The most notable example is the Meteorological Office that moved to Exeter and has taken nearly 400,000 sq ft of space. Take up of space in this kind of quantity has a significant effect upon the supply-demand balance in the area and whilst there is currently a sufficient supply of “normal” sized units in Exeter, there could be difficulties in accommodating new very large scale office requirements in Exeter. A significant finding of our property market survey is that there appears to be a demand for smaller areas of space (generally less than 2,000 sq ft but many less than 1,000 sq ft), both industrial and, particularly, office space. This is reflected by the popularity of schemes such as the Exeter Business Centre run by the City Council, the Innovation Centre at Exeter University and Incubator Space at Tamar Science Park. All 3 offer occupants the benefit of communal services and most have flexible, “easy in – easy out” lease or licence terms. All 3 schemes are aimed at new start up business that are then encouraged to move on to larger space. All 3 have a waiting list for tenants. There is also a demand for small but no “start up” space, with most of the Councils in the area (which have relatively small units) finding 90% plus occupancy rates across their portfolios. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 53 Seale Hayne Rural Economy Centre - Feasibility Study 15.6 Final Report Overall Summary 15.6.1 Our local property market survey has found that there is, in general, an over supply of property in the 2 principal regional markets for both office and industrial space. Consequently there is no realistic scope for any form of speculative development. However, out of these centres, where, admittedly, the market is harder to measure, demand for both office and industrial space appears to be stronger for the smaller size of units, including start up units. This market is relatively small, like the rural market across the region, and any significant amount of new space coming to the market will have an adverse effect on the supply/demand balance with a consequent increase in vacant space/voids and depressed rents/values. 15.6.2 In order to ensure that the University are able to make an informed decision in relation to the viability of a Rural Economy Centre at the Seale Hayne site, a decision was taken to undertake a comprehensive tenant demand survey. This survey, drawing upon the findings of the Rural Cluster research paper and local market surveys prepared by Savills, was targeted to businesses within the South West of England: this being the area within which the greatest demand for accommodation will be derived. The methodology and findings of the tenant demand survey are set out in the following chapter. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 54 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 16 TENANT DEMAND SURVEY 16.1 Executive Summary 16.1.1 The purpose of this study is to assess the demand for business accommodation for companies who are located within the South West region. The purpose is to assess current and future occupational needs as well as gauge opinion on the factors that determine location. The aim is to assess the potential success of business accommodation, if provided, at Seale Hayne. 16.1.2 As such, the survey could also be described as a “Property and Perceptions Survey”. 16.1.3 Key Findings of the report include: A total of 3,901 businesses were surveyed. The response rate of 9% is in line with expectations for this type of postal survey. The respondents employ around 5,500 staff and occupy around 1.2 million sq ft of business accommodation, 65% of which is office space. ‘Business Services/Consultancy’ businesses dominate the responses. At 7%, ruralrelated businesses are a significant proportion. The type of business space occupied is generally small and within freehold property. For those respondents within leasehold property, a large proportion pay below £11 per sq ft per annum. An overwhelming proportion of respondents believe that the current business accommodation is suitable for their current business needs (90%). For respondent within 10 miles of the Seale Hayne site, this increases to 100%. Those respondents who would meet future business accommodation requirements elsewhere, including opening within an additional property, would not move/open more than 10 miles from their current location. The large majority (82%) require in-town or edge-of-town locations for their businesses. A business park location was only highlighted by 15% of the respondents. In terms of rent, nearly 90% of the whole sample would not pay more than £15 per sq ft per annum; within 10 miles of the Seale Hayne site this falls to £10 per sq ft or less. Rural-related respondents are even more rent sensitive and may be looking to occupy lower rented business accommodation. Staff availability/retention, security of building and quality of space available are the top three factors determining property location for all the responses received. For rural-related respondents, access to the market and/or clients is the most important factor by far and significantly more important compared to the wider sample. 16.2 Aims and Methodology 16.2.1 The purpose of the tenant demand study is to assess the need and demand for business accommodation within the South West region and to ultimately determine the likely demand for a Rural Economy Centre at the Seale Hayne site. A comprehensive postal survey was used to assess current business location, strengths and weaknesses of their location and the companies’ anticipation of meeting future property requirements. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 55 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 16.2.2 The UK Science Park Association (UKSPA) assessment of tenants within scienceand/or technology-related business accommodation suggests that 80% of tenants have origins from within 30 miles of their current business location. This suggests that Seale Hayne would attract occupiers from within the county of Devon. However, the business catchment used for this study, referred to as the survey area hereafter, has distributed the survey beyond Devon to include Cornwall, Dorset, Somerset and the region once known as Avon (includes City of Bristol, Bath and North East Somerset, North Somerset and South Gloucestershire). This area, it can be assumed, would potentially deliver the remaining 20% of tenants. The area can be seen in Plan at the end of this Chapter (page 55). 16.2.3 The survey was sent to a range of business sectors that are likely to occupy the type of business accommodation that could be provided at Seale Hayne. Business sectors, which were selected from the UK Standard Industrial Classification of Economic Activities 2003 (SIC (2003)), include: Financial & Business Services, Computer and Related Activities, Activities of Membership Organisations, Recreational, Cultural and Sporting Activities. 16.2.4 The list of companies and the mailing list used was sourced from the Experian National Business Database (which now incorporates the Yellow Pages database). This provided 3,901 business addresses and contact details. 16.3 Results from the business accommodation survey 16.3.1 Responses were received from 336 businesses representing a return rate of 9%. This level of response is in line with expectations and is an average response rate for this type of postal survey. It is firmly believed that the response rate represents an appropriate sample of regional businesses and will reflect the full range of views and perceptions. 16.3.2 All responses have been treated as strictly confidential. No individual or organisation is identifiable either in the report or the raw data that has been provided to the client. For the purposes of this survey, the results were collated and analysed for all the respondents and those that can be classified as rural-related only. This split is used throughout the following sections of the report. An assessment of respondents was completed for a range of distance from the Seale Hayne site. These have been discussed at various points throughout the report and include: 10 miles from the site, more than 10 miles from the site and up to 50 miles from the site. 16.3.3 Responses were received from a wide geographical area, with many over 100 miles away in Dorset. The closest company to respond is 2 miles from the Seale Hayne site. A third of the responses came from up to 30 miles from the site. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 56 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Figure 3.1 Geographical distribution of responses 120 Miles from Seale Hayne site 100 80 60 40 20 0 Respondents Source: 16.4 Savills Current property occupancy 16.4.1 The spread of respondents in terms of business activity is broad. There is a mix of business types. However, the majority were ‘Business Services/Consultancy’ companies, which includes estate agents and legal companies. ‘Financial & Investment’ companies were the second largest group of respondents. At 7%, ‘Ruralrelated activities’ accounted for a significant proportion of the responses, as would be expected for the survey area, which provided an opportunity for this sub-group to be assessed individually. This is included later in this report. Figure 3.2 Business sectors of responses IT 6% Other 10% Retailing 1% Public services 4% Education 1% Academic/Government Research 1% Finance & Investment 21% Legislative Body 1% Source: Rural-related activities Manufacturing 7% 4% Business Services/Consultancy 44% Savills 16.4.2 The indigenous nature of companies within this region is highlighted by the large number of the companies’ main office being located within it (78%). For all the respondents, the average time located at the current premises is 16 years. However, a wide range was recorded from one month to over 100 years. