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SCRIF Stage 1A Outline Business Case (Draft Final)

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PROMOTER’S INFORMATION

Promoting Organisation: Barnsley Metropolitan Borough Council

Contact name and role: Mark Lynam – Head of Regeneration Lerina Pearson - Remaking Programme Manager Ian Wilson - Group Manager Design and Transportation

Address: Westgate Plaza One, PO Box 603, Barnsley S70 9DF

Email: [email protected] [email protected] [email protected]

Telephone: 01226 772774 (M Lynam) 01226 773290 (L Pearson) 01226 772158 (I Wilson)

SCHEME DETAILS

Scheme name: M1 Junction 36 – A635 Dearne Valley Economic Growth Corridor

Scheme location: M1 Junction 36 Hoyland and Goldthorpe, Barnsley

Lead delivery organisation: Barnsley Metropolitan Borough Council

Other delivery partners & roles:

HCA - The HCA are a landowner and partners with the potential to form a joint Venture Company being discussed. Highways Agency - joint working with the council to analyse and identify the proposed local highway intervention adjacent to M1 Junction 36 Private sector landowners and developers - secure planning perrmission and on site delivery

Scheme Type (refer to and

complete Annex 1) T1 and R3, 5 and 6

Which category / code (Annex 1)

does the majority of your scheme

fall within:

T1

Total Scheme investment: 125,357,000

Total Private investment: 100,500,000

Total Other public sector investment (non-SCRIF funding):

383,000


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Total SCRIF funding sought (£): 24,628,000 SCRIF as % of total scheme investment:

19.65

SCHEME SUMMARY

Please provide a summary description of your scheme (approx. 300 words). Append any graphics.

[Description to include a summary of scheme purpose, required investment, location, and direct and indirect benefits that will

be delivered]

This project is part of Barnsley’s Economic and Core Strategies to deliver employment land which will

provide for an additional 14,000 new jobs in the borough by 2033.

It is acknowledged in both of these strategies that Barnsley has a shortage of appropriate employment

development sites which is significantly impacting on the ability to generate new private sector jobs. In

order to generate the number of new jobs required to enable Barnsley to achieve parity with regional job

density statistics and contribute effectively to the SCR strategic plan. The Barnsley Core Strategy,

adopted 2011 identified the need for up to 350 hectares of additional employment land and acknowledged

that this requirement may lead to the allocation of land currently allocated as Green Belt. In addition the

strategy gave focus for new development (employment and housing) on the principal towns which include

Hoyland and Goldthorpe.

Subsequently a market assessment of LDF employment sites identified the best sites for development in

terms of viability, market demand and desktop site issues. Three main areas for potential development

were identified which offered the borough the best mix of employment sites to attract and accommodate

new business.

One of these areas is the Hoyland and Goldthorpe corridor which offers capacity for different types of end

user employment – and offers large areas of land which could potentially provide for the creation of 10,000

of the targeted new jobs on these sites alone when fully developed out. .

Current development is inhibited due to land values and significant road capacity issues.

This project provides access improvements and includes road access to the employment sites and thus

reduces the viability gap for developers.

This project combines the reconfiguration of key highways connections along the Dearne Valley Parkway

(M1 Junction 36 along the A6135 to Goldthorpe) the provision of access roads plus the preparation of

additional sites along the route which will result in the ability to develop both potential employment and

housing sites significantly contributing to the growth agenda.

The highway infrastructure and site preparation would potentially release 295 Ha (gross) 229 HA (net) of

employment serviced plots and significant housing sites. The Goldthorpe land provides for large footprint

sites which are in short supply across the UK and therefore provides for a unique property offer.

Birdwell roundabout, adjacent to Junction 36, is currently challenged in terms of volumes of traffic and

capacity issues and therefore to accommodate the release of additional employment land this junction

needs to be improved. Similarly certain junctions on the A6195 Dearne Valley Parkway are also currently

congested and they also require highway improvements to accommodate the likely increase in traffic

volumes resulting from the new development areas. To mitigate the increase in traffic volumes, new public


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transport services from Barnsley’s Principal towns will be introduced to encourage travel mode transfer. In

addition a new network of walking and cycling routes are planned to be constructed during 2014/15 to link

the new development sites with Elsecar railway station and local residential areas. In the medium term the

new sites will be serviced by the new HS2 station at Meadowhall. This is likely to enhance the

attractiveness of the location to national developers.

This opens up access to a total of 138HA gross of employment sites at Hoyland which is a key location for

existing businesses and inward investors and therefore is of interest to developers and owner occupiers.

The REM modelling suggests that the total investment will unlock employment sites which will create

10,800 new jobs and will have a local GVA of £401m. This makes up 17.49% of Barnsley GVA and

contributes 1.69% to the SCR GVA.

The total project cost of £125m requires SCRIF contribution of £24m to close the developer viability gap

and address access issues by funding highways improvements and providing roadways and services to

deliver fully serviced sites.

Why is the Scheme needed and what it will deliver for the Sheffield City Region (approx. 300 words)

The scheme is needed to :

Significantly contribute to the scale of growth required in the SCR

Support the achievement of the SCR Growth plan as it supports many of the key objectives of the

plan – job creation, inward investment, target sectors, higher added value posts whilst providing

lower skilled posts for targeting worklessness /unemployment

Address existing capacity and connectivity issues on a major road network in the borough with key

linkages to Sheffield, Doncaster and Rotherham within SCR and access to investors from the

north and West of the region – without improvements, the Highways network would not be able to

accommodate the additional traffic generated from the proposed development sites

Make available additional employment sites in a borough with limited commercial space – 229 HA

(net)

Create up to 10,000 new and better jobs

Open up new large sites for which there is proven demand across the UK and internationally with

limited supply therefore providing for a unique offering

Address existing shortage of commercial property and provide for future growth

Align commercial demand with the housing strategy and provide sites for homes in the developed

area

Link employment sites to the labour market now and in the future

.


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1. STRATEGIC CASE

SHEFFIELD CITY REGION STRATEGIC VISION & OBJECTIVES

Vision: Sheffield City Region will be the best place to collaborate, to invest, to innovate and grow a

business, and live, work, play and study. It will be supported by an unrivalled skills base and quality of life.

