Feb 2, 2017 - Development Plan (SDP) (Aberdeen â Peterhead). Peterhead is identified within the Aberdeenshire Local De
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Infrastructure Services
REPORT TO INFRASTRUCTURE SERVICES COMMITTEE – 2 FEBRUARY 2017 SIMPLIFIED PLANNING ZONE – PETERHEAD SOUTH 1
Recommendations The Committee is recommended to: 1.1
Agree that officers begin the statutory process that would allow for the creation of a Simplified Planning Zone (SPZ) for the south of Peterhead.
1.2
Agree that following consultation with key agencies and other relevant stakeholders on the SPZ Scheme’s form and content and on the completion of statutory procedures the SPZ Scheme shall be referred back to Buchan Area Committee for determination.
1.3
Agree that the operation of the SPZ will be reviewed during Year 3 following adoption and the findings reported back to Committee for a decision on its continued operation.
2
Background / Discussion
2.1
A report seeking the comments and views of the Buchan Area Committee was presented at their meeting of 29th November 2016 (Item 6) and set out the basic principles, advantages and disadvantages of setting up a SPZ for Peterhead South. Further background and discussion of SPZ’s is set out in Appendix 2.
2.2
The Committee agreed to provide the following comments to Infrastructure Services Committee:1. to recommend approval of the proposal to create a Simplified Planning Zone for industrial areas in South Peterhead to be delivered within the Energetica Corridor/Regeneration Priority Area 2. to request that Officers provide evidence, within the report to Infrastructure Services Committee, of the “positive feedback” resulting from the implementation of SPZs elsewhere in Scotland, as referred to in the report, and 3. to highlight that the creation of an SPZ should not mean that large housing schemes are exempt from making developer contributions.
2.3
The Committee further agreed that, following consideration by the Infrastructure Services Committee, Officers consider including Peterhead town centre also, to include the area around the port, and that Officers report back to the Buchan Area Committee in due course with their findings.
2.4
With regard to ‘Comment 2’ provided by the Buchan Area Committee; Information provided by Officers at Renfrewshire Council estimates that the SPZ adopted in 2014 at Hillington Park has supported £20m of investment, creating over 20,000 square metres of new floorspace and has led to the
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development of key sites that have been vacant for over 10 years in its first two years of operation. 2.5
Glasgow City Council Officers, who oversee a smaller part of the SPZ at Hillington Park report that the owners utilise the SPZ status as a key promotional and marketing tool and have secured the purpose built headquarters of Harley Davidson Motorcycles as part of the development of a motorcycle “village” within the park. Whilst this decision was unlikely to be wholly based on the SPZ status, it is reasonable to conclude that it will have played a role in the investment decision in this particular location.
2.6
With regard to ‘Comment 3’ this proposal for a potential SPZ in Peterhead South is not proposed to extend to residential development. Further investigation with regard to the benefits and viability of town centre regeneration mechanisms, which would include a residential use, will be investigated separately.
2.7
Further detailed work will be necessary to address whether it should be a specific scheme (i.e. gives a permission which specifically itemises the types of development permitted and the limits imposed); or a general scheme (i.e. gives a general or wide permission covering almost all types of development but listing the exceptions).
2.8
An SPZ Scheme will consist of a plan and a written statement (and any other supporting information as required). An SPZ scheme written statement will be prepared which will specify the development or classes of development permitted by the Scheme, the land covered by the scheme, and any conditions, limitations or exceptions.
2.9
Should the Committee agree to progress the proposed SPZ for Peterhead South the following consultation will be required.
Consult land owners/tenants Consult community/public Consult Statutory Consultees Consider Feedback/Review Prepare Detailed Content of Scheme 2nd round of Consultation (6 weeks) Consider 2nd round Feedback/Review Publicise Intention to Adopt Scheme Adopted for 10 year period
2.10
Once the initial proposals have been prepared, and before formally agreeing the content of the proposed SPZ Scheme formal notification and publicity procedures above will be carried out along with consultation to Scottish Ministers.