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 57 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 16.4.3 The total numbers of employees for the respondent companies totalled approximately 5,500 and they occupy around 1.2 million sq ft. Around 65% of the total space currently occupied is offices followed by 23% being manufacturing/industrial accommodation. This may seem a high percentage for manufacturing/industrial, but the result is weighted by the higher level of square footage occupied. In terms of data count, 70% of respondents were office-based occupiers. 16.4.4 Split by size band the total level of space from the respondents is shown below: Table 3.1 Business space occupied by size band Size band (sq ft) <1,500 1,500-2,499 2,500-4,999 5,000-9,999 10,000-49,999 50,000+ Source: Total space (sq ft) 81,026 123,205 129,350 94,300 134,500 0 % of responses 46% 28% 17% 6% 4% 0% Savills 16.4.5 Table 3.1 shows that the general demand for business accommodation within the survey area is small. Nearly three-quarters of the respondents occupy less than 2,500 sq ft. Within 50 miles of Seale Hayne this proportion increases to 82% and within 10 miles all the respondents occupy 2,500 sq ft or less. 16.4.6 As a reflection of the size and type of businesses in the region specified, there are an above average proportion of businesses that own the freehold of their premises. Around 56% of businesses are in freehold property. This is in line with expectations for this survey area. Of those in leasehold business accommodation, 67% of the respondents are currently paying rents of £10 per sq ft per annum or below. Figure 3.3 Current rent paid by respondents £21-25 sq ft 2% >£25 sq ft 0% £16-20 sq ft 4% <£5 sq ft 24% £11-15 sq ft 26% £5-10 sq ft 43% Source: Savills 16.4.7 None of the respondent up to 10 miles from the Seale Hayne site pays above £10 per sq ft per annum. Indeed, a quarter pays less than £5 per sq ft per annum. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 58 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 16.4.8 A free text section of the survey provided the respondents with the opportunity to highlight the strengths and weaknesses of their current location. On the positive side, the occupiers were attracted by the ease of parking and the low cost of the accommodation. These two points were mentioned the most. Access to facilities and a central and/or prominent location were also highlighted regularly. On the negative side, traffic congestion, lack of security and difficulty of parking were the main problems. 16.4.9 The final question on the survey aimed to assess the awareness of the respondents to the proposals at Seale Hayne. Of the total responses, 84% were unaware of the proposals. However, within 10 miles of the site, the awareness rises to 44%. This is encouraging, but also expected. In some cases, comments were provided on the respondents’ views of the proposals. The comments were more negative than positive. However, it is always more likely that those that have a strong negative feeling towards the proposals are more likely to voice those opinions. On the positive side, one respondent said, “we fully support it” whilst, in opposition, another suggests that they “…think depriving Devon/Cornwall of the principle agricultural education centre is a really poor idea”. The majority of comments have been listed in Table 3.2 below: Table 3.2 Responses to the Rural Economy Centre proposals at Seale Hayne Positive Neutral Negative “Please expand them” “Until public transport is “Retain as agric college” “It should be retained at Seale considerably more practical, “No importance” Hayne” extensive parking will have to “It should still be an “We are very much in favour of be provided and junction agricultural college!” this centre and hope it grows improvements made at Caton “We are aware Seale Hayne is from strength to strength” to enable east and west bound closing. Has and will have “We are aware of the proposal entry and exit to A38. The bad effect of the town” and support it fully” accommodation must be of A1 “I have no strong feelings “Good luck” standard” about the Rural Economy “I consider that there are too Centre, but I think depriving few office accommodation – Devon/Cornwall of the anything available on the principle agricultural education university campus” centre is a really poor idea” ”Leave it as it is!! “I think it extremely sad that the university has decided to move the agricultural college, an institution of high standard, facilities and history. Moving agricultural training into a city campus is ludicrous in the extreme” “Pity it had to change” “Waste of time” “As my son and his girlfriend attended Seale Hayne, I am against its closure as an educational establishment” Source: Savills Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 59 Seale Hayne Rural Economy Centre - Feasibility Study 16.5 Final Report Summary 16.5.1 Locally based occupiers within the business services sector dominate the current office market. This would be expected in most towns and cities. These types of occupiers include accountants, architects and solicitors who have been established in the region for a long time. In terms of rent, the majority pay less than £11 per sq ft per annum at present. This must be a consideration for any new development. 16.5.2 Those respondents closest to the Seale Hayne site occupy the smallest units of space occupied. The provision of business accommodation should be concentrated at this smaller level, with the majority below the 5,000 sq ft mark. 16.5.3 In terms of the implications for the Seale Hayne site, the analysis of the current occupation of business accommodation shows that the site could offer adequate parking and affordable space, both of which are key strengths and potentially attractive to the types of occupiers within the survey area. However, the fact that the site is in a non-core location and has relatively poor motorway access may limit potential demand from employers / occupiers. 16.6 Meeting future business accommodation needs 16.6.1 Around 90% of respondents believe that their premises are suitable for their current business needs. Looking at the sub-group sample, 90% of respondents up to 50 miles from the Seale Hayne site suggested that their current business accommodation is suitable and 100% for those within 10 miles of the site. Overall, this is not a positive sign for short-term demand, i.e. the next few years. 16.6.2 However, 51% of the respondents said that they would consider meeting their future business accommodation requirement by moving elsewhere or by opening an additional office elsewhere. Over half of respondents willing to move away/elsewhere bodes well for other locations to attract new businesses. Figure 3.4 Future locational requirements Open an additional office elsewhere 19% Expand at this location 45% Move elsewhere 32% Contract at this location 4% Source: Savills 16.6.3 The trend in terms of location loyalty is shown in Figure 3.5 overleaf for all the respondents from the survey area. Companies that are willing to open additionally elsewhere or move elsewhere exhibit a desire to stay close to the current location. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 60 Seale Hayne Rural Economy Centre - Feasibility Study Final Report This is hardly surprising considering the need to maintain staff levels (key factor illustrated in Figure 3.7) and minimise disruption in any move/expansion. Figure 3.5 Distance that occupiers are willing to move from existing location 11-50 miles 11% >50 miles 5% 5-10 miles 19% <5 mile 65% Source: Savills 16.6.4 Around 84% of the total respondents would not be willing to move more than 10 miles from their current location, but, considering the high proportion who are happy with their current property, it is unlikely that the majority of respondents would even consider a move or expansion. 16.6.5 Taking the suitability analysis a stage further, an assessment has been made of those occupiers who are currently unsatisfied with their current business accommodation. This ‘unsatisfied’ analysis shows that the respondents only occupy a total of 91,000 sq ft, the majority of which is office accommodation and are all over 10 miles from the Seale Hayne site. Therefore, the fact that 83% (in line with the wider sample) of this sub-group would not locate more than 10 miles from their current location is not positive news for the Seale Hayne site. 16.6.6 In addition, and particularly pertinent to the Seale Hayne site given its location, 82% of the respondents require an in-town or edge-of-town location. A business park location was only highlighted as a preference by 15% of the respondents. 16.6.7 A key results from this survey, particularly in relation to the viability of any new business accommodation development, relates to the level of rent that the occupiers are willing to pay in the future. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 61 Seale Hayne Rural Economy Centre - Feasibility Study Figure 3.6 Final Report Current and maximum base rents Current base rent Maximum base rent 50% 45% % of total responents 40% 35% 30% 25% 20% 15% 10% 5% 0% <£5 sq ft Source: £5-10 sq ft £11-15 sq ft £16-20 sq ft £21-25 sq ft >£25 sq ft Savills 16.6.8 This suggests that, despite the willingness for occupiers to pay slightly higher rents in the future, they are not prepared to commit to much more than current rent levels, overall. Indeed, 88% are willing to pay £15 per sq ft per annum or less. Those respondents from within 10 miles of the Seale Hayne site will not pay more than £10 per sq ft per annum. 