Objectives: this vision to be delivered by:

Increasing the Sheffield City Region’s Gross Value Added (GVA);

Increasing the number of jobs in the Sheffield City Region / overall employment rate;

Rebalancing the economic base of the City Region, by: 1) increasing the proportion of the workforce

employed in the private sector; and 2) helping address the economic performance gap that exists

between the City Region (as with other northern city regions) and the Greater South East; and

Capitalising and enhancing the quality of life in the Sheffield City Region and delivering sustainable

economic growth.

1.1 SCHEME RATIONALE

What opportunity or barrier will SCRIF investment unlock? Please make specific reference to barriers to

economic growth. (approx. 500 words)

By investing in infrastructure, SCRIF will do most to support economic growth and provide much needed

private sector jobs. Barnsley needs to create 14000 additional jobs over the next 20 years to achieve job

density parity with regional averages. In order to achieve this there is the need to create additional

employment sites as this is a key restriction to job creation. Work is currently on going to finalise the total

employment land figure through the Local Plan process due for consultation September 2014, but due to

the scale required this can only be achieved by the creation of large business parks as currently there are

few existing employment sites and these are limited in size.

There is limited land available to develop the required job sites. A study was commissioned and completed

in March 2013 to prepare a market assessment of LDF employment sites (Peter Brett Associates). 51 sites

were assessed (new, existing, rollover, suggested) and ranked in terms of best fit to achieve the desired

outputs. (usage, deliverability, job creation, rates generation.) It was acknowledged and confirmed by this

report that there would be a requirement to re designate green belt land as per the adopted Core Strategy

2011.

The Hoyland/Goldthorpe project has the scope the create 2/3 of the job requirement for Barnsley and also

a significant input for SCR and the target of 70,000 jobs. This is acknowledged as one of the 7 key priority

growth areas for SCR.

There are existing undeveloped employment sites at Hoyland and the identified new sites will provide

development land suitable for a wide range of uses – from smaller units to large distribution hubs. The

sites at Hoyland are suitable for multi occupancy development.


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The large flat sites at Goldthorpe would be unique in Yorkshire and one of only c.10 sites in the UK which

could offer individual development sites of up to 1m sq. ft. Therefore making the property offer in SCR

attractive to existing businesses and inward investors.

Lack of employment sites is restricting job creation. Existing employment sites remain undeveloped as a

result of cost of development, accessibility, location and size of site.

In the March 2013 market assessment each site was subject to a viability gap calculation. This assessed

the cost to bring sites forward for development compared with the estimated end value. The viability gap

was part of the consideration in identifying these target sites. To be deliverable it was assessed that if a

site had all of the target attributes and the viability gap was less than 50% then financial viability could be

improved by a number of measures including linkage of sites – as in this situation at Hoyland.

Financial viability for most sites is impacted by the cost of site infrastructure. In the sample of preferred

sites in the 2013 market assessment study – onsite infrastructure costs represent 41% of the total

development costs with offsite costs representing 17%. (Based on the sample of 8 Hoyland sites)

In addition to financial viability the scheme is challenged by accessibility. Birdwell roundabout adjacent to

M1 J36 is already at capacity. In a recent independent survey (covered by the Barnsley Chronicle 21

March 2014), the A61 through Birdwell towards the J36 roundabout has been named the second worst

road in the country for delays based on data from the Department of Transport.

The Highways Agency are, aware of the situation and are, keen to ensure that Birdwell roundabout and

the immediate local network is improved so that the additional development traffic does not affect traffic

flows round M1 Junction 36 The HA have, therefore, been working closely with the Council in Transport

modelling and option identification of highway interventions.

Any new sites in addition to the existing approvals cannot be undertaken without improvements to the

roundabout. The access to the key sites at Goldthorpe and opening up of new sites at Hoyland also

require new highways infrastructure or reconfiguration.

SCRIF will enable the highways improvements and site infrastructure development to unlock the target

development land and bring forward existing and new employment sites which meet up to 66% of

Barnsley’s private sector employment targets and contribute significantly to SCR private sector growth

targets.

How will your scheme contribute to the achievement of the City Region’s Strategic vision and growth

objectives? (approx. 300 words)

This scheme is about job creation. The target is 10,000 new jobs on sites brought forward as part of this

plan contributing to the SCR job creation target of 70,000 jobs

Jobs will be created by opening up new job sites which will be suitable for growing indigenous

businesses and new, particularly large scale, inward investors. In addition the new sites will release

space in smaller units where companies are locked in due to lack of available relocation sites and thus

release existing space for new start-ups. This combined strategy should minimise displacement outside

the region happening whilst providing opportunities for more highly skilled occupations.

The sites to be created will be multi use and will be suitable for a range of different businesses. As well as

the existing EZ status at J36 Shortwood, an area known as Gladman Park again at Junction 36 has

recently been granted EZ status. These will not only enable short term wins but also develop a continued


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marketing strategy for the wider corridor into the future contributing to the appeal of these sites for

development.

There will be high impact sites at Goldthorpe due to the size and topography of the land which will be of

key interest to inward investors and large multinationals – of interest to job driver industries including

transport, logistics and internet fulfilment. Barnsley has invested in growing businesses in the target GVA

driver sectors of manufacturing, creative and digital, low carbon and healthcare.

This project will meet current and emerging needs and ensure investment readiness for the recovery in

the wider economy to capture investment largely in the manufacturing/distribution sectors.

The creation of 10,000 new private sector jobs will have the dual benefit of increasing GVA and

addressing worklessness. The impact of 10,000 new jobs on the borough will impact on GVA by the

volume and mix of jobs. The current REM model is based upon a job mix based on the target sectors of

advanced manufacturing, construction, visitor economy and logistics (76% of jobs) with enabling sectors

(CDO, low carbon, businesses services) making up the balance. This mix provides for higher quality jobs

to be created to drive GVA whilst allowing for lower skilled posts to address the unemployment issues in

the region).

The infrastructure development will open up significant housing land in addition to employment land and

therefore increases housing delivery as noted in SCR Growth plan. Barnsley has had a good track

record in terms of housing delivery within the region, even during the recent recession period.

Outline how the scheme fits with national, sub-regional and local investment plan policies. Also outline

whether there are any conflicts, and whether any stakeholder consultation has been undertaken/received.

