Submission of detailed planning application for the Heygate Stage 1 ...

Item NoClassification:OpenDate:10 August 2012Decision Taker:The Leader of the CouncilReport title:Ward(s) or groupsaffected:From:Submission of detailed planning application for theHeygate Stage 1East WalworthChief ExecutiveRECOMMENDATIONThat the Leader of the Council;1. Confirms the approval of the council to allow Lend Lease to formally submit thedetailed planning application for the Heygate Phase One (Rodney Road site asillustrated in appendix one) development, subject to the director of regenerationapproving all documentation as outlined in paragraphs 23.BACKGROUND INFORMATIONDevelopment Objectives2. The council has been pursuing a programme for the regeneration of the Elephantand Castle since the late 1990’s. In 2004 the council adopted a developmentframework for the area in the form of supplementary planning guidance. Thisdocument set out development objectives for the area and includes proposals forhow they might be given physical effect. The focus was on a plan to bring forwardthe comprehensive phased regeneration of a core site centred on the shoppingcentre, northern end of Walworth Road, transport interchange and the demolitionand redevelopment of the council owned Heygate estate.3. The council’s vision in the SPG was to replace the monolithic, single use, cardominated environment with a town centre which would provide employmentopportunities, new homes, an improved transport interchange, new parks, shopsand community facilities for its residents. The ambition was to change theperception of the Elephant and Castle and to establish it as a central Londondestination for both Southwark residents and Londoners.4. The plan set out in the SPG took the form of a town centre designed around anopen network of open spaces and public routes comprising mixed use and mixedtenure development plots. The redevelopment process would provide newaffordable homes to replace those on the Heygate. These were to be provided on“satellite” sites in council ownership located around the opportunity area as well asback on the Heygate site itself.5. The form of development was envisaged as being highly urban with tall buildingsthat would mark Elephant and Castle on the London skyline. The plan envisagedbuilding heights reducing in scale at the edges of the development area where the1

new scheme met existing Victorian streets.6. There was a strong focus in the plan on re-connecting the centre of the Elephantwith the adjoining neighbourhoods from which it had become disconnected throughthe 1960’s re-planning of the area. To give effect to this the plan proposed openingup rail arches beneath the viaduct to create new pedestrian routes between theHeygate site and the shopping centre, aligning crossings on key arterial routes withlocal pedestrian/cycling desire lines, and the removal of the network of subways atthe heart of the Elephant.7. The fragmented nature of the townscape on Walworth Road north of Heygate Streetwas identified as a particular issue which needed to be addressed. There were anumber of vacant and under used sites in this part of the area and the design of theHeygate estate related poorly to this important local route. A key objective in theplan was therefore to “repair” the high street and reconnect Walworth and Elephantthrough mixed use developments with ground floor retail frontages.8. The proposals placed a strong emphasis on delivering a sustainable development.An ambitious target was adopted for zero carbon growth. To deliver this it wasenvisaged that that an Energy Services Company would be established to build outa decentralised network of heat and power network to supply development plotswithin the core area including the Heygate site.Planning Context9. Since the SPG was adopted in 2004 the council, working with the GLA, hasdeveloped and consolidated this approach into the land use planning framework forthe area. The London Plan [2010] and Core Strategy [2011] both identify theElephant and Castle as an opportunity area that has the capacity to provide up to4000 new residential units, 5000 jobs, provide up to 45,000 sq.m of additional retailfloor space, and 30,000 sq.m of business space.10. In March 2012 the council adopted the Elephant & Castle Supplementary PlanningDocument (SPD), which replaces the 2004 Supplementary Planning Guidance. Thisoutlines the Council’s vision for the area and how it will use its land to meet its targetof 4000 new homes within the Elephant & Castle Opportunity Area and a minimumof 1,400 affordable homes.Partner Selection11. In order to bring forward the redevelopment of the area the council in 2005 launchedtwin procurement processes to identify Housing Association partners to buildreplacement affordable homes for Heygate residents on a number of council ownedsites in proximity to Elephant and Castle and also to identify a commercial partner towork with it to redevelop the Heygate site itself.12. In July 2007 the council’s then executive agreed to select Lend Lease Europe as itsdevelopment partner. The serious economic downturn that occurred from late 2007resulted in a delay in completion of full contractual documentation. As aconsequence it was not until July 2010 that the council and Lend Lease formallyentered into a contract [referred to as the Regeneration Agreement] for the2