16.6.9 Another key piece of analysis is the issues that the respondent would rate as either ‘high’ or ‘medium/high’. This corresponds to a five or a four grade on the survey. Figure 3.7 below shows that proportion of respondents that recorded one of the top two scores for each of the variables. Figure 3.7 Factors affecting business location Staff availability/staff retention Security of building Quality of space available Access to your markets/clients Security of site Quality of surroundings/environment IT infrastructure Amount of rent payable Visibility of your company on-site Flexibility of lease Major road/motorway access Amount of expansion space available Prestige of address Networking opportunities Availability of support services Proximity to bus routes Retail/leisure facilities Proximity to train station Proximity to airport Access to educational/research institution 0% Source: 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Savills 16.6.10 Staff availability and retention and security of the building are major locational factors of high importance. This was for the whole dataset, but analysis of the dataset for respondents within 50 miles of Seale Hayne showed the same result for the top five Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 62 Seale Hayne Rural Economy Centre - Feasibility Study Final Report factors shown in Figure 3.7. This shows that, generally, similar factors are as important across the various distances from the Seale Hayne site. 16.7 Summary 16.7.1 Figure 3.7 provides the information for assessing the future needs for occupiers in the region. The positive points are that the Seale Hayne site could certainly offer the security and provide a full range of building types. Security could also be enhanced and indeed even used as part of the promotion for the site should development take place. However, because the site is more remote than other alternative sites in the region it is expected that staff retention (and attraction) would be difficult. The fringe location and access issues ensure that the Seale Hayne site would not be attractive to the majority of those respondents who completed the survey. In addition, this survey does provide a representative sample of the whole survey area and on this basis is not good news for the Seale Hayne site. 16.8 Responses from rural-related businesses 16.8.1 Of the total responses received, nearly 8% were received from rural-related businesses. This represents 25 responses, which, unfortunately, is below the statistically significant response level of 30. However, it is believed that the general trends that can be derived from the results are relevant in understanding the motivations, expectations and intentions of such businesses. A positive aspect of the responses received was that 36% came from within 30 miles of the Seale Hayne site. 16.8.2 In terms of the characteristics of the sample, the companies employ 353 people and occupy 52,000 sq ft only. They tend to have been at their current location longer than the wider sample, 29 years against 16 years and a larger percentage (64%) occupy their property on a freehold basis compared to the wider survey responses (43%). 16.8.3 A slightly higher proportion (59%) would consider moving elsewhere to meet future space requirements. However, there was only one response from a business located within 10 miles of the Seale Hayne site and 81% would only be willing to locate less than 10 miles from their current location. As with the more general response, 83% of the respondents said that their current business accommodation is suitable for their current needs. 16.8.4 Importantly, the issue of rent shows a slightly different story to the wider sample analysis. A ’tighter’ range of rents are illustrated and notably none above £20 per sq ft per annum. In addition, the fact that there is a ‘maximum’ bar in the sub-£5 per sq ft per annum category shows that some respondents are looking to pay lower rents compared to currently. This may highlight the cost pressure facing businesses within this business sector. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 63 Seale Hayne Rural Economy Centre - Feasibility Study Figure 3.8 Final Report Current and maximum base rents for rural-related businesses Current base rent Maximum base rent 70% % of total responents 60% 50% 40% 30% 20% 10% 0% <£5 sq ft Source: £6-10 sq ft £11-15 sq ft £16-20 sq ft £21-25 sq ft >£25 sq ft Savills 16.8.5 Figure 3.9 below ranks the factors for rural-related respondents and compares them to the wider sample. This shows the relative importance of accessibility to the market/clients. Similar factors, including staff availability and quality of space available is towards the top, as seen in the analysis of the whole sample (Figure 3.7). Figure 3.9 Factors affecting business location Access to your markets/clients Staff availability/staff retention Quality of space available IT infrastructure Security of building Visibility of your company on-site Quality of surroundings/environment Amount of rent payable Security of site Major road/motorway access Amount of expansion space available Flexibility of lease Networking opportunities Retail/leisure facilities Proximity to bus routes Proximity to train station Availability of support services Prestige of address Proximity to airport Access to educational/research institution 0% Source: All responses Rural-related 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Savills 16.8.6 Figure 3.10 takes the analysis further to illustrate a comparison with the wider sample in terms of those factors that rural-related businesses deem as more or less important. A positive bar on this chart illustrates the absolute percentage differential for a factor compared to the whole sample. For example, ‘Retail/leisure facilities’ is 10 percentage points higher in terms of importance to rural-related respondents. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 64 Seale Hayne Rural Economy Centre - Feasibility Study Figure 3.10 businesses Final Report Comparative factors affecting business location for rural-related Access to your markets/clients Retail/leisure facilities Networking opportunities Major road/motorway access Proximity to train station Visibility of your company on-site Proximity to bus routes Proximity to airport Staff availability/staff retention Amount of expansion space available Amount of rent payable Access to educational/research institution Availability of support services IT infrastructure Quality of space available Quality of surroundings/environment Flexibility of lease Security of building Security of site Prestige of address -20% Source: Less important -15% -10% -5% More important 0% 5% 10% 15% 20% 25% Savills 16.8.7 Issues such as ’prestige of address’ and general security do not rank as highly relative to the wider sample. Connectivity to roads and access to public transport are all relatively more important for the rural sub-group. 16.9 Summary 16.9.1 This sub-sample shows that the respondents have been established at their current location longer and are more likely to occupy this on a freehold basis. They are more rent sensitive and perhaps looking to lower rent costs in the future. 16.9.2 In terms of the factors affecting the property preferences, access to clients is vital as over 95% of rural-related respondents said that this was either a ‘high’ or ‘medium/high’ important factor in determining their location. It is for this reason that road linkages and access to public transport, including buses and trains, also scored more highly relative to the wider analysis. The Seale Hayne site suffers in respect of this and may not therefore be viewed as a viable location for rural-related businesses. 16.10 Conclusions 16.10.1 The primary purpose of this research was to assess whether there was unsatisfied demand for office space in the specified region and to assess what characteristics occupiers look for when deciding on the business location. Having assessed the responses to the survey, there is unsatisfied demand for business accommodation space, as some respondents suggested that they were unsatisfied with their current location. However, the scale of this demand, particularly within 10 miles of the Seale Hayne site, is not necessarily significant enough to stimulate significant development. In addition, occupiers can be unsatisfied but this does not mean that they will move in the short- or medium-term. 16.10.2 The key driver behind the conclusion is the fact that there is not a significant proportion of unsatisfied demand for business space within the survey area. However, it should be noted that if a response was received from all companies within 30 miles of the Seale Hayne site, there is no reason why some of these occupiers would not consider relocation. However, the analysis, based upon the Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 65 Seale Hayne Rural Economy Centre - Feasibility Study Final Report statistically significant sample, shows that additional demand is small and that occupiers are generally happy. 16.10.3 The survey highlighted that the majority of local office occupiers are indigenous and relatively small, on average occupying less than 2,500 sq ft of office space each. There is a higher than average incidence of freehold occupation, as would be expected for the whole of the UK, however, the majority of those who lease their office space are paying less than £10 per sq ft per annum. This has implications for the development viability of any scheme within the market area and indeed closer to the Seale Hayne site where rent levels are lower. 16.10.4 When asked about their building, locational and other preferences, there was a mixed response. The majority of respondents stated that they wanted a new or modern building, however the feeling that this need not be on a greenfield business park was emphasised by the fact that 82% wanted an in-town or edge-of-town location. This reflects the preference for local amenities and the realistic perception that these would not be provided in an out-of-town location, such as the Seale Hayne site. 16.10.5 Ultimately the conclusion of the research into office needs suggest that there is not a significant amount of unsatisfied demand for business accommodation, including expansion space. In addition, the scale of this demand and the rents that occupiers are prepared to pay for new space are not significant enough to stimulate speculative development away from the major town/city centres. The demands from rural-related businesses are not significant enough to justify a substantial development to cater for their future business accommodation needs. 