(approx. 600 words)

National; - Fits with the Government’s growth agenda and Hestletine Review recommendations. Provides

significant employment and housing growth opportunities and reduces welfare dependancy.

Sub regional – as discussed above – re SCR Growth plan

Local investment policies

BMBC has an adopted Core Strategy and is now preparing a new Local Plan which will provide an overall

framework for development and seek to allocate new sites for employment, housing and other uses. This

will be adopted in 2016 with a first draft for consultation Q3 2014. Whilst there is therefore a timing conflict

with the SCRIF process, the fundamental drivers of the Local Plan are largely from the following local

approved strategies:

1. Barnsley Core Strategy (adopted 2011) - identified need to substantially increase the amount of

land available for employment use and for residential development. This draft DSAP consultation

document identified potential strategic employment sites at Hoyland one of which is currently

allocated in the UDP but where certain development is constrained due to the reasons noted

above.

2. Development Sites and Places (DSAP) Development Plan document – In September 2012 BMBC

consulted with the public and other consultees on this document. It considered a range of


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employment land options for the borough and the Hoyland and Goldthorpe areas were identified

as strategic employment sites and also linked to further housing growth allocations around these

settlements functioning as principal towns.

3. Dearne Valley Eco Vision for sustainable growth – seeks to protect and enhance the area’s

inherent natural qualities - need to retain quality of build and environment and links to active

tourism hub. The guidance provided to developers in respect of future planning applications

stresses the importance of ensuring developments maintain and enhance the biodiversity and

geological value of the sites, protecting and improving important habitats and wildlife corridors.

4. Barnsley Jobs and Growth Plan (2014-2017) - to develop those industries that have the most

potential to address the jobs and business deficit and improve the long term performance with a 3

year focus to deliver key large interventions. Programme 1 is investing in infrastructure to bring

forward key serviced employment land of sufficient size to attract quantity and quality jobs. In

addition Programme 2 focuses on attracting Inward Investment seeking to work alongside SCR

and LCR to develop a complimentary inward investment approach whilst seeking to generate and

develop Barnsley's own brand and market potential

Stakeholder Consultation

Consultation has been held with land owners and developers. The following table identifies the

owners/developers

Sites Owners Preferred Developer

Junction 36 / Hoyland Harworth Estates

Wentworth Estate (Trusts)

Hartwood Estate

HCA

Harworth Estates

GMI

Hartwood Estate

TBC

Goldthorpe Wentworth Estates

Individual farmers with parcels of

land

GMI – who are co-ordinating

negotiation with the farmers to

secure purchase by the Trusts

prior to development

Letters of support and intent have been received from Harworth, Hartwood, GMI and HCA.

BMBC have engaged Arup and QCs to consult on the Green Belt review and the Green belt release.

BMBC have worked with the Highways Agency and Aecom consultants on modelling work to agree an

engineering solution to the congestion and anticipated demand in and around J36.

BMBC have engaged Benell Associates/William Saunders to develop a Development Framework – as a

guide to developers on key issues which will need to be addressed in the planning process. This is due

summer 2014 and will accelerate the submission of planning applications anticipated Autumn 2014 to

maintain momentum during the in parallel development of the Local Plan and assist in being investor

ready.


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Conflicts/challenges

Conflict/challenge Mitigation

Green belt site release required Local Plan Green Belt review by Arup along with

QC advice

Commissioned advisory development framework

document for developers on addressing greenbelt

issues

Planning not yet secured Local Plan not to be released in draft for

consultation until September 2014. Considered

issue of early planning applications jeopardising

the consultation process. Advice taken and early

planning applications will be accepted at

developers’ own risk. Developers able to take this

risk as the potential of bringing the sites forward

subject to adoption of the Local Plan and securing

planning permission will be a worthwhile

risk/reward decision. Planning at Goldthorpe is

recognised as being more challenging – for

reasons including green belt issues and local

objection. Land allocations will be resolved

through the on-going Local Plan process due for

consultation in September 2014.

In terms of the road infrastructure works, the land

take requirements are being designed to be either

part of the adopted highway or within the

ownership of the HCA on which discussions have

taken place for dedication of the land as highway.

Timeline This is a phased scheme. The scheme at Junction

36 Hoyland is required to open up accessibility to

the Goldthorpe sites and to improve connectivity.

The plan is to accelerate planning applications

later in 2014 on the Hoyland sites to enable these

sites to be released more quickly and to then drive

the development along the Dearne Valley corridor.


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What are the implications if the scheme does not secure SCRIF investment? (approx. 300 words)

The release of the employment land will not be achieved without the leverage provided by SCRIF. If

SCRIF is not achieved the most likely outcome following assessment of different scenarios is as follows:

The volume of traffic using Birdwell roundabout, adjacent to M1 Junction 36 is already nearing

capacity. Similarly, the volume of traffic using certain junctions on the A6195 Dearne Valley

Parkway is also nearing capacity. The existing highway network will, therefore, only accommodate

limited additional development along the A6195 corridor before traffic congestion becomes

unacceptable. The full potential of this corridor will not be realised unless SCRIF can be used for

highway improvements.

An EOI application for Local infrastructure funding was made for the Hoyland area in 2013 as a

partnership submission by key landowners to demonstrate the need for infrastructure works to

deliver employment and housing growth. This application is still awaiting feedback. Should this

funding be required to progress elements of the plan and a decision is not made in the near future

the project wil not achievable in the desired timescale and will stifle the growth potential in jobs

and housing.

The packaging of the Hoyland sites and the enhancement of the A6195 to open up the Goldthorpe

sites has benefits in that the infrastructure cost can be spread across a higher number of sites and

thus makes the viability gap smaller for the developer and makes the site more attractive.

Piecemeal development is therefore more difficult to attract. Indeed some of the approved sites

from the 2004 Barnsley Unitary Development Plan have not yet been brought forward

The financial returns on commercial property development whilst improving will not be sufficient to

encourage developers to undertake spec build in the foreseeable future in a location where the

infrastructure cost is prohibitive

SCRIF provides the correct level of funding to ensure that BMBC can develop strategically

important sites in a controlled and appropriate way to ensure there is provision of open spaces,

retention of habitat and sites of geological value etc in these key edge of settlement locations.

BMBC will continue to seek other sources of matched funding to maximise the benefits for SCR

Are the economic outcomes of the scheme dependent upon any other project or investment? (approx. 300

words).