edevelopment of the site.Progress to date13. A number of developments have taken place since 2004 which have contributed tothe advancement of the regeneration of the area e.g. Strata Tower, theredevelopment of sites alongside the rail viaduct, the removal of the southernroundabout and subways, the refurbishment of St Mary’s Churchyard, and theimplementation of a programme of 10 affordable schemes totalling 512 social rentunits which will in part replace the Heygate estate. The last of these schemes atStead Street which is being developed by the Guinness Trust recently receivedplanning consent for a scheme which will deliver 140 new homes 84 of whichare social rented homes at target rent levels; 60% in total.14. In total these developments represent progress towards the delivery of the council’svision for the area. A number of these developments have been planned anddesigned to connect to a decentralised heat network.15. The next phase of the regeneration has been focused on the redevelopment of the23 acre Heygate estate. To facilitate this in July 2007 the council launched aprogramme which was designed to accelerate the rehousing of tenants andleaseholders from the estate. There are now no tenants left on the estate and only4 leaseholders. The first phase of the demolition of the estate at Rodney Road wascompleted in July 2011. This site is now cleared although the sub station has still tobe removed. This site is the location of the detailed application which Lend Lease isnow seeking council approval to submit under the terms of the RegenerationAgreement..16. In March 2012 Lend Lease formally submitted an outline planning application for theremaining area of the Heygate estate. This outline application seeks permission forthe amount and type of land use as follows.a. 2,462 residential unitsb. Retail (A1, A2, A3, A4, A5): 16,750sqmc. Business (B1): 5,000sqmd. Leisure (D2): 5,000 sqme. Community & Culture (D1): 5,000sqmf. Sui Generis/Energy Centre: 925 sqmg. Parking/Servicing; Plant; Storage: 43,666sqm[note b-g Maximum GEA in sqm]17. There has also been significant progress towards the planned redevelopment of theexisting Elephant & Castle Leisure Centre site. On June 5 2012 the leisure centrewas closed for the last time and demolition works are scheduled to commence mid-August 2012. On July 6 2012 Lend Lease formally submitted a detailed planningapplication for a 37 storey residential tower to be sited on the eastern half of thecleared leisure centre site. In early August 2012 4 Futures, Southwark Council’sLocal Education Partner submitted a detailed planning application for a new LeisureCentre which is to be located on the western half of the cleared leisure centre site.3