16.10.6 In relation to the Seale Hayne site, there is scope for some of the key locational factors to be met. However, poorer accessibility and the constrained pool of available employees are major negative factors against the Seale Hayne site and act as a barrier to success at the site. In addition, any linkage with a university is deemed relatively unimportant; a result that has also come out from other studies on business locational needs in the past. Important Note 16.10.7 Finally, in accordance with normal practice, it should be stated that the tenant survey report is for general informative purposes only and does not constitute a formal valuation, appraisal or recommendation. It is only for the use of the University of Plymouth and no responsibility can be accepted to any third party for the whole or any part of its contents. It may not be published, reproduced or quoted in part or in whole, nor may it be used as a basis for any contract, prospectus, agreement or other document without prior consent, which will not be unreasonably withheld. 16.10.8 As is customary with such reports, the findings should be regarded as valid for a limited period and should be subject to examination at regular intervals. 16.10.9 Whilst every effort has been made to ensure that the data contained in it is correct, no responsibility can be taken for omissions or erroneous data provided by a third party or due to information being unavailable or inaccessible during the research period. The estimates and conclusions contained in this report have been conscientiously prepared in the light of Savills experience in the property market and information that was available to collect, but their accuracy is in no way guaranteed. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 66 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Survey Area Source: Unit, 2002. Office for National Statistics (produced by ONS Geography, GIS & Mapping Note: Boundary illustrated by Savills Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 67 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 17 THIRD PARTY REPRESENTATIONS 17.1 Local Plan Representations 17.1.1 As stated in Section 3.2.6 above, the agents for the University submitted a written representation to the Teignbridge Local Plan review. This document, attached at Appendix 1.2 made reference to the concept of a mixed-use development comprising a variety of educational, residential, business, employment and community uses with a ‘Rural Economy Centre’ forming the core and focus of the development. The phasing of such a development was not addressed, however the magnitude of development proposed suggested a phasing strategy of over 10 years. The representations guaranteed the University the ability to present a case at the Inquiry. 17.1.2 We have included within Appendix 1.12 a number of press cuttings that refer to comments made by third parties in response to the submitted representation. The criticism directed at the University has, in part, informed the decision to appoint a multi-disciplinary team to handle the preparation of a feasibility report in a meaningful and methodological manner in order to ensure that a robust deliverable and viable proposition is examined. We have not relied upon information submitted in 2002 to inform the current feasibility study as a fresh approach is considered appropriate, with reference to current national and local planning guidance and policy. 17.1.3 The introduction of a new Planning Act has meant that Teignbridge District Council have abandoned the Local Plan process to pursue a new Local Development Framework for the district. Appendix 2.5 sets out the new system in detail. The new system will result in proposed development schemes at Seale Hayne being considered by other means. There will be no formal Local Plan Inquiry as was the case under the previous system. In the case of Seale Hayne, subject to appropriate uses being viable, the most appropriate mechanism to promote the site will be a Development Brief. This will consider how best those uses considered viable can be delivered in the context of a robust planning framework. 17.1.4 We have referred to the representations submitted by third parties in response to the 2002 Local Plan submission given that this generated local and political objection against which the current study is being conducted. 17.2 Steering Committee Guidance 17.2.1 As detailed above, a Steering Committee was assembled at the time of the formulation of the Feasibility Study Brief. The terms of reference for the Committee are set out as follows; To oversee the feasibility study into the long term development of the University of Plymouth’s Seale Hayne Estate To establish a renewed vision for Seale Hayne such that the University gives leadership in promoting economic activity for a rural region which provides an improving standard of living and quality of life, under sustainable conditions. To give due consideration to the University’s economic impact in the Newton Abbot area, to avoid a long-term reduction as a result of University restructuring. To consult with interested parties and ensure that the feasibility study is informed of local, regional and national needs and views. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 68 Seale Hayne Rural Economy Centre - Feasibility Study Final Report To ensure that there is appropriate communication with all stakeholders during the feasibility study To ensure that the University discharges its public duty to maximise the values of its assets and reinvests to promote and achieve its Mission, To keep the University’s Estates Advisory Group fully appraised of progress with the Feasibility Study. To present the Feasibility Study to Chancellery and the Board of Governors. 17.2.2 In taking on board the advice of the project team contained within the Feasibility Report, the Steering Committee will have also be made aware of the interests of third parties who have made detailed suggestions for the future of the campus following its closure. These are summarised below. 17.2.3 In relation to the terms of reference, the preparation of the feasibility report is one part of the overall strategy. Integrated within the feasibility study has been an appropriate communication strategy. The project team has approached a large number of stakeholders in the preparation of the technical studies. This has been supplemented by the mail-merge distribution list, comprising some 3,900 business and business contacts as part of the tenant demand survey. 17.2.4 Steering Committee Members were given the opportunity at the June 2004 Committee Meeting to suggest appropriate contacts for third parties who were considered to have an interest in the future use of the site. Selected Committee Members were later invited (October 2004) to suggest names for inclusion within the Tenant Demand Survey. No responses were received. 17.3 Overview 17.3.1 The following parties were consulted after the first Steering Committee Meeting. Those in italics acknowledged receipt of the letter but submitted no substantive comment. Those in bold submitted representations; copies are attached at Appendix 1.13. Party Comment received Mr Anthony Steen MP No comments received Mr Hugo Swire MP No comments received Ms Angela Browning MP No comments received Mr Richard Younger Ross MP No comments received Government Office South No comments received Consultant Team Response Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 69 Seale Hayne Rural Economy Centre - Feasibility Study Final Report West Regional Assembly No comments received Devon County Council No comments received Teignbridge District Council Teignbridge District Council invited the Feasibility Consultant Team to meet to discuss progress as at September 2004 and to exchange opinions as to the way in which the land use strategy (Local Plan) could relate to reuse and redevelopment proposals. Elected Members of the Council and technical officers within the Planning and Economic Development Teams attended this meeting. Issues covered also included market demand, sustainability considerations (transport issues) and competing development sites as part of a wider District wide development strategy. Chairman Overview & Scrutiny Committee No comments received – see comment above in relation to Teignbridge Council. Executive Portfolio Holder to Economy and Tourism No specific comments received – see comment above in relation to Teignbridge Council. Teignbridge Association of Local Councils No comments received Newton Abbot District Chamber of Commerce No comments received following the commencement of the Feasibility Study. The Feasibility Study responds to the promotion of a strategy to reuse the site for rural based activities. The University received representation in May 2004 seeking progress on the promotion of a rural research centre and to clarify communication strategies The Communication Matrix addressed the future communication strategy “options” for engaging with third parties, but it is important to acknowledge that this was prepared with a view to implementing a consultation strategy at Received 24th May 2004 The results of discussions with Teignbridge District Council are referred and summarised throughout the report where appropriate. Further dialogue between the University and Teignbridge District Council is envisaged as part of any future disposal strategy for the Seale Hayne site. Two Elected Members represent the Council on the Steering Committee. