Draft Section 106 Heads of Terms - Southwark Council Planning ...

The Heygate MasterplanElephant and CastleOutline Planning ApplicationDraft Section 106Heads of TermsPrepared for Lend Lease by DP9March 2012

Lend Lease iscommitted tothe successfulregenerationof Elephantand Castle

Application Documents• Parameter Plans• Design Strategy Document• Development Specification• Design and Access Statement• Environmental Statemento Non-Technical Summaryo Main Text and FiguresChapter 1 IntroductionChapter 2 EIA MethodologyChapter 3 Existing Land Uses and ActivitiesChapter 4 AlternativesChapter 5 The Proposed DevelopmentChapter 6 Development Programme,Construction and DemolitionChapter 7 TransportationChapter 8 Noise and VibrationChapter 9 Air QualityChapter 10 Ground Conditionsand ContaminationChapter 11 Water Resources and Flood RiskChapter 12 EcologyChapter 13 ArchaeologyChapter 14 WindChapter 15 Daylight, Sunlightand OvershadowingChapter 16 Socio-economicsChapter 17 Cumulative ImpactsChapter 18 Summary of Mitigationand Residual Impactso Townscape, Visual and Built Heritage Assessmento Appendices• Vision and Destination Statement• Landscape Strategy• Tree Strategy• Planning Statement• Transport Assessment• Travel Plan• Access Statement• Housing Statement• Retail Assessment• Draft Section 106 Heads of Terms• Statement of Community Involvement• Sustainability Statement• Energy Strategy• Waste Strategy• Utilities and Services Infrastructure Strategy• Health Impact Assessment• Equalities Impact Assessment• Estate Management Strategy• Glossary of TermsThe Heygate Masterplan Elephant and Castle Outline Planning Application March 2012

Contents1 Introduction 42 Draft Section 106 Heads of Terms 53 Calculations & Assumptions 6The Heygate Masterplan Elephant and Castle Outline Planning Application March 2012 3

1 Introduction1.1 These Draft Section 106 Heads of Terms have been prepared and submitted by DP9, on behalf of Lend Lease (Elephantand Castle) Limited (the “Applicant”), to support an outline planning application for The Heygate Masterplan in Elephantand Castle (the “Site”).1.2 The Proposed Development comprises a single outline planning application for the demolition of all structures on the Siteand its redevelopment for a mix of uses. Accordingly, planning permission is being sought for the following development:“Demolition of all existing structures and bridges and redevelopment to provide a mixed use development comprisingresidential (C3), retail (A1‐A5), commercial (B1), leisure and community (D1 and D2), and energy centre (sui generis) uses,new landscaping, park and public realm, car parking, means of access, and other associated works.”1.3 This document sets out the proposed draft Section 106 Heads of Terms for the outline planning application, and identifieswhere financial contributions could be made and where works ‘in kind’ are proposed in lieu of payment. The draft Headsof Terms have been prepared following discussions with Southwark Council Planning Officers.1.4 An Illustrative Masterplan has been submitted with the outline planning application and represents one iteration of howthe Parameter Plans, Development Specification, and Design Strategy Document submitted for approval with theapplication could be delivered. The draft Section 106 Heads of Terms have been calculated based on the IllustrativeMasterplan as this represents the most likely form of the development. The Illustrative Masterplan is based on themaximum number of residential units being applied for.1.5 A number of review mechanisms are referred to in this document and the Applicant will continue to work with theCouncil post submission of the application to agree the most appropriate form and wording of such mechanisms in theSection 106 Agreement.1.6 It is envisaged that discussions relating to the obligations and the Section 106 Agreement will continue with SouthwarkCouncil during the determination of the application.1.7 The Development is also liable to pay the Mayoral Community Infrastructure Levy.4The Heygate Masterplan Elephant and Castle Outline Planning Application March 2012