Heygate Phase One Site18. Securing planning consent for the Heygate Phase One site (as illustrated inappendix one) therefore represents the next major milestone that has to beachieved within the on-going regeneration of the Elephant and Castle. Consent willbring forward the redevelopment of a key part of the core area, contribute to thehousing targets outlined in the recently adopted SPD and secure regenerationbenefits for the local community.19. Under the terms of the Regeneration Agreement Lend Lease shall not submit thedetailed planning application without first obtaining the written approval of the council[as landowner] (not to be unreasonably withheld but the council must act in the bestinterests of the Development) to the application and all material associated drawings,specifications and other supporting material. This report therefore seeks the Leaderof the Council’s confirmation of the council’s approval for Lend Lease to submit theirdetailed planning application for the Heygate Phase One site.KEY ISSUES FOR CONSIDERATION20. Since the completion of the Regeneration Agreement in July 2010 Lend Lease havebeen working to bring forward a viable planning application for the Phase One sitewhich can support the delivery of the council’s objectives for the regeneration of theHeygate estate. In order to achieve this Lend Lease have ;a. Assembled a professional team to carry out the technical and design work andprovide the necessary advice on a range of planning, environmental,sustainability and transport related issues.b. In May 2011 Lend Lease entered a planning performance agreement [PPA]with the council’s planning department which has provided a framework fornegotiations with the Local Planning Authority. The PPA identified key issuesfor negotiation and discussion, a programme for the pre application processand agreed a level of resources necessary to ensure that this could beachieved. A large number of meetings have taken place with the council’splanning team and these discussions have informed the content of the finalapplication. Lend Lease have also presented their proposals at the DesignReview panel in May and their comments have also shaped the content of thescheme.21. Lend Lease have also have undertaken an extensive programme of publicconsultation and engagement with residents and other stakeholders during the preapplication phase. This programme has been designed to inform the localcommunity about the emerging application, test opinion on key issues and providelocal stakeholders with an opportunity to influence the content of the application. Insummary the programme has comprised the following;a. Lend Lease have arranged 4 public exhibitions of their proposals. Invitation tothe public exhibitions was mailed to 7,500 people in the opportunity area.These were held at the Consultation Hub on Walworth Road.b. In addition to the exhibitions Lend Lease attended three Resident LiaisonGroup sessions. These were one of three liaison groups established duringthe consultation strategy for the wider Heygate Masterplan application which4

have enabled discussions to take place on particular issues of interest toresidents.c. The key themes that arose during the above consultation process included:i. General approaches to massing and how these related to existingresidential propertiesii. Positioning of proposed blocks along Balfour Street and Rodney Roadiii. Potential for direct sightlines from new residential blocks over existingVictory primary schooliv. Amount, location and affordability of affordable housing provision.v. Retention of existing trees and quality of new public realm.22. These areas of concern have been responded to by Lend Lease throughout thedesign process and during the pre-planning meetings with the LPA. At the finaldesign exhibition the proposals clearly demonstrated how the concerns aboutdesign and massing have been addressed in order to ensure a stronger relationshipwith existing properties. With regards to the provision of affordable housing thedetailed application complies with the terms of the signed Regeneration Agreementand a viability assessment will also be submitted to the LPA demonstrating that thescheme cannot afford to provide any additional affordable housing.Application Structure23. The planning application seeks full planning permission for a developmentcomprising 235 residential units, 151 sqm of retail use (A1 – A3), car parking, cycleparking, servicing and plant areas, landscaping and public realm improvements andassociated works. The application will comprise the following documents;• Planning Statement• Proposed plans and elevations• Landscape Strategy• Planning Strategy• Transport Statement• Waste Strategy• Housing Statement• Sustainability Strategy• Construction Management Plan• Draft S106 Heads of Terms• Energy Strategy• Access Statement• Statement of Community Involvement• Environmental Statement24. The detailed planning application is seeking planning consent for the followingresidential mix:• A total of 235 residential units of which 181 are for market sale, 28intermediate affordable and 26 as social rent.• Of the 235 residential units, 4% will be studios, 36 % will be 1 bed, 49% 2 bedand 11% 3 beds. The proposals also provide 10% of units, by habitable5