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 70 Seale Hayne Rural Economy Centre - Feasibility Study between the University and third parties. Comment is made that the vacation of the site will impact upon local businesses and that vacant buildings will attract vandals and squatters. Newton Abbot Town Council Received: 12th Jan 2005 Single page representation submitted. This emphasises support for the views of the Seale Hayne Future Group (8th December 2004 meeting). Final Report a time when the feasibility of delivering development concepts have been tested. The University is conscious of the security issues surrounding the vacation of the site, but this issue is outside the remit of the Brief. The Brief requires the Consultant Team to investigation options for the long-term benefit of the site and the University rather than promote “quick-wins” which might prejudice the longer-term financial responsibilities of the University. This issues is linked to the estate management guidelines issued by HEFCE and others. The views of the Seale Hayne Future Group were reported to the Steering Committee. No specific comments have been promoted by the Town Council that are not covered in the Seale Hayne proposal/submission. The representation refers to “very strong representations” made to the University over two years regarding the future of the site. Council wishes to be involved in any future consultation exercise. Dartmoor National Park Authority Received 2nd August 2004 Seale Hayne Future (SHF) Received 10th September 2004 (SHF Cont’d) Letter of acknowledgement received. No substantive comments received given distance from site, but are prepared to comment upon proposals in due course. SHF comprises representatives from Newton Abbot, Teignbridge District Council, and Devon County Council together with governors of the campus and former students. Following the announcement of the preparation of the Feasibility Study, SHF produced a paper for the University offering their advice The project team considers that a number of sensible points are made. The general principle for what SHF would like to see on the site is not too far removed from the definition of a Rural Economy Centre as set out in section 14.4 of the Final Report. Notwithstanding this, their model would appear to have a greater degree of nonbusiness space, thereby making any scheme along those lines less likely to be viable given an implicit subsidy being offered by the University to occupiers. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 71 Seale Hayne Rural Economy Centre - Feasibility Study on what they believe to be an acceptable strategy for the site. It is understood that SHF have met with officers (and Members) of Teignbridge District Council in advance of the submission of their report to Stride Treglown Limited. The SHF proposal is set out in a report dated September 2004. This is attached at Appendix 1.14). It draws on the work of Rural Economy and Land Use (RELU) research programme and the National Rural Knowledge Exchange (NRKE). SHF propose that Seale Hayne becomes a Rural Research Centre offering facilities and start-up advice for rural businesses and wealth creation in the region and that the existing lecture rooms and accommodation could be utilised for conferencing facilities. It is also suggested that the existing farm buildings could provide units for local businesses and that the laboratories could accommodate science-based (implied public funded) organisations wishing to locate in the south-west – these being offered preferential rates and /or subsidised by larger commercial occupiers. Final Report The SHF Group proposal also encourages (it is in part based upon the assumption that) the University has a long-term landowning interest in the site. In this regard, it is important to reiterate the terms of the Financial Memorandum of the University in relation to the use of its assets and the guidance offered by HEFCE, National Audit Office and the Public Accounts Committee. The feasibility study seeks to address, by reference to a robust methodology, issues surrounding the make-up, function and mass of a Rural Economy Centre. Savills have presented a paper that investigates the involvement of Universities in Cluster Developments. Reference has been made to specific examples elsewhere in the UK where a University has an active role in the scheme. The Feasibility Study has approached over 3,900 businesses to ascertain the likely level of demand for accommodation as part of a Rural Economy Centre. Whilst the sentiments of the SHF proposal are acknowledged, caution must be taken to references in the proposal that appear to be highly speculative in nature with no evidence of justification other than references to individual parties and interests. It is not known whether the proposal is based upon empirical evidence across a wider business sector. Certain statements made in relation to the aspects of tenant demand are not corroborated by the bespoke research undertaken by Savills in conjunction with the feasibility study. The project team of advisors are confident that an appropriate and robust methodology has been undertaken in support of investigations concerning a Rural Economy Centre at the Seale Hayne site. The Seale Hayne Future proposal makes reference that it is essential to "retain the nucleus of the present organisation". As stated in the opening section to this report, part of the wider brief given to the Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 72 Seale Hayne Rural Economy Centre - Feasibility Study Final Report project team of advisors refers to the decision of the University to vacate the site and consolidate all academic activities to Plymouth. The 2002 decision to relocate activities to Plymouth resulted in the Seale Hayne site being surplus to academic requirements and thus an asset for which an appropriate disposal strategy is required in accordance with HEFCE, NAO and Public Accounts Committee guidance and best practice. (SHF Cont’d) Savills consider that a concentration of government/quasi governmental bodies rather than businesses as suggested by the Seale Hayne Future proposal would result in a centre with too high a proportion of public bodies, such that the Centre would find it more difficult to attract private sector businesses. Savills consider that a scheme such as that proposed by the Future group would require not only start up but on-going funding. In this context, affordable housing and a number of other uses referred to are unlikely to generate financial returns. National Farmers Union Received 16th September 2004 The SHF proposal encourages Govt and NGO’s to be attracted to the site. Notwithstanding this, the University will wish to ensure that dialogue with all appropriate Govt Dept’s and NGO’s are considered as part of any future disposal strategy. At the present time, the relocation and co-location strategies of numerous Govt Dept and NGO’s are not conformed to the extent that they justify a specific known occupier requirement compatible with the Seale Hayne site. The National Farmers Union comment that “the name and reputation of Seale Hayne mean a great deal to the farming community” and that “the site should be secured as a hub for technology transfer activities of all sorts, including post graduate studies, designed to underpin the development of the farming and land-based sectors in the region”. This concept relates in part to the implementation of Sustainable Farming and Food The comments presented by the NFU mirror in part certain views expressed by the Seale Hayne Future Group. In this regard, whilst the past importance of Seale Hayne as an agricultural college is acknowledged, the role played by the College in the current economic and rural climate is very different. The tenant demand study has sought to investigate opportunities for a REC. The findings of the bespoke tenant demand survey do not indicate that a University presence on site is a critical Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 73 Seale Hayne Rural Economy Centre - Feasibility Study South West of England RDA Regional Headquarters Final Report Strategies. factor that would attract occupiers to the site. Whilst it is acknowledged that knowledge transfer is not limited to University participation, the research did not highlight sufficient demand from the rural or employment sectors to justify the creation of such a facility at this time. Letter of acknowledgement received, offering contact details for progression of reuse strategy in the light of the Feasibility Study. In support of a future disposal strategy, the University may wish to continue dialogue with SWRDA (a working relationship already exists) in the light of the findings of this Feasibility Study. Received 21st July 2004 Local Operations and Development Managers Plymouth City Council Received 17th August 2004 Leader of Council Letter of acknowledgement received, confirming interest and offering support to feasibility study. (General comment only) No specific communication received. See general letter of acknowledgement above. Chief Executive No specific communication received. See general letter of acknowledgement above. Lord Livsey of Talgarth Letter of acknowledgement received giving encouragement for aims and objectives of Feasibility Study. No further communication received. Received 24th July 2004 The SealeHaynians The University have a working relationship with the City Council in relation to the promotion of an estate strategy within the City. Further dialogue will be on going in relation to the delivery of accommodation to further promote academic studies within the City. No comments received 17.3.2 The following table contains references to third party representations submitted to the University or to the consultant team independently rather than in response to the initial letter seeking comments which was submitted by the University following the June 2004 Steering Committee. It is prudent to note the first entry included in the table below relates to a representation received in advance of the creation of the Steering Committee. