sd42 - commercial assessment of cwmbran town centre - eastern

TORFAEN COUNTY BOROUGH

COUNCIL - LOCAL DEVELOPMENT

PLAN

Commercial Assessment of Cwmbran Town Centre

Expansion

Eastern Strip Central

February 2011

CONTENTS

X1 Executive Summary .................................................................... i

1. Introduction ............................................................................... 1

2. Context of the Proposed Development ....................................... 3

3. Land Ownership ........................................................................ 8

4. Strategic Planning Policy Context ............................................. 10

5. Planning History of the Site ..................................................... 24

6. Development Constraints ........................................................ 25

7. Property Market Assessment .................................................... 30

8. Review of Proposed Development Options............................... 44

9. Viability of Proposed Development Options ............................. 62

10. Mechanisms for Delivery ......................................................... 70

11. Conclusion and Next Steps ...................................................... 77

12. Recommendations ................................................................... 85

CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION

EASTERN STRIP CENTRAL

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X1 Introduction

X1.1 This report has been prepared by CB Richard Ellis, on the instructions of Torfaen County Borough Council (TCBC) to provide an assessment of the commercially viable land uses that could be accommodated on the area defined as the Eastern Strip Central Site (the Site) to the east of Cwmbran Town Centre.

X1.2 TCBC is seeking to bring forward development on the Site to contribute to the

economic prosperity and future regeneration of Cwmbran Town Centre. This is with a view to maximising employment opportunities and delivering a comprehensive mixed-use development in a planned and integrated way.

X1.3 The report is to inform the long-term development objectives for the Site; to support

the allocation of the site in the LDP; to demonstrate that the allocation could be deliverable and; to demonstrate that the proposal is viable.

X1.4 TCBC set out its vision for the Eastern Strip area within the pre-deposit LDP “Draft

Plan for Cwmbran Town Centre”. This document acknowledged the potential role of the Eastern Strip as an expansion area for the town centre to the east allowing commercial uses to integrate and link with Cwmbran Town Centre as a whole.

The Site

X1.5 The Site lies approximately 150 metres east of Cwmbran Town Centre and comprises approximately 13.99 ha (34.57 acres). It has been used primarily for industrial uses and the majority of the site is in the ownership of ArvinMeritor. The Welsh Assembly Government, TCBC and Cwmbran Railway Station comprise the other land owners.

X1.6 To the south the Site adjoins land owned by Alfa Laval (leased to Crane Process

Flow Technologies) and beyond this is a vacant area of land owned by Carillion Richardson which is the former Saunders Valve site. To the north the site adjoins Stagecoach and the Somerset Road Industrial Estate. The Afon Lwyd lies beyond the railway line to the east.

X1.7 The site is well positioned in relation to its proximity to Cwmbran Shopping Centre,

although the Site is at a lower level, and it presents a significant opportunity to act as the major gateway for both road and rail travellers with prominence to St David’s Road and Edlogan Way.

X1.8 Grange Road is within the site boundary and runs parallel to St David’s Road and

provides access to the ArvinMeritor, Assembly Government, Alfa Laval and Carillion Richardson properties and sites. Extensive landscaping between Grange Road and St David’s Road also currently provides a further physical barrier in terms of integration with and linkage to the town centre.

Constraints

X1.9 The Eastern Strip Central Site is burdened by a number of development constraints that affect the viability of potential land uses and also the timing as to when the site can come forward. The development constraints include the following:

� a number of potential sources of contamination relating to the current and

previous industrial uses of the Site. There will need to be significant

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remediation to allow the Site to come forward for redevelopment and some

uses may be unviable.

� TAN15 Development Advice Maps (Development and Flood Risk ’09) show

much of the ArvinMeritor site (the middle and southern section) as Flood Zone

C2 due to the risk of fluvial flooding from the Afon Lwyd. A small area of the

middle and southern section is identified as Zone B defined as known to have

flooded in the past. The northern car park section is primarily defined as Zone

A with little or no risk fluvial flooding. A small part of the northern section

shown as Zone B has been known to have flooded in the past. TAN15 states

that the emergency services and highly vulnerable forms of development, such

as residential, would not be permitted within Zone C2.

� there are a number of utilities running alongside and through the Site including

low voltage cables; underground cable routes originating from sub-stations to

the north and south of the Site; underground BT cables; low and medium

pressure gas pipes; and water supply pipes and foul/storm sewers.

� both St David’s Road and Grange Road create severance between the Site and

Cwmbran Shopping Centre.

� there are a number of landowners to deal with and achieve consensus as to

emerging development proposals. This will also impact on the timing of the

release of sites due to existing occupation.

X1.10 Both the commercial and residential property markets peaked in the summer of

2007 and since then land values have fallen significantly and the occupational

market has also contracted. The lack of availability for mortgage and development

finance has stalled many development schemes. The implications for the Eastern

Strip Central are that some commercial uses may not generate a positive land

value and a long-term view will need to be taken due to the difficulties facing

various property market sectors.

Emerging Development Proposals in Cwmbran

X1.11 The PruPIM land on the eastern side of Cwmbran Shopping Centre between

Glyndwr Road and St David’s Road may be identified as a Strategic Action Area in

the LDP to allow for an outward-looking expansion of Cwmbran Shopping Centre

for additional comparison retailing and could integrate with the Eastern Strip

Central. Retail capacity studies have highlighted that Cwmbran Shopping Centre

could accommodate a net increase in comparison goods sales area.

X1.12 Sainsbury’s has received planning permission to extend their existing store (subject

to signing the Section 106 Agreement) which sits to the immediate west of

Cwmbran Shopping Centre.

X1.13 The Eastern Strip North may be defined as a Strategic Opportunity Area in the LDP

and may come forward for comprehensive redevelopment in the future although

this is not currently being actively promoted by the main landowner, the Assembly

Government.



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X1.14 The Eastern Strip South may also be defined as a Strategic Opportunity Area and

this comprises land in the ownership of Alfa Laval (Cranes) and the Carillion

Richardson site. The Carillion Richardson site has the benefit of an extant planning

consent for a DIY retail store.

X1.15 A planning application has been received in respect of the ArvinMeritor northern

car park site from Morrisons for a new food store of circa 7,250 sq m (78,000 sq

ft) gross. GVA’s recent sequential analysis has reviewed a number of sites in and

around the town centre and commented that this site would be likely to act as a

stand-alone retail destination unless land to the west, i.e. land between Grange

Road and St David’s Road, is integrated into the development proposals.

Viability/Development Options

X1.16 The commercial assessment undertaken has sought to be commercially realistic in

identifying a deliverable development option for the Site. Undertaking a residual

site value exercise in today’s current market demonstrates that some preferred uses

such as employment-led development are unlikely to generate positive land values

unless there is some cross-subsidy from higher value land uses to bring the site

forward including infrastructure provision.

X1.17 To achieve a comprehensive development, there needs to be an “economic driver”

to allow the overall development proposals to be self-funding. The inclusion of a

food store within the proposals would allow a substantial land value to be realised

and therefore used as leverage to cross-fund other development uses across the

Site as part of the comprehensive strategy.

X1.18 TCBC will therefore need to consider the regenerative benefits that could flow from

locating a food store in a suitable position on the Eastern Strip Central (albeit better

integrated to the town centre than the current Morrison’s proposal). Any planning

strategy related to a new food store should allow for maximum leverage to benefit

wider regeneration ambitions.

X1.19 The creation of a new “office park” within any development proposals would

provide the maximum benefit to Cwmbran in terms of future vitality and viability.

The town centre would be able to benefit from the spending power of the office

workers in terms of additional usage of retail and leisure provision together with

offering a sustainable transport solution in terms of proximity to the railway and bus

stations.

X1.20 The office park could provide an opportunity for TCBC to relocate from County Hall

in a bespoke building in a prominent town centre location close to public transport

links. There could also be the opportunity to co-locate with other public sector

occupiers such as Gwent Police who we understand also have an office

requirement. JESSICA RIFW monies could be used for enabling employment uses

and infrastructure and levering in additional public sector investment.



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X1.21 We have suggested three development options. All of the three options include a

foodstore in a form that is integrated with and linking to the town centre to enhance

vitality and viability. If a foodstore is not a component of the development, on the

basis of current market values and demand the Site would not be able to generate

an overall positive site value.

X1.22 A summary of the three options is as follows:

� Option 1 – comprehensive proposals that will deliver regeneration benefits with

the retention of existing employment on site but in modernised premises

together with the creation of an office development site for quality new offices.

It is assumed that ArvinMeritor will remain on site in reconfigured premises. A

new foodstore will provide a value driver to cross-fund development.

� Option 2 – assumes ArvinMeritor vacates and disposes of its land interest to

allow the creation of retail warehousing and office development on the mid

and southern sections of the Site. A new foodstore will provide a value driver to

cross-fund this development. Delivery will be dependent on onward disposal to

a private sector facilitator such as a developer.

� Option 3 – this option assumes ArvinMeritor vacates and disposes of its land

interest and that the food store development locates on the mid-section of the

Site. Retail warehousing and office development is assumed on the southern

part of the Site with residential development on the northern area as this part of

the Site does not have contamination or serious flooding issues. Delivery will

be dependent on onward disposal to a private sector facilitator such as a

developer.

X1.23 A summary of the development content for the three options is as follows:

Option 1 Proposed Mix Area 1Area 1Area 1Area 1

Retention of station

Area 2 & 3Area 2 & 3Area 2 & 3Area 2 & 3 ArvinArvinArvinArvinMeritor north car parMeritor north car parMeritor north car parMeritor north car park k k k and linking area to include and linking area to include and linking area to include and linking area to include Grange Road Grange Road Grange Road Grange Road and open and open and open and open areaareaareaarea

Foodstore 78,000 sq ft gross with petrol filling station

Area 4 midArea 4 midArea 4 midArea 4 mid----section, formersection, formersection, formersection, former ArvinMeritorArvinMeritorArvinMeritorArvinMeritor factoryfactoryfactoryfactory

New offices with car parking - 75,000 sq ft net of which circa 50,000 sq ft net public sector and 25,000 sq ft net private sector developed in phases. Hotel with car parking

Area 5 southern area Area 5 southern area Area 5 southern area Area 5 southern area

Refurbishment/redevelopment of ArvinMeritor factory Refurbishment of WAG offices



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Option 2

Proposed Mix

Area 1Area 1Area 1Area 1 Retention of station

Area 2 & 3Area 2 & 3Area 2 & 3Area 2 & 3 ArvinMeritorArvinMeritorArvinMeritorArvinMeritor north car park north car park north car park north car park and linking area to include and linking area to include and linking area to include and linking area to include Grange Road and open Grange Road and open Grange Road and open Grange Road and open areaareaareaarea


Area 4 midArea 4 midArea 4 midArea 4 mid----section, fsection, fsection, fsection, formerormerormerormer ArvinMeritorArvinMeritorArvinMeritorArvinMeritor factory factory factory factory

New offices with car parking - 75,000 sq ft net of which 50,000 sq ft net public sector and 25,000 sq ft net private sector developed in phases. Hotel with car parking

Area 5 southern areaArea 5 southern areaArea 5 southern areaArea 5 southern area

Small business units – 10,000 sq ft Retail warehousing – 100,000 sq ft Refurbishment of Welsh Assembly Government offices

Option 3

Proposed Mix


Area 2 & 3Area 2 & 3Area 2 & 3Area 2 & 3 ArvinMeritorArvinMeritorArvinMeritorArvinMeritor north car park north car park north car park north car park and linking area to include and linking area to include and linking area to include and linking area to include Grange Road and open Grange Road and open Grange Road and open Grange Road and open area leading to St David’sarea leading to St David’sarea leading to St David’sarea leading to St David’s RoadRoadRoadRoad

Budget hotel site sale Residential – 115 units (private 80 units and affordable 35 units) 60 bed care home site sale

Area 4 midArea 4 midArea 4 midArea 4 mid----section, formersection, formersection, formersection, former ArvinMeritorArvinMeritorArvinMeritorArvinMeritor factoryfactoryfactoryfactory

Foodstore 78,000 sq ft gross

Area 5 southern area, Area 5 southern area, Area 5 southern area, Area 5 southern area, mixed usemixed usemixed usemixed use

Foodstore’s petrol filling station Small business units – 10,000 sq ft New offices with car parking - 75,000 sq ft net of which 50,000 sq ft net public sector and 25,000 sq ft net private sector developed in phases. Refurbishment of Welsh Assembly Government offices Retail warehousing – 50,000 sq ft

The Preferred Option

X1.24 Option 1 is the preferred scheme as it is the most viable and the proposed mix of

uses would provide a comprehensive, employment-led solution that is self-funding.

X1.25 It would allow the town centre to expand eastwards; the remediation of

contaminated land; the cross-funding of office development; and the retention of a

local employer and local jobs.

X1.26 It would be the most deliverable of the three options because it would not require

intervention in that it could be brought forward by ArvinMeritor, the major

landowner, who would remain on the Site in refurbished flagship premises.



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X1.27 The deliverability of Option 1 and the lack of intervention required will also ensure

that it can be progressed in the shortest timeframe.

Delivery

X1.28 Justification will be required in planning terms for the inclusion of a food store on

the northern car park. This will include the regeneration benefits of the remediation

of other parts of the Site; creation of a new office quarter; and the retention of a

local employer and local jobs on Site.

X1.29 The planning strategy will need to ensure that the Site is developed

comprehensively and that receipts from the foodstore development are reinvested

into bringing forward the refurbished facility for ArvinMeritor and the release of the

mid-section of the Site for office and hotel development.

X1.30 Discussions will need to be progressed with ArvinMeritor to establish a mutually

acceptable development solution.

X1.31 Opportunities to attract public sector funding should be encouraged to lower the

risk profile, cross-fund primary infrastructure requirements and assist new

occupiers. Consideration will therefore need to be given to the extent to which the

public sector and TCBC will want to get involved in the project. This could include

recycling TCBC’s receipts from any land disposal into further regeneration

initiatives and using its own office requirement to kick-start the office quarter.

X1.32 Discussions should be explored in more detail with the Welsh Assembly

Government in respect of JESSICA RIFW and other available funding sources. The

involvement of JESSICA RIFW could facilitate wider regeneration projects across the

town centre.

Conclusion & Next Steps

X1.33 A significant opportunity exists for TCBC to promote the comprehensive

development of the Eastern Strip Central and contribute to the wider regeneration

of Cwmbran Town Centre.

X1.34 Development of the site creates the opportunity for TCBC to meet its aspirations of

an employment-led development including an office quarter for the town centre

that will attract new, high quality jobs and bring additional vitality and viability to

the town centre.

X1.35 There will need to be a clear planning strategy to include the following:

� an agreed Development Framework to determine uses across the site and a

scheme of appropriate quality;

� a planning strategy to allow for a comprehensive development solution for the

Site without allowing piecemeal development;

� ensuring integration and links with the town centre and indicating the direction

of the extension of the town centre eastwards.



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X1.36 Key short term action points include:

� further discussions to be held with ArvinMeritor to work towards an acceptable

development proposal that delivers a comprehensive solution.

� TCBC to consider an explicit site specific policy for the LDP to allocate the site

as an Action Area indicating the proposed uses for the Site, the vision for its

redevelopment potential and its comprehensive nature. This will also allow the

inclusion of a food store as value driver to deliver regeneration benefits.

� the LDP to also promote the direction of growth and extension of the town

centre eastwards to incorporate the Eastern Strip.

� in the event that agreement is not reached with ArvinMeritor, then TCBC to

consider its contingency position and the extent to which it would facilitate site

assembly including considering the use of compulsory powers.

� TCBC to work with ArvinMeritor to establish a development strategy that

incorporates flood alleviation measures and a remediation strategy, also to be

agreed with the Environment Agency.

� pursue discussions with the Welsh Assembly Government’s JESSICA team to

establish whether additional regeneration benefits for the town centre can be

delivered through their involvement.

� co-ordinate discussions with potential public sector occupiers to confirm

occupational requirements.



Introduction

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Background

1.1 This report has been prepared by CB Richard Ellis on the instructions of Torfaen County Borough Council (TCBC) to advise on the commercially viable land uses which could be accommodated on the area defined as Eastern Strip Central (The Site). The findings of the report will inform the allocation of the Site in the Deposit Local Draft Plan (to 2021).

1.2 The Site lies approximately 150m east of Cwmbran Town Centre and comprises an area of circa 13.99 ha (34.57 acres). It has been used primarily for industrial uses and the land is in the ownership of ArvinMeritor; the Welsh Assembly Government; TCBC; and to the north, Cwmbran Railway Station. The Site adjoins Crane Process Flow Technologies (leased from Alfa Laval) to the south and beyond this is a vacant area of land owned by Carillion Richardson. To the north the site adjoins Stagecoach, Somerset Road and the Somerset Road Industrial Estate.

1.3 TCBC is seeking to bring forward development on the Site that contributes to the economic prosperity and future regeneration of Cwmbran Town Centre as a whole. This is with a view to maximising employment opportunities together with delivering a comprehensive mixed use development in a planned and integrated way.

1.4 TCBC originally appointed CB Richard Ellis in September 2008 to report on the wider Eastern Strip South known as Zone 2 in the Pre-Deposit LDP ‘Consultation Draft Plan for Cwmbran Town Centre’ and CB Richard Ellis reported (in draft) in June 2009.

1.5 Subsequently CB Richard Ellis was re-appointed in October 2010 to consider commercially viable land uses for the redefined and smaller area known as Eastern Strip Central.

Context of the Report

1.6 The purpose of CB Richard Ellis’ re-appointment in October 2010 was to undertake a commercial appraisal of the potential for the comprehensive redevelopment of the ArvinMeritor factory site for a mixed use employment–led regeneration scheme in order to support the allocation of the site (to be known as the Eastern Strip Central Action Area) in the LDP and show that the allocation could be deliverable and that the proposal is viable. CB Richard Ellis’ terms of reference to undertake the commercial appraisal of the Eastern Strip Central included the following:

� a review of the planning policy framework;

� consultations with relevant parties including the landowners;

� a review of the commercial context of Cwmbran Town Centre as a whole;

� generation of a number of commercial options for the Eastern Strip Central;

� identification of a preferred development option having regard to all criteria

including phasing, viability of proposals and the potential risks; and

� development appraisal and implementation advice.

1.7 As a background to the current study, TCBC had concerns (in 2003) about the

future of Cwmbran Town Centre including the pressure to develop retail floor space

Introduction



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on edge of centre sites without the availability of a strategic plan. There was also the opportunity to increase office employment in the town centre and improve the range of leisure uses.