ooms, that will be design to wheelchair adaptable standards in line with theLondon Housing Design Guide and the South East London HousingPartnership Wheelchair Housing Design Guide.Regeneration Benefits of the Proposed Application25. The council’s development objectives for the core area, the Heygate masterplanarea and Heygate Phase One site are summarised in the background section of thisreport. The Lend Lease proposal for Heygate Phase One will make a significantcontribution to the implementation of these objectives and mark a key milestone inthe on-going redevelopment of the Heygate Estate. The principal components of theproposals which will enable the original plan and vision for the core site to bedelivered are summarised below;Public Realm Benefits26. A key theme raised during the consultation events was the need for improvementsto the quality of public realm in the vicinity of the site. The Lend Lease schemeachieves this objective through the establishment of a hierarchy of routes andspaces which are publicly accessible.a. The formation of Paragon Row recreates a historic route that had been blockedby the layout of the Wingrave blocks that previously occupied the site.b. The scheme provides a landscaped edge to Victory Place. The designincorporates the existing mature trees and the design of this area includesnatural play space for local children and improves the route to the adjoiningVictory Primary School.c. A new public space is created at the southern apex of the site.Economic and Section 106 Benefits27. The scheme will create a new retail space within this site, previously occupied bysolely residential properties, that has the potential to provide employmentopportunities for local residents. In addition this active frontage will help to animatethe area of public realm created at the base of the most southerly block. This spacewill help to contribute to the development of the Rodney Road / Balfour Street /Stead St junction as a local centre. A community space is also to be developedwithin the adjoining Guinness Trust Stead Street development and this will furthercontribute towards the council’s place making objectives in this location.28. During the construction of this development there will be employment and trainingopportunities for local residents delivered by Lend Lease through their BeOnSiteinitiative.29. The project will also make a contribution of £2.2 million towards strategic transportobjectives. Subject to agreement with TfL/GLA this sum could be used to contributetowards improvements to the area around the northern roundabout which remains akey regeneration objective.6

Housing Benefits30. The scheme includes for a significant increase in residential dwellings in line withthe council’s development and planning objectives for the area and thereforerepresents a more efficient use of land. The scheme will provide a choice of housingtenures and includes a variety of residential typologies, including town houses. Theproposals includes for a minimum of 11% 3 bedroom units and 60% 2 bed or moreunits and therefore the mix complies with that required at the Elephant and Castle inthe Core Strategy. These will be designed to comply with residential designstandards for room sizes, lifetime homes and amenity space. In line with policyamenity space will be provided in the form of communal areas and also privatebalcony’s and gardens.31. In line with the requirements of the Regeneration Agreement the scheme provides25% affordable housing by habitable room.. The achievement of this level ofaffordable housing demonstrates Lend Lease’s commitment to deliver this keycouncil objective and should be viewed as a positive outcome as it is in excess ofother market schemes in Southwark and in London generally where levels of supplyhave dropped as a consequence of the significant reduction in the availability ofSocial Housing Grant since 2010.32. The split between the affordable housing provision is 52 % intermediate and 48% associal rent which is compatible with the 50/50 target for Elephant and Castle in theCore Strategy. Of the 26 social rented homes there are 6 one bed, 12 two beds and8 three bed homes. The three bed homes will be offered at target rent levels.Sustainability benefits33. The scheme design incorporates a gas powered central boiler house which willallow Code for sustainable homes 4 to be achieved from the outset in line withplanning policy. This represents a significant step change in the standards ofenvironmental performance achieved by the previous buildings on the site. . Thescheme design also allows for connectivity to the proposed new Heygate energycentre which is to be located on the site of the existing Heygate boiler house.Connection to this facility has the potential to improve the environmentalperformance of the building to Code 6.Design and Place making benefits34. The proposed layout of the site takes the form of two development plots divided by anew pedestrianised street (Paragon Row) which links Rodney Road to HenshawStreet/Balfour St. The area to the north-west of the Paragon Row at the corner ofVictory Place includes the tallest of the residential blocks which is ten storeys. Thislocation is considered to be most appropriate site for a taller element as it will haveminimum impact on the amenity of existing residents. This block responds to theregeneration context proposed in the wider Heygate masterplan as the site will actas a marker and gateway to the new development from the south. The three blocksto the south of Paragon Row are orientated around a raised residential courtyardproviding communal amenity space as well as private gardens for residential unitsfacing on to the courtyard. The heights of these blocks are designed to respond tothe existing buildings heights along Balfour Street and Rodney Road. The block at7