[An example - SCRIF investment helps provide funding for access to a development site, but additional funding (either private or

other public) is needed to develop out the site and therefore deliver the economic outcomes].

The scheme outcomes are dependent upon the financial commitment of the landowners and developers to

bring forward the employment sites. This scheme will provide the highways and infrastructure to the sites

but the development of the employment and residential sites will be subject to the development partners.


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BMBC have secured as much commitment as is possible to do at this stage prior to the progression of the

Local Plan to ensure that, should the scheme go ahead, the individual land owners and developers will be

ready to commence the project.

Investment readiness and site delivery are important features of the draft Local Plan to ensure as best is

possible the generation the jobs growth.

The key features of the strategic partnerships being built by BMBC to support the development of this

project:

Close liaison with owners/developers

Securing letters of intent from owners/developers

Securing willingness to apply for speculative planning prior to the adoption of the Local Plan

Funding development of planning guidance for sites in the Green Belt

Funding a market assessment report by CPP on end user appetite for the designated sites

EOI for Local Infrastructure Funding

STRATEGIC CASE ASSESSMENT (TO BE COMPLETED BY THE ASSESSOR)

Does the scheme have a clear strategic rationale and align to SCR Growth Plan objectives?

2. COMMERCIAL CASE

2.1 DEMAND CASE

Please set out the demand justification for SCRIF investment in this scheme, in relation to the anticipated

private sector investment and associated jobs and GVA outcomes. Draw on and set out the evidence that

you have to support this (approx. 500 words)


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The shortage of available development land is one of the key drivers for this scheme. Evidence of demand

for this scheme has been demonstrated by internal data collection in respect of property requests directly to

BMBC and via discussions over a period of time with local land owners and developers.

To support the Local Plan and the internal case for development into the Green Belt BMBC have contracted

with external specialists to assess and report on the current and forecast market conditions. This

commenced with the market assessment report by Benell/William Saunders (2013) and a current market

assessment report has recently been commissioned from Commercial Property Partners (CPP) (March

2014). Details of the outline findings and market assessment from CPP are summarised below.

There is a shortage of development land in the borough and an increasing limitation on available sites over a

certain size. Inward investment activity has highlighted the lack of sites which in some instances is as a

result of existing landowners being unwilling to release sites at less than cost following the impact of decline

in property values. However the release of these sites alone will not meet future demand.

An assessment was undertaken by the Investment Team within BMBC in January 2014. The reports are

available but the key indicators for property demand are as follows:

At January 2014 there was 1.3m sq. ft. of industrial and office premises in the borough compared

with 1.74m in January 2013 – a 22% decrease in available space

The largest available office was 15000 sq. ft. and the largest warehouse being marketed was

186000 sq. ft.

Of the larger units being marketed there were only 8 of 25000+ sq. ft. and only 4 of 100000+ sq. ft.

There has been success in growing companies who have relocated from smaller premises releasing

this size of premise suitable to the new start and incubator market but once above incubator size –

10000+ there is limited availability

The following table shows the reasons that investment are lost to the borough

Conversion Rates: Property Enquiries 1.4.2013 to 31.12.2013

Outcome reason Number %

Property / Land taken 37 31%

Project Ceased 25 20%

Located Elsewhere 7 6%

No feedback 19 16%

No Suitable Sites & Premises 33 27%

Total 121

1.4.2012 to 31.03.2013

Outcome reason Number %

Property / Land taken 50 35%

Project Ceased 32 23%

Located Elsewhere 13 9%

No Feedback 24 17%

No Suitable Sites & Premises 23 16%

Total 142


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The lack of sites and premises is an increasing problem, increasing from 16% to 27% as the reason for lost enquiries.

CPP were asked by BMBC to undertake an independent Industrial Market review for SCR. The key findings

from this presentation were shared with the development team within BMBC on 10 March 2014. CPP have

since been commissioned to undertake a full market study. The initial overview assignment was to assess

the market for properties over 100,000 sq. ft. – being suitable for warehouse/distribution – one target area

for the borough. The key points from the overview report include:

Between December 2013 and January 2014 demand for this property type in North Midlands and

Yorkshire increased by 6% whilst the supply decreased by 20%

Since May 2013 there has been some positive movement in property values – there is still a ‘viability

gap’ for developers but the values are improving so with some assistance there would be

accelerated market movement. Due to the values of historic land banks it could be that newer sites

are brought to market earlier where they have been acquired at today’s values therefore

accelerating the appetite to build speculatively

There are improving and evolving occupier demands - but a limited supply of serviced development

sites which can accommodate large footprint buildings.

The market is being driven by opportunism, economies of scale, online retailing/internet fulfilment

and budget retailing.

Looking at the potential for Barnsley – the M1 corridor is a strong location and sites along this

stretch of motorway have strategic benefits. There are large warehouse occupiers already in the

borough and a workforce conditioned to 3 shift patterns/wage rates etc.

Looking at the Hoyland and Goldthorpe offer specifically – Hoyland – strong location, suitable for a

mix of sites, some restriction on layout due to topography of sites but not insurmountable.

Goldthorpe – unique in terms of scale, large footprint buildings, established for this use. More

challenging location due to current access.

As a final note, discussions are ongoing with LCR and SCR in terms of the funding source and location for a

Warehousing and Logistics Academy. Leeds City Region have prioritised BMBC’s application for a

Warehousing and Logistics Academy as part of their application for Skills Capital Funding but this is being

further discussed with Ruth Adams at SCR to assess which City Region the application is best aligned with.

It underpins the focus on this sector within the region and with a unique land source potentially available

will attract market demand to the borough and SCR.

Please outline any market testing which has been undertaken to evidence the demand case, and provide

any evidence that demonstrates that the private sector will respond to this opportunity (approx. 300 words).

Initial findings in support of the Stage 0 application were based on internal data collation on shortage of

supply in addition to a report commissioned by BMBC from Benell Limited and Peter Brett Associates in

March 2013. The scope of this independent assessment was ‘Market Assessment of LDF Employment

Sites’.

The outcomes of the initial reviews were reflected in the Barnsley Economic Plan and taken to Council to

gain approval to continue further market assessment.