1.8 As a result of these concerns, various steps were undertaken to review Cwmbran

Town Centre and prepare plans for its expansion:

� GVA Grimley, Halcrow and HMA published a report in February 2005 entitled

“The Future Development of Cwmbran Town Centre – Torfaen Local

Development Planning Policy Options Paper”. This presented masterplan

options for the future development of Cwmbran Town Centre for consultation.

� the Consultation Draft Plan for Cwmbran Town Centre was subsequently

prepared and published in November 2007 for consultation with the aim of

guiding the various developments envisaged for the Town Centre.

1.9 TCBC’s Local Development Plan (to 2021) is currently being prepared in accordance with the Planning and Compulsory Purchase Act 2004 and will be considered by Full Council on 15th February 2011 with the six week consultation period beginning in March 2011. This sets out the Council’s objectives and priorities for the development and use of land within Torfaen and its policies for implementing them for the period to 2021.

1.10 This report will therefore inform the long-term development objectives for the Site and its allocation in the Deposit LDP and provide a vision for comprehensive redevelopment with a mixed-use scheme.



Context of the Proposed Development

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Site Overview

2.1 Eastern Strip Central (the Site) lies to the east of Cwmbran Town Centre and comprises a total area of approximately 13.99 ha (34.57 acres).

2.2 The Site is predominantly rectangular in shape with a frontage to St David’s Road of some 670m (2,200 ft). It has been occupied primarily by industrial and office properties since the late 1930’s and the extent of the Site also includes the railway station to the north of Edlogan Way. The Site lies at a lower level than Cwmbran Shopping Centre.

2.3 It is bounded to the north by the Somerset Road Industrial Estate and Edlogan Way; to the south by the Alfa Laval site (occupied by Cranes Process Flow Technologies); to the west by St David’s Road; and to the east by the South Wales/North West railway line. The Afon Lwyd lies beyond the railway line to the east.

2.4 The area of the Site to the north of Edlogan Way is more remote from the town centre with Edlogan Way itself creating a physical barrier with fast and busy traffic flows. Inclusion of this area within Eastern Strip Central will facilitate improved linkages between the railway station and Cwmbran Town Centre. Edlogan Way rises above the Site to bridge over the railway line.

2.5 The previous extent of the wider site, known then as Zone 2, Eastern Strip South, was defined within the Consultation Draft Plan for Cwmbran Town Centre. It included all of the land between St David’s Road to the east, the railway line to the west, and Llanfrechfa Way to the south including the Alfa Laval and Carillion Richardson ownerships. To the northern boundary it included the railway station and the Stagecoach depot. Now the Stagecoach depot forms part of the Eastern Strip North Strategic Opportunity Area and land to the south of ArvinMeritor forms the Eastern Strip South Strategic Opportunity Area.





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2.6 The Site is well positioned in relation to the town centre, although it is at a lower level, and it presents a significant opportunity to act as the major gateway for both road and rail travellers with prominence to St David’s Road and Edlogan Way. Surrounding uses are industrial to the south of the site with residential beyond; retail and leisure to the mid-part of the site; and industrial uses to the north of the site. The Site is also within walking distance of the bus station located at General Rees Square.

2.7 Adjacent significant land owners comprise Alfa Laval (occupied by Cranes Process Flow Technologies) to the south of the site; PruPIM in respect of Cwmbran Shopping Centre; Llantarnam Grange Arts Centre; and Mint Blue who own the leisure complex, “Leisure @ Cwmbran”.

2.8 In terms of linkages to Cwmbran Town Centre, St David’s Road provides a physical

barrier between the Site and the town centre. St David’s Road forms part of the highway network that surrounds Cwmbran Town Centre and forms the link between Llanfrecha Way to the south and Edlogan Way to the north. Traffic is fast moving along this road. TCBC has previously negotiated rights with the developers of “Leisure @ Cwmbran” to connect into the upper level walkway to complete a bridge link between the Eastern Strip Central Site and the Town Centre.

2.9 Grange Road is within the site boundary and runs parallel to St David’s Road and

provides access to the ArvinMeritor, Assembly Government, Alfa Laval (Cranes) and Carillion Richardson sites and properties. The extensive landscaping between Grange Road and St David’s Road also currently provides a further physical barrier in terms of linkage to the Town Centre.

2.10 The status of the Site within the Local Plan is as “white land” within the Urban

Boundary but is not within the Town Centre Boundary. The site is not located within a Conservation Area and we are not aware that any of the buildings on the Site are listed.

2.11 In Section 5 we detail any existing planning consents and recent planning applications for the Site.

2.12 The Site is subject to a number of development constraints that are commented on

in more detail in Section 6. These most notably include:

� Flood risk – parts of the Site are categorised as Flood Zone A (little or no risk of

flooding), Zone B (areas known to have flooded in the past) and Zone C2 (area

without significant flood defence)

� Contamination - due to the industrial processes carried out on the Site

The Role of Cwmbran Town Centre

2.13 Cwmbran is the largest settlement in Torfaen. In 2001 the population, identified by the Census for Torfaen County Borough, was 90,949 of which approximately 49,174 were residing in Cwmbran.

2.14 The town has a strategic role within South East Wales as a commercial and employment centre. It benefits from dual carriageway links (A4042) to Newport (6 miles), Cardiff (17 miles), Bristol (34 miles) and Swansea (54 miles) via the M4 motorway (4 miles). It is also accessible to Pontypool and to smaller settlements within the County Borough such as Blaenavon and to the wider region such as




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Abergavenny and Ebbw Vale. Cwmbran is located on the main rail line to Crewe/Manchester and Newport (connections to London and South Wales).

2.15 Cwmbran was designated a New Town in 1949 and has been a focus regionally

for commercial and residential growth. Its New Town status ended in 1988 following the demise of Cwmbran Development Corporation. The design of the Town Centre is similar to many “New Towns” in that it is characterised by a shopping centre that is a pedestrian precinct enclosed by a circular highway network with pedestrian movement via subways and bridge links. Uses around the perimeter of the Town are very much zoned into specific areas with a lack of integration, partly due to the highway configuration.

2.16 In terms of public transport serving Cwmbran, the bus station is located within

Cwmbran Shopping Centre on the north east side. This is currently operating at capacity and may in the long term be relocated. The railway station sits outside the Town Centre Boundary and is approximately 5 minutes walk from Cwmbran Town Centre to the north east but the pedestrian links are poor.

2.17 Cwmbran is identified as a “Sub-Regional” shopping centre, behind Cardiff and

Newport in the regional hierarchy. The total retail floorspace in Cwmbran is estimated to be 72,000 sq m (780,000 sq ft) of which circa 65,000 sq m (700,000 sq ft) is in the town centre. The shopping centre first opened in 1965 and has benefited from ongoing refurbishment and extension including newer development on the western and southern boundaries to provide an ASDA store and additional shop units with integral multi-storey parking.

2.18 Cwmbran Shopping Centre provides a diverse range of shopping from major

multiples to local traders and therefore offers an attractive range of retailing and service uses. It also has a good range of convenience facilities (ASDA and Sainsbury’s). In total the shopping centre has some 170 retail units and is anchored by House of Fraser, Marks and Spencer, ASDA, Matalan, Wilkinson’s, Primark, Iceland and New Look.

2.19 Despite current market trading conditions, Cwmbran Shopping Centre is trading well and is almost fully let. The former Woolworth’s unit has recently opened as Primark which is performing as an additional anchor store. The Centre has a loyal local shopping catchment and also draws in shoppers from areas such as Newport and Pontypool due to the extensive range of shopping and free car parking.

2.20 The majority of the town centre, comprising Cwmbran Shopping Centre, is owned

by Prudential Property Investment Limited (PruPIM) which has maintained considerable investment to improve its appearance and range of retailers. As the major landowner, PruPIM will have a key role in Cwmbran Shopping Centre’s ongoing future growth and development.

2.21 Office uses are also located within Cwmbran Shopping Centre above the retail

floorspace in four purpose built blocks. The office space is now tired and dated and many of the leases are on short-term arrangements. There is currently some vacant space.

2.22 Leisure facilities include the recently opened “Leisure @ Cwmbran” developed by Mint Blue off Glyndwr Road. This comprises an 8-screen Vue cinema and a 20-lane bowling alley, Bowlplex, with restaurants and a play centre. Three of the restaurant units are currently unlet. The pedestrianised town centre area also




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includes a number of food and drink outlets such as cafes, coffee shops and fast food restaurants. There is also a 3-screen Scene cinema together with the Congress Theatre.

2.23 Car parking within the town centre is free of charge although some car parks are

short-term time limited.

2.24 The town centre is bounded to the north and south by the Northville and Southville neighbourhood areas that were built as part of the development of Cwmbran as a “New Town”. These housing areas provide tenanted social housing mixed with private ownership where tenants have exercised “rights to buy”. These areas are subject to simultaneous aging of stock and have been formally declared as Neighbourhood Renewal Areas for a period of 10 years. They have been evidenced as areas with high levels of poor housing and social deprivation. As Neighbourhood Renewal Areas they will attract investment for improvements, repairs and the provision of co-ordinated street scenes including Specific Capital Grant linked by initiatives of various TCBC departments, Bron Afon Housing Association and other public sector agencies. The renewal of these areas will form part of the wider ranging regeneration initiatives within Cwmbran.

Other Emerging Development Opportunities in Cwmbran Town Centre

2.25 Eastern Extension to the town centre - PruPIM has reviewed ongoing investment into the Town Centre and looked at its future development potential within the existing Town Centre Boundary. PruPIM commissioned a masterplanning exercise (in July 2008) to review redeveloping parts of the Town Centre for additional retail. Preliminary proposals then included a foodstore, reconfiguring existing retail units, providing new decked car parking and alterations to both Glyndwr Road and St David’s Road to provide shopper and servicing access. These proposals are not currently being brought forward.

2.26 However the PruPIM land on the eastern side of Cwmbran Shopping Centre between Glyndwr Road and St David’s Road may be identified as a broad location for retail development with an accompanying Development Framework in the LDP. This would be for an outward-looking expansion of Cwmbran Shopping Centre for additional comparison retailing and could integrate with the Eastern Strip Central. Retail capacity studies have recently highlighted that Cwmbran Shopping Centre could accommodate a net increase in comparison goods sales area.

2.27 Proposed extension to Sainsbury’s – Sainsbury’s have received planning permission to extend their existing store (subject to signing the S106 Agreement) which sits to the immediate west of Cwmbran Shopping Centre and separated by Llywelyn Road. The store currently provides a surface level car park and petrol filling station. It is proposed to install a mezzanine sales area; reconfigure the existing car park including providing a deck level above; relocate the petrol filling station to the north of the site; and create a new access and egress to and from the site. The proposed extension of the store will increase the net floorspace for convenience goods by 1,483 sq m (15,960 sq ft) to 4,348 sq m (46,800 sq ft) and increase the net floorspace for comparison goods by 2,365 sq m (25,456 sq ft) to 2,445 sq m (26,320 sq ft) to give a revised total net floorspace of 6,793 sq m (73,030 sq ft).

2.28 Eastern Strip North Strategic Opportunity Area – this may come forward for

comprehensive redevelopment in the future and was previously identified in the Consultation Draft Plan for Cwmbran Town Centre for business/office




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development. It lies north of the Eastern Strip Central Site and is bounded by the railway station and Edlogan Way to the south; St David’s Road to the west; Somerset Road to the east; and to the north by Fox Removers. It comprises approximately 2.5 hectares (6.18 acres). It is in close proximity to the residential area of Northville. The site is formed by three parcels of land comprising the Stagecoach in Wales office and depot; cleared sites owned by the Assembly Government; and land operated by the Oak Tree Motor Company.

2.29 Eastern Strip South Strategic Opportunity Area – this forms the southern section of the former Eastern Strip (South) as previously defined in the Consultation Draft Plan for Cwmbran Town Centre. It comprises approximately 7.5 ha (18.5 acres) and lies to the west of the railway line, east of St David’s Road, south of the Eastern Strip Central Site and to the north of Llanfrechfa Way. It comprises the factory in the ownership of Alfa Laval (leased to Crane Process Flow Technologies) and the former Saunders Valve site, now cleared as a development site, and owned by Carillion Richardson. Planning consent has been granted on the Carillion Richardson site and extended until April 2012 for construction of a DIY retail store with associated garden centre, external material storage area, service yard and car parking. The site has planning consent for a 9,290 m2 (100,000 sq ft) retail unit in addition to a garden centre and 400 no. car parking spaces.

2.30 Canalside – the Canalside area has been identified for comprehensive

development as a new town centre quarter for Cwmbran. It is located to the north west of Cwmbran Town Centre and comprises some 23 ha (56.8 acres). The boundary of the site includes Cwmbran Retail Park and the Forgehammer Industrial Estate. The area is occupied by a range of land uses including retail and industrial, residential, a funeral home, a public house, a private members club and a vacant former gas holder site. The Council has proposed a high quality development to incorporate waterside living (100 dwellings in the Plan period), civic and public space, provision for commercial development, cultural uses, a canal basin, a hotel and biodiversity enhancements. An initial masterplan for the Canalside area was prepared although not formally adopted by TCBC. Due to the current difficult market conditions, the development has currently stalled.

2.31 The Brookfield School Site – this site is to the west of the town centre and is bounded by Tudor Road to the north and to the south by Victoria Street. The school has now closed and it is currently being marketed by TCBC for disposal for residential development.



Land Ownership

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3.1 The Eastern Strip Central Site is within various ownerships as follows:

ArvinMeritor – they own and occupy approximately 10.57 ha (26.1 acres). The site is used for the manufacture and assembly of automotive parts with the factory works forming the central part of the site. ArvinMeritor has put forward proposals for the development of its northern car park site and previously submitted an outline planning application (see para 5.1) for retail development with ancillary car parking. More recently ArvinMeritor has proposed the development of its northern car park site for a foodstore with parking and a petrol filling station. A detailed planning application has been submitted by Morrison’s for development on 7 acres (2.83 ha) for a retail foodstore of 78,000 sq ft (7,216 sq m) gross / 37,000 sq ft (3,427 sq ft) net together with a petrol filling station and a 496 space shoppers’ car park. Welsh Assembly Government – owns the freehold of two buildings fronting Grange Road totalling circa 35,000 sq ft that sit at the southern end of the Site on a plot comprising 0.26 ha (0.63 acres). One block is arranged on the ground and first floor and the second block is arranged on ground, first and second floors and has previously been let to Lufthansa for office accommodation and training rooms but is now vacant. Cwmbran Railway Station –––– this is operated by Arriva Trains Wales and sits to the north of Edlogan Way to the northern extremity of the site. The train station and associated car park cover an area of approximately 0.91 hectares (2.24 acres). Torfaen County Borough Council – TCBC owns the extensive landscaping strip between Grange Road and St David’s Road forming the western boundary of the site and adjoining PruPIM’s land ownerships. The area of land is landscaped including grassed areas, mature trees and hedging together with footpaths.

Land Ownership



Land Ownership

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Summary of Consultations with Landowners and Adjoining Landowners

3.2 A consultation exercise has been undertaken with relevant stakeholders comprising the landowners of the Eastern Strip Central and adjoining landowners on the eastern side of the Town Centre as part of this study and the earlier draft report dated June 2009.

3.3 The co-operation of the stakeholders and the extent to which they will be prepared to collaborate will be a key determinant of the delivery of the overall redevelopment of the area.

3.4 In terms of key messages from the landowners these can be summarised as

follows:

� the site has a number of constraints that will need to be addressed in any

redevelopment;

� there does not appear to be any collaboration between the landowners of the

Eastern Strip Central and Eastern Strip South sites in terms of comprehensive

development proposals for the Site. There has therefore been no consensus as

to bringing forward a proposed joint framework for the development of the

Site;

� the emerging proposals from the various landowners assume different

timeframes i.e. the cleared Carillion Richardson site is available for

development now and has an extant planning permission; the northern car

park area owned by ArvinMeritor could come forward for development now,

subject to planning; the remainder of the ArvinMeritor site may take longer to

become available due to operational activity and; Alfa Laval will not be

available at the earliest until 2015 without intervention;

� the mix of uses suggested for individual sites includes a foodstore, retail

warehousing, retail, residential, business/office accommodation and leisure;

� the landowners have aspirations to maximise land values from their respective

ownerships.



Strategic Planning Policy Context

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4.1 This section provides a high level overview of the planning policy framework relevant to the consideration of the Eastern Strip Central Site. In undertaking our review we have considered the following documents:

� Planning Policy Wales – Chapter 10 Planning for Retail and Town Centres

(Edition 3, July 2010)

� Torfaen Local Development Plan – Planning Policy Options Paper, January

2005

� LDP Draft – Consultation Draft Plan for Cwmbran Town Centre, published

November 2007

� TCBC Deposit Local Development Plan (To 2021) Written Statement

4.2 In addition we have looked at various background studies undertaken as follows:

� TCBC Employment Land Study – Update Report February 2010 - DTZ

� Cwmbran 2020 People, Prosperity & Place Regeneration Strategy (Draft)

� Torfaen Retail Study Update February 2011 – GVA

Planning Policy Wales – Chapter 10 Planning for Retail and Town Centres

(Edition 3, July 2010)

4.3 This replaces the advice in MIPPS 02/2005 Retailing and Town Centres. The Assembly Government’s objectives for retailing and town centres include:

� secure accessible, efficient, competitive and innovative retail provision for all

the communities of Wales, in both urban and rural areas;

� promote established town, district, local and village centres as the most

appropriate locations for retailing, leisure and for other complementary

functions;

� enhance the vitality, attractiveness and viability of town, district, local and

village centres; and to

� promote access to these centres by public transport, walking and cycling.

4.4 Para 10.1.2 states that wherever possible the retail provision should be located in

proximity to other commercial businesses, facilities for leisure, community facilities and employment.

4.5 Para 10.2.1 states that local planning authorities should develop through their

community strategies and development plans a clear strategy and policies for retail development which seek to achieve vital, attractive and viable centres. It goes on to say that development plans should also identify changing pressures and opportunities and advise appropriate responses to them and in some situations it may be necessary to take pro-active steps to identify town or city centre locations for expansion. In others it may be necessary to identify measures to reinvigorate centres, or to manage decline in the relative importance of a centre as other centres expand. Dealing with change may mean redefining the boundaries of centres or identifying acceptable changes of use.

4.6 Para 10.2.4 states that policies should encourage a diversity of uses in centres.

Mixed use developments, for example combining retailing with entertainment,





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restaurants and housing, should be encouraged so as to promote lively centres as well as to reduce the need to travel to visit the range of facilities.