2 Draft Section 106 Heads of TermsThis section sets out the draft Heads of Terms for the outline Heygate Masterplan planning application, and identifies where financial contributions could be made and where works ‘in kind’ are proposed in lieu of payment. It is envisaged that discussions relating to theseobligations and the Section 106 Agreement will continue with Southwark Council during the determination of the application. [The calculation of payments is based on the uplift of new development based on the Illustrative Masterplan and a number of other assumptions setout in Section 3.]POTENTIAL PLANNINGOBLIGATIONSUMMARY OF POLICY REQUIREMENTSOUTHWARK PLANNING OBLIGATIONS SPD (JULY2007)(WITH 2011 INDEX LINKED FIGURES)POLICY COMPLIANT CONTRIBUTION(£)ILLUSTRATIVE MASTERPLANAPPLICANT FINANCIALCONTRIBUTION (£)LEND LEASE DRAFT HEADS OF TERMS CALCULATIONS LEND LEASE JUSTIFICATIONAPPLICANT ON‐SITECONTRIBUTIONAFFORDABLE HOUSING On site provision for 15 units or more ‐ In‐Kind • Provision of affordablehousing on‐siteEDUCATION £11,156 per school place 1,358,108Employment in the development:To provide training and support into employmentthrough a WPC for one person costs £2667Total for Primary School Places ‐950,676Total for Secondary School Places –407,432APPROXIMATE TOTALAPPLICANTCONTRIBUTION• Provision ofaffordable housingon‐siteThe outline planning application commits to the Site delivering as much affordable housing as isfinancially viable in line with planning policy. The aim is for the affordable housing component to beprovided with an equal split between social rented and shared ownership units.The commitment within the Regeneration Agreement (July 2010) between Lend Lease and SC is aminimum of 25% affordable housing to be provided.950,676 950,676 Appropriate contribution to be provided.Following consultation with the Council’s education department there is a plan to expand existingprimary schools across the borough to increase capacity to meet additional demand. Secondary schoolswithin the borough are sufficient to meet demand. Therefore a contribution towards this expansion ofprimary schools is deemed appropriate.265,919 In‐Kind • BeOnSite 1,400,000 In‐kind provision for the approximate annual costs associated with the BeOnSite initiative.EMPLOYMENT DURINGCONSTRUCTIONEMPLOYMENT DURINGCONSTRUCTIONMANAGEMENT FEEPUBLIC OPEN SPACE,CHILDREN’S PLAYEQUIPMENT, ANDSPORTS DEVELOPMENTEmployment during construction:Contribution to workplace co‐ordinator programme,including training and network support £76,463 perannumEmployment during construction management fee:Contribution to the management and co‐ordinationof the construction workplace co‐ordinatorprogramme£71 per person for open space (and additional £71per person in areas of park deficiency)£80 per child for children’s play equipment£349 per person for sports development0Assumes certified employmenttraining scheme provided byapplicantIn‐Kind • BeOnSite Included in theabove102,121 102,121 102,121362,101154,3641,353,197In‐Kind other than an off‐sitecontribution of £300,000 forimprovements to VictoryCommunity Park or similar• Significant new Park• New child play space• New public open space(hard and softlandscaping)• Management andmaintenance24,900,000 in kindplus 300,000TRANSPORT STRATEGIC Replaced by draft E&C Tariff 11,683,495 11,683,495 11,683,495TRANSPORT SITE SPECIFIC Costed on a site‐by‐site basis. Eg zebra crossing£30,000PUBLIC REALM Costed on a site‐by‐site basis. For example streetlighting £2,100 per column956,695Based on average indicative costused for pre‐application discussionsonly1,295,445Based on average indicative costused for pre‐application discussionsonlyIn‐Kind • Creation of newstreets, crossings, andstreet furniture• Car club• Electric Car Charging• Boris Bike Station• Travel PlanIn‐Kind • Significant new Park• New streets• New public open space(hard and softlandscaping)• Management andmaintenanceIn‐Kind provision via substantial cost of all public realm works, including provision of a new Park andchildren’s doorstep play, and the subsequent management and maintenance of the public open space.Lend Lease is committed to the delivery of extensive, high quality public realm with an estimatedconstruction cost of in excess of £10m.The Development will provide significant new children’s play equipment on Site to address the needs ofthe under 11’s, whilst an appropriate contribution to fund off‐site improvements to cater for over 12’ssport provision will be made of £300,000.7,500,000 In‐Kind provision of site specific transport improvements including :• Highway improvements• Car Club / Electric Car Charging• Cycle Hire Station• Travel Plan measuresA reassessment mechanism for car parking will be included in the Section 106 in line with the TravelPlan.Included within costsabove for PUBLICOPEN SPACE,CHILDREN’S PLAYEQUIPMENT, ANDSPORTSDEVELOPMENTIn‐Kind provision via substantial cost of all public realm works including provision of a new park andstreets, and the subsequent management and maintenance of the public open space.ARCHAEOLOGY Site up to 1000sqm would cost £2400 0 0 0 The Heygate Estate is not located in an Archaeological Priority Zone, therefore, no contribution required.HEALTH £961 per unit 1,482,221 In‐Kind • Allowance for newhealth facilityCOMMUNITY FACILITIES £73 per person 220,668 In‐Kind • Allowance for newcommunity facilityADMIN CHARGE 2% of the first £3 million of monetary contributionsto be provided thereunder and 1% of monetarycontributions to be provided thereafter222,343.34 160,362.92 160,362.92TOTAL 19,456,677.34 13,196,654.92 50,003,6551,500,000 In‐Kind provision through inclusion of space for a health facility if required on site. The SPD states thathealth contributions will be sought where there is an identified need for increased provision. Theproposed Development includes an amount of D1 floorspace, of which a proportion could be reservedfor the provision of a health facility if there is demand for additional provision in the local area within aset period of time. The costs relate to the shell and core build cost.1,540,000 In‐Kind provision through inclusion of community use space if required on site. The SPD states thathealth contributions will be sought where there is an identified need for increased provision. Theproposed Development includes an amount of D1 floorspace, of which a proportion could be reservedfor the provision of a health facility if there is demand for additional provision in the local area within aset period of time. The costs relate to the shell and core build cost.The Heygate Masterplan Elephant and Castle Outline Planning Application March 2012 5