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The initial assumptions in respect of typical nature of the job densities from the targeted sites were based

on:

Allocation of land across B1 (20%), B2 (25%) and B8 (55%) based on nature and topography of

sites and likely demand based on recent enquires and forecast mix of companies

Job density calculations (m2 per worker) using the HCA guidance document.

This led to the further assessment of the proposed sites and development of a costing model and application

to SCRIF.

Since the Stage 0 application the following testing/market support has been undertaken or is in progress:

Detailed discussions with the landowners and developers – who are identified at section 1 above.

BMBC have secured letters of support from the owners developers acknowledging their willingness

to participate in the scheme and identifying that the main challenge to development is the burden of

strategic highways improvements and site services which fall to the developer.

Detailed Green Belt review

Detailed market assessment commissioned from CPP

Ongoing advisory work on planning constraints being undertaken with Arup and QCs

Discussions and negotiations with critical neighbours to the scheme – i.e. Highways Agency in terms

of Impact J36 M1 and RSPB site at Goldthorpe to ensure there will be no wildlife/environmental

issues for the developers to deal with. In addition details of the SCRIF bid have been circulated to

neighbouring LA 's and under the Local Plan process there will be further opportunities through duty

to co-operate.

Detailed planning guidance for developing Green Belt release land commissioned from Benell to

support the developers in early planning applications (at their own risk)

If private developers will be required to deliver scheme outputs, at what stage are discussions/negotiations?

(approx 200 words).

The developers are aware of the desired outputs from the scheme and the SCRIF application and

understand the driver for new jobs on the released employment sites. The developers’ role is to deliver on

time the identified development sites and they will work with BMBC to attract occupiers to the sites to deliver

the scheduled outputs.

Planning applications are currently being developed for both the road improvements and also developers for

existing and new employment sites due to be submitted summer and autumn 2014 respectively to ensure

the earliest start on site. In addition developers are aware of site issues and have already invested in ground

investigations, have developed other sites and have their own knowledge of the market

COMMERCIAL CASE ASSESSMENT (TO BE COMPLETED BY THE ASSESSOR)

Has market potential / demand been adequately assessed / evidenced in relation to GVA and job outcomes?


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How robust is the evidence that the private sector will respond to the opportunity?

3A. ECONOMIC CASE – ALL SCHEMES TO COMPLETE

3A.1 PREFERRED OPTION OUTPUTS ANALYSIS

Please complete the following table as a summary of the direct and indirect gross outputs delivered by the

Scheme. For Transport Schemes, also see section 3B.

Table 3A.1: Preferred option – gross outputs

Direct outputs dependent on or delivered by the Scheme

Indirect outputs

associated with

the Scheme

Total

Gross

Outputs

FTE

construction

job years

8,854 Linking in with the wider city regions apprenticeship schemes to help provide access to significant employment opportunities in the local and wider city region economy. By promote local procurement opportunities helps to provide expansion opportunities for local construction


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businesses to access.

Commercial

Floor space

created

(record use

class)

914,954 sq. Mt B1% - 20% = 182,991 Sqmt B2% - 25% -= 224,318 sqmt B8% - 55% = 507,645 sqmt

Reputational improvement for Barnsley and SCR as a place to do business

Potential

Commercial

Floor space

unlocked

N/A Sites would capitalise on the improved economic climate, enhancing its potential to attract jobs in a strategic locations that will have broad economic benefits within SCR Improving job prospect for local people

Housing units

3600 Support sustainable housing growth within the economic corridor

FTE Jobs

10744 net jobs associated utilising the following impacts

Net additional employment impact

Gross direct jobs 17,376

Minus leakage @ 17.3 3,006

Gross local direct jobs 14,370

Minus Displacement average @ 43.1% 6,194

Net additional local direct jobs before Multipliers 8,177

Plus supply/ income multiplier effects @ 1.46 3,761

Net additional local jobs 11,938

Less Deadweight @10% 1,194

Total Net additional local jobs 10,744

Net jobs will help to record a 13.4% increase in the amount of total jobs into the Barnsley economy and increase the amount of jobs in the wider SCR by 1.46% Helping to significantly rebalance the local and wider city region away from its public sector reliance Gross jobs impact of the scheme helping to provide substantial


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employment land to help not only capture inward investment, but also help to provide enough grow on space to help retain SCR indigenous growing businesses Help to provide local people and the wider city region with employment opportunities given that an estimated 36% of all residents in employment currently out commute for work, whilst 23% of all total jobs (81,000) in the borough are taken by non-barnsley residents Over the last 10 years Barnsley’s out commuting levels have increased from 31% in 2011 to 36% in 2011), as the borough has failed to create necessary employment opportunities

GVA

£401m based upon Total Net Jobs GVA increase will help to record a 17.4% increase in the amount of GVA into the Barnsley economy and


17

increase the amount of GVA in the wider SCR by 1.69%

Private sector

investment

leveraged

£491.9m

Other public

sector

investment

leveraged

Other (specify)

For the outputs presented in Table 3A.1, set out below the assumptions from which these have been

assessed:

Table 3A.2: Preferred option – gross outputs – Key assumptions

Direct outputs dependent on or delivered by the Scheme

Indirect outputs

associated with

the Scheme

FTE construction

job years

Use English Partnership and Yorkshire Forward appraisal figure assumption that 18 FTE jobs per £1m of investment associated with the development of the scheme

Commercial Floor

space (record use

class)

B Class ratios developed in consultation with DSAP responses, BDA and Benell Initial (LDF) DSAP employment sites for each key growth cluster sites has been assessed for each key employment site. These Gross site areas depended upon their each specific circumstances (topography, drainage / utility impacts, etc.) have been assessed to determine what the proposed Net developable / saleable area will be. (For Hoyland this equated to a 25% reduction, whilst for Goldthorpe the reduction is slightly lower 20% - the average for the two combined sites is therefore 22.5%) The Net (HA) developable area is then converted direct into SQM using the following methodology (1 Hectare/s = 10000 Square Metre/s). The Developable net area is then further subject to a further reduction (40%), which takes into account the need for landscaping, car parking and other non-employment reductions on site areas. This 40% reduction in site area(s) has been evidenced via Benell Limited and Peter Brett Associates in their 2013 “Market Assessment of LDF employment sites” and is consistent with other development sites in the region that range from 35 -50% reductions. The 40% of Gross site area, now provides a more realistic employment area of the proposed site areas (for actual development and associated employment uses). In terms of the commercial floor space created associated intended employment site density ratio’s (B land use breakdown B1, B2 and B) have


18

again been developed in consultation with DSAP responses and Benell and Peter Brett Associates Employment sites” work. (i.e.: B1 = 20%, B2= 25% and B8 = 55%). This has then allowed BMBC to calculate in SQM the total net developable area of each site.