4.7 Para 10.2.6 states that development plans should encourage the provision of good

access to town and other centres for walkers and cyclists and for public transport, allowing for bus priority measures and public transport facilities.

4.8 Para 10.2. 9 states that uses which need to be accessible to a large number of

people, including retailing, major leisure uses, offices of central and local government, commercial offices, hospitals and tertiary education facilities are preferably to be located in town centres.

4.9 Para 10.2.10 states that precedence should be given to establishing quantative

need for both convenience and comparison floor space, particularly as a basis for development plan allocations before qualitative factors are brought into play. It states that qualitative assessments should cover both positive and negative implications and where the current provision appears to be adequate in quantity, the need for further allocations must be fully justified in the plan. It states this may be the case if new provision can be located where it:

� supports the objectives and strategy of an up to date development plan or the

policies in this guidance;

� is highly accessible by walking, cycling or public transport;

� contributes to a substantial reduction in car journeys;

� contributes to the co-location of facilities in existing town, district, local or

village centres;

� contributes to the vitality, attractiveness and viability of such a centre;

� alleviates a lack of convenience provision in a disadvantaged area.

4.10 Para 10.2.11 identifies that local planning authorities should adopt a sequential

approach to selecting sites where a need is identified for such new development. This includes many uses best located in existing centres including retail development, leisure development and uses that need to be accessible to a large number of people. The sequential approach identifies that first preference should be for town centre locations, where suitable sites or buildings suitable for conversion are available. If not then consideration should be given to amending the boundaries of existing centres so that appropriate edge of centre sites are included. When proposing a development plan allocation in an edge of centre or out of centre location for uses best located in an existing centre, local planning authorities must have regard to need and to the sequential test and must be able to justify the proposal fully.

4.11 Para 10.2.12 states that local planning authorities should take a positive approach,

in partnership with the private sector, in identifying additional sites which accord with this approach. It stated that they should not however prescribe rigid floorspace limits, whether for town centres or other development that would unreasonably inhibit the retail industry from responding to changing demand and opportunity.

4.12 Para 10.2.13 states that Development Plans should include a criteria based policy

against which proposals coming forward on unallocated sites can be judged.




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4.13 Para 10.3.1 states that when determining a planning application for retail, leisure or other uses best located in a town centre, including redevelopment, extension or the variation of conditions, local planning authorities should take into account:

� compatibility with any community or up to date Development Plan strategy;

� need for the development / extension unless the proposal is for a site within a

defined centre or one allocated in an up to date Development Plan;

� the sequential approach to site selection;

� impact on existing centres;

� net gains in floorspace where redevelopment is involved, and whether or not it

is like-for-like in terms of comparison or convenience;

� accessibility by a variety of modes of travel;

� improvements to public transport;

� impact on overall travel patterns;

� best use of land close to any transport hub in terms of density and mixed use.

4.14 Para 10.3.2 reinforces the role of centres and states that the need for additional

provision is not to be taken into account where proposals come forward for uses best located in centres as it is “not the role of the planning system to restrict competition”.

4.15 Para 10.3.3 states that where need is a consideration, precedence should be accorded to establishing quantitative need.…. Regeneration and additional employment benefits are not considered qualitative need factors in retail policy terms, though may be material considerations in making a decision on a planning application.

4.16 Para 10.3.4 states that developers should be able to demonstrate that all potential

town centre options and then edge of centre options have been thoroughly assessed using the sequential approach, before out of centre sites are considered for key town centre uses.

4.17 Para 10.3.12 states that some types of retailing such as stores selling bulky goods

and requiring large showrooms may not be able to find suitable town centre sites. Such stores should be located at edge of centre sites or, where such sites are not available, at locations accessible to a choice of means of transport. Retail parks, where such stores are grouped, should only be considered where accessible to public transport as well as private transport. The need for retail parks should be tested.

4.18 Para 10.3.18 states that planning applications for retail development should not

normally be permitted on land designated for other uses.

The Future Development of Cwmbran Town Centre Torfaen Local

Development Plan: Planning Policy Options Paper January 2005

4.19 This document was effectively the earliest draft of the Consultation Draft Plan for Cwmbran Town Centre (see below).




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4.20 In July 2003 TCBC, supported by the Welsh Development Agency and English Partnerships, appointed GVA Grimley (planning & property advisors), Halcrow (transportation consultants) and HMA (masterplanning) to undertake an appraisal of the development options for the Town Centre to ensure its comprehensive regeneration and growth. They identified options available with a guide to land uses and actions within those particular options.

4.21 The document was prepared to provide a detailed context against which any future

development proposals for the Town Centre could be assessed. It states that all future development proposals will therefore need to have regard to the context of the strategy and be expected to assist in achieving its aims and objectives.

4.22 The vision stated within the document is that:

“In 2016, Cwmbran has an improved and expanded Town Centre with a significant mixed use offer including retail, leisure, office, employment and residential provision, enhanced and meaningful areas of public open space, a high quality urban environment in terms of design and amenity, and fully integrated and sustainable and accessible transport provision”.

4.23 Three options were put forward within the document for the expansion of the Town Centre to allow for new mixed use development in terms of retail, office, commercial leisure and residential use, transport improvements and additional civic use. Subsequently the north of the Eastern Strip (Central) site was identified for mixed retail, office, leisure and car parking uses. It was also proposed that the railway station should be relocated to south of Edlogan Way. Linkages were to be created to the Town Centre with an enhanced area of public open space centred on Llantarnam Grange. Glyndwr Road was also removed as a through route and the bus station relocated to the South East. The north west of the Town Centre was identified for new housing integrated with the creation of a canal basin.

4.24 Following the consultation exercise on the Planning Policy Options Paper, it was

proposed that TCBC should prepare a pre-deposit document that is less prescriptive than the Paper but broadly embraced the following:

1. Identifies proposals and opportunities for development/redevelopment in the

Town Centre and its environs.

2. Provides information and guidance to co-ordinate and ensure development is

comprehensively achieved.

3. Provides design guidance both for the built environment and open space

networks.

Torfaen County Borough Council - Consultation Draft Plan for Cwmbran

Town Centre - LDP Draft (DPCTC) published November 2007

4.25 The Consultation Draft Plan for Cwmbran Town Centre was prepared as part of the process relating to the Torfaen Local Development Plan (LDP). Due to pressures to develop Cwmbran Town Centre, the Council prepared the Pre-Deposit LDP plan in advance of completion of the LDP. The Consultation Draft Plan was approved for consultation by Elected Members on 25th September 2005 and subsequently issued for consultation between November 2007 and January 2008. It was prepared to supplement and provide a greater level of detail to the emerging LDP.




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4.26 The aims and objectives of the Consultation Draft Plan as defined in the document are as follows:

� to encourage improvement and development of the existing shopping area

whilst ensuring the wider function of the town is enhanced;

� to respond to the identified demands for increased retail floor space;

� increase the office employment in the town;

� encourage leisure activity, especially related to the evening leisure uses;

� encourage the provision of housing at appropriate locations;

� encourage the use of public transport;

� ensure the existing road system servicing the Town Centre functions efficiently;

� strengthen the economy of the area; and

� integrate the Monmouthshire and Brecon Canal into the Town Centre.

4.27 The study area was divided into the following:

� Zone 1: the Town Centre;

� Zone 2: the Eastern Strip (South) that included the Eastern Strip Central;

� Zone 3: the Eastern Strip (North);

� Zone 4: the Canalside Area ;

� Sainsbury’s / Lidl area;

� Southville area albeit there are no proposals advanced in the Plan for this area

and;

� Brookfield School Site.

4.28 In respect of retail and leisure provision for Cwmbran, the Consultation Draft Plan

draws on the findings of GVA’s Retail and Leisure Study for TCBC (2007). It includes the recommended estimates of the quantity of need, on a revised market share basis. The Consultation Draft Plan summarises GVA’s recommendations on retail strategy including that the following actions are undertaken:

� the LDP and supporting strategy documents should identify a range of sites for

new retail development within the Town Centre. The priority should be to

identify areas within the existing Town Centre Boundary which can provide a

net addition of retail floorspace. In addition, given the physical constraints

imposed upon the current Town Centre Boundary, it is possible that TCBC

should consider the need to expand the Town Centre Boundary to incorporate

currently edge-of-centre sites. Care should be taken to ensure that any edge-

of-centre sites identified offer the opportunity for logical, appropriate and

sustainable town centre growth.

� for sites identified for retail development in the LDP, rigid floorspace limits

should not be given. GVA recommended that TCBC should adopt a phased

approach to retail development in Cwmbran which gives priority to the release

of town centre sites. Edge of centre sites should only be brought forward where

there is a need for additional retail floorspace and/or town centre locations are




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not able (having regard to the need for flexibility) to accommodate retail

requirements. For sites to form part of an expanded Town Centre Boundary,

GVA recommend that they must be assessed against a basket of key criteria to

ensure that they benefit the health, role and function of the centre as a whole.

� given the low level of leisure uses/floorspace currently in Cwmbran, there is a

need to improve existing provision from both qualitative and quantitative

perspectives. (Since the issue of the Consultation Draft Plan a multi-leisure use

development on the eastern side of the town centre has now been developed,

“Leisure @ Cwmbran”.)

4.29 Offices – the Consultation Draft Plan refers to DTZ’s Employment Land Study dated 2006. It confirms the findings of the DTZ report that proposals to regenerate the Town Centre through developing office accommodation “should be supported”. It concludes that “this plan should identify areas where the development of offices would be supported and encouraged”.

4.30 The Consultation Draft Plan highlights that the number of residential dwellings that

Torfaen should accommodate is likely to be within the range of 5,000 - 7,000 dwellings. The Consultation Draft Plan states that Cwmbran Town Centre offers significant opportunities for well located residential sites that could contribute towards the overall allocation required in the LDP. The Consultation Draft Plan also suggests that, within Torfaen, the need for affordable housing comprises 63% market housing and 37% affordable housing.

4.31 Section 2.5 of the Consultation Draft Plan deals with traffic and transport strategy.

The Consultation Draft Plan refers to the VISSIM traffic model commissioned from Halcrow that gives a visual representation of the effect of additional traffic on the existing highway network resulting from further development in the Town Centre. The Consultation Draft Plan states that “developers will be responsible for identifying appropriate measures to mitigate the impact of developments for which they are responsible”. The initial studies suggests that works could include improvements to:

� St David’s Road / Edlogan Way junction

� Tudor Road / Llewellyn Road

� Cwmbran Drive / Tudor Road

� St David’s Road / Tudor Road

� The opportunity to downgrade or remove Glyndwr Road.

4.32 In terms of the Transport Strategy, the key principles relating to development proposals in the Town Centre include:

� developers will be required to pay for works to mitigate the transport impact of

their development;

� developer contributions could be employed to improve a portion of the network

remote from the actual development that is provided in the contribution, if to do

so will address more urgent network capacity problems;

� developers will be required to include measures to improve pedestrian, cycle

and public transport facilities;




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� TCBC to work with Cwmbran Shopping Centre and other car park owners to

encourage a co-ordinated parking management strategy that offers safe and

convenient parking for shoppers and visitors to the town and allocates long stay

and short term parking;

� future development proposals will be required to apply levels of parking

provision given in the South Wales Parking Guidelines;

� developers will be expected to provide footpath links in and connecting with

developments to promote and encourage travel on foot.

4.33 Section 2.7 Design Guidance sets out key design principles to be considered in

relation to any town centre development. It also states that development proposals will need to be accompanied by a design statement based on the principles included in TAN12. The design principles stated include:

� promoting high quality and inclusive design to improve the character and

quality of the town centre;

� “Landmark Development” will be encouraged in the four corners which define

the town centre;

� buildings to be innovative in design and of high architectural quality;

� new development to contribute to the legibility of the town centre by having

regard to existing barriers, visitors, gateways or landmarks which guide visitors

through the area;

� development should be orientated so that it has a street frontage and avoiding

inward looking design;

� scale, massing and layout should be well related to its context, in particular to

neighbouring development, urban space and transport routes;

� should be designed to ensure they benefit from energy efficiency savings;

� should usually have entry level activity to increase the vibrancy of streets and

other public places.

4.34 In terms of environmental sustainability, the design guidance states that new

development should be designed to maximise energy efficiency and minimise resource use and as far as possible to meet best practice environmental standards and design. Impact on bio-diversity and outline appropriate mitigation measures to preserve and enhance the nature environment.

4.35 With regard to transportation and movement, the design guidance includes:

� measures to encourage and improve the movement of pedestrians, cyclist and

public transport users;

� increase permeability by providing and improving linkages and routes for

pedestrians and cyclists.

� proposals in and around the existing town centre should help to address the

barrier effect of the ring road to pedestrians, in particular Glyndwr Road and

ensure better integration between the existing town centre and new

development outside this area;




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� large amounts of surface level parking will be discouraged;

� any surface level parking should incorporate high quality landscaping;

� any new multi-storey car parking to be sensitively designed to contribute to the

street scene.

4.36 In respect of public realm, the design guidance states that design of public space should be undertaken in parallel in design with the building to which it relates and there should be a provision of a series of well linked, high quality public spaces and routes across the town centre.

4.37 The design of public spaces and street scene should include quality signage,

lighting, planting, street furniture and public and Access Statements will be required to demonstrate that the principles of inclusive design and access for people have been considered throughout the development process.

4.38 The Consultation Draft Plan identified four Framework Zones including the Eastern

Strip (South) identified as Zone 2. The Consultation Draft Plan includes a description of the site and also refers to the Eastern Strip (North), Zone 3, in the context that the Council will consider proposals for a joint development. In terms of other highlighted issues, the Consultation Draft Plan states that any redevelopment proposals should take account of the location of the railway station and the need to integrate access to it within wider proposals.

4.39 Site proposals – the Consultation Draft Plan states in para 3.2.2 that TCBC would encourage a commercial/employment led mixed-use development on the Eastern Strip (South). A summary of the potential uses detailed comprise:

� the site is stated to be well located for potential office development. Other uses

that may be suitable should be subsidiary to TCBC’s main aim to promote

employment creating uses;

� leisure uses due to the proximity of the Leisure @ Cwmbran complex;

� retail uses albeit new or redeveloped retail space is to be largely located within

the existing Town Centre Boundary. There may, however, be requirements that

cannot be located in the Town Centre and TCBC would require a full

justification for the location of such uses on the Site;

� housing uses – TCBC would not support the development of a significant

amount of housing on the Eastern Strip site as Zone 4 (Canalside and the

Brookfield School site) will accommodate the bulk of housing allocated in the

Plan. There are however opportunities for an element of housing within any

wider proposal;

� hotel use.

4.40 Para 3.2.3 sets out Design Guidance for the Site including:

� improving accessibility and ease of movement – the provision of new and

upgrade routes for pedestrians and cyclists between this Zone and the

surrounding area particularly the linkages from the railway station to the Town

Centre and between the Zone and the Town Centre, particularly across St

David’s Road;




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� response to context and character – ensuring the opportunity for comprehensive

redevelopment of the area is fully exploited to create a location of quality and

distinctiveness that also integrates well with the Town Centre;

� aiming to enhance biodiversity and nature conservation – by making best use

of the existing green strip adjacent to St David’s Road to create green space of

ecological value and creating new appropriately landscaped areas within the

redevelopment;

� encouraging legibility, variety, diversity and adaptability – by using gateway/

landmark features that allow orientation and provide visual as well as physical

links to the Town Centre. The development and building types are also to

encourage alternative uses and future adaptability.

4.41 Section 4 sets out the principle of “Development Frameworks” whereby TCBC will

require that developers prepare a Development Framework for any Zone in advance of a planning application being submitted either for the development of the whole of the Zone or part of it. TCBC is seeking that each Zone is considered on a comprehensive basis and that any development proposals also take account of the potential for proposed development in other Zones.

4.42 The Consultation Draft Plan states that “it is the intention of TCBC that each

Development Framework will be formally adopted by TCBC in advance of the determination of planning applications for that Zone”. TCBC would also actively participate in preparing the Development Framework.

Torfaen County Borough Council Deposit Local Development Plan (To 2021)

Written Statement

4.43 The Local Development Plan (LDP) will set out TCBC’s objectives and priorities for the development and use of land within Torfaen and its policies for implementing them for the period from adoption until 2021. It will have been prepared in accordance with the Planning and Compulsory Purchase Act 2004 and TCBC is required to exercise this function with the objective of contributing to the achievement of sustainable development.

4.44 On adoption of the LDP, it will replace the existing Adopted Torfaen Local Plan

(1991-2006) and the adopted Gwent Structure Plan (1991-2006) as the Development Plan for the County Borough and for decision-making on land use planning matters. The Deposit LDP contains a Development Strategy, Strategic Policies, Borough Wide Policies and Detailed Policies.

4.45 The current proposed timetable for the preparation of the LDP is for it to be

considered by full Council on 15th February 2011 with the six week consultation period to begin in March; representations to be made and discussions held and “Alternative Sites” advertised; and with a report to Members in November 2011. It is anticipated that the Council would then formally adopt the LDP in March 2013 following examination by the Inspector and the preparation of the Inspectors Report.

4.46 The consultation process on the Deposit LDP allows for TCBC to advertise any

“Alternative Sites” put forward by representors during the consultation stage of the LDP. Alternative Sites can include new sites put forward, amendments to allocated site boundaries and amendments to the Urban Boundary.




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4.47 The LDP will be subject to independent examination to determine whether it is

“sound” and the assessment will relate to the process by which it has been prepared, its consistency and its coherence and effectiveness.

4.48 The Deposit LDP will identify a number of Strategic Action Areas for development

within its Detailed Policies and where developers will be required to prepare a Development Framework in advance of any planning applications being submitted. It will also identify Strategic Opportunity Areas which will not be allocated for development during the Plan period but which will highlight the awareness of TCBC as to the sites’ development potential.

4.49 The Deposit LDP will be subject to review and ongoing monitoring during the Plan period with TCBC developing a framework of indictors and targets to monitor the effectiveness of the Plan including an Annual Monitoring Report.

STUDIES RELEVANT TO CWMBRAN TOWN CENTRE

Torfaen County Borough Council Employment Land Study – Update Report

February 2010 - DTZ

4.50 The purpose of the Study is to forecast the demand for employment land in Torfaen

up to 2021 and to re-assess the suitability of the proposed employment land allocations in the emerging Local Development Plan.