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 74 Seale Hayne Rural Economy Centre - Feasibility Study SAVE Britain’s Heritage Received 27th May 2004 Mr P Darby Received 12th July 2004 Final Report Unsolicited correspondence was received in advance of the first Steering Committee opposing the sale of the site and buildings and seeking progress in relation to the promotion of a re-use strategy for the site and in particular the Listed Buildings. The 2002 decision to transfer academic activities to Plymouth and the resultant status of the Seale Hayne site as an asset surplus to academic requirements is addressed in the Main Report. The decision to vacate is the driver behind the need to undertake a Feasibility Study. A concept based upon the “feel of an agricultural show” is promoted. It is suggested that this could attract around 2.0M visitors a year (comparable with the Eden Centre at 1.8M visitors). It should be noted that the submitted report appears to have been originally prepared in 1998. The variety of proposed end uses for the site as promoted are not considered to be commercially viable or deliverable. This is supported by the results of the Tenant Demand Study, the decision to transfer all academic study to Plymouth and the seasonal nature of tourism. It is not considered that the variety of uses would be compatible and would not represent best consideration in line with financial responsibilities of the University. Uses for inclusion within the centre include, inter alia: Alternative Energy Equipment sales and distribution, Engineering and quasiengineering degree courses, marketing and conferences, entertainment, alternative technology sales and distribution, workshops, craft and DIY advice centres, Wildlife Sanctuary, Children’s Craft shop, Ice Cream sales etc. Notwithstanding the above, as part of any future disposal strategy, developers and joint venture parties may wish to promote elements of the proposal should they consider such uses are viable. Many of the uses mentioned within the submission are de minimis (too small to make a significant contribution) to the viability of the Seale Hayne site. As such, testing such uses is not within the remit of the Feasibility Study. It is considered that the site could attract entrance revenue at £7.50 per person to fund the capital cost and maintenance. Quickes Traditional Limited Received 2nd November 2004 University of Exeter Centre for Rural Research Prof. Statement of support received in relation to the proposals put forward by the Seale Hayne Future Group. See comments above in relation to the Seale Hayne Future submission. Support given to the sale of development land to finance the proposals and to unlock other sources of funding. Professor Winter comments in an independent capacity that he neither supports nor criticises the SHF proposals These comments relate, in the main, to points of clarification in relation to ongoing rural and research programmes being undertaken within a Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 75 Seale Hayne Rural Economy Centre - Feasibility Study Michael Winter Received 19th October 2004 but offers points of clarification on some of the issues raised in the SHF paper. This is therefore a response to third party proposals rather than in response to the preparation of the Feasibility Study per se. He draws attention to the proposal to situate a Rural Research Centre at Seale Hayne and comments that the existing Rural Research Centre at the University of Exeter is one of the leading rural research centres in the country with a strong regional profile. Final Report local, county and regional perspectives. The funding regimes in existence which are directed towards rural research activities is outside the scope of this Feasibility Study which is asked to address the viability of a Rural Economy Centre based, in part, upon likely tenant demand from across a range of rural and more traditional employment sectors. Reference is also made to various ongoing research projects involving the University in isolation or with research partners. Research is ongoing by the Regional Research Priorities Board in relation to the research capacity, potential and needs for the region as a whole (supported by SWRDA and GOSW). 17.3.3 All parties who have submitted representations to the University or Stride Treglown Limited will need to be consulted on the overall findings of the Feasibility Study and thanked for their time in submitting correspondence. The manner in which these parties are to be consulted will be matter of discussion for the Steering Committee and University. 17.3.4 The following table summarises the comments received from the Steering Committee Members received after the Steering Committee meeting on the 25th November 2004. Issues for discussion can be broadly grouped under the following items: 1. Clarifying the Brief within the Feasibility Report. 2. The attractiveness or otherwise of the long-term retention (in whole or part) of the site. This is linked to Partnership approaches covered in Item 3 below. 3. Alternative reuse options, including Govt and NGO organisations. 4. Communication and Consultation with Third Parties. 5. Matters of accuracy and clarification. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 76 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Issue Comment received Action and/or Response 1 Concerns that too narrow an examination of opportunities were undertaken. The University and the Steering Committee requested a feasibility study that concentrated upon the deliverability of a REC for the Seale Hayne site. It is considered that this has been thoroughly tested, supported by background papers and technical studies. The Brief was discussed with the University and adopted by the Steering Committee on 25 June 2004. The Feasibility Study is prepared to test a “defined” Rural Economy Centre concept (and more traditional employment development such as business park) rather than to test all potential end use options. The market has the potential to come forward with “unique” users and uses that cannot realistically be perceived by the University. 2 If the site is sold, Savills should record a vested interest in Seale Hayne. The Feasibility Study did not request disposal advice. Savills will no doubt be required to tender for any future agency disposal as part of an OJEC tender for disposal advice. As such, it is not considered that there is any conflict of interest. Detailed comment made in relation to current Open Market Values and Future Values – if there is considerable future gain in land value, the Steering Committee should not ignore this in coming to a decision. It is not the role of the Feasibility Study to discuss future open market values in a Study looking at the feasibility of a particular development proposal concept. The University’s retained Commercial/Real Estate advisors may be able to offer advice in relation to comparable deals elsewhere, but examples will be very limited. As explained in the body of the Report, the University are able to protect their long-term interests through the use of legal clauses in any future sales documentation. This is matter for Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 77 Seale Hayne Rural Economy Centre - Feasibility Study Final Report detailed and separate consideration. Marginal Cost approach to site retention. Whilst it is not appropriate to discuss future disposal strategies in the feasibility report, this is an issue that the University’s retained Commercial/Real Estate advisors can advise. In the context of the Feasibility Study, the consultant team have been requested to be aware of the financial accountability regulations and guidance issued by HEFCE and others in relation to the management of the University’s estate with due regard to operational cost efficiency and achieving maximum capital receipt on disposal in the event that sites are surplus to academic requirements (as is the case at Seale Hayne). If the University consider the retention of part or the entire site, it does not follow that rental incomes received need to be high, just that maintenance costs are covered. Comment is made that there are “plenty” of business and organisations who need office space. Savills research suggests that there is a demand for office accommodation, but that the Seale Hayne site is unlikely to be preferred over other office parks and areas. The basis of the feasibility study was that the University have made a decision to vacate site with a view to facilitating a REC if viable, but sale in any event. See comments above in relation to the management and disposal of surplus assets in accordance with guidance offered by HEFCE, National Audit Office and Public Accounts Committee. Within mixed-use development (with retained University interest and therefore lower than market rents), occupiers should be targeted which would be consistent with the educational goals and values held by the University. This could lead to long term University retention of accommodation. Savills have reported that the REC concept was not dependent upon onsite University presence. Business Park occupiers are less interested in University activities close by. By limiting the target audience, it will be increasingly difficult to secure occupier interest. Savills have presented a paper in relation to academic institutions and business parks. The basis upon which the Feasibility Study was taken is the decision of the University to vacate and promote the long-term reuse and disposal of the site, thereby removing any site liability. See comments above in relation to the management and disposal of surplus assets in accordance with guidance Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 78 Seale Hayne Rural Economy Centre - Feasibility Study Final Report offered by HEFCE, National Audit Office and Public Accounts Committee. The University need not manage day-to-day activities but pass details onto an Agency. Alternative management for a University held mixed-use site could be a co-operative of tenants. [This assumes that a REC is a viable proposition, but in a different form to that envisaged by the Study which in turn has drawn upon other REC and Business Park examples]. This issue is linked to the long-term retention of the site and considers matters of detail based upon an assumption that tenants can be found or that an agreed internal management co-operative be established. A partnership approach is suggested, which would include involvement of Government bodies and agencies and nonGovernment organisations, thereby reducing the exposure of the University. Includes potential to draw upon the ideas of Seale Hayne Future Group. This again relates in part to management issues, but also the potential to attract public bodies. Whilst certain governmental bodies are devolving from the centre, the phasing and extent of devolution is not clear. These parties might be attracted to the site if the timing was right, but against this is the locational disadvantages of a rural location where reliance on the car would be high (and would in all likelihood be tested against competing sites in any decision to occupy the site by a public body under Cost Benefit analysis. The management of any REC does not fall within the remit of the Feasibility Study, save for the findings of research in relation to the way in which other REC’s are structured and/or developed (See Savills paper). The University are required to maximise capital receipt on disposal of surplus vacant land assets. Any disposal strategy which might be adopted by the University could be supplemented / complemented by third party discussions with organisations such as the South West of England Regional Development Agency. 