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chilmarkconsulting.co.uk
DEVELOPING BROWNFIELD SITES
Brownfield Land Registers and Development Realities
IT’S ALL IN THE DETAIL
1st March 2016
chilmarkconsulting.co.uk
chilmarkconsulting.co.uk
Who are we?
Chilmark Consulting is an independent, planning and development
advisory firm offering a wide range of services and skills focused on
complex, mixed-use development projects.
Mike is the Managing Director of Chilmark Consulting with
20+ years experience. Key areas of expertise:
• Town planning
• Policy development
• Housing, employment land and strategic land
promotion
• Urban regeneration and brownfield development
• Asset strategy
chilmarkconsulting.co.uk
Agenda
• Brownfield Land Registers
– Headlines
– Process
– Issues
• Land Registers and Development Realities
• Case Study Example
• Conclusions
chilmarkconsulting.co.uk
Brownfield Land Registers
chilmarkconsulting.co.uk
Brownfield Land Registers –
Headlines
• Proposed in the Housing & Planning Bill
• Statutory Registers to be compiled by every
Local Authority
• Publicly available
• Annually reviewed, at least
• Standardised form and content to be applied
• Draw from SHLAA’s and Call for Sites
• Section 3 of Technical Consultation on
Implementation of Planning Changes provides
the details
chilmarkconsulting.co.uk
Brownfield Land Registers - Process
Available
• Deliverable - in 5 yrs
• Developable - in 6-10 yrs
• Proportionate viability appraisal
Meets
Minimum Size
• 5+ dwellings
• 0.25 Ha sites
Capable of
Development
• Free from constraints that cannot be mitigated
• Evidence of constraints/mitigations
• EiA by the LPA where necessary (subject to screening)
chilmarkconsulting.co.uk
Brownfield Land Registers - Issues
• Registers intended to be integral to Permission in Principle
approach – ‘Locally Supported Qualifying Document’
• A ‘Low Bar’ appears to be set for ’suitability’ and inclusion of
sites – “only reject if no realistic prospect of site being suitable”
• Resourcing issues for LPA’s particularly:
– Sites where there is potential need for EiA and HRA
– Annual updating and expansion of the Register
• Time and resource savings?
• Differential impacts by geographic area?
• Above all, the ability of Registers to adequately reflect the
development risks/challenges of brownfield land
chilmarkconsulting.co.uk
Brownfield Land Development
Realities
chilmarkconsulting.co.uk
Brownfield Development Realities
Brownfield
Regeneration
Scheme Viability
Strategic
Land & Sale Values
Infrastructure / Abnormal
Finance
Public/private/hybrid
Timing Mismatch
Insurance Requirements
Development Market
Type
Scale
Phasing
Political/Policy Support
Identified Need
Delivery Timescales
Strategic/Local Policy Fit
chilmarkconsulting.co.uk
Bearing Brownfield Risks
Private Sector
Above or at Trend Land &
Sale Market Values for End
Uses
Planning Policy conformity
No/Few Physical
Constraints
Pre-let Occupiers/End Users
Strong Profit/ROI
Hybrid/Shared
Speculative Development
With Few / No Pre-let
Occupiers or End Users
Reduced Profit/ROI
Public Authority
Significant Enabling
/Infrastructure Costs
Low/Little Market Interest
Establishing New Uses in
Area
Underlying Physical
Constraints
Regeneration Impact
Little/No Profit and Limited
ROI
Central Government
Insurmountable
Infrastructure/ Enabling
Costs
Developments of National
Importance
Overriding
Economic/Housing Impact
overcoming Financial
Profit/ROI
Market Failure
Strong/Clear Market Demand
Development Market Uncertainty/Weakness
Increasing Level of Development Risk and Decreasing Market Demand
LeadActor/Investor
chilmarkconsulting.co.uk
Case Study
chilmarkconsulting.co.uk
6 Ha Industrial Site, South Coast
• South-coast brownfield industrial/marine site
• Estuary location and town centre
• Abnormals: listed structures; collapsing river wall; ground
contamination; protected ecology
• Contributions needed to: affordable housing, public
transport enhancements; office and marine industrial
floorspace
• 580 residential units + 9,000 sq.m commercial/leisure
floorspace
Reducing Development Risk through:
• Value engineering, development re-phasing and cashflow
profiling
• Securing pre-let and end occupiers for all commercial
floorspace
• Extensive residential mix and design testing
• Detailed 1st phase planning
• Positive support and allocation in emerging planning policy
• Fit to LEP economic growth sectors
chilmarkconsulting.co.uk
Conclusions
chilmarkconsulting.co.uk
Conclusions
Aligning Brownfield Registers and Development Risks
• Fit/alignment to strategic policy, political and economic benefits
• Market demand and securing end users/occupiers
• Value engineering by:
– Testing and re-testing infrastructure and abnormal costs
– Testing and re-testing viability by phase and over
development lifetime
• Use of interim / temporary uses to generate value/cashflow
• Distinguishing marginal viability and need for public financial
support from the outset
• Taking long-term view
• How will Brownfield Land Registers really account for
development risks?