4.51 The Study acknowledges that significant regeneration is planned for Cwmbran Town Centre and this will have important consequences for the displacement of existing businesses and the provision of new employment space in Cwmbran. It states that the office market has suffered a major downturn in line with national and regional trends over the last 2 years. Sites such as Llantarnam Park have become popular with occupiers looking for an affordable location that is close to Cardiff and Bristol.

4.52 In terms of the industrial market, the local market has experienced contraction in

line with regional and national trends. Sites have come forward for development for other uses such as residential.

4.53 The Study highlights the need to protect employment land from being redeveloped for alternative uses and suggests the following:

1. Sites to be protected using a criteria based policy approach including naming

the key sites with the criteria focussing on quality, range and choice. It would

also allow for the release of poor quality sites.

2. Cwmbran to be recognised as a focus for employment growth due to various

factors including its strategic location; accessibility by a variety of transport

modes; it will help regeneration of the Town Centre and provide a

complementary mix of uses; and compatibility with PPW encouraging the

provision of employment sites in close proximity to town centres and in line with

sustainable development principles.

4.54 The Study makes recommendations as to sites that should be allocated for employment development in the LDP. This includes the 2.78 hectare site at “Edlogan Way South” (the north car park on the Eastern Strip (Central) site) which is




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described as “is a highly accessible site which is flat and located close to the train station and Town Centre and would be an ideal location for an office development to complement the Cwmbran Town Centre regeneration proposals”.

Cwmbran 2020 People, Prosperity and Place – Regeneration Strategy Draft

4.55 The Regeneration Strategy is in draft form and is to be adopted by TCBC at a later date. The Regeneration Strategy sets out a vision for the future of Cwmbran over the next 10 years providing a framework to support the sustainable regeneration of the town and its communities. The purpose is to join up economic, social, environmental and community outcomes and guide the activities of the public, private and voluntary sectors in respect of the long term regeneration of Cwmbran. It aims to promote the efficient use of funding and resources and sets out positive outcomes to be achieved with a prioritised action programme of projects and initiatives over the 10 year period. It was informed by the Cwmbran Regeneration Strategy Baseline Report dated December 2009.

4.56 The Strategy highlights the challenges facing Cwmbran where it is reaching its

original planned capacity of 50,000 inhabitants and needs to address issues associated with urban renewal and regeneration. It highlights the potential of the town including the opportunity to create a more equal and inclusive community using the assets of its people; the need to improve the physical environment by upgrading buildings, green spaces and investing in local neighbourhoods and the Town Centre; and the potential to build on its role as a centre for economic growth including as a major sub-regional employment and retail centre in South-East Wales.

4.57 In terms of the Strategic context, it highlights that Cwmbran together with Pontypool

is identified as a key settlement within the Wales Spatial Plan and has a critical role to play in the success of South-East Wales.

4.58 There is reference to a number of key sites and potential future development

opportunities in and around Cwmbran that will impact on the town’s regeneration over the next 10 years and many of these are of strategic importance to South-East Wales. The sites include the Town Centre, County Hall, the former Police College, Llantarnam Park, Panteg Steel Works, South Sebastopol and Llanfrechfa Grange Hospital.

4.59 The Strategy provides a framework for a joined up and prioritised approach to the

regeneration of Cwmbran with a shared vision that is not intended to be fixed but will be developed and reviewed over time. The framework is divided into six strategic themes as follows:

1. Economic prosperity and employment – strategic objectives include realising

Cwmbran’s potential as a catalyst for economic growth and regeneration

throughout Torfaen and enhancing the town centre’s position as a prime sub-

regional shopping centre in South Wales.

2. Housing and neighbourhood renewal – strategic objectives include capitalising

on the potential for housing growth in Torfaen focusing on the redevelopment

of previously used sites, diversifying and improving the housing stock and

providing more affordable homes.




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3. Health and community – strategic objectives include improving the provision

and use of health, leisure and community facilities and services within

Cwmbran.

4. Education, training and skills – strategic objectives include developing a more

skilled and responsive workforce and improved access to local employment

opportunities.

5. Transport and infrastructure – strategic objectives include encouraging the

provision and use of a sustainable and integrated transport system in Cwmbran

Town Centre.

6. Environment and pride of place – strategic objectives include promoting high

quality, sustainable and inclusive design in buildings, public realm and green

spaces.

4.60 The Regeneration Strategy will be the overall responsibility of TCBC’s Strategic Projects Team with the Cwmbran Regeneration Strategic Partnership having an overarching role in monitoring and reviewing its delivery and progress.

4.61 In its conclusions, the Baseline Report states that Cwmbran has the potential to

reaffirm its position in the South East Wales sub-region acting as an economic driver for the social, economic and environmental regeneration of Torfaen and its communities. It highlights the significant links between land use and transport noting the accessibility of Cwmbran and the opportunity to capitalise on the links as they potentially provide the opportunity for future growth.

4.62 The Report acknowledges Cwmbran’s potential to become the centre of economic

activity yet notes that there will need to be a focus on long term regeneration including through population retention, growth and development. Strategic changes will need to include more focus on post-manufacturing economic stimulation and growth to be a key driver of the regeneration. In addition, there will be a need to concentrate new capacity allocations and regeneration efforts within Cwmbran Town Centre in order to expand its role.

4.63 The Report also comments on sustainability objectives put forward by the Welsh

Assembly Government and that these will be a significant consideration throughout any development, assessment and implementation of a regeneration strategy for Cwmbran.

GVA - Torfaen Retail Study Update 2011

4.64 GVA has provided a 2011 update to its Torfaen Retail & Leisure Study prepared for TCBC (dated 2007). This is to provide recommendations to feed into the LDP process. In addition it is to provide a response to the interest from retailers and landowners in developing additional floor space in Cwmbran.

4.65 The report includes:

� an updated town centre healthcheck analysis of Cwmbran, Pontypool and

Blaenavon;

� overview of the results of an up-to-date household survey of shopping patterns;




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� an update of the quantitative assessment of retail sales floorspace capacity

within Cwmbran for both comparison and convenience retail sales floorspace

for the period 2010 to 2021;

� the sequential site analysis of potential retail development sites in and around

Cwmbran Town Centre against a framework of retail planning policy criteria.

4.66 GVA has analysed the capacity for additional convenience goods floorspace in Cwmbran (dependent on the operator) and has identified 1,943 sq m net sales space (20,915 sq ft) to 2,390 sq m net sales space (25,725 sq ft) in 2010, rising to between 2,378 sq m (25,596 sq ft) and 2,925 sq m (31,485 sq ft) in 2021, the end of the LDP period. This is based on a constant market share approach. The figures represent a decrease since 2007 which is partly attributable to the approved Sainsbury’s extension and a reduction in per capita expenditure due to the economic climate but is principally due to the reductions in forecast population growth.

4.67 For comparison goods floorspace, GVA’s range of capacity forecast is 10,854 sq m (116,800 sq ft) net sales area in 2009 rising to 13,679 sq m (147,240 sq ft) at 2016 and 20,678 sq m (222,575 sq ft) net sales area, including the Alfa Laval commitment, by the end of the LDP period in 2021. The capacity forecast excluding the Alfa Laval commitment by 2021 is 24.401 sq m (262,650 sq ft).

4.68 In terms of the sequential assessment of town centre, edge of centre and out of centre sites in Cwmbran, GVA has looked at five sites comprising the following:

� ArvinMeritor northern car park (and undeveloped land to the west)

� The former Alfa Laval site (Carillion Richardson)

� Eastern side of town centre (PruPIM) including land to the east of Glyndwr Road

� Land north of Edlogan Way (DPCTC Eastern Strip North)

� Homebase, Tudor Road

4.69 GVA reports that “in pure retail planning terms the following sequential order of

preference emerges....and of these it is only the first three sites that warrant further consideration given their locations and their realistic potential to contribute to the vitality and viability of the town”: 1. Eastern side of town centre (PruPIM) 2. ArvinMeritor Northern Car Park 3. DPCTC Eastern Strip North 4. Homebase, Tudor Road (defined as out of centre) 5. Carillion Richardson (defined as out of centre)

4.70 GVA’s further comments include:

� the land on the eastern side of Cwmbran Town Centre (PruPIM’s land) provides

an opportunity to accommodate the available capacity for additional

comparison floorspace whilst the Eastern Strip Central site provides the most

sequentially preferable site (of those assessed in the study) for a new foodstore

development;

� the ArvinMeritor site has the potential to function as a true “edge of centre” site

but this requires improved integration with the town centre including effective




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pedestrian and visual linkages. GVA suggest that an expanded site to take in

Grange Road and land to the west of Grange Road could offer a “different

potential” to other edge of centre sites in Cwmbran;

� the benefits of bringing the expanded site forward are cited as the delivery of

economic gains in the form of job creation, an enhanced retail offer and

retained local expenditure together with the creation of a direct link between the

town centre and the rail station.

4.71 GVA concludes that there continues to be sufficient capacity to support the

development of a new foodstore and the Eastern Strip Central site would take the available capacity identified. Retail development in this location, as an “edge of centre site, would need to deliver regeneration benefits and should not be divorced from the existing town centre.



Planning History of the Site

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5.1 In respect of planning applications and extant consents relating to the Eastern Strip Central Site, we are aware of the following:

03/P/09585 Meritor North Car Park – outline application for the erection of 8,556m2 of former large retailing and associated parking and access arrangements and a car park and facilities ancillary to the Meritor operation. The retailing to be accommodated in 10 units from 210m2 to 2,217m2. The development to also consist of 340 car parking spaces. The application remains undetermined. Meritor North Car Park – in April 2009 Wm Morrison Supermarkets submitted a full planning application to develop a retail foodstore of 7,216 m2 gross /3,427 sq m net, a petrol filling station and 496 space shoppers’ car park at Grange Road/Edlogan Way with access from Grange Road. The application remains undetermined.

Planning History of the Site



Development Constraints

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6.1 As part of the original study brief for the Eastern Strip (South), in 2009 CB Richard Ellis Geo-Environmental undertook a review of the environmental conditions affecting the site that may have an impact on the land values and potential uses for future development. These “Additional Studies” included:

� Contamination study – desktop study to identify if there is any potential

contamination due to the previous history of the use of the site for heavy

industries since the 1930’s.

� Topographical survey – commissioned to establish the difference in levels from

Glyndwr Road towards St David’s Road and the Site which sits at a lower level

than the Town Centre.

� Flood consequence assessment – The Welsh Assembly Government’s Technical

Advice Notes (TAN 15) entitled “Development & Flood Risk” dated July 2004

identified the Site as being within Zone B flood zone (area known to have

flooded) and part of the site is located within Zone C2 flood zone (area without

significant flood defence). The flood consequence assessment undertaken pre-

dated the release of TAN15 Development and Flood Risk 09: Development

Advice Map (ST29NE) which has subsequently provided updated guidance as

referred to in para 6.20.

� a review of the provision of foul and surface water drainage and all utilities has

been undertaken.

6.2 We set out below a brief summary of the findings together with comments where more recent site investigations have been undertaken.

Phase 1 Environmental Assessment Summary

6.3 CB Richard Ellis Geo-Environmental was instructed in 2009 to undertake a Phase 1 Environmental Assessment of the Site.

6.4 A number of potential sources of contamination were identified from the current /

former bulk storage and use of fuels, metals and chlorinated solvents on the Site. The more significant potential sources at the ArvinMeritor site included a known former leak of diesel (1980s) from an underground storage of waste oil (Swarf House); the former bulk underground storage of petrol and trichloroethylene (TCE); and the old metal plating workshops, effluent treatment plant and former waste oil pit (Adrian’s Pit).

6.5 Previous third party intrusive works had been undertaken in the area of the two

industrial facilities on site. A copy of the reports had not been provided to CB Richard Ellis Geo-Environmental for review at this time. However, information reviewed on site indicated that the previous works identified that shallow soils and groundwater within the area of the ArvinMeritor facility are severely impacted with metals, hydrocarbons and solvents. Furthermore the potential for the presence of phase separated product (i.e. floating fuel and heavier separated TCE) could not be ruled out.

6.6 The site is considered to be situated in an area of low to moderate sensitivity in

relation to groundwater resources due to the presence of the underlying minor aquifers (Glacial Deposits and Lower Old Red Sandstone). The site is considered to be in an area of moderate to high sensitivity in relation to surface water resources due to the proximity of the Afon Llwyd (100m east).





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6.7 In line with current UK guidance, the Environmental Assessment was undertaken using a risk based approach, with the potential environmental risk assessed qualitatively using the ‘source-pathway-receptor’ scenario. Based on the current and proposed redevelopment of the site, up to six possible significant pollutant linkages were identified between potentially contaminated soils and current/future site users (direct contact, ingestion and volatilisation); potentially contaminated soils and controlled waters (groundwater and surface waters); and site derived contamination and users of third party land (i.e. volatilisation from shallow groundwater).

6.8 Given the long industrial history of the site, CBRE Geo-Environmental considered

that there is a moderate to high potential for soil and groundwater contamination beneath the site. On the basis of the findings of the review, CBRE Geo-Environmental concluded that even in the current use there is a possibility of the site attracting the attention of the regulatory authorities and/or representing a risk to identified receptors.

6.9 As with any brownfield site, CB Richard Ellis Geo-Environmental advised that the actual site condition could only be ascertained by conducting a Phase II site intrusive investigation. In the event of redevelopment at the site, a Phase II intrusive investigation would be likely to be required as a condition of planning and there may be requirements on redevelopment for remedial action.

6.10 Since the CB Richard Ellis Geo-Environmental report, ArvinMeritor has

commissioned Arcadis (UK) Limited to undertake further detailed assessments of the presence and extent of soil and groundwater contamination which may be present on the ArvinMeritor site. These comprised a Phase I Environmental Site Assessment (ESA) of ArvinMeritor’s facility and an initial Phase IIA ESA followed by a Phase IIB ESA. These studies have assisted in ascertaining not only the extent of contamination across the ArvinMeritor site but also in informing the uses that could be developed on the site in the context of clean-up costs that would be viable.

6.11 The investigation considered issues such as the following:

� potential source areas of contamination;

� whether there are risks to the deeper aquifer underlying the site and

consequent lateral migration;

� whether there have been off-site migration of impacts to soil and groundwater

on adjacent land including the playing fields;

� recommendations as to further investigations strategy including a groundwater

monitoring programme and completion of a Detailed Quantitative Risk

Assessment and a subsequent Remediation Options Appraisal.

6.12 CB Richard Ellis Geo-Environmental also reported that the site is located in an area

where between 3% and 5% of residential properties are above the action level for Radon set by the National Radiological Protection Board. Basic radon protection measures are considered necessary by the BGS for new residential properties. It is recommended that enquiries are made specific to a predominantly commercial redevelopment.




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Utilities

6.13 In terms of utilities, electricity cables would appear to be the most prevalent service covering the development zone with low voltage cables identified at several locations including supplies to street lights and road signs together with local supplies to the adjoining residential properties to the west of St David’s Road.

6.14 There is an electricity sub-station in the north part of the Site beside Cwmbran

Railway Station together with a pumping station and to the south east of the Site there are further electricity sub-stations on the former Saunders Valve site (Carillion Richardson) in the central part of the Site beside Grange Road and two more associated with ArvinMeritor. There are identified underground cable routes originating from the sub-stations. Both of the ArvinMeritor sub-stations show cables running east / west across Grange Road and St David’s Road following the eastern line of the main factory building together with further cabling running from east to west to the south of the ArvinMeritor car park. We understand that the stand-off zone information provided by Western Power documentation for overhead supply on towers is 15m; from any voltage cables on poles is 9m and for underground supply the stand off for 132kV cables is 5m and 33kV cables is 3m.

6.15 Underground BT cables are present across much of the Site and overhead supply

appears to be limited to the area to the east of Grange Road between ArvinMeritor and the Alfa Laval site. Specified stand off for BT underground plant is 600mm.

6.16 The Site is crossed by low and medium pressure gas pipes. The medium pressured

pipelines are predominantly in the pavements and verges alongside the road network with the local supply leading to the industrial units to the southern half of the Site and from Grange Road towards the railway station. In terms of constraints, mechanical excavation must not be used within 1m of a low pressure gas pipe or within 3m of a medium pressure gas pipe. In addition, there may be protection through an easement agreement that would stipulate use and working restrictions within a stated distance of the pipe.

6.17 Plans obtained from Welsh Water confirm that there are both water supply pipes

and foul / storm sewers crossing the Site. There are identifiable sewers route following the alignment of St David’s Road and Grange Road in the north / south direction with connections to the east of the roads leading to the station car park area in the north and some of the industrial units in the south east. There are also some sewers on the western side of the railway line running parallel to it affecting the northern half of the Site. Water mains are predominantly located alongside Grange Road through the southern part of the Site and St David’s Road, with connections leading to locations in close proximity to the Caradoc Road / Edlogan Way / St David’s Road roundabout. No specific information is identified relating to stand off and easement requirements in the information provided.

6.18 In respect of media apparatus, recorded locations of Virgin Media appear to only

encroach around the periphery of the Site.

Flood Risk

6.19 The TAN15 Development Advice Maps were updated by the Welsh Assembly Government in November 2009 (Development and Flood Risk ’09).

6.20 Much of the ArvinMeritor site (the middle and southern section) is now categorised as Flood Zone C2 (blue) due to the risk of fluvial flooding from the Afon Lwyd. A




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small area of the middle and southern section is identified as Zone B (yellow) which defines areas known to have flooded in the past. The northern car park section is primarily defined as Zone A (white) with little or no risk of fluvial flooding. A small part of the northern section is shown as Zone B (yellow) as known to have flooded in the past.

6.21 The definition of Flood Zone C2 refers to areas of the flood plain without significant flood defence infrastructure and subsequently limits the form of development that is allowed. TAN15 states that emergency services and highly vulnerable forms of development, such as residential, would not be permitted within Zone C2.

6.22 A more recent study has been undertaken by Hyder Consulting (UK) Limited commissioned by ArvinMeritor to carry out flood risk and consequences modelling to support future redevelopment of the ArvinMeritor site and to determine the potential flooding risk. This included looking at the extent to which the railway embankment may provide some flood relief. Consideration has been given to potential mitigation measures that may be feasible in reducing the risk of flooding on the site. One potential measure is the creation of an 8m buffer strip adjacent to the railway embankment to allow the majority of the site to be within acceptable limits for all development types. We understand that further modelling is required to optimise the buffer strip design.