2.11
A screening exercise will require to be undertaken in accordance with the requirements set out in The Town and Country Planning (Environmental Impact Assessment) (Scotland) Regulations 2011.
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2.12
Statutory consultation will also require to be undertaken including SEPA, Scottish Natural Heritage, Transport Scotland, the community council as well as all land owners and tenants.
2.13
Officers will report back to the Buchan Area Committee and on the outcome of the publicity and consultation exercise. The content of any objections or representations which may have been received will be presented at this stage along with how it is proposed to respond to them.
2.14 The Head of Finance and Monitoring Officer within Business Services have been consulted in the preparation of this report and their comments are incorporated within the report and are satisfied that the report complies with the Scheme of Governance and relevant legislation. 3
Scheme of Governance
3.1
The Committee is able to take a decision on this item in terms of Section F.1.1.b of the List of Committee Powers in Part 2A of the Scheme of Governance as it relates to a policy and resource matter (within agreed budgets) relating to a function of Planning & Building Standards and Economic Development Services that have not been reserved to the Full Council or specifically delegated to any other Committee of the Council.
4
Equalities, Staffing and Financial Implications
4.1
An equality impact assessment is not required because the adoption of a SPZ Scheme is unlikely to impact on people with one or more protected characteristics. If progressed the SPZ process will require publicity and consultation and the outcomes of this will be reported to the relevant Council Committees.
4.2
There are staffing and financial implications associated with the adoption of a SPZ Scheme that will remove the need to apply for planning permission for certain development and therefore remove planning application fee income for this particular location, whilst maintaining the need for planning staff to assess, respond to and monitor development notifications under the SPZ Scheme.
4.3
It is difficult to estimate what the increase in building warrant and other income might be through increased development activity. However, the potential loss in fee income can be more easily quantified. Dales & Upperton the two main employment areas to the south of Peterhead have generated on average £36,000p.a. (£108794 for the period 2014-2017) in planning fees relating to commercial development.
4.4
Simplified Planning is a tool that will be used to promote and market this location with the aim of stimulating increased private sector investment and increased economic activity through the relaxation of the formal planning process. As seen in other examples in Scotland, primarily Hillington Park in Renfrewshire, the decrease in planning fee income is offset by increased economic activity. Increased activity within the commercial areas in the south of Peterhead will still attract building warrant and advertisement application fees as well as increased business
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rates and associated additional activity within the local economy through job creation and construction spend. 4.5
The Business Rates Incentivisation Scheme (BRIS) was introduced to incentivise Council’s to grow business rates. Council’s that exceeded the target then retain 50% of the additional rates income generated. This mechanism could again offset any losses in planning application fee income from the implementation of the SPZ.
4.6
In the first two years of operation the Hillington example has enjoyed £20 million of investment and created 20,000 square metres of new commercial floorspace with the added value that this entails. Whilst the planning application fee income will be forfeited on development that complies with the SPZ Scheme it is anticipated that the potential loss in planning application fee income per annum can be offset through building warrant and advertisement consent fee income, along with increased business rates, construction activity and job creation for the ten year lifespan of the SPZ. The operation of the SPZ, including related fee income and economic impact will be reviewed at year 3 and the findings reported back to Committee to consider continuation of the SPZ.