the southern apex of the site rises to 9 storeys and together with the commercialspace on the ground floor this will help to animate and define a new public spacewhich is to be created at the corner of Balfour Street and Rodney Road.35. The scheme designs have evolved during the pre-planning stage to respond tocomments received during meetings with planners and also feedback received atpublic consultation events. The cumulative affect of these changes has been toensure a more sympathetic relationship with the townscape surrounding the site.Changes have included:a. Altering the massing of buildings to respond to existing residential propertiesand site context particularly the lowering of the northern tall building from 14 to9 storeys and also the southern blocks fronting on to Rodney Road.b. Improving articulation of all residential blocks to respond positively to feedbackregarding concerns that the design detail of the flank walls on the two tallerbuildings had a negative impact upon the existing street views.c. Improvements to the appearance of the podium edge on Balfour Street tomitigate the visual impact of the car park and bike store on the street scene.The improvements have involved taking on planners’ suggestions that thisspace could be ‘greened’ to contribute towards the green link between Victoryand Nursery Row Park.d. Altering the proposed building line fronting on to Balfour Street in order towiden pedestrian footpaths allowing for the introduction of new street treesand better sightlines towards the entrance of Victory Park.e. Extending the planning red-line boundary to ensure the delivery of theproposed high quality public realm improvements on Victory Place.36. All homes will be designed to be “tenure blind” i.e. there will be no visible differencein the external appearance of affordable and homes for sale.Conclusion37. In conclusion the proposed detailed planning application is considered to beconsistent with the council’s original development objectives for the area. Thescheme has the capacity to deliver;• Significant early regeneration and employment benefits and opportunities,• Increased housing choice in the area• Improvements to the functionality and quality of public realm in the vicinity ofthe Heygate Phase one• A positive change in perceptions of the area which will help to contribute toimproving market and investor confidence in this early phase of theregeneration.38. In order to secure HCA funding which is available via the RSL partner for thisscheme the social housing element of the project has to be completed by March2015. As a consequence Lend Lease require planning consent by December 2012in order to ensure that there is sufficient programme time available to completeremaining site clearance works, the build contract, and the discharge of precommencement conditions to enable commencement of construction to take place8

y summer 2013. A summer 2013 commencement is considered the latest date atwhich commencement can occur in order to ensure completion in line with HCArequirements. This is a key reason why submission of the scheme can not bedelayed.39. Given the benefits of the scheme and the need to ensure the HCA grant timetable isadhered to the Leader of the Council is therefore recommended to confirm theapproval of the council to allow Lend Lease to formally submit for planning theirdetailed planning application for Heygate Phase One..POLICY IMPLICATIONSSouthwark Council Corporate Plan 2009 – 201140. The proposals contained in the detailed planning application for the redevelopmentof the Heygate Phase One site have the capacity to meet a number of the council’scorporate plan objectives. The proposals will help transform the Elephant and Castleby creating a place where people love to live. The detailed proposals relate stronglyto those of the outline masterplan submission in that the residential blocks areorientated around a network of quality public realm.41. The Phase One proposals are strongly based on valuing the environment. Thescheme will contribute to reducing the Borough’s carbon footprint. The energy costsfor the new residents will be reduced and the development can be designed toincrease recycling.Core Strategy/Southwark Plan42. The London Plan [2010] and Core Strategy [2011] both identify the Elephant andCastle as an opportunity area that has the capacity to provide up to 4000 newresidential units, 5000 jobs, provide up to 45,000 sq.m of additional retail floorspace, and 30,000 sq.m of business space.43. There is therefore a strong planning framework in place which promotes growth anddevelopment at the Elephant and Castle. Consultation on a draft SupplementaryPlanning Document [SPD] which will replace the 2004 SPG has just beencompleted. Once adopted the SPD will provide further detail on the council’splanning approach.Community impact statement44. The council has been pursuing a programme to regenerate the Elephant and Castlesince the late 1990’s. During this time there has been extensive consultation on theplans for the area and individual projects within it. Engagement with the communityhas taken place through the statutory planning process as part of the adoption of theSouthwark Plan, Core Strategy and Supplementary Planning Document. This hasbeen supplemented by engagement with residents and businesses includingoccupants of the Heygate estate through the council’s housing and regenerationprocesses. In combination these processes have established a broad basedconsensus in support of the council’s plans for regeneration.9