Potential

Commercial Floor

space unlocked

N/A

Housing units Based on the public consultation draft DSAP document supporting information - September 2012.

FTE Jobs

Job density figures (m2 per worker) from HCA guidance document. Gross to net job calculations generated using regional metrics. Once the net developable area of a site has been identified we are then able to calculate the gross impact of the jobs for each site. Depended upon the employment land use (B1, B2 and B8) for each identified area we are able to calculate the perceived amount of jobs that these sites can deliver. To calculate this, the actual employment site densities (floor space per worker SQM) for each employment (B) land use class have been taken direct from the HCA(2010) Employment Densities Guide with: o 47 SQM per job for B1 usage, o 36 SQM per job for B2 usage and o 70 SQM per job for B2 usage This has then allowed us to calculate the Gross number of jobs that are to be created for each site. To calculate the Net additional employment impact the following methodology has been used: BIS 2009 Research to improve the assessment of additionally paper has been used to help identify the following assumptions for Capital Projects at a sub-regional level. These (mean) averages have therefore been used to help calculate a Net additional employment impact for each site;

Leakage (17.3%), Displacement (43.1%), Deadweight (10%) Multipliers (1.46)

An example of how the Net employment of a site has been calculated is as follows;

Net additional employment impact

Gross direct jobs 17,376

Minus leakage @ 17.3 3,006

Gross local direct jobs 14,370

Minus Displacement average @ 43.1% 6,194

Net additional local direct jobs before Multipliers 8,177

Plus supply/ income multiplier effects @ 1.46 3,761


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Net additional local jobs 11,938

Less Deadweight @10% 1,194

Total Net additional local jobs 10,744

GVA

Barnsley GVA figures calculated using REM data and ONS total employee (workforce) jobs. As we did not have direct access to the Experian’s Regional Econometric Model (REM). The methodology used to help record the productivity impact of these jobs has been calculated via the following methodology (which has been utilised from the BIS: RDA Evaluation; Practical Guidance on Implementing the Impact Evaluation Framework (Dec11) report, which is a well-accepted mechanism through which impact can be described) Barnsley GVA via (REM) / Barnsley Total Jobs = Barnsley GVA capita (£37,336) This GVA per worker ratio was then multiplied to the number of net jobs per scheme to give a potential GVA impact.

Private sector

investment

leveraged

Cost calculated via: Total floor space per SQM converted to sq. ft. Sq. ft. then multiplied by £50 per sq. ft. to promote investment £50 per sq. ft. cost based upon assumed cost of land. Construction and interest from recently tendered industry rates.

Other public sector

investment

leveraged

Other (specify)

ECONOMIC CASE ASSESSMENT (TO BE COMPLETED BY THE ASSESSOR)

Does the scheme appear to offer reasonable value for money in gross terms (making reference to benchmarks)


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3B. ECONOMIC CASE – TRANSPORT SCHEMES ONLY TO COMPLETE

NOTE: COMPLETION IS NOT MANDATORY AT STAGE 1A, ALTHOUGH PROMOTERS HAVE THE OPTION TO COMPLETE IF THEIR SCHEME IS SUFFICIENTLY ADVANCED TO BE ABLE TO DO SO

At Stage 1A it is not mandatory to complete the Transport Value for Money Case but if promoters do

have evidence that they want to be taken into account, they can report it below.

If not, promoters are asked to provide an estimate of the anticipated BCR position for their scheme,

perhaps based upon comparator evidence.

3B.1 APPRAISAL SPECIFICATION REPORT

Please outline whether an Appraisal Specification Report (ASR) has been completed setting out your

proposal for transport modelling, or whether it is your intention to complete the ASR between Stage 1A and

Stage 1B.

An Appraisal Specification Report (ASR) has not been completed at the present time, therefore, it is

our intention to complete the ASR between Stage 1a and Stage 1b.

3B.2 DESCRIPTION OF FORMAL NETWORK MODEL

If a formal network model has been used please describe it using the headings in the table below

How is the scheme represented in the model

Calibration and Validation of the Base Year Model

in the area around the scheme

Data Collection Relevant to the Scheme In


21

Question

How does it model demand responses – route

choice, mode choice, destination choice, and time

of day?

How has future year demand been forecast?

3B.3 ECONOMIC APPRAISAL

If a formal network model has been used there is no need to repeat the information from Section 3.1,

but any off-line adjustments to the model outputs should be discussed here.

Estimates of PVB etc should be presented as they would appear in the Analysis of Monetised Costs

and Benefits in the units defined in the version of WebTAG prevailing at the time this form is

submitted.

How have the unit benefits of the scheme been estimated

How has the base demand been estimated?

How has the forecast demand been estimated in the without the scheme case?

How has the forecast demand been estimated in the without the scheme case?

What time periods have been modelled

What annualisation factors have been used

What is the Present Value of Benefits (£’000 discounted to 2010 in 2020 prices) – this should exclude wider economic impacts

Present Value of Costs (£’000 discounted to 2010 in 2020 prices)

Benefit to Cost Ratio

Please describe any sensitivity testing that has been undertaken and provide a table showing PVB, PVC and BCR

3B.4 ENVIRONMENTAL APPRAISAL

Describe the expected impacts and rate them on the standard 7 point scale from the WebTAG

Appraisal Summary Table.


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Impact Summary of Key Impacts 7 Point Scale

1. Noise

2. Air quality

3. Greenhouse gases

4. Landscape

5. Townscape

6. Heritage of historic resources

7. Biodiversity

8. Water environment

3B.5 SOCIAL AND DISTRIBUTIONAL

At this stage it is necessary to complete only the screening Stage from WebTAG 3.17

Social and Distributional Analysis

Item Expected Impacts positive or negative

User Benefits

Noise

Air Quality

Accidents

Security

Severance

Accessibility

Personal Affordability

ECONOMIC CASE ASSESSMENT (TO BE COMPLETED BY THE ASSESSOR)

If an Appraisal Specification Report has been prepared, is it appropriate to the scale of the Scheme proposed and therefore suitable to enable a robust business case appraisal at Full Business Case Stage 1B

What Value for Money Category have you ascribed to this scheme?


