developing brownfield sites - mike taylor 220216

chilmarkconsulting.co.uk

DEVELOPING BROWNFIELD SITESBrownfield Land Registers and Development Realities

IT’S ALL IN THE DETAIL

1st March 2016



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


Agenda• Brownfield Land Registers

– Headlines– Process– Issues

• Land Registers and Development Realities• Case Study Example• Conclusions


Brownfield Land Registers


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


Brownfield Land Registers - ProcessAvailable

• Deliverable - in 5 yrs• Developable - in 6-10 yrs• Proportionate viability appraisal

Meets Minimum

Size

• 5+ dwellings• 0.25 Ha sites

Capable of Developme

nt

• Free from constraints that cannot be mitigated• Evidence of constraints/mitigations• EiA by the LPA where necessary (subject to

screening)


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


Brownfield Land Development Realities


Brownfield Development Realities

Brownfield Regeneration

Scheme Viability

StrategicLand & Sale ValuesInfrastructure / Abnormal

Finance

Public/private/hybridTiming MismatchInsurance Requirements

Development Market

TypeScalePhasing

Political/Policy Support

Identified NeedDelivery TimescalesStrategic/Local Policy Fit


Bearing Brownfield Risks

Private Sector

Above or at Trend Land & Sale Market Values for End UsesPlanning Policy conformityNo/Few Physical ConstraintsPre-let Occupiers/End UsersStrong Profit/ROI

Hybrid/Shared

Speculative Development With Few / No Pre-let Occupiers or End UsersReduced Profit/ROI

Public Authority

Significant Enabling /Infrastructure CostsLow/Little Market InterestEstablishing New Uses in AreaUnderlying Physical ConstraintsRegeneration ImpactLittle/No Profit and Limited ROI

Central Government

Insurmountable Infrastructure/ Enabling CostsDevelopments of National ImportanceOverriding 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

Lead

Act

or /

Inve

stor


Case Study


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


Conclusions


ConclusionsAligning 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?


T: (0330) 223 [email protected] www.chilmarkconsulting.co.uk

@chilmarkUK

Developing Brownfield Sites: March 2016

developing brownfield sites - mike taylor 220216

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