45. The pre application consultation that Lend Lease has recently carried out has beenundertaken in the context of the council’s work with the community over the last 10years. Their consultation on the proposals for the detailed planning application aresummarised in paragraph 21 above. This programme has involved utilising theestablished regeneration forum, exhibitions, themed meetings and newsletters. Thedetails of the programme and how this has influenced the content of the proposalsin the application will be set out in the statement of community involvement whichwill be submitted in support of their detailed application.Resource Implications46. There are no resource implications arising directly from this report.SUPPLEMENTARY ADVICE FROM OTHER OFFICERSDirector of Legal Services47. The Leader of the Council is advised that this decision is not reserved for IDM underPart 3D of Southwark’s Constitution. However, the Leader had previously delegatedthe decision on the forward plan for the Cabinet Member for Regeneration andCorporate Strategy to consider the recommendation.48. The Leader of the Council will note at paragraph 19 of this report that under paragraph5.4 of Schedule 1 to the Regeneration Agreement, the developer shall not submit theapplication without first obtaining the written approval of the council (not to beunreasonably withheld but the council must act in the best interests of theDevelopment) to the application and all material associated drawings, specificationsand other supporting material. Paragraph 23 contains details of all such drawings,specifications and other supporting material, which are currently in draft form ahead oftheir submission to the Local Planning Authority, and which will be considered by thedirector of regeneration for approval.49. If the developer makes any changes to the application, drawings, specifications orother supporting material after approval has been given but before submission of theapplication to the Local Planning Authority, further written approval must be obtainedfrom the council.Strategic Director of Finance and Corporate Services (SDFCS) (NR/FCS/9/8/12)50. This report recommends that the Leader of the Council confirms the approval of thecouncil to allow Lend Lease to formally submit the detailed planning application for theHeygate Phase One (Rodney Road site) development, subject to the director ofregeneration approving all documentation.51. The SDFCS notes the resource implications contained within the report. Officer time toeffect the recommendation will be contained within existing budgeted revenueresources.10

BACKGROUND DOCUMENTSBackground Papers Held At ContactElephant & Castle SPD 2012 https://www.southwark.gov.uk/downloads/download/2896/elephant_and_castle_spd_supporting_documentsJon AbbottProject Director0207 5254901Southwark Plan 2007www.southwark.gov.uk/downloads/download/2284/the_southwark_planJon AbbottProject Director0207 5254901Core Strategy 2011www.southwark.gov.uk/downloads/download/2648/documents_for_core_strategy_adoptionJon AbbottProject Director0207 5254901Elephant and Castle SPG2004 160 Tooley Street SE1 Jon AbbottProject Director0207 5254901Regeneration Agreement and Stage2/3 Elephant & Castle PartnerProcurement DocumentsAPPENDICES160 Tooley Street Jon AbbottProject Director0207 5254901ANo.TitlePlanning Application - Site PlanAUDIT TRAILLead OfficerEleanor Kelly, Chief ExecutiveReport Author Jon Abbott, Elephant and Castle Project DirectorVersionFinalDated 10 August 2012Key Decision? NoCONSULTATION WITH OTHER OFFICERS / DIRECTORATES / CABINET MEMBEROfficer Title Comments Sought CommentsincludedDirector of Legal Services Yes YesStrategic Director of Finance andYesYesCorporate ServicesList other officers hereCabinet Member Yes YesDate final report sent to Constitutional Team 10 August 201211