Stephen Archer Director of Infrastructure Services Report prepared by James Welsh Date 6th January 2017
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APPENDIX 1
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APPENDIX 2 The Strategic Case Aberdeenshire Council is committed to diversification of the local economy and creating conditions to support investment by the private sector. The Regional Economic Strategy sets out the overarching blueprint to support economic growth with a key part of this being to invest in infrastructure that caters for the needs of a high performing international city region economy and a growing rural hinterland whilst capitalising on the region’s existing strengths to support a broadening of our economy across other industries – within the energy sector itself, tourism, food, drink, fisheries and agriculture, creative industries and life sciences. Aberdeenshire Council is also committed to Regeneration of its four northern towns and Action Plans have been developed to support this work. Alongside this work officers are also continuing to identify and deliver a range of innovative approaches to promote and encourage investment and economic activity to within the Energetica corridor. The Energetica corridor is identified in the National Planning Framework (NPF3) as an opportunity for growth and investment. It also forms one of the Strategic Growth Areas (SGA) set out in the Aberdeen City & Shire Strategic Development Plan (SDP) (Aberdeen – Peterhead). Peterhead is identified within the Aberdeenshire Local Development Plan (ALDP) as a key service centre and part of the Regeneration Priority Area. This means that it forms a key strategic investment location for the region. Introduced in the mid-1980s Simplified Planning Zones (SPZ) followed the line of thought that streamlining land use planning procedure provides a stimulus for development and investment activity in locations that might otherwise be considered unattractive, but without having an adverse impact on design or environmental standards. Simplified Planning Zones; Their Purpose and Operation Planning authorities are responsible for making and reviewing a SPZ Scheme within their area, but anyone can ask the authority to create a SPZ. Renfrewshire Council and Glasgow City Council, along with support from the owner Patrizia Immobilien, implemented what is widely considered as a successful SPZ at Hillington Business Park in 2014. The recent Review of the Scottish Planning System acknowledged the positive impact that use of simplified planning could have as a promotional tool within the Scottish planning system. The potential for a SPZ for Peterhead fits with the strategic nature of the location offering both opportunity for increased economic activity and regeneration of older commercial areas. Suitability of the potential area of search identified on the plan
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attached (Appendix 1) requires to be assessed in further detail to taking into account the relevant guidance and advice as set out in the Scottish Government Circular 18/1995 of the Planning and Compensation Act 1991. As a result of this the area of search may be refined further prior to public consultation. SPZs are designed to support investment in a defined area by removing the planning hurdle and speeding up the process of development or redevelopment on the ground. The designation removes the need to obtain planning permission for the types of development that are specified within an SPZ Scheme. Provided proposals comply with the SPZ Scheme, it is not necessary to make an application for planning permission, but there is still a requirement to notify the Planning Authority of development proposed under the SPZ Scheme, when development commences and when development is complete. The duration of a SPZ is ten years from the date of its adoption. There are no restrictions on the size of a SPZ boundary and the Scottish Government has suggested that they are used more strategically. However, further investigation and discussion with staff at the Scottish Government has suggested that The Town and Country Planning (Environmental Impact Assessment) (Scotland) Regulations 2011 will have a significant role in determining the extent of the SPZ boundary. In the case of the Hillington Park SPZ the entire boundary of the SPZ was subject to EIA Screening and development allowed under the SPZ Scheme was kept to a scale that would not trigger the requirement for an EIA. An EIA Screening exercise would be required for Peterhead South and no EIA Development would be allowed under the SPZ Scheme. The Planning authority would still be required to monitor development within the SPZ through the notifications process. In light of the above a large single site boundary or a series of separate sites with similar characteristics could be identified. A single SPZ Scheme would remain appropriate even if a smaller, more dispersed series of sites were designated. Key Considerations A key consideration in progressing the preparation of a SPZ is whether the SPZ would result in a decline or diminution of design standards or development quality which in turn would have a significant and/or unacceptable detrimental impact on the amenity or appearance of the area in question. As part of the above consideration the SPZ should therefore not include land covered by conservation area status and other significant conservation, landscape, recreational and agricultural value should be avoided. This has been taken into account in identifying the initial area of search to the south of the town designated BUS3 in the Aberdeenshire Proposed Local Development Plan (Appendix 1).