Highways

6.23 Both St David’s Road and Grange Road create severance between the Site and Cwmbran Shopping Centre.

6.24 Grange Road provides north/south access to ArvinMeritor, Alfa Laval, the WAG office buildings and the Carillion Richardson site. Closure of any part of it would require a stopping up order. In addition any redevelopment that closes part of Grange Road would need to facilitate access to the adjacent properties. Impact to the St David’s Road roundabouts will need to be assessed and reconfiguration may be required of the access on to these roundabouts if traffic flows are to change.

6.25 St David’s Road provides a busy through route for mostly local traffic together with a link to the railway station together with an eastern route to “Leisure at Cwmbran” and Cwmbran Shopping Centre. However it is a constraint to the westwards expansion of the Site.

6.26 In 2004, TCBC commissioned Halcrow to develop a VISSIM model as part of the report on The Future Development of Cwmbran Town Centre. This was principally to assess development impact, review car parking strategies and signing strategy. The traffic model provided a visual representation of the effect of additional traffic on the existing highway network. The initial studies suggested that works would be expected to include improvements to the St David’s Road/Edlogan Way intersection and the St David’s Road/Tudor Road intersection. It also stated that there was an opportunity to downgrade or remove Glyndwr Road. Such works would need to be undertaken where development proposals were generating additional traffic and would be funded by S106 contributions.

6.27 More recently St David’s Road potential relocation has been explored through a report commissioned by the Council from Capita Symonds that included two options for the relocation eastwards. The relocation of St David’s Road would significantly enlarge the town centre commercial area but the report’s conclusions highlight that it would not be straightforward including that it would not be possible




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to completely close Glyndwr Road to traffic; the construction of a foodstore on the northern part of the site would not allow a replacement road that is a standard appropriate to DMRB (Design Manual for Roads and Bridges for 30 mph); and the length of road would be much longer. Option 2 showed the road relocated to the standards of DMRB but this would impact on the positioning of the foodstore and significantly reduce the developable area that could be integrated into the town centre. Any new road would also be costly and require land assembly.

6.28 A potential solution that is more cost effective may be traffic calming that allows the traffic flow to be maintained by, for example, tabling but which facilitates east/west pedestrian movement.

6.29 To bridge St David’s Road, Mint Blue’s development “Leisure @ Cwmbran” included the part construction of an upper level walkway serving the cinema and adjacent restaurants that will allow for the later construction of a connecting high level bridge link to the Site. Under the terms of the S106 Agreement, PruPIM and Mint Blue agreed to provide part of this dedicated walkway with a minimum width of 6m and TCBC has rights to connect to this across St David’s Road.

6.30 Any new development will impact on the surrounding highway network including requiring connection into the existing roundabouts on St David’s Road. A Traffic Impact Assessment would be required as part of any planning application. In addition financial contributions may be sought from developers in respect of funding the cost of consequent required highway works in the town centre or the cost of further highways studies.

OTHER DEVELOPMENT CONSTRAINTS AND ISSUES

6.31 For a comprehensive scheme to be progressed, vacant possession would need to

be obtained in respect of any existing leases i.e. any leasing arrangements made by WAG in respect of the office buildings beside ArvinMeritor.

6.32 A phased relocation on site or relocation off site would be required for ArvinMeritor

to deliver a developable site and a comprehensive redevelopment solution for the whole of its land in addition to the northern car park site.

6.33 We understand that there is Japanese Knotweed in the area and is likely to be

within the Site. This would require removal as hazardous waste prior to the start of any building works.

6.34 Consent may be required from Network Rail to various building activities due to the proximity of the Site to the rail track (the South Wales to Manchester Railway Line running in a north/south direction along the eastern boundary of the Site) and restrictions may be imposed including on the use of vibro-compaction machinery or driven piles and the use of cranes or other mechanical plant working adjacent to the operational railway. Any demolition or refurbishment works will not be allowed that are considered to endanger the safe operation of the railway or the stability of the adjoining Network Rail structures. In particular the demolition of buildings or other structures should be carried out in accordance with an agreed method statement with provisions to avoid debris or other materials falling onto Network Rail's land. In addition Network Rail will need to be consulted on any alterations to ground levels as they are concerned as to whether excavations and the construction of foundations and footings within 10m of the boundary will not impact on the stability of the railway.



Property Market Assessment

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7.1 We set out below an overview of the current national property market characteristics along with a more detailed property market overview of Cwmbran Town Centre.

NATIONAL PROPERTY MARKET OVERVIEW

7.2 The market for property investment and development in the UK was extremely strong over the period from 2004 to the early part of 2007, driven by an explosive growth in cheap debt and a strong flow of money from private investors diversifying from other asset classes. However there were subsequently two difficult years for property fuelled by the collapse of the US sub-prime mortgage market in mid 2007 that impacted on world financial markets. It was during this two year period from mid-2007 / 2009 that overall property values fell 44%.

7.3 There was some rebound over the second half of 2009 endorsed by a strong turnaround in investor sentiment from the middle of 2009 with property yields remaining under downward pressure for the remainder of the year. The first quarter of 2010 was more subdued in terms of investment volumes but Q2 and Q3 staged a more respectable recovery albeit the momentum behind the recovery in values in the early part of 2010 has largely waned. Investment turnover remains focused on the more prime end of the market with the low availability of debt finance proving to be a constraint for purchasers of secondary assets. Q3 of 2010 was notable for seeing the first sub-sector capital value decline since the recovery began in mid-2009.

7.4 The recovery continues to be characterised by wide variations in rates growth across the global economy. Both the US and Eurozone remain in the slow lane but growth in the UK over Q2/Q3 surprised most observers on the upside including a rebound in construction output.

7.5 There is however widespread expectation of weaker growth ahead with CB Richard Ellis’s forecast for overall GDP growth at 1.7% for 2010 and 2.0% for 2011. This is because underlying growth remains relatively weak but also the Government cutbacks announced in the Comprehensive Spending Review will reduce demand in the short to medium term.

7.6 Household expenditure is expected to grow at a much slower rate than during earlier economic recoveries, averaging 1.8% p.a. and hampered by the deleveraging of households, higher taxes and weak projected income growth. This will create a more testing environment for all consumer-facing sectors of the economy with retailers in the front line of impact. Areas with relatively high dependence on public sector employment and /or high benefits dependency are most likely to see the cuts feeding through to weaker spending on the high street.

7.7 The retail sector has seen a marked disparity in the performance of prime versus secondary property in the upturn in asset values since mid-2009. The impact of the fiscal squeeze is likely to be felt most adversely in secondary retail assets and locations, entrenching the disparity which has recently emerged.

7.8 A further key dimension of the property market impact of the cuts concerns public sector demand for commercial property. This is going to be substantially reduced through the government’s drive to cut waste and inefficiency in public sector occupancy of property coupled with workforce reductions through the public sector. This includes reducing costs of “back office operations” and a more efficient use of property, including sharing buildings. Office locations that are reliant on the





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public sector will have to rely on their capacity to generate and attract private demand for office space. This will affect the prospects also for the public sector to dispose of unwanted office property in particular in local markets, particularly disposal of government office buildings of secondary quality.

7.9 Rental declines have been slowing in the past three months of 2010, with the prospect of positive growth nearing after two and a half years of decline. All Property rental values declined 1.1% this year with the three month annualised short term indicator continuing to improve to –0.4% in October i.e. showing signs of stabilisation. Prime rental growth for commercial property was marginally positive in Q3 2010, growing by 0.2%. This completes a year of stagnant rental values with prime occupier markets still struggling across many regions.

7.10 For offices, the prospects for rental growth will be severely constrained due to the

fall in demand generally over the past eighteen months. This will be exacerbated by the fall in public sector demand as in the past the public sector has accounted for approximately one fifth of annual take up in the major UK regional office markets. The prospects for secondary stock in the regional office markets is likely to be worse given the over-supply of space in many markets and the rationalisation of space requirements being undertaken by the major banks.

7.11 Retail rental growth prospects are expected to vary greatly across the UK. Given the broader slowdown in the consumer economy, average rental growth is expected to be only 1.4% p.a. in sharp contrast to previous economic recoveries in which retail rental growth has tended to lead the other sectors.

7.12 Shopping centre construction activity continues to contract and is now barely a quarter of the level recorded in H1 2007, immediately before the onset of the credit crisis. About 8m sq ft of shopping centre space was completed during 2008 and completions in 2010 are expected to dip below 3m sq ft. The development hiatus is causing increasing problems for store groups dependent on speculative shopping centre development to meet expansion targets. Opportunities for large-store traders look set to remain thin on the ground for a lengthy period.

7.13 The mainstream foodstore groups are continuing to push for increased market share and remain acquisitive with requirements to take additional floor space. Tesco’s latest trading update showed UK sales up 5% (L-for-L up 1.5%) for the 13 weeks to end November 2010. ASDA posted similar L-for-L figures in Q3 and between them Tesco and ASDA already achieve a joint grocery market share of almost 50%.

7.14 Overall the foodstore development pipeline has grown by nearly 35% since H1 2008 ending 2010 at 39.37m sq ft. The amount of new foodstore space under construction doubled from 1.93m sq ft in H1 2010 to 4.09m sq ft in H2 2010. The pent-up demand for additional modern large floor-plate foodstore space is exceptionally strong. The bulk of new foodstore space is delivered in edge of town and out-of-town locations.

7.15 Foodstores, unlike most other retailers, are not dependent on speculative development to meet their expansion requirements. They are also in a strong position to take advantage of vacancy increases in secondary markets as they can often trade effectively from pitches that are no longer viable for non-food retailers and with change of use permission can absorb sites relinquished by bulky goods retailers.




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7.16 According to Verdict, grocers have seen their share of national non-food sales

increase from just over 8% in 2003 to more than 14% in 2010. Almost 50m sq ft of foodstore space is currently estimated to be allocated to non-food goods.

7.17 Retail warehouses are expected to see the strongest rental growth within the retail sector over the forecast period at 2.1%, given their restricted supply, with shopping centres and high street shop rental growth trailing at 1.0% p.a. and 0.6 p.a. respectively.

7.18 The amount of retail warehouse park floorspace under construction has dipped below 20% of the 2.8m sq ft total recorded at the onset of the credit crisis (H2 2007). The current under-construction total of just 500,000 sq ft is the lowest figure recorded since the series was first established in 1980. The development pipeline has been in almost continuous decline since H2 2004 partly due to a sluggish growth in bulky goods markets prior to the onset of the recession but primarily due to planning obstructions.

7.19 Occupational demand for Use Class A1 space out of town remains exceptionally strong without a pipeline of development to meet this. In investment terms there has been a strong rebound in yields due to restricted supply and what was arguably an over-correction of yields in the downturn. Retail warehouse investments have shown a strong growth in values at 8.2% over the past 12 months.

7.20 Industrial occupier demand weakened in October with rents falling by 0.2% taking the year date fall to 1.6%. With demand for industrial and distribution space tied to a considerable extent to the fortunes of the retail economy, industrial property is also expected to see relatively weak growth of only 0.5% p.a. over the forecast period.

7.21 The residential property market has shown modest house price growth in late 2009 and early 2010 which prompted some optimism. Low interest rates helped to ward off forced sales and repossessions while the lack of supply maintained a floor under house prices. However house prices began to fall again in Summer 2010 with Nationwide figures indicating a fall of nearly 4% since July. From month to month house prices remain jittery largely as a reflection of the low level of transactions that creates greater volatility. Sales averaged 222,000 per quarter in 2010 which is still half of 2006 levels and below the ten year average of 380,000 per quarter.

7.22 According to data released by DCLG in October, just 128,680 net additional new dwellings were developed in the 2010 financial year compared with 169,000 in 2009.

7.23 A key issue is a sense of caution being shown by buyers but also that lending constraints remain a major factor for them. Although low interest rates ease the burden of affordability for many home-owners, the need for large deposits continues to block many would-be home-owners. CB Richard Ellis Research’s forecast is suggesting continuing house price falls in the short-term although this may be subject to ongoing impacts such as falling employment; dampening of first-time buyer activity; or the bottleneck of would-be buyers.

7.24 The implications of the current property market for Cwmbran Town Centre are that land values are currently likely to remain low in terms of justifying development;




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public sector occupiers will be more difficult to secure for any new employment space; there will be weak interest from the developer market; and less residual value to cross-fund community facilities and infrastructure.

7.25 Despite interest rates being at an all time low, the lack of debt made available for property development and investment is persisting. Interest rates continue to be held at 0.5% and given broader economic conditions, rates may remain at this level for a longer period than market expectations allowed for earlier in the year.

CWMBRAN – PROPERTY MARKET OVERVIEW

7.26 We have undertaken an initial market assessment of uses that could potentially be developed on the Eastern Strip Central site taking into account prevailing market conditions. Due to the difficulties continuing to face the various property market sectors, in looking at the options for the Site a long term view will need to be taken. It would be unrealistic to assume that current weak levels of demand from occupiers, investors and developers will not have recovered in some form to allow development to come forward.

Comparison and Convenience Retailing

7.27 Cwmbran is the largest retail centre in the Torfaen administrative area and it is expected to continue its role as the dominant shopping destination for convenience and comparison shopping.

7.28 In terms of competition to Cwmbran’s retail offer, Cardiff and Newport are the nearest large competing centres and there is also leakage to Cribbs Causeway to the north of Bristol. The new “St David’s 2” shopping centre in Cardiff has opened and is trading well. This comprises a £675m investment to provide 1.4 sq ft of new retail space including the first John Lewis store in Wales and many other new names including high quality retailers.

7.29 In Newport city centre, the major regeneration projects comprising the development of City Spires and the 450,000 sq ft mixed use Friars’ Walk Centre (at John Frost Square/the bus station) are not currently proceeding. The refurbishment of Kingsway Shopping Centre by UBS Triton Property completed at the end of 2008 but there are a number of voids. The City Council has now begun the search for a developer partner for Friars’ Walk following the demise of Modus albeit any emerging scheme is likely to be in a different format to reflect the changed market conditions.

7.30 This gives Cwmbran a great opportunity to enhance its position against Newport as a comparison goods shopping destination of choice. Cwmbran’s free parking also attracts a substantial number of Newport residents.

7.31 Newport has recently extended its strong food store offer with a new Sainsbury’s store and a planned Morrison’s store. Tesco and Asda already have established stores.

7.32 In terms of the retail catchment, the table overleaf illustrates the ranking of Cwmbran in comparison with competing centres and also identifies towns of a similar ranking.




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Town Town Town Town

Shopping Population Shopping Population Shopping Population Shopping Population RankRankRankRank

Shopping populationShopping populationShopping populationShopping population

Cardiff CentralCardiff CentralCardiff CentralCardiff Central

8 530,444

Mall at Cribbs CausewayMall at Cribbs CausewayMall at Cribbs CausewayMall at Cribbs Causeway 52 244,436

Newport Newport Newport Newport 121 128,399

Woking, SurreyWoking, SurreyWoking, SurreyWoking, Surrey

139

107,035

Burnley, LancashireBurnley, LancashireBurnley, LancashireBurnley, Lancashire

140 105,977

CwmbranCwmbranCwmbranCwmbran

141141141141 105,272105,272105,272105,272

Aylesbury, BucksAylesbury, BucksAylesbury, BucksAylesbury, Bucks

142 104,489

Lancaster, LancashireLancaster, LancashireLancaster, LancashireLancaster, Lancashire

143 102,977

Source: National Survey of Local Shopping Patterns

7.33 Cwmbran Town Centre is self-contained in providing all of the in-town comparison

retailing. It is currently anchored by House of Fraser, a recently refurbished and extended Marks & Spencer, Primark (newly opened in the former Woolworth’s unit), Wilkinson’s, WH Smith, Matalan, Argos and Boots plus a wide range of fashion retailers. There are also a number of regional and local operators to help provide a wide ranging product offer. In addition, there is a selection of high street banks and building societies located throughout the shopping area to provide a complete shopping and service environment.

7.34 In spite of market conditions affecting retailing and consumer spending, we

understand that Cwmbran Town Centre is continuing to actively trade with a very low level of vacancies and continuing interest from new retailers to come into the centre. Prime rents have fallen back from their peak of £95 Zone A in the prime areas and are currently around £85-87 Zone A for the best units.

7.35 In their 2011update of the Torfaen Retail and Leisure Study, the range of capacity

forecast by GVA for comparison retailing is10,854 sq m (116,800 sq ft) net sales area in 2009 rising to 13,679 sq m (147,240 sq ft) at 2016 and 20,678 sq m (222,575 sq ft) by the end of the LDP period in 2021.

7.36 In terms of convenience goods, at present Cwmbran has very little leakage to destinations outside of the Torfaen administrative area. It currently has a strong foodstore offer comprising the large ASDA within Cwmbran Shopping Centre and the Sainsbury’s store to the west of the town centre, which has recently obtained planning consent for an extension subject to the S106 Agreement.

7.37 These large stores are currently over-trading and this was exacerbated by the

relocation of the Somerfield store in Gwent Square, Cwmbran Shopping Centre to Llantarnam. Additional convenience retailing is provided by discount operators including Lidl and Aldi and some smaller retailers. Neither Tesco nor Morrison’s are currently represented within Cwmbran although they have known requirements. Tesco has a store at Pontypool that attracts some convenience expenditure from




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Cwmbran. Morrison’s has recently submitted a planning application on the ArvinMeritor northern car park site.

7.38 GVA has reported that the capacity for convenience goods is 1,943 sq m net sales

space (20,915 sq ft) to 2,390 sq m net sales space (25,725 sq ft) in 2010, rising to between 2,378 sq m (25,596 sq ft) and 2,925 sq m (31,485 sq ft) in 2021, the end of the LDP period.

Retail Warehousing

7.39 Retail warehouse supply in Cwmbran is estimated at approximately 200,000 sq ft with most categories of goods under represented including DIY goods, sport, furniture/furnishing and other bulky goods. Cwmbran is over represented proportionally in terms of electrical and fashion goods in retail warehousing space.

7.40 The principal retail warehousing destination is Cwmbran Retail Park, owned by British Land. This comprises approximately 150,000 sq ft and includes such retailers as B&Q, Brantano, Dreams, Halfords, Comet, Currys, Next and TK Maxx. With its complex retail planning consent with some retailers having the benefit of being able to sell A1 Use Class comparison goods, the line-up of retailers offers some competition to Cwmbran Town Centre. Homebase, now owned by Eagle Land, is located in isolation at Tudor Road and is poorly integrated with the town centre. It has a bulky goods retail planning consent.

7.41 There is an extant planning consent for the construction of a DIY retail store totalling 100,000 sq ft together with car parking on the Carillion Richardson site on the Eastern Strip South Strategic Opportunity Area.