23

Have any adjustments been made to the analysis provided by the bidder and why?

What are the key risks, sensitivities and uncertainties relating to the analysis?

Are there any significant environmental disbenefits or missing analyses?

Are there any significant social and distributional impacts or missing analyses?


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4. MANAGEMENT CASE

4.1 DELIVERABILITY

What is the current position of the scheme? (please tick one option)

Concept i.e. specified in outline form, but no detailed assessment

has been undertaken

Feasibility i.e. the scheme’s feasibility has been assessed in

engineering terms and an initial economic appraisal undertaken (if

applicable)

√

Business case i.e. outline or full business case has been produced

including preliminary engineering design and economic appraisal

(if applicable)

Assuming approval is given for the scheme to proceed to Stage 1B, Full Business Case, if the promoter is

aware that their scheme is likely to require WebTAG appraisal and the agreement of an Appraisal

Specification Report, then they should present their best judgment on how much modelling and data

collection work they think will need to be undertaken based on what they know is already available (i.e.

existing models and/or age of input data), and how long they think this will take to assemble and therefore

impact on deliverability.

BMBC have undertaken a review of the existing Barnsley Transport Model and its application to this project.

The Barnsley Transport Model (BTM) was built by AECOM in 2010 using data primarily collected in 2008 or

later. It is considered that this is the most suitable model for the assessment of the SCRIF scheme - M1

J36/Dearne Valley Corridor.

The SYSTM+ model is also available for use but, at this stage, it is considered that BTM would be the

preferred tool because of the finer level of spatial detail contained in it.

BMBC will engage AECOM to update the BTM and also (subject to the tender process) to assist in the preparation for the WEBTAG and the Appraisal Specification Report (ASR)

Aecom’s initial estimate of the time requirement to update the BTM is 1 to 2 months. Our initial estimate of

the time requirement to prepare the WEBTAG and the Appraisal Specification Report is 2 – 4 months with

the input required by a Transportation consultant.

This estimate is based on having to undertake the following tasks:

Limited data collection

Calibration

Model checks, runs and outputs to the economic and environmental appraisals including TUBA


25

Assuming the SCRIF investment sought is approved, give a realistic indication of when the scheme would

commence. Please justify your response taking into account factors such as the time required to secure

statutory powers, secure match funding, procure contracts etc.

Highways planning permissions – target submission August 2014 – planning permission timescales

forecast as 4 months assuming no major objections

Highways construction to commence June 2015 – completion date July 2016

Developers to submit outline planning applications for Hoyland sites August 2014 – planning

permission timescales forecast to be completed June 2015

Site development – Reserved matters application July 2015 to November 2015 with determination

by March 2016

Site development work to begin April 2016 (site mobilisation) with a build programme June 2016 to

May 2017

Current timetabling is conservative in assuming the site marketing does not commence until June

2016, in reality the development and marketing will commence prior to the completion of the road

but for prudence the plan assumes a later start. First jobs on site forecast as June 2017 – but this

could be earlier with an occupier signing first build stage

Please indicate whether the following have been secured/agreed fully or in part, or provide an estimation of

when they are likely to be secured. Please provide any detail which will support your business case. Insert

N/A if not applicable to the scheme.

Delivery Constraint/Risk Scheme Position

Planning consents See above for details

CPOs N/A. Land required to undertake highways works will be dedicated by the

landowner, HCA. This process is in progress.

Public consultation Planned for June 2014

Public Inquiry None anticipated for the highways works

Traffic Restraint Orders Traffic Regulation Orders planned for autumn/winter 2014

Transport and Works Act Ongoing consultation with Statutory Undertakers under the New Roads

and Streetworks Act. Diversions planned for May 2015

Public sector match funding Ongoing through the project delivery

Private sector match funding Letter of intent and support have been received form the key and owners

developers and the HCA. Significant private sector investment will follow

the highways works.

Procurement contracts Planned for June 2014 to January 2015


26

Please provide your anticipated timetable for delivery including the key milestones you anticipate at Stage

1B, Stage 2 and Stage 3

The timeline of project delivery is shown in previous sections plus, as follows:

Submission stage 1A business case – April 2014

Submission stage 1B business case – August 2014

Consultation on draft Local Plan document – September 2014

Submission stage 2 business case – January 2015 Hoyland development

Submission stage 3 business case – March 2015 Hoyland development

Award of highway intervention contract for Hoyland development – May 2015

Consultation on the Local Plan Publication version – July 2015

Submission of Local Plan – November 2015

Examination in Public – early 2016

Adoption of Local Plan – Spring- Autumn 2016

Submission stage 2 business case – June 2017 Goldthorpe development

Submission stage 3 business case – July 2017 Goldthorpe development

Please confirm whether the lead partner currently has the resource/expertise and structures in place to

manage and deliver the scheme? If not, outline what would need to be undertaken to be ‘delivery ready’

(e.g. project management arrangements, recruitment, governance structures etc.).

BMBC has a well-developed and experienced team and project management process to deliver the scheme.

The key individuals are in place and where there is a shortage of skills/resource in house, BMBC have

engaged third party support specifically for this project.

Regular and scheduled meetings and updates, with performance targets and deadlines, are happening and

are diarised going forward.

An overview of the Council Governance Framework for the Business Parks Strategic Growth Clusters is

appended to this application which outlines the reporting structures from delivery officers to Cabinet.

The responsibility for the delivery of the Business Park Strategic Growth Clusters sits within the

Regeneration Service of the Development Directorate. The management and delivery of the schemes are

being led by the Remaking Barnsley team in conjunction with Highways and Engineering with additional

specialist consultancy support from Benell Investments.

As a result of the strategic importance of the project, regular updates on the Business Parks development

will also be presented to the Barnsley's Cabinet.


27

All of the expertise and resources required to deliver the Business Parks Strategic Growth clusters is

available within the Council. Additional external resources and expertise have been procured where

necessary for example via Benell investments.