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The area identified is of similar commercial/employment type uses and does not include land or buildings covered by any of the above designations. The implementation of a SPZ in this area at this stage and prior to detailed assessment is not considered to have an unacceptable impact on the amenity or appearance of the area. The scope of permissions allowed by a SPZ can be flexible allowing for a range of uses or one predominant use including both major and minor development. It is anticipated that the extent of development in this case will largely be governed by the EIA Screening exercise. Two approaches can be taken to preparing a SPZ Scheme. Either the scheme sets out specifically what permitted development is allowed or it sets out what is not permitted under the SPZ Scheme. The former is the more common approach. Experience from examples elsewhere in Scotland place emphasis on the detailed drafting, form and content of the SPZ Scheme. This part of the process is central to ensuring that standards, quality and design are maintained and where possible enhanced. Existing work, such as the Environmental Improvement Masterplan prepared for Peterhead Southern Gateway will provide valuable information to inform the content of the SPZ Scheme. The SPZ Scheme for Peterhead would require to include particular standards, design criteria, good practice guides, conditions and where relevant, limitations and restrictions to ensure the area is appropriately safeguarded from inappropriate development and uses whilst maintaining the necessary flexibility and attractiveness for investors. It should be noted that if the planning process is simplified and applications are not required to be submitted then there will be no planning application fee income generated by the developments that occur within the SPZ boundary. This is an important consideration as the planning authority will still be required to provide a service in responding to development notifications, questions and queries during the operation of a SPZ. There will also be officer input required in developing and consulting on the SPZ as part of the statutory process. Feedback from the two local authorities operating SPZ’s is mixed. Glasgow City Council noted a loss of planning application fees, but an increase in the number of enquiries and questions regarding the business park covered by the SPZ that were needed to be resourced. Renfrewshire Council indicated no significant decline in planning fees from the park as there was limited activity prior to the designation and the increased wider economic activity was considered a net gain. It should be noted that whilst there may be a loss of planning fee income as development coming forward falls under the SPZ Scheme increased construction activity through the incentivisation of the SPZ may provide an increase in building warrant fees and advertisement consent applications for new and extended commercial premises so there is the potential to offset any loss in planning fee income. Glasgow City Council also note an increase in
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applications for certificates of lawful use for developments within the SPZ. These applications would again attract a modest fee, payable to the planning authority. The Business Rates Incentivisation Scheme (BRIS) was launched in January 2012 to financially incentivise Councils to grow their business rates. Councils who exceeded their share of the national target can retain 50% of the additional rates income generated. The additional development activity that the SPZ seeks to incentivise can contribute to increased business rates. This can offset the loss of planning application fees. Development activity has declined within the Dales and Upperton business parks since 2014, which reflects a downturn in the wider regional economy. Commercial planning application fee income from these areas to the south of Peterhead have averaged out at just over £36,000p.a. with a peak of £70,000 in 2014 dropping to a low of £10,000 in 2015, with only a modest increase to £28,000 in 2016. Future income will be dependent on development activity whether or not a SPZ is implemented and an opportunity to cease operation of the SPZ will be offered as part of a review of operation in Year 3.
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APPENDIX 3 References/Supporting links 1. Aberdeen City & Shire Regional Economic Strategy 2015 http://bit.ly/1Y9J7U4 2. NPF3 http://www.gov.scot/Publications/2014/06/3539 3. Aberdeen City & Shire Strategic Development Plan http://www.aberdeencityandshiresdpa.gov.uk/AboutUs/Publications.asp 4. Aberdeenshire Local Development Plan 2012 https://www.aberdeenshire.gov.uk/planning/plans-and-policies/TheLocalDevelopment-Plan-2012/ 5. Patrizia Immobelien https://www.patrizia.ag/en/ 6. Hillington Park SPZ http://www.renfrewshire.gov.uk/article/2480/Hillington-Park-SimplifiedPlanning-Zone http://www.gov.scot/Resource/0050/00500946.pdf 7. Circular 18/1995 http://www.gov.scot/Publications/1995/08/circular-181995 8. The Town and Country Planning (Environmental Impact Assessment) (Scotland) Regulations 2011 http://www.legislation.gov.uk/ssi/2011/139/contents/made