Leisure

7.42 The shortcomings in the leisure provision for Cwmbran Town Centre have been addressed by the opening of the “Leisure at Cwmbran” scheme by developers Mint Blue in October 2008. Cwmbran is now able to provide a leisure and food and drink offer that is a destination for both shoppers and visitors to the town both during the day and outside shopping hours.

7.43 “Leisure @ Cwmbran” provides a 100,000 sq ft town centre mixed used leisure

scheme involving a capital investment of circa £15m. The development comprises an 8-screen cinema let to Vue, a 20-lane bowling alley let to Bowlplex and a 10,000 sq ft Zoopadoopa Play Centre. There are also six restaurant units of which two are let to Frankie and Benny’s and Tiffin‘s Indian Restaurant.

7.44 The Scene three-screen cinema in the Town Centre remains open in spite of the arrival of the Vue Cinema. Out of town the main cinema competition comes from Cineworld located in a retail park to the east of Newport and also from Cardiff.

7.45 Traditionally the restaurant offer has been weak within Cwmbran Town Centre with

many residents travelling to Newport. In terms of market share, Cwmbran now appears to provide a stronger offer to retain a higher percentage of the local population rather than travelling to Newport or Cardiff. Cwmbran Town Centre traditionally has had a below average representation of food and drink uses within the total retail space which historically would be linked to the lack of an evening economy within the Town Centre although this is now changing with the arrival of “Leisure @ Cwmbran”.




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7.46 Previous research had indicated that visits to pubs and bars are the most popular leisure activity in the Cwmbran area. The state of the pub market is, however, affected by the downturn in consumer spending. There has been an increasing importance of food to the sales mix offered by the pub market. There has also been increasing demand for stand-alone edge of town centre sites for the building of new public houses.

7.47 In terms of health and fitness provision, there is an existing Esporta facility north of

the Town Centre. Cwmbran Stadium is also a popular facility for health and fitness purposes and the town appears to be well provided for with a high retention of local residents. There may be some potential for budget operators such as Energie, Fitspace and Gym Club. Additional demand from up-market operators is unlikely to be sustainable due to the existing offer and size constraints of the immediate local population.

7.48 In terms of other traditional leisure uses, any bowling requirement is now satisfied

in terms of the Bowlplex unit within Leisure @ Cwmbran. The nearest competition is located in Cardiff. Other leisure operators such as bingo are struggling in the current economic climate and currently do not have any new requirements for Cwmbran. There is an existing Mecca bingo unit in Monmouth Walk within Cwmbran Shopping Centre.

Offices

7.49 Cwmbran Town Centre has the potential to be an attractive office location. Despite currently being a secondary office location with little stock available, Cwmbran benefits from good connectivity to the M4 and frequent rail services to London and Cardiff via Newport. It is positioned between the centres of Cardiff and Bristol and can offer potential cost savings for occupiers who are able to be flexible in terms of location. It also benefits from the amenities offered by Cwmbran Shopping Centre, the centrally located railway station and local bus services.

7.50 There will be disparity across the UK in terms of the effects of the public sector

cutbacks. Wales is in many areas dependent on public administration employment rather than private sector services which is likely to lead to a net loss of office-based employment. A major factor for the Cwmbran market will be the impact of reduced office occupancy by the public sector. This will result in more second hand space coming on to the market for reletting and a shortage of potential occupiers for new development. As a consequence the office market is likely to become more competitive in terms of attracting occupiers and rental incentives including extended rent free periods will increase.

7.51 Whilst public sector bodies previously moved into regeneration areas to stimulate

growth, this leverage is unlikely to be available now in terms of wider public sector requirements. However the possible location of new offices for TCBC and Gwent Police within the town centre could stimulate development activity and in the long-term act as a catalyst in terms of attracting other office occupiers and also contribute to the enhancement of the economic viability of the town centre.

7.52 As a competitive destination to Cwmbran, Newport has historically attracted considerable inward investment support from the public sector and is now highly dependent on public sector-based office employment with 29% public sector occupancy (source: DTZ). The recently announced closure of the Passport Agency Office will have an impact in terms of job losses to the local economy and the quantum of second-hand space on the market. Recent transactions include the




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letting of part of the Welsh Assembly Government’s Nexus House comprising 48,000 sq ft of Grade A new office accommodation developed under the WISP initiative and where the Assembly Government has taken an overriding lease. Newport City Homes has taken occupation of 24,200 sq ft in the building. The investment has subsequently been sold to Legal and General Property. Other public sector lettings include the National Probation Service taking 15,000 sq ft at Usk House.

7.53 New development activity in Newport has been stymied with the demise of the City Spires development and the Godfrey Road railway station development, both of which have been put on hold. There is a shortage of high quality Grade A office accommodation in the City Centre with only 22,000 sq ft remaining (Nexus House).

7.54 The headline rent in Newport City Centre is £16 per sq ft (Nexus House) but this has not since been achieved. Headline rents in the out of town business parks are in the region of £14.50 to £15.75 per sq ft.

7.55 Much of the strength of Newport’s office market lies out of the city centre at the various business parks such as Celtic Springs, Cleppa Park, Imperial Park and Langstone Business Park. Out of town offices around Newport have seen recent activity with the letting of 28,000 sq ft at Rombourne’s Langstone Business Park at J24 to financial services company Admiral Group Plc.

7.56 Around Cwmbran, the principal office location remains out of town at Llantarnam

Park which is located approximately 1.5 miles south east of Cwmbran Town Centre on the A4042. It has been developed in phases and provides modern high quality office accommodation in approximately 130 acres providing a quality environment and it benefits from good infrastructure. It is a popular location for occupiers in the electronic, software and high tech sectors.

7.57 Major companies represented at Llantarnam Park include ESN and Panasonic. Headline rents are £13 - £14.50 per sq ft but large incentive packages are currently available to new occupiers dependant on lease length and size of requirement. Most business have relocated to the business park due to the availability of modern, open-plan office and refurbished secondary stock, improved parking ratios and ease of access to the M4 motorway. The Welsh Assembly Government owns land at Llantarnam Park and there is an ongoing programme of site release for further development.

7.58 Currently the Gwent Police Headquarters and the offices of TCBC and Monmouthshire County Council are located out of the town centre at Croesyceiliog in buildings that are not fit for purpose and relocations are proposed.

7.59 In terms of the supply of in-town office accommodation, this is dated and is poor in

terms of its quality. It principally comprises accommodation above Cwmbran Shopping Centre in Gwent House, Powys House and Pendragon House. It is questionable as to whether the office space once vacant would be viable for refurbishment to meet modern requirements. This lack of quality Grade A supply, available sites and new stock has deterred occupiers from coming into the town centre or registering enquiries for Cwmbran.

7.60 In their Employment Land Study Update Report 2010, DTZ stated that Cwmbran does have potential as an office location but it must secure the correct product as it




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is a secondary location. DTZ comments that “high density office development with limited or no car parking is not likely to attract occupiers”.

7.61 The creation of a new in-town “office park” with medium density and generous car parking would allow Cwmbran to create an identity and secure an economic base for the future. The economic benefit of including offices as a key element of any development would be that the office workers would themselves add vitality to other amenities within the town centre including shopping, leisure, food and drink and other services.

7.62 From discussions with TCBC’s economic development team the view is endorsed

that Cwmbran Town Centre needs some new modern high quality space in order to attract inward investment including relocations from other centres in Wales in addition to indigenous growth. Without high quality new office space within the town centre to boost the supply side, it is unlikely that any significant office enquiries will be converted into the delivery of new office development.

7.63 In Section 9, Viability of Proposed Development Options, we refer to grant availability for development projects including Tier One funding and other Welsh Assembly Government initiatives including WISP to assist with the delivery of new office accommodation.

7.64 To date, any inward investment to Cwmbran has tended to be technology-led and many of the offices requirements have been small. The Technium Springboard Innovation Centre at Llantarnam Park has helped in supporting smaller companies including start-up businesses and local firms looking to expand in the area. It offers fully serviced office suites with business support facilities ranging in size from 202 – 1,126 sq ft. It has had a total of 60 tenants of which 28 are current and 26 of whom are successful graduating businesses - 21 of these went on to take office accommodation of under 2,000 sq ft; 3 went on to accommodation of 2,000 – 5,000 sq ft; and 2 companies went into industrial accommodation of 2,000 – 5,000 sq ft.

7.65 A new initiative has been formally adopted by TCBC known as “Digital Valley Vision” whereby Torfaen is seeking to capitalise on the digital economy, transform the economy and community through a digital revolution and become the most digitally connected community in the UK. This will involve high capacity cabling running the length of the valley and the new Tier 3-4 Data Centre (Shared Resource Centre) located in Blaenavon. This has the potential for some spin-off to the property market and the need for new premises through the promotion of inward investment, improving infrastructure, job creation and attracting a highly skilled workforce.

7.66 There have been a number of enquiries to TCBC’s economic development team indicating some activity in the local market. Since April 2009 property enquiries direct to TCBC are set out in the table overleaf. It should be noted that the large office requirement has however not progressed and most of the small enquiries were to Technium Springboard.




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Property Property Property Property Enquiries to Enquiries to Enquiries to Enquiries to TCBCTCBCTCBCTCBC

Up to Up to Up to Up to 2,000 sq 2,000 sq 2,000 sq 2,000 sq ftftftft

2 2 2 2 –––– 5,000 5,000 5,000 5,000 sq ftsq ftsq ftsq ft

5 5 5 5 –––– 10,000 10,000 10,000 10,000 sq ftsq ftsq ftsq ft

10 10 10 10 –––– 20,000 sq 20,000 sq 20,000 sq 20,000 sq ftftftft

20 20 20 20 –––– 50,00050,00050,00050,000 sq ftsq ftsq ftsq ft

50,000 50,000 50,000 50,000 sq ft plussq ft plussq ft plussq ft plus

IndustrialIndustrialIndustrialIndustrial

4 5 3 4 4 4

OfficeOfficeOfficeOffice

24 4 1 0 0 1

Source: TCBC

7.67 The Welsh Assembly Government also monitors regional enquiries comprising

supply and demand in the Torfaen (South Wales East) area and we set out below a summary of the data registered for the dates 01 April 2009 to 31 March 2010. Figures for the corresponding period in 2008/09 are shown in brackets and these demonstrate a fall in the number of enquiries over the period:

Office property Office property Office property Office property

Supply Supply Supply Supply –––– TorfaenTorfaenTorfaenTorfaen (South Wales (South Wales (South Wales (South Wales VVVValleys)alleys)alleys)alleys)

Demand Demand Demand Demand –––– Torfaen Torfaen Torfaen Torfaen (South Wales Valleys)(South Wales Valleys)(South Wales Valleys)(South Wales Valleys)

Up to 5,000 sq ft Up to 5,000 sq ft Up to 5,000 sq ft Up to 5,000 sq ft

17 (36)17 (36)17 (36)17 (36)

5 (31)5 (31)5 (31)5 (31)

5,001 5,001 5,001 5,001 –––– 10,000 sq ft 10,000 sq ft 10,000 sq ft 10,000 sq ft

1 (1)1 (1)1 (1)1 (1) 6 (10)6 (10)6 (10)6 (10)


3 (1)3 (1)3 (1)3 (1) 2 (3)2 (3)2 (3)2 (3)


0 (0)0 (0)0 (0)0 (0) 2 (1)2 (1)2 (1)2 (1)


0 (0)0 (0)0 (0)0 (0) 0 (1)0 (1)0 (1)0 (1)

25,001 25,001 25,001 25,001 –––– 50,000 sq ft50,000 sq ft50,000 sq ft50,000 sq ft

0 (0)0 (0)0 (0)0 (0) 4 (5)4 (5)4 (5)4 (5)


0 (1)0 (1)0 (1)0 (1) 0 (1)0 (1)0 (1)0 (1)

100,000 sq ft +100,000 sq ft +100,000 sq ft +100,000 sq ft +

0 (0)0 (0)0 (0)0 (0) 0 (2)0 (2)0 (2)0 (2)

Source: Welsh Assembly Government

7.68 The larger enquiries for office accommodation partly relate to public sector requirements and also general enquiries relating to the wider South East Wales area. TCBC is currently investigating potential options for its relocation from County Hall and their latest requirement is likely to be in the region of circa 15,000 to 20,000 sq ft. Gwent Police also has a live requirement for a new head office facility of circa 35,000 sq ft and may consider offices alongside TCBC with some shared facilities such as meeting rooms , reception etc.

Industrial

7.69 The prime area for industrial in the region is the M4 corridor including Cardiff and Newport, with Newport having been strengthened as a destination by the Southern Distributor Road. In Cwmbran Llantarnam Park provides some modern accommodation as an industrial and business park principally aimed at B1 users but there is a lot of older accommodation at locations such as Springvale Industrial Estate, Ty Coch Way, Somerset Road, Forgehammer, Forgeside and Avondale




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Industrial Estates with high vacancy rates. The Eastern Strip is itself an industrial location providing larger industrial units.

7.70 The market regionally has been affected by changes in the economy and legislative changes that have impacted the second-hand market including empty rates being imposed on vacant industrial stock. This coupled with increasing obsolescence of some of the older stock has led to a substantive increase in supply. The empty rates legislation is also impacting on speculative schemes and encouraging some demolition and redevelopment rather than refurbishment. In terms of the SME market, the lack of availability of credit for businesses has reduced occupational demand.

7.71 Some of the larger vacant industrial units in the Cwmbran area offer redevelopment opportunities that could provide new accommodation for smaller light manufacturing companies including indigenous firms or else could come forward for alternative uses. For example at Mamhilad, 6 miles north of Cwmbran, it is proposed that the 66.3 ha site comprising the vacant former Parke-Davis site, the vacant former Nylon Spinners factory and the Mamhilad Park buildings comes forward for redevelopment as Mamhilad Urban Village including employment, housing and local facilities

7.72 In terms of enquiries related to industrial/warehouse accommodation for

Cwmbran, we set out below a summary of the data compiled by the Welsh Assembly Government for the Torfaen (South Wales East) area for the dates 01 April 2009 to 31 March 2010. Figures for the corresponding period in 2008/09 are shown in brackets and these demonstrate a substantial fall in the number of enquiries over the period but also a fall in available premises:

Industrial/warehouse Industrial/warehouse Industrial/warehouse Industrial/warehouse property property property property

Supply Supply Supply Supply –––– Torfaen (South Torfaen (South Torfaen (South Torfaen (South Wales Valleys)Wales Valleys)Wales Valleys)Wales Valleys)

Demand Demand Demand Demand –––– Torfaen Torfaen Torfaen Torfaen (South Wales Valleys)(South Wales Valleys)(South Wales Valleys)(South Wales Valleys)

Up to 5,000 sq ft Up to 5,000 sq ft Up to 5,000 sq ft Up to 5,000 sq ft

17 (27)

5 (21)


2 (13) 6 (16)


0 (15) 3 (17)


2 (1) 3 (16)


0 (5) 3 (8)

25,001 25,001 25,001 25,001 –––– 50,000 sq ft50,000 sq ft50,000 sq ft50,000 sq ft

3 (3) 6 (17)


1 (2) 4 (20)

100,000 sq ft +100,000 sq ft +100,000 sq ft +100,000 sq ft +

2 (0) 3 (21)

Source: Welsh Assembly Government

7.73 The local market does however benefit from the availability of grant aid as it is

located in a Tier One area for Regional Selective Assistance and maximum levels of grant may be available for qualifying purposes.




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7.74 Land values for industrial in the area remain depressed and there is cheap available space elsewhere around the perimeter of the town centre. Industrial use is unlikely to sit well with other uses in the town centre itself and was not within the list of acceptable uses for the Site stated within the Consultation Draft Plan.

Residential

7.75 Despite some signs of recovery earlier in 2010, the housing market is functioning far from normally. This is a reflection of ongoing credit constraints with activity levels well below normal levels. First-time buyers are particularly affected and are currently making up only a third of mortgages compared to being nearer a half in normal conditions. The credit crunch legacy means that the market is unlikely to return to the pre-recession days with widely available and cheap credit.

7.76 Residential property prices fell in November 2010 with a negative monthly house price change of –0.6% which is the third consecutive month in which the figure has been below zero. The region with the greatest annual price fall is Wales with a movement of -3.3% (source: Land Registry). Torfaen showed a negative annual change of -1.7% with an average price of £106,788 compared to the national average price of £164,773 reflecting a positive annual change of 2.2%. However Torfaen typically is an area of low transaction volumes that leads to a greater volatility in its statistics.

7.77 The ongoing weaker market reflects lower confidence and economic uncertainty particularly in the light of the Comprehensive Spending Review. In addition the ongoing shortage of mortgage funding continues to hinder buyers and the low level of transactions means that small shifts in demand and supply can hugely affect the market dynamics making prices volatile.

7.78 In line with the wider market downturn, there has been a downturn in the “buy-to-let” market where investors have previously relied on capital growth. This is coupled with the demise of the market for high rise, high density apartment schemes to kick-start regeneration projects. Developers are now looking at lower density options including a return to more traditional house building. Such schemes are lower risk due to lower build costs and offer the opportunity for phased sales programmes. House builders are looking to deliver schemes including more traditional housing designs including two and three bedroom houses for both open market and affordable dwellings.

7.79 The CSR will directly affect the social and affordable housing sectors in areas such as Cwmbran as housing benefit will have a lower cap and rents chargeable to social tenants in private rented housing will have a higher cap and therefore be more subject to market forces. In addition capital expenditure for affordable house building has been cut in spite of a government pledge to provide 150,000 new affordable homes over the next four years. The funding of affordable housing through S106 Agreements has also been severely curtailed due to fewer development schemes being progressed and viability issues limiting the amount that can be cross-funded by private sector development.

7.80 As with all regions within the United Kingdom, Cwmbran residential land values have fallen substantially since the peak of 2007 and the lack of available mortgage product and stricter lending criteria having stymied overall housing demand. In terms of current market activity, potential buyers for the site could include a housing association probably in joint venture with a contractor or developer. A purchaser is




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likely to seek to deliver the affordable element as part of the first phase of any residential scheme as this is effectively a pre-sale.

7.81 Part of the issue of town centre housing within Cwmbran at present is the uniformity

of design and a new town centre development would offer the opportunity to provide a greater diversity of housing types and sizes to meet the needs and aspirations of the local population.

7.82 Due to the proximity to the town centre and current amenities located close to the Site including proximity to the railway station and local bus services, there is an opportunity for retirement accommodation to be considered. This would be likely to be in the format of one and two bedroom apartments with the blocks providing in-house management and communal living areas for residents.