3 Alternative logics – concern that study was not asked to consider options that are based upon the receipt of rental values. It is apparent that there is some support for further work to elaborate upon or take forward the results of the Feasibility Study in order to inform a debate. It is considered that the Feasibility Study will be a platform, but not the sole source of information, to make a series of long-term decisions about the site. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 79 Seale Hayne Rural Economy Centre - Feasibility Study Final Report Concern raised over the future optimal use of the site as dictated by market forces in relation to the “public” decision to sell the site. This is a matter for the University to consider in the context of its public accountability in relation to financial management of its assets (see comments above in relation to HEFCE, NAO and Public Accounts Committee guidance. Report should identify “areas not yet explored”. It is considered that the terms of reference and Project Brief have been met in relation to a Feasibility Study concerning the potential for a REC. The consultant will be happy to respond to any outstanding issues connected with the promotion of the Seale Hayne site under separate instruction. 4 Management of public relations with regard to the Rural Agenda. This is an issue tied to the communications matrix and the way in which the University should inform third parties of the results of the Study. This is also a general communication issue regardless of the outputs of the study. This is a matter for debate with the University PR and Communications team. The manner in which the findings of the report could be presented to third parties will be a matter for the January 2005 Steering Committee to consider. 5 Expansion to clarify justification for traffic flows. The Transport Assessment has been reviewed and re-issued prior to collation of the final report and will be tabled at the final meeting on 27 January 2005. This revision will be inserted as Appendix 2.4. Clarification on trip generation figures has been added. This justifies the threshold or trigger point for considerable off-site highway works. Clarification required in relation to discounting a REC of “any economic size” on traffic flow grounds. Notwithstanding economic (demand) factors, the REC site would need to be of a size under 11,495 sqm (123,735 sq ft) or a Business Park less than 17,930 sqm (193,000 sq ft) – much smaller than the existing floorspace of the Campus. Concern that the campus does Agreed. It is considered that the Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 80 Seale Hayne Rural Economy Centre - Feasibility Study not close by “the wrong ending of the present process”. Final Report consultant team has responded to the needs of the Steering Committee and ensured that an informed decision for the future of the site can be made based upon bespoke and robust market demand research. As part of any future disposal strategy, the University could have an important role in continuing dialogue with interested parties such as SWRDA, Devon County and Teignbridge District Councils. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 81 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 18 FEASIBILITY STUDY CONCLUSIONS 18.1 Overview 18.1.1 This study has sought to address the material land use and property market considerations relevant to the delivery of a Rural Economy Centre at the Seale Hayne site. 18.1.2 The following sections summarise the fundamental viability issues. These conclusions draw upon the findings of the main body of the report and the appendices, submitted in two volumes under separate cover. The issues covered in the report reflect the Project Brief and respond to issues requested of the Steering Committee at its meeting on the 24th June 2004. 18.2 Policy Issues 18.2.1 Land use policies, set out in various documents prepared by Teignbridge District Council, seek to encourage new developments in sustainable locations and in accordance with Council objectives. Major new schemes will be expected to be promoted in a manner that engages local people and key stakeholders. Teignbridge District Council have abandoned their Local Plan to 2011 and are engaged in the preparation of a new Local Development Framework. The first “Options and Issues” paper is not expected to be published until after Spring 2005. This document, the subject of consultation, will eventually inform the development strategy for the area. 18.2.2 At the time of writing, we are aware of a number of “competing” development sites which are capable of meeting employment and residential schemes, thus assisting in the delivery of strategic targets. Many of these sites are located in, or on the edge of settlement boundaries. As such, these sites are able to offer a strong case in terms of meeting sustainable development objectives given their immediate proximity to local goods, services and public transport routes. 18.2.3 The adopted Local Plan defines the Seale Hayne site in the Open Countryside where polices seek to resist new major developments. 18.2.4 Teignbridge District Council have suggested, during discussions in October 2004, that a major new development at the Seale Hayne site would not be supported on the grounds of traffic impact and sustainable planning objectives. Notwithstanding issues of tenant demand set out below, the Council’s position does not appear to be conducive with the creation of a Rural Economy Centre which would require a critical mass to be achieved in quality accommodation suited to the current / future needs of any tenants and which meet modern day building standards. 18.2.5 Polices of the Local Plan support the conversion of buildings in rural settings to alternative uses. Acceptable uses include business, tourist facilities, recreation, light industrial, holiday accommodation and other uses that are of benefit to the local rural economy. Teignbridge Council are likely to consider this policy context as the starting point for an acceptable mix of uses on the site – rather than the introduction of more intensive forms of development that would appear relevant to the creation of a Rural Economy Centre. 18.2.6 The baseline work undertaken in this feasibility study can be used to prepare a Development Brief, the purpose of would be to show how alternative uses can be accommodated on site, and the measures which would be required to mitigate any visual, environmental, engineering or highway impacts. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 82 Seale Hayne Rural Economy Centre - Feasibility Study 18.3 Final Report Environmental Issues 18.3.1 There are no designated sites within the study area, however two wildlife sites exist within the wider Seale Hayne site. The mosaic of habitats within the study are has the potential to support a number of breeding bird species. 18.3.2 The main landscape elements of significance include the Devon Hedgebank systems and farm woodlands, which act as boundary and shelter features. A number of viewpoints have been identified which could be affected by widespread and comprehensive development proposals. However, with sensitive screening, adverse impacts could be significantly reduced. 18.3.3 Redevelopment of the agricultural landscape surrounding the site could cause severe impact – development changing the character of the wider area. This could be mitigated to varying degrees of success by strategic landscaping and planting. 18.4 Highway and Engineering Issues 18.4.1 The highway assessment highlights the general inadequacy of the minor roads linking the campus to the main road network. This is likely to be a limiting factor on potential redevelopment. 18.4.2 The College itself, when fully operational, generated a reasonable amount of traffic movement and it is assessed that this equates to an office use of approximately 11,450sqm or a business park use of 17,930sqm. It is suggested that these figures be used as a guide to the size of development that could come forward without a requirement to carry out highway improvement works beyond the immediate vicinity (i.e. beyond Forches Cross). 18.4.3 If the development is kept within these limits it has been confirmed that the Highway Authority would require a contribution to an improvement to the Forches Cross junction. There is currently no in-house design and hence it is difficult to estimate a cost. On the basis that traffic flows associated with the development would be around the same level as previously experienced it has been agreed that Seale Hayne would not be expected to fund the full cost of a scheme and hence a contribution of around £50,000 is suggested as an initial negotiating position. 18.4.4 If a form of development is proposed which significantly increases traffic flows then a detailed Transport Assessment will be required to demonstrate the impact of the increase. This Assessment will cover the highway network generally westwards out to the A38 via the A382 and A383 and generally eastwards to the road linking the A382 and A383 within Newton Abbot. The Highways Agency require that junction testing should consider the situation 15 years beyond the completion of the development and this takes into account background traffic growth unrelated to the development. This is a particularly onerous requirement. 