chilmarkconsulting.co.uk
T: (0330) 223 1510
info@chilmarkconsulting.co.uk
www.chilmarkconsulting.co.uk
@chilmarkUK
Developing Brownfield Sites: March 2016

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Developing Brownfield Sites - Mike Taylor 220216

  • 1. chilmarkconsulting.co.uk DEVELOPING BROWNFIELD SITES Brownfield Land Registers and Development Realities IT’S ALL IN THE DETAIL 1st March 2016 chilmarkconsulting.co.uk
  • 2. chilmarkconsulting.co.uk Who are we? Chilmark Consulting is an independent, planning and development advisory firm offering a wide range of services and skills focused on complex, mixed-use development projects. Mike is the Managing Director of Chilmark Consulting with 20+ years experience. Key areas of expertise: • Town planning • Policy development • Housing, employment land and strategic land promotion • Urban regeneration and brownfield development • Asset strategy
  • 3. chilmarkconsulting.co.uk Agenda • Brownfield Land Registers – Headlines – Process – Issues • Land Registers and Development Realities • Case Study Example • Conclusions
  • 5. chilmarkconsulting.co.uk Brownfield Land Registers – Headlines • Proposed in the Housing & Planning Bill • Statutory Registers to be compiled by every Local Authority • Publicly available • Annually reviewed, at least • Standardised form and content to be applied • Draw from SHLAA’s and Call for Sites • Section 3 of Technical Consultation on Implementation of Planning Changes provides the details
  • 6. chilmarkconsulting.co.uk Brownfield Land Registers - Process Available • Deliverable - in 5 yrs • Developable - in 6-10 yrs • Proportionate viability appraisal Meets Minimum Size • 5+ dwellings • 0.25 Ha sites Capable of Development • Free from constraints that cannot be mitigated • Evidence of constraints/mitigations • EiA by the LPA where necessary (subject to screening)
  • 7. chilmarkconsulting.co.uk Brownfield Land Registers - Issues • Registers intended to be integral to Permission in Principle approach – ‘Locally Supported Qualifying Document’ • A ‘Low Bar’ appears to be set for ’suitability’ and inclusion of sites – “only reject if no realistic prospect of site being suitable” • Resourcing issues for LPA’s particularly: – Sites where there is potential need for EiA and HRA – Annual updating and expansion of the Register • Time and resource savings? • Differential impacts by geographic area? • Above all, the ability of Registers to adequately reflect the development risks/challenges of brownfield land
  • 9. chilmarkconsulting.co.uk Brownfield Development Realities Brownfield Regeneration Scheme Viability Strategic Land & Sale Values Infrastructure / Abnormal Finance Public/private/hybrid Timing Mismatch Insurance Requirements Development Market Type Scale Phasing Political/Policy Support Identified Need Delivery Timescales Strategic/Local Policy Fit
  • 10. chilmarkconsulting.co.uk Bearing Brownfield Risks Private Sector Above or at Trend Land & Sale Market Values for End Uses Planning Policy conformity No/Few Physical Constraints Pre-let Occupiers/End Users Strong Profit/ROI Hybrid/Shared Speculative Development With Few / No Pre-let Occupiers or End Users Reduced Profit/ROI Public Authority Significant Enabling /Infrastructure Costs Low/Little Market Interest Establishing New Uses in Area Underlying Physical Constraints Regeneration Impact Little/No Profit and Limited ROI Central Government Insurmountable Infrastructure/ Enabling Costs Developments of National Importance Overriding Economic/Housing Impact overcoming Financial Profit/ROI Market Failure Strong/Clear Market Demand Development Market Uncertainty/Weakness Increasing Level of Development Risk and Decreasing Market Demand LeadActor/Investor
  • 12. chilmarkconsulting.co.uk 6 Ha Industrial Site, South Coast • South-coast brownfield industrial/marine site • Estuary location and town centre • Abnormals: listed structures; collapsing river wall; ground contamination; protected ecology • Contributions needed to: affordable housing, public transport enhancements; office and marine industrial floorspace • 580 residential units + 9,000 sq.m commercial/leisure floorspace Reducing Development Risk through: • Value engineering, development re-phasing and cashflow profiling • Securing pre-let and end occupiers for all commercial floorspace • Extensive residential mix and design testing • Detailed 1st phase planning • Positive support and allocation in emerging planning policy • Fit to LEP economic growth sectors
  • 14. chilmarkconsulting.co.uk Conclusions Aligning Brownfield Registers and Development Risks • Fit/alignment to strategic policy, political and economic benefits • Market demand and securing end users/occupiers • Value engineering by: – Testing and re-testing infrastructure and abnormal costs – Testing and re-testing viability by phase and over development lifetime • Use of interim / temporary uses to generate value/cashflow • Distinguishing marginal viability and need for public financial support from the outset • Taking long-term view • How will Brownfield Land Registers really account for development risks?
  • 15. chilmarkconsulting.co.uk T: (0330) 223 1510 info@chilmarkconsulting.co.uk www.chilmarkconsulting.co.uk @chilmarkUK Developing Brownfield Sites: March 2016