7.83 An element of the Site could be considered for a care home / nursing home (close

care) / sheltered housing subject to sufficient amenities being close to hand. The current requirements for private operators are for a minimum of 1 acre providing a minimum of 60 beds. There could also be the opportunity to deliver a care village which could also incorporate sheltered housing.

Hotels

7.84 Cwmbran is currently underprovided with branded hotel accommodation. The recently refurbished Best Western Parkway Hotel located on Cwmbran Drive provides 70 rooms with both conference and gym facilities. Other hotels in close proximity include the new Travelodge and Premier Inn in Pontypool and a new Premier Inn that opened in June 2010 at the Ashbridge Inn at Pontrhydyrun. There are also a number of hotels close to Junctions 24 and 26 of the M4 motorway near Newport and the majority of these are privately run with 50-80 rooms.

7.85 As Cwmbran does not currently have a large commercial (office) base, there would

need to be additional office development to attract further hotels to the town centre. Agents indicate that active requirements exist in the region for Accor (Ibis/Etap), Hilton (Hampton Inn), Premier Inn, Purple Hotel and Campanile. These branded operators currently tend to seek locations closer to the M4 including sites closer to the office centres around Newport.

7.86 Any demand is therefore likely to be centred on budget operators and these would

mainly be seeking 1-1.5 acre edge of centre sites. It is likely that the hotel would seek to acquire the site and build out to its own bespoke design. Site values are currently nominal but there may be an opportunity to seek a ground rent that may allow some sharing in future uplift.

Arts and Culture

7.87 Arts provision in the town centre is currently focused on the Congress Theatre within Cwmbran Shopping Centre and Llantarnam Grange Arts Centre, which is located adjacent to the Leisure @ Cwmbran complex with access from Glyndwr Road. This provides a wide range of arts activities and inter-action with the local community. The Arts Centre hosts exhibitions, arts and crafts workshops, provides facilities for community groups, includes a retail area and café and provides educational activities.




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7.88 An opportunity exists for the creation of a new cultural hub to include Llantarnam Grange Arts Centre and The Congress Theatre. Relocation of the Arts Centre would release a key site that could link the Shopping Centre with the Eastern Strip Central.

7.89 The Canalside was identified for the location of a new community cultural quarter

for the town centre. The proposals included a critical mass of cafes and restaurants beside the new canal basin together with a building that can accommodate cultural uses. At present there is no timetable for these proposals to come forward.

Education and Health

7.90 We are not aware of any health–related requirements for Cwmbran Town Centre.

7.91 In respect of educational uses, the Assembly Government has launched its 21st Century Schools Programme in March 2010 based on a strategic approach to capital investment. TCBC has submitted its Strategic Outline Programme 21st Century Schools to WAG in October 2010. In respect of land uses, the transformation of the educational estate as part of TCBC’s strategy may require significant land release to implement the strategy and a need for early review of the LDP to ensure the land use framework can be provided to support strategic educational provision.



Review of Proposed Development Options

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8.1 We have approached the proposed development of the Eastern Strip (Central) as a comprehensive redevelopment opportunity to allow for a co-ordinated and phased strategy that delivers wider regeneration objectives. The vision is for a long-term strategy that creates a quality development that is integrated with the town centre. Development of the site is strategically important and will be a key component of the wider regeneration initiatives for Cwmbran Town Centre.

8.2 The Site offers wider opportunities to benefit the town centre such as creating a new office destination. It will be important to link and integrate with the town centre and create a sense of place with active frontages as far as possible and high quality public realm.

8.3 The inclusion of Cwmbran railway station to the north of Edlogan Way within the Eastern Strip (Central) is for the purposes of delivering improved linkages to the station allowing better access to public transport and pedestrian connections between the town centre and the station.

8.4 Due to the size of the Site, there will need to be a mix of complementary uses that can provide a comprehensive solution in terms of scheme content and overall viability. The overall comprehensive proposals will need to be commercially deliverable and sustainable in urban design terms.

8.5 It is anticipated that the private sector will bring forward the comprehensive development of the area but will be supported by the public sector to optimise funding opportunities and assist with delivery. Due to the current market conditions and the site being currently occupied, the strategy must assume a realistic timeframe for development to come forward over a number of years.

8.6 In terms of appraising viable development proposals, current market conditions have impacted significantly on potential uses, on land values and also demand from occupiers, investors and developers of both commercial and residential properties. This will affect the viability and deliverability of emerging development proposals. The expectation is that recovery will be long-term with values not being able to return to the levels previously achieved prior to the recession.

8.7 The assumption is that the ArvinMeritor northern car park site will be the first site to become available for development, subject to planning. There will therefore be a requirement for a phased approach to the overall comprehensive redevelopment with a planning strategy to ensure that the regeneration of the whole of the site can be delivered.

8.8 The release of the remainder of the ArvinMeritor factory site will depend on

ArvinMeritor’s own proposals for them to remain on site as a production facility and the extent to which they can reconfigure their factory to release additional land.

8.9 The presence of ArvinMeritor staying on site together with Cranes Process Flow Technologies remaining in the short to medium term on the southern boundary will influence the nature of the uses on the southern part of the site. Future redevelopment strategies for the Eastern Strip South Strategic Opportunity Area will also need to be taken account of as they emerge.

8.10 There are a number of constraints attaching to the development of the Site as set out in Section 6. This includes the extent of remediation required due to the industrial processes undertaken on site over a considerable number of years.





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Agreement needs to be reached between the land owner and the Environment Agency for a strategy to address this. The identification of contamination and flood risk on the ArvinMeritor site will determine the nature of uses across the site as the cost of remediation/flood alleviation measures may be too high and therefore unviable for uses such as residential on the southern parts.

8.11 The proximity of the Eastern Strip (Central) to the defined Town Centre Boundary

gives the potential for a natural expansion of the town centre. One of the intentions of the Consultation Draft Plan has been to promote linkages between redevelopment areas and existing areas, together with integrating the railway station with the town centre.

8.12 Any development proposal for the Site should therefore take into account potential linkages to PruPIM’s land ownership to the west including the landscaped area between Grange Road and St David’s Road, the Llantarnam Grange Arts Centre and “Leisure @ Cwmbran”. Integration will be required to ensure that opportunities for linked trips will be maximised.

8.13 The topography of the land within PruPIM’s ownership would require an

appropriate treatment to the buildings and areas of public realm to ensure that appropriate physical linkages are created and that any extension to the shopping centre is not inward looking. The level differences could be used to accommodate parking and servicing arrangements that could form an integral part of any development.

Development Content

8.14 In Section 7 we have provided market commentary on uses that could potentially be developed on the Site. We set out below comments on the uses that may be components within a mixed use development:

� Offices – Cwmbran town centre does not currently provide any new office

accommodation and as a consequence of this, office requirements have in the

past located elsewhere. The Site could be considered for public sector offices

such as the relocation of TCBC’s offices and Gwent Police headquarters. TCBC

currently has a requirement that is likely to be for 15,000 – 20,000 sq ft. and

we understand that Gwent Police has a requirement for circa 35,000 sq ft.

The delivery of new offices for TCBC and Gwent Police could act as a catalyst

for attracting further inward investment from private sector companies in the

long-term. Leasing accommodation to public sector occupiers would also help

the viability of development proposals due to the higher capital values that can

be achieved from government-related covenants.

The amount of speculative office content should be kept to a minimum due to

the weakness of the current office market. Pre-lets would need to be explored

to mitigate letting risk.

With regard to the format of any office development, we would suggest an

“office park” with medium density and generous car parking. An office park

located in the town centre would be able to offer the regenerative and

economic benefits of the provision of quality employment space to assist job

creation; promote the usage of the Town Centre and its amenities; promote use

of the leisure facilities including an improved evening economy; and delivery of




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sustainable objectives through accessibility to public transport including the

railway station and bus station.

Should PruPIM bring forward proposals for the eastern expansion of Cwmbran

town centre, there may be an opportunity to relocate some office occupiers that

are currently within existing town centre office space. In addition the Welsh

Assembly Government office buildings could provide an available cost effective

solution for relocated tenants.

� Convenience retailing – the inclusion of a foodstore would be a key economic

“driver” for the development in terms of generating high land values and jobs.

The sequential test and current planning policy encourages such development

in town centres in acknowledgement of foodstores’ ability to promote

sustainable economic growth.

A separate study has been undertaken by GVA on the assessment of capacity

for Cwmbran together with a sequential test of potential sites. This

demonstrates additional capacity for a foodstore and identifies the Site as

suitable for foodstore development which can bring regeneration benefits. The

inclusion of a foodstore on the Eastern Strip Central would need to have proper

linkages and integration with the town centre.

Morrison’s submitted a full planning application on the ArvinMeritor northern

car park site in April 2009 for a retail foodstore of 7,216 sq m s (77,672 sq ft)

gross/3,427 sq m (36,888 sq ft) net.

� Comparison retail – the updated Torfaen Retail & Leisure Study has

demonstrated that there is additional capacity for more comparison goods

retail space. We would however anticipate that this is accommodated to the

eastern side of the existing Cwmbran Shopping Centre (to the west of St David’s

Road) or by the reconfiguration of existing properties within the Town Centre.

This expansion would allow Cwmbran to improve its market share in the region

as a primary shopping destination within the regional hierarchy as a Sub

Regional Centre.

We would not envisage comparison retailing within any proposals for the Site

unless small units are developed to create a link with land on the eastern side

of Cwmbran Shopping Centre which may come forward for additional

comparison retailing floorspace in the long-term.

� Retail warehousing –the current state of the retail warehouse market is weak

and there is an extant consent on the Carillion Richardson site to meet the

requirements of a large bulky goods retailer. There is an under-representation

in Cwmbran in terms of DIY goods, sport and furniture/furnishing and when

there is an element of recovery in these market sectors, retail warehousing

could become a viable component of proposals.

� Leisure, food and drink – the opening of “Leisure @ Cwmbran” has taken up

much of the outstanding leisure and restaurant requirements for Cwmbran

Town Centre. It has established this part of the town centre as a daytime and

evening destination for shoppers, residents and visitors to the town. Whilst the

main leisure uses of cinema and bowling are now provided for in modern

facilities, there may be scope for additional restaurants located close to the

town centre. In addition the development of an office park may generate




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requirements for coffee bars/ sandwich shops and small convenience retailing

for office workers together with the benefit of greater usage of the existing

restaurant and leisure facilities.

� Hotels – Cwmbran is currently lacking a town centre branded hotel. With a

strengthened office sector within the town centre, this would also help to

support hotel demand. Whilst the hotel market is currently quiet due to market

conditions, there is likely to be scope to include a branded budget operator as

an edge of centre use, potentially through a site sale.

� Residential – this could be a component of the mix of uses even though the

market is currently affected by the downturn. Once market activity returns,

residential development will be able to help restore and pump prime

development activity. However, the extent of remediation and flood mitigation

measures required across parts of the Site and the location of B2 uses adjacent

may make residential uses unviable. Potential demand still exists from housing

associations and there is likely to be interest in the longer term from house

building companies. It is likely that a low density solution such as 2, 3 and 4-

bed houses is likely to be the preferred form of any development.

� Retirement accommodation/health care – the site could deliver retirement

accommodation, sheltered housing, or a nursing home/close care

accommodation but again subject to the issues affecting residential uses

identified above.

� Arts – the Site could offer a potential relocation opportunity for the Llantarnam

Grange Arts Centre as part of a wider redevelopment of the land adjacent to

“Leisure at Cwmbran” to link the Site with the town centre.

� Community uses – integral with any larger scale residential development will

be the opportunity to incorporate the masterplanning of the area to include

landscaping/public open space, community facilities and local amenities.

Community uses could include a health centre or place of worship subject to

the issues affecting residential uses identified above.

� Car parking – this will need to form part of the overall masterplan for the Site

to serve the businesses located on the Site and also to provide a shared facility

accessible to town centre shoppers and visitors. It could therefore provide a

useful link between the town centre and the Site. There are viability issues

however in car parking provision as parking within Cwmbran Shopping Centre

is free of charge and therefore is not self-funding. It therefore creates no land

value to justify its development, particularly in terms of multi-storey or decked

parking.

� Public transport – we have assumed that the rail station remains in its current

location as it would be too costly to move or to find a large enough site.

Development Options

8.15 The challenge in relation to the development proposals for the Site is to establish a comprehensive development solution in this current market that is viable and “self-funding” and which can optimise the values of the component uses. We set out below three options for development of the site which assume an integrated approach.




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8.16 Whilst we have not been commissioned to undertake a masterplan process, we

have used descriptive text rather than images of the proposals but have included some indicative plans to show suggested land uses.

8.17 For the purposes of describing the three options, we have divided the Site into five

areas. This includes sub-division of the ArvinMeritor land ownership into three areas comprising the northern car park; the mid-section comprising part of the operational factory; and the southern section also currently operational.

� Area 1 – 0.91 ha (2.24 acres). Land to the north of Edlogan Way comprising

Cwmbran railway station and station parking. Out of the town centre and

segregated by Edlogan Way and the roundabout with St David’s Road with a

pedestrian subway link under Edlogan Way. Adjacent to Eastern Strip (North)

Strategic Opportunity Area.

� Area 2 – 3.17 ha (7.83 acres). ArvinMeritor north car park site to the south of

Edlogan Way. This comprises the surface car park, bowling green and other

recreational facilities. It is segregated from the town centre by Grange Road

and St David’s Road and a landscaped area with limited pedestrian linkages. It

sits at a lower level to the existing town centre and partly at a lower level to

Edlogan Way. ArvinMeritor is looking to dispose of this site for foodstore use.

� Area 3 – 0.85 ha (2.1 acres). TCBC owned land including St David’s Road.

Heavily landscaped area with limited pedestrian linkages to PruPIM’s land to

the east of the town centre. This is at a lower level to the existing town centre.

Potential for upper level walkway link to bridge over St David’s Road beside

“Leisure at Cwmbran”.

� Area 4 – 2.74 ha (6.77 acres). Mid-section of main factory currently occupied

by ArvinMeritor for its manufacturing operation. It is segregated from St

David’s Road by Grange Road and a landscaped area in TCBC’s ownership

with limited pedestrian linkages.




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� Area 5 – 5.41ha (13.37 acres). Southern section of main factory currently

occupied by ArvinMeritor for its manufacturing operation. Also includes Welsh

Assembly Government office buildings. Segregated from St David’s Road by

Grange Road and a landscaped area owned by TCBC with limited pedestrian

linkages.

8.18 We set out overleaf a summary of three development options for the Site including indicative block plans illustrating the potential uses.




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Development Option 1 General Theme

Comprehensive proposals that will deliver the regeneration benefits of the retention of existing employment on site but in modernised premises together with the creation of a future office development site for quality new offices. New foodstore provides a value driver to cross-fund development. It assumes ArvinMeritor remain on site in reconfigured premises. Deliverability will be significantly assisted by the role of ArvinMeritor as the facilitator.

Scheme Content

Area 1 Retention of the railway station and its customer car parking in its current position but with improved pedestrian linkages across Edlogan Way.

Area 2 & 3 Redevelopment of main area for foodstore. Petrol filling station for foodstore fronting Edlogan Way.




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Surface car parking as shared facility for foodstore and town centre shoppers/leisure visitors Linkage to and integration with town centre by completion of upper level walkway beside “Leisure at Cwmbran”; traffic calming to facilitate ground level crossing of St David’s Road; and development of new food/drink units complementary to adjacent leisure complex. Removal of landscaping to improve linkage and visibility to town centre

Area 4 Part demolition of ArvinMeritor building. Development of office quarter to provide public and private sector offices Branded hotel fronting St David’s Road with pub/restaurant. Surface and undercroft parking.

Area 5

Extensive refurbishment and redevelopment of ArvinMeritor factory premises to create a new technical headquarters. Retention and refurbishment of WAG office buildings for re-letting

Infrastructure Traffic calming measures to St David’s Road including potential tabling Works to Edlogan Way/St David’s Road roundabout to facilitate additional foodstore traffic Grange Road is closed at northern end to form part of the development site but will continue to provide access to Alfa Laval and Carillion Richardson.

Constraints

Remediation of ground contamination will be required to allow development to take place. Uses will need to take account of positioning of contamination hot-spots on site. Any Japanese knotweed will need to be removed. The implications of the flood risk and necessary flood alleviation measures will need to be resolved as this will affect the uses on site including civic offices. Utilities running across the site will need to be rerouted or mitigating measures will need to be taken in terms of stand-off areas. Agreement may need to be reached with Network Rail on the interface of third party works in relation to any construction close to the railway line. Stopping-up required of part of Grange Road. Phasing (see below) will impact on the early availability of the office site whilst ArvinMeritor reconfigures their premises to relocate to the south of the site.

Phasing

The comprehensive development of the Site will need to be brought forward in phases to facilitate the reconfiguration of the Arvin Meritor buildings. Phasing is likely to be as follows:

� Confirmation of stopping up order (Grange Road) � Ongoing site remediation � Release of northern car park site for foodstore development and

highways works � Decanting by ArvinMeritor to mid part of site to release southern end for

refurbishment / redevelopment and fit-out




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� Decanting by ArvinMeritor to southern part of Site � Subsequent demolitions of buildings on mid-section of Site and release of

this area

Strengths

The delivery of wider regeneration benefits including the creation of an integrated mixed use scheme with enhanced linkages to and integration with the town centre. The creation of new quality public realm, including a civic square, around St David’s Road that can become a new civic focal point for the town centre. This will also benefit the leisure offer of the town centre. Potential to create a link to any eastwards expansion of Cwmbran Shopping Centre in the longer term. Implementation of a remediation strategy for a currently contaminated site. Opportunity to involve a more contemporary form of development and enhance diversity in design for the town centre. New “gateway” development fronting Edlogan Way/St David’s Road will sign the east side of the town centre. Sustainable design objectives can be met through improving pedestrian access around the site and to and from the town centre, bus station and railway station, encouraging greater use of public transport. New employment uses will increase and promote public transport usage. The development has the opportunity to attract substantial inward investment and bring new jobs, protect existing jobs and bring new employment accommodation to Cwmbran town centre. The private sector would lead the regeneration but could obtain support from the public sector in bringing the development proposals forward. This should allow greater certainty of delivery and create an opportunity to lever in grant monies and European funding. The new office core will strengthen activity levels in the town centre with office workers contributing to the overall economic vitality of the town centre in enhancing retail and leisure spending and use of facilities into the evening. Will provide opportunity to accommodate public sector office requirements such as TCBC’s requirement and kick-start Cwmbran as an office destination. Effective pedestrian linkages are needed to maximise the economic benefits. Improved parking facilities on the Eastern Strip will strengthen activity in the area and support Cwmbran Shopping Centre which currently suffers from parking issues at peak times.