The Business Parks Programme Management Board which is the key delivery and coordination and

decision making group is as follows:

Mark Lynam (Head of Regeneration)

Steve Moralee (Head of Planning)

Lerina Pearson (Remaking Barnsley Group Leader)

Rachael Allington (Senior Major Projects Officer )

Paul Bray (Head of Design and Transportation)

Ian Wilson (Group Manager Design and Transportation)

Anuj Joshi (Benell Investments Consultancy)

The Business Parks Programme Management Board is supported by a Project Officers Group which is

coordinated within Regeneration service and supported by Benell Investments.

4.2 MONITORING & EVALUATION

Set out in broad terms what you anticipate will need to be monitored and evaluated in order to assess

whether the project has met its objectives.

BMBC has significant and long standing experience of managing and monitoring key projects including

those where there is public and private funding intervention. Therefore there are internal systems in place

which will be adopted and tailored to the specific needs of this project.

Key performance measures and stop/go decisions for this project or parts thereof will include (not in

chronological order):

Progression of the SCRIF application – which has to be progressed prior to planning approval on

the sites to meet target completion deadlines. SCRIF process is being progressed by the internal

team and ensuring that there is an ongoing risk assessment of key challenges. Progression of any

linked or in parallel funding bids to maximise opportunities in terms of outpouts and any early

delivery.

Progression of the Local Plan – the local plan will not go out for consultation until autumn 2014 and

therefore full planning approvals cannot be granted until the plan is adopted without a departure

procedure to the Secretary of State being followed. The current strategy is to drive outline planning

applications in parallel to the progression of the Local Plan such that once approved the new sites at

Hoyland can progress to full planning as soon as possible.Planning applications on existing

allocations maybe able to proceed if approved to a quicker timescale. Regular contact meeting with

developers and landowners are in place to identify if this is unlikely to occur. Highways

improvements are not delayed by the Local Plan and can progress ahead of the site approvals

enhancing developer appetite.


28

Timescales are therefore a little different for the 2 parts of the project Hoyland and Goldthorpe.

Hoyland is much closer to delivery in that there are existing approved sites, developer agreement to

progress planning applications, direct impact from Birdwell roundabout and A6195 Highways

improvements. Goldthorpe has a longer timescale to delivery. Developer appetite is impacted by

access challenges to be addressed by the Birdwell roundabout road improvements and more

sensitive planning challenges which may be raised and dealt with as part of the Local Plan process.

Current actions and monitoring processes include regular meetings with developers and local

interested parties (i.e. RSPB site) to aim to cover off as many development challenges as possible.

Developer commitment to sites. This project cannot deliver its outputs without private sector

develop intervention. Target is to achieve some if not all outline planning applications for Hoyland

prior to commencement on the Highways construction. Regular dialogue will take place with

developers to exchange information, maximise potential development and job opportunities and

secure early delivery of all or parts of the employment land.

MANAGEMENT CASE ASSESSMENT (TO BE COMPLETED BY THE ASSESSOR)

How ‘delivery ready’ is the scheme and what scope is there for significant delays were funding to be approved?


29

ASSESSMENT SUMMARY (TO BE COMPLETED BY THE ASSESSOR)

Please summarise your assessment of the scheme’s strategic fit and set out any recommendations

Please summarise your assessment of the scheme’s market potential in relation to the delivery of jobs and GVA outcomes, and set out any recommendations

Please summarise your assessment of the scheme’s value for money and set out any recommendations

Please summarise your assessment of the scheme’s deliverability (in terms of the risks to scheme commencement) and set out any recommendations

Summarise your overall assessment of the scheme and recommendations for SCR


30

Annex 1: Schemes Types

Code Scheme Type Description/example

Proportion of

Total Scheme

(%)

Transport

T1 Highways New roads, widening, junction improvements

etc. 61

T2 Rail New lines, station improvements, rolling stock,

changes in time table, electrification

T3 Tram New lines, rolling stock, changes in time table

T4 Bus (including BRT) Bus priority, vehicle investment, smart ticketing,

park & ride

T5 Active modes (on a

grand scale)

Large scale infrastructure investment eg

segregated routes

T6 Traffic management SYITS type investment

Regeneration

R1 Housing New development, refurbishment & retrofit (links

to Green Deal etc and energy efficiency)

R2 Commercial

development New development, refurbishment

R3 Site remediation and

preparation

Site demolished and prepared for

redevelopment 16

R4 Investment in the rural

economy New development, refurbishment

R5 Development service

infrastructure

Provision of water, gas, electric, and drainage

(surface water and foul) services 15

R6 Site development

access roads

Construction of spine roads linking to the

highway network 8

R7 IT infrastructure

including Broadband

Homes and businesses given access to high-

speed internet

R8 Urban design /

gateways

Improvement to commercial/residential space.

High quality public realm


31

Code Scheme Type Description/example

Proportion of

Total Scheme

(%)

Energy and water

E&W1

Energy

generation (e.g.

sub stations)

High Voltage Cabling, Gas network investment,

New substation / upgrade, smart metering

E&W2

Energy

generation

(biofuel stations,

wind farms)

Production of alternative forms of energy such as

biomethane, biogas, wind, energy from waste,

geothermal, hydro.

E&W3

Efficiency (e.g.

lighting,

insulation)

Replacement of bulbs to low-energy. Retrofit of

buildings (commercial, industrial and residential)

to improve the fabric of buildings and the lighting,

heating, ventilation and cooling systems. Links to

investment in housing in particular.

E&W4

Energy

distribution (e.g.

Combined Heat

and Power

network)

Energy efficient processes, extensions to the

network – pipework and heat stores.

E&W5 Water Storage

and distribution New water stores for the supply of water

Environmental

E1 Flood defence Improved and sustainable drainage/new

defences/upstream storage

E2 Land

decontamination Removal of waste

E3

Green

infrastructure

(parks and open

spaces)

Creation of green space, corridors, wetlands and

habitats

E4 Sewerage Improved sewerage capacity

TOTAL 100%


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Annex 2: Employment Sectors

Sector Description % of total jobs created

Agriculture, forestry and fishing

Production 21

Construction

Distribution; transport; accommodation and food 55

Information and communication

Financial and insurance activities

Real estate activities

Business service activities 24

Public administration; education; health

Other services and household activities

TOTAL 100%

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