3 Calculations & AssumptionsThe calculation of payments is based on the uplift of new development and the following figures and assumptions:Existing SiteExisting Heygate Estate Residential BuildingsBuildingTotal UnitsKINGSHILL 228WANSEY STREET 19SWANBOURNE 110ASHENDEN 242CLAYDON 216MARSTON 104CUDDINGTON 80CHEARSLEY 72RISBOROUGH 36TOTAL UNITS 1107TOTAL FLOORSPACE (GEA) 103,158TOTAL FLOORSPACE (GIA) 98,000NB. Excludes Wingrave and Rodney Road buildings which are located outside of the application boundaryOther Existing Land usesIn addition to the residential floorspace of the Heygate Estate, the Site incorporates a number of other land uses,including:• A former petrol station which has now been vacated and decommissioned located to the southwest of the site (suigeneris use);• A small number of retail properties below the existing Heygate Boiler House (A1 – A5 use);• A doctor’s surgery on Rodney Road (D1 use); and• Crossway Church on New Kent Road (D1 use).Land Use Use Class GEA M 2RETAIL A1/A2/A3/A4/A5 1,119COMMUNITY & CULTURE D1 1,710SUI GENERIS (PETROL STATION) SUI GENERIS 366TOTAL (including residential) ‐ 106,3536The Heygate Masterplan Elephant and Castle Outline Planning Application March 2012

Proposed Development – Illustrative MasterplanLand Use Use Class GEA M 2RESIDENTIAL C3 224,167C3 (GIA) 208,475C3 (PRIVATE ONLY) (GEA) 170,367C3 (PRIVATE ONLY) (GIA) 158,441C3 (AFFORDABLE ONLY) (GEA) 53,800C3 (UNITS)2,462 unitsRETAIL A1/A2/A3/A4/A5 16,145BUSINESS B1 4,988COMMUNITY, CULTURE & LEISURE D1 & D2 5,215SUI GENERIS / ENERGY CENTRE SUI GENERIS 729SUB‐TOTAL 251,244PARKING & SERVICING ‐ 26,675TOTAL ‐ 277,919Uplift in Development• Residential (Total) – 121,009 m² (110,475 m² GIA)• Residential (Units) – 1,355 units• Retail – 15,026 m² GEA (13,974 m² GIA)• Business – 4,988 m² GEA (4,639 m² GIA)• Community, Culture & Leisure – 3,505 m² (3,260 m² GIA)• Sui Generis – 363 sqm (338 m² GIA)• Parking & Servicing – 26,675 m² (24,808 m² GIA)• Total Uplift in Development Quantum = 171,566 m² GEA (157,494 m² GIA)E&C Strategic Transport Tariff• Net uplift in residential (GIA) x £104 per sqm = £11,489,400• Net uplift in retail (GIA) (minus 10% affordable retail) x £12 per sqm = £150,919• Net uplift in community, leisure and sui generis (GIA) x £12 per sqm = £43,176• Total Tariff Contribution = £11,683,495Key Assumptions• New development GEA to GIA = 93%• Existing development GEA to GIA = 95%• 25% affordable housing based on habitable rooms and 1, 2 & 3‐bed provision• 50/50 rented / intermediate on all affordable unit types• Proposed policy compliant illustrative mix of: studios (5%); 1‐beds (33.5%); 2‐beds (51%); and 3‐beds (10.5%)• Draft E&C SPD Tariff based on net additional uplift in GIA (excluding office and affordable retail (10% of totalretail) floorspace)• Draft E&C SPD Tariff includes payments on affordable housingThe Heygate Masterplan Elephant and Castle Outline Planning Application March 2012 7

Our vision isto re-establishElephant and Castleas one of London’smost flourishingurban quarters.The Heygate Masterplan Elephant and Castle Outline Planning Application March 2012

The Heygate MasterplanElephant and CastleOutline Planning ApplicationMarch 2012This document has been printed on 100% recycled paper.Please think carefully how you dispose of this document.