18.4.5 It is difficult to envisage the scale or practicality of carrying out works to achieve a further capacity increase at the Drumbridges Interchange (A38/A382). It is suggested that the cost would be significant. Discussions with the Highway Agency have highlighted that the westbound on-slip is shorter than desirable due to the presence of the minor road junction further to the west. Should the Highways Agency require improvements to the Caton Interchange (A38/A383), the cost is likely to be very substantial and again above the value of any potential development. 18.4.6 The full cost of improving Forches Cross would fall on the Seale Hayne development. As no scheme has been identified – primarily because there is no obvious or cheap solution – a conservative estimate would be £250,000-£500,000. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 83 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 18.4.7 The overall cost for the improvement to the local road network could be in the range £450,000-£900,000. This could be called for with even a modest increase in traffic generation. 18.4.8 As far as can be estimated at this stage, the contributions towards highway improvements (depending on the level of development within the campus) is set out below: development with a similar level of traffic generation as Academic use - £50,000. development with a minor increase in traffic generation - £450,000-£900,000. development with a significant increase in traffic generation (i.e. over 11,500sqm office use, or 18,000sqm business park use (or similar mixed use) – not accurately quantifiable at this stage, but considered to be significant. Any amendments to the A38 junctions are likely to be extremely expensive. 18.5 Overview of Rural Cluster Developments in the UK 18.5.1 The first phase of research was an overview of rural cluster developments in the UK. Various common themes were found in the majority of other rural cluster developments and considered in more detail with two specific case studies. One particular point of relevance was that university involvement was frequent in these schemes although it was seemingly not vital for success. 18.5.2 Further details on university involvement in science parks are attached at Appendix 2.7. Based upon the analysis of the various schemes a suggested definition for a Rural Economy Centre was arrived at, this being not dissimilar to a science/research park but with the focus of the tenant mix on businesses supporting, researching or administering the rural economy. 18.5.3 Consideration of the planned rural science and Technology Park at Stoneleigh Park in Warwickshire revealed that this proposed scheme was likely to satisfy national demand and therefore if there were to be any scheme at Seale Hayne it could realistically only be a regional centre of excellence. Bearing in mind the definition of a Rural Economy Centre, competition for tenants would come from existing and planned business, science and research and development parks. The recommendation was therefore to proceed to the property market survey to assess the strength of local competition. 18.6 Local Property Market Survey 18.6.1 The property market survey looked at the supply/demand balance for office and industrial space in Exeter, Plymouth and more locally to Seale Hayne. It was found that there is sufficient office and industrial accommodation in both Exeter and Plymouth, not only at present but also in the pipeline for the future. The only possible exception is in Exeter where it may be difficult to accommodate a single very largescale office space requirement. It was also evident that there are already existing quality science and business parks with capacity in the region. These include Plymouth International Business Park, Tamar Science Park and there are also plans for a new science park in Exeter. 18.6.2 More locally there is a demand for smaller areas of space but not to the degree that there is a significant imbalance between the current supply and demand. There is Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 84 Seale Hayne Rural Economy Centre - Feasibility Study Final Report always demand for start up and incubator units although this demand is, to some extent, satisfied by various schemes. 18.6.3 In light of the supply/demand balance, there is no realistic prospect for any form of successful speculative development. There is a fine balance in the market with no obvious unsatisfied demand. If a Rural Economy Centre were to work at Seale Hayne it would need to identify a unique selling point (USP) in order to be able to attract tenants. The tenant demand study was therefore carried out to determine the locational criteria of potential occupiers of space. 18.7 Tenant Demand Study – Property and Perception Survey 18.7.1 A bespoke tenant demand survey of over 3,900 businesses distributed across the region revealed that the majority of office occupiers are relatively small, on average occupying less than 2,500 sq ft, and these prefer to remain close to where their established base. The majority of respondents who were considering additional space were seeking new or modern buildings but at an in town or edge of town location. 18.7.2 The survey was clear that there is not a significant amount of unsatisfied demand for business accommodation, including expansion space. In addition, the scale of this demand and the rents that occupiers are prepared to pay for new space are not significant enough to stimulate speculative development away from the major town/city centres. The demands from rural related businesses are not significant enough to justify a substantial development to cater for their business accommodation needs. Whilst the Seale Hayne site does satisfy some key locational factors, it is let down by poor accessibility which will act as a barrier to success. The survey also indicated that linkage with a university is deemed relatively unimportant. 18.8 Project Conclusions 18.8.1 The Consultant Team is satisfied that the work programmes adopted in accordance with the requirements of the Project Brief have been delivered. The Brief was agreed by the University and Steering Committee and reflects the Terms of Reference of the Steering Committee. This final report incorporates, where appropriate and relevant to the delivery of the project brief, issues raised by representations submitted by third parties. The report also takes into account comments received in relation to a Draft Progress Report issued to the Steering Committee Members in December 2004. 18.8.2 The basis upon which the Feasibility Study has been prepared is the 2002 decision of the University to transfer academic studies from Seale Hayne to Plymouth – this decision therefore resulting in the Seale Hayne campus being surplus to the longterm academic requirements of the University. As such, the University is required to ensure that a strategy is adopted that secures maximum capital receipt on disposal in accordance with best practice guidance. This report is therefore designed to present the findings of a bespoke series of work programmes which test the feasibility of developing the Seale Hayne site as a Rural Economy Centre (and a traditional business park in the event that a Rural Economy Centre is not considered to be a viable proposition. 18.8.3 The conclusions to be drawn from both the local property market survey and tenant demand survey is that there is insufficient demand for significant amounts of new business space and that demand that does exist is at relatively low rental levels. This applies to general occupiers of space as well as to rural related businesses. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 85 Seale Hayne Rural Economy Centre - Feasibility Study Final Report 18.8.4 Reference is made above to the need to establish a USP for any proposal at Seale Hayne if it is to have any chance of success. The USP would need to be one, or a combination of, the most important factors affecting business location as revealed by the tenant demand study. However, the unchangeable physical factors of the site its distance from existing centres, lack of accessibility and constraints of the existing buildings on the site (including site topography) - mean that it is not possible, without incurring significant costs, to establish a satisfactory USP to overcome the lack of unsatisfied demand and attract a sufficient number of occupiers to Seale Hayne. 18.8.5 In light of the above Savills recommend that any form of speculative development at Seale Hayne, be it in the form of a Rural Economy Centre or more traditional form of business space, should not be contemplated. There is not the demand in the current market for a Rural Economy Centre at this kind of location. 18.8.6 Similarly, there is no significant demand for conventional types of business space at a site such as Seale Hayne that is subject to the negative locational factors previously referred to. Any demand that does exist for business space is of an extremely smallscale nature and at low rental levels. Any scheme catering for this form of demand would therefore be likely to suffer from low rental returns, high management costs and significant periods of rental voids. These would all combine to make any scheme unviable. 18.8.7 Our property research and studies have revealed that neither a Rural Economy Centre nor a more conventional multi occupancy occupation (business park) at the Seale Hayne site is feasible or viable. Notwithstanding this, the Seale Hayne site does have potential for alternative uses but these are likely to be specialist in their nature. Identification of possible alternative uses beyond a Rural Economy Centre or traditional multi occupancy use of the site is beyond the scope of this feasibility study. It is understood that discussions between the University and interested parties such as Teignbridge District Council will continue in the pursuit of an appropriate and economically attractive land use and/or disposal strategy for the Seale Hayne site. Prepared for the University of Plymouth by Stride Treglown Limited, Savills and Scott Wilson Kirkpatrick January 2005 86