Issues

Requires the agreement and long-term commitment of ArvinMeritor as the key landowner to remain on site and bring forward the redevelopment. The planning strategy needs to ensure that the Site is developed on a comprehensive basis without the foodstore coming forward in isolation. The early release of the northern car park site for the foodstore would be necessary to cross-fund the refurbishment/redevelopment works being undertaken by ArvinMeritor. Proper and effective linkages to and integration with the town centre are required to fulfil the planning objectives of expanding the retail base yet ensuring that the Site integrates with the town centre. Linkages between the town centre, rail station and the Site are also to be promoted.




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The car parking strategy should ensure that sufficient car parking is available both for occupiers and town centre visitors. This may include some provision for shared usage of office parking at weekends for shoppers and leisure visitors. There will be a need to optimise the amount of active frontages and ensure that these are orientated towards the town centre to ensure that the development is perceived as an extension and not stand-alone development and that it is fully integrated with the town centre. The presence of contamination on site and the risk of flooding will impact on the mix of uses proposed and the positioning of the buildings on site. Potential future development of the Alfa Laval and Carillion Richardson sites will need to be taken into account in terms of access linkages. Any emerging PruPIM masterplan proposals should take the integration of the Site into consideration with proper linkages between the areas to the east and west of David’s Road. It should not allow Cwmbran Shopping Centre to turn its back on the eastern side by being an inward facing scheme. This includes an appropriate use of levels to ensure that connections at ground level are achievable with an appropriate massing around any linking development such as public realm.

Risks

The resolution of flood risk and ground remediation issues will potentially add cost to the development appraisal but also protract the development programme. The implications of the risk of flooding will need to be resolved to establish where buildings can be sited and whether certain uses are excluded, including civic offices. If planning consent is granted for the foodstore in the current form as shown in the existing application, this would exclude the land immediately to the east of St David’s Road and therefore jeopardise the opportunity for improved linkages to the town centre. The foodstore use will need to be fully justified in planning terms as it is currently not within the Town Centre Boundary. Any involvement of the public sector could add delays to the overall programme.




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This option assumes ArvinMeritor vacates the Site and disposes of its land interest. It offers comprehensive proposals that will deliver the regeneration benefits of new employment space by the creation of a future office development site together with new retail warehousing and leisure. A new foodstore provides a value driver to cross-fund development. Delivery will be dependent on onward disposal to a private sector facilitator such as a developer.

Scheme Content


Area 2 & 3 Redevelopment of main area for foodstore.




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Petrol filling station for foodstore fronting Edlogan Way. Surface car parking as shared facility for foodstore and town centre shoppers/leisure visitors Linkage to and integration with town centre by completion of upper level walkway beside “Leisure at Cwmbran”; traffic calming to facilitate ground level crossing of St David’s Road; and development of new food/drink units complementary to adjacent leisure complex. Removal of landscaping to improve linkage and visibility to town centre

Area 4 Demolition of ArvinMeritor buildings. Development of office quarter to provide public and private sector offices Branded hotel fronting St David’s Road with pub/restaurant. Surface and undercroft parking.

Area 5

Demolition of ArvinMeritor buildings. Creation of additional office site for long-term redevelopment with some small business units. Refurbishment of Welsh Assembly Government offices Commercial development comprising potentially retail warehousing and health and fitness. Surface car parking to include shoppers’ parking.

Infrastructure Traffic calming measures to St David’s Road including potential tabling Works to Edlogan Way/St David’s Road roundabout to facilitate additional foodstore traffic Grange Road is closed at northern end to form part of the development site but will continue to provide access to Alfa Laval and Carillion Richardson.

Constraints

Redevelopment of the Site will be dependent on ArvinMeritor relocating off-site from the mid and southern parts of the Site and making the whole Site available for redevelopment. Remediation of ground contamination will be required to allow development to take place. Uses will need to take account of positioning of contamination hot-spots on site. Any Japanese knotweed will need to be removed. The implications of the flood risk and necessary flood alleviation measures will need to be resolved as this will affect the uses on site including civic offices. Utilities running across the site will need to be rerouted or mitigating measures will need to be taken in terms of stand-off areas. Agreement may need to be reached with Network Rail on the interface of third party works in relation to any construction close to the railway line. Stopping-up required of part of Grange Road. Due to the provision of free parking across the town centre, any car parking will be non-revenue producing and therefore will not generate land value/profit and multi-storey parking will not be cost effective.

Phasing

The comprehensive development of the Site can be brought forward in stages that are likely to be as follows:

� Confirmation of stopping up order (Grange Road) � Ongoing site remediation




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� Release of northern car park site for foodstore development and highways works

� Vacant possession given by ArvinMeritor and subsequent demolition � Release of sites for offices and commercial development

Strengths

The delivery of wider regeneration benefits including the creation of an integrated mixed use scheme with enhanced linkages to the town centre. The development has the opportunity to attract inward investment and bring new jobs and occupiers to the town. The creation of new quality public realm, including a civic square, around St David’s Road that can become a new civic focal point for the town centre. This will also benefit the leisure offer of the town centre. Potential to create a link to any eastwards expansion of Cwmbran Shopping Centre in the longer term. Opportunity to involve a more contemporary form of development and enhance diversity in design for the town centre. New “gateway” development fronting Edlogan Way/St David’s Road will sign the east side of the town centre. Sustainable design objectives can be met through improving pedestrian access around the site and to and from the town centre, bus station and railway station, encouraging greater use of public transport. New employment uses will increase and promote public transport usage. The private sector would need to lead the regeneration assuming the Site is disposed of by ArvinMeritor but could obtain support from the public sector in bringing the development proposals forward. This should allow greater certainty of delivery and create an opportunity to lever in grant monies and European funding. The new office core will strengthen activity levels in the town centre with office workers contributing to the overall economic vitality of the town centre in enhancing retail and leisure spending and use of facilities into the evening. Will provide opportunity to accommodate any public sector office requirements such as TCBC’s requirement and kick-start Cwmbran as an office destination. Effective pedestrian linkages are needed to maximise the economic benefits. Improved parking facilities on the Eastern Strip will strengthen activity in the area and support Cwmbran Shopping Centre which currently suffers from parking issues at peak times.

Issues

Clean-up of the Site will need to be undertaken and this may deter third party developers/investors. The presence of contamination on site and the risk of flooding will impact on the mix of uses proposed and the positioning of the buildings on site. There will be a loss of existing jobs if ArvinMeritor vacate. The planning strategy will need to ensure that the Site is developed on a comprehensive basis without the foodstore coming forward in isolation. The southern section of the Site is not integrated with the town centre and may be considered too distant for linked trips. This will influence acceptable uses in planning terms. The early release of the northern car park site for the foodstore would be necessary to cross-fund the office development proposals.




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Proper and effective linkages to and integration with the town centre are required to fulfil the planning objectives of expanding the retail base yet ensuring that the Site integrates with the town centre. Linkages between the town centre, rail station and the Site are also to be promoted. The car parking strategy should ensure that sufficient car parking is available both for occupiers and town centre visitors. This may include some provision for shared usage of office parking at weekends for shoppers and leisure visitors. There will be a need to optimise the amount of active frontages and ensure that these are orientated towards the town centre to ensure that the development is perceived as an extension and not stand-alone development. Potential future development of the Alfa Laval and Carillion Richardson sites will need to be taken into account in terms of access linkages. Any emerging PruPIM masterplan proposals should take the integration of the Site into consideration with proper linkages between the areas to the east and west of David’s Road. It should not allow Cwmbran Shopping Centre to turn its back on the eastern side by being an inward facing scheme. This includes an appropriate use of levels to ensure that connections at ground level are achievable with an appropriate massing around any linking development such as public realm.

Risks

Dependent on ArvinMeritor vacating the Site and a third party bringing the development forward. This may require use of compulsory powers that would be costly and prolong the programme. The resolution of flood risk and ground remediation issues will potentially add cost to the development appraisal but also protract the development programme. The implications of the risk of flooding will need to be resolved to establish where buildings can be sited and whether certain uses are excluded, including civic offices. The foodstore use will need to be fully justified in planning terms as it is currently not within the Town Centre Boundary. Proper linkages to and integration with the town centre will need to be demonstrated. Any involvement of the public sector could add delays to the overall programme.




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This option assumes ArvinMeritor vacates and disposes of its land interest and that the foodstore development locates on the mid-section of the Site. It includes residential development on the only feasible part of the Site without contamination or serious flooding issues i.e. the northern car park site.

Scheme Content


Area 2 & 3 Branded hotel with pub/restaurant Residential area including mix of housing styles and tenures – detached, semi-detached and terraced. Includes affordable




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housing and potential care home (circa 2 acres). Linkage to and integration with town centre by completion of upper level walkway beside “Leisure at Cwmbran” and traffic calming to facilitate ground level crossing of St David’s Road. Removal of landscaping to improve linkage and visibility to town centre.

Area 4 Foodstore development. Surface car parking as shared facility for foodstore and town centre shoppers/leisure visitors. Link development to town centre comprising new food/drink units complementary to adjacent leisure complex.

Area 5

Public and private sector offices together with the refurbishment of the Welsh Assembly Government offices. Small business units also to be provided. Surface and undercroft parking. Commercial development comprising potentially retail warehousing and health and fitness.

Infrastructure Traffic calming measures to St David’s Road including potential tabling Works to Edlogan Way/St David’s Road roundabout to facilitate additional activity at northern end of Site. Grange Road is closed at northern end to form part of the development site but will continue to provide access to Alfa Laval and Carillion Richardson.

Constraints

Redevelopment of the Site will be dependent on ArvinMeritor relocating off-site from the mid and southern parts of the Site and making the whole Site available for redevelopment. Remediation of ground contamination will be required to allow development to take place. Uses will need to take account of positioning of contamination hot-spots on site particularly residential. Any Japanese knotweed will need to be removed. The implications of the flood risk and necessary flood alleviation measures will need to be resolved as this will affect the uses on site including civic offices. Utilities running across the site will need to be rerouted or mitigating measures will need to be taken in terms of stand-off areas. Agreement may need to be reached with Network Rail on the interface of third party works in relation to any construction close to the railway line. Stopping-up required of part of Grange Road. Due to the provision of free parking across the town centre, any car parking will be non-revenue producing and therefore multi-storey parking will not be cost effective. Residential uses in particular will need to take account of positioning of any contamination on site.

Phasing

The comprehensive development of the Site can be brought forward in stages that are likely to be as follows:

� Confirmation of stopping up order (Grange Road) � Ongoing site remediation � Release of northern car park site for hotel / residential development

and highways works � Vacant possession given by ArvinMeritor and subsequent demolition




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� Release of remaining sites for foodstore, offices and commercial development

Strengths

The residential provision will allow some diversity in the range of tenures and house styles and provide housing to meet demand. A care home is included comprising a 2 acre site. It may also offer the opportunity for relocations if the Council is considering interventions to improve the housing stock as part of its Housing Renewal programme. The delivery of wider regeneration benefits including the creation of an integrated mixed use scheme with enhanced linkages to the town centre. The development has the opportunity to attract inward investment and bring new jobs and occupiers to the town. Potential to create a link to any eastwards expansion of Cwmbran Shopping Centre in the longer term. Opportunity to involve a more contemporary form of development to reduce lack of diversity in design in both commercial and residential buildings for the town centre. Sustainable design objectives can be met through improving pedestrian access around the site and to and from the town centre, bus station and railway station, encouraging greater use of public transport. New employment uses will increase and promote public transport usage. The private sector would need to lead the regeneration assuming the Site is disposed of by ArvinMeritor but could obtain support from the public sector in bringing the development proposals forward. This should allow greater certainty of delivery and create an opportunity to lever in grant monies and European funding. The new office core will strengthen activity levels in the town centre with office workers contributing to the overall economic vitality of the town centre in enhancing retail and leisure spending and use of facilities into the evening. Will provide opportunity to accommodate any public sector office requirements such as TCBC’s requirement and kick-start Cwmbran as an office destination. Effective pedestrian linkages are needed to maximise the economic benefits. Improved parking facilities on the Eastern Strip will strengthen activity in the area and support Cwmbran Shopping Centre which currently suffers from parking issues at peak times.

Issues

The northern car park site within ArvinMeritor’s ownership is the only area of the Site that could be considered for residential development due to contamination elsewhere requiring unviable clean-up costs. The lack of commercial/employment uses at the northern end of the Site will isolate the railway station and the residential development located there will be incompatible with adjacent town centre uses. There will be a lack of connection between the office development site, the town centre and the railway station. It will be segregated by the highways infrastructure with poor connections to the town centre with St David’s Road in particular acting as a barrier. It would therefore appear as stand-alone development that is reliant on car-borne visitors. Clean-up of the Site will need to be undertaken and this may deter third party developers/investors. The presence of contamination on site and the risk of flooding will impact on the mix of uses proposed and the positioning of the buildings on site. There will be a loss of existing jobs if ArvinMeritor vacate.




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Residential use of the northern part of the site will lead to the loss of a commercial site in a prime position. The planning strategy will need to ensure that the Site is developed on a comprehensive basis without the foodstore coming forward in isolation. The early release of the mid-section of the Site would be necessary to cross-fund the office development proposals. Proper and effective linkages to the town centre are required to fulfil the planning objectives of expanding the retail base yet ensuring that the Site integrates with the town centre. Linkages between the town centre, rail station and the Site are also to be promoted. The car parking strategy should ensure that sufficient car parking is available both for occupiers and town centre visitors. This may include some provision for shared usage of office parking at weekends for shoppers and leisure visitors. There will be a need to optimise the amount of active frontages and ensure that these are orientated towards the town centre to ensure that the development is perceived as an extension and not stand-alone development and provides integration with the town centre. Potential future development of the Alfa Laval and Carillion Richardson sites will need to be taken into account in terms of access linkages. Any emerging PruPIM masterplan proposals should take the integration of the Site into consideration with proper linkages between the areas to the east and west of David’s Road. It should not allow Cwmbran Shopping Centre to turn its back on the eastern side by being an inward facing scheme. This includes an appropriate use of levels to ensure that connections at ground level are achievable with an appropriate massing around any linking development such as public realm.

Risks

Dependent on ArvinMeritor vacating the Site and a third party bringing the development forward. This may require use of compulsory powers that would be costly and prolong the programme. The delay in the foodstore site becoming available due to ArvinMeritor vacating the Site and removal of contamination could be a commercial risk that a foodstore operator may look for alternative, more quickly deliverable sites. The resolution of flood risk and ground remediation issues will potentially add cost to the development appraisal but also protract the development programme. The implications of the risk of flooding will need to be resolved to establish where buildings can be sited and whether certain uses are excluded, including civic offices. The foodstore use will need to be fully justified in planning terms as it is currently not within the Town Centre Boundary. This will include demonstrating linkages to and integration with the town centre



Viability of Proposed Development Options

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9.1 The context of the viability review has been to test commercial alternatives for the Site to establish the most appropriate uses that can be delivered long-term over a likely 10 to 15-year period. The programme for the development of the site is realistically over this period to allow a return of confidence to the property market and an element of recovery.

9.2 The financial commentary below reviews the development proposals and the range

of costs and values associated with the three development options and appraises the overall viability taking into account current market conditions. The challenge has been to establish a comprehensive project which has the potential to be as self-funding as possible both in terms of the component sites and the overall scheme. The role of the development appraisals has been to inform the selection of land uses rather than to define land values at this stage.

9.3 Unfortunately due to current market conditions, site values are depressed to reflect

the significant drop in capital values since 2007; the potential lack of availability of finance; and the requirement from developers to increase their profit margins in line with their increased perception of risk.

9.4 The basis of this preliminary indicative appraisal of the various development

options is the “residual development model”. This method of land valuation is accepted by the development market as an indicator of possible land values subject to a number of key variables and it is widely accepted as the recognised appraisal method. It is not however intended to be a formal valuation but provides an indication of the viability of the proposed options and takes account of general assumptions as stated below.

9.5 We would recommend that a more detailed appraisal is undertaken, to include

costing by quantity surveyors, should any subsequent masterplanning exercise be undertaken of the Site and adjacent developable areas.

9.6 With regard to S106 obligations, we have not yet addressed any specific

requirements of the planning department on the appropriate S106 contributions to include within the indicative appraisal process. We have however allowed for affordable housing and provisional estimates for the completion of the bridge link over St David’s Road.

9.7 In respect of contamination, we are assuming that the landowners will themselves

be responsible for clean up (the “polluter pays”) and therefore any land value assumptions do not allow for additional costs.

9.8 We have adopted costs and values at today’s prices and not allowed for any rent inflation/deflation or build cost inflation/deflation due to the ongoing volatility of the current property market conditions.





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General Assumptions The Site � The maximum total developable area is circa 13.08 ha (32.32 acres)

excluding land to the north of Edlogan Way and including Grange Road.

Offices � New build offices are designed efficiently to allow a net to gross ratio of 85% � Maximum height of 3 to 4 storeys � Welsh Assembly Government’s offices are refurbished to a good quality � The offices are to achieve BREEAM “very good” standard � Any public sector pre-lets are secured while the sites are assembled for

development � Intention for majority of space to be pre-let

Retail

� The foodstore option assumes a store of approximately 80,000 sq ft gross with a petrol filling station and surface parking

� Retail warehousing assumes bulky goods to the southern end of the Site � The link units in Options 1 and 2 would comprise a limited number of small

food/drink units complementary to the leisure complex

Hotel

� Disposal by site sale at nominal value � Budget hotel of 70/80 beds � Approximate land take of 1.5 acres

Residential

� Mix of uses and tenures to include flats, terraced, semi-detached and detached houses

� The density comprises an average of 50 units per hectare with an average unit size of 900 sq ft

� Affordable housing comprises 30% of the housing in accordance with TCBC’s Adopted Affordable Housing Delivery Statement, Supplementary Planning Guidance dated February 2010

� The affordable housing units are at a discounted value and it is assumed that grant will meet any cost shortfall

Public realm

� an allowance has been made for hard and soft landscaping to enhance public spaces and improve the linkage with the town centre.

Car parking

� Not income producing

Highways

� All Options retain St David’s Road but assume the closure of Grange Road

Railway Station

� All Options assume the railway station remains in its current location.

Build Costs

9.9 The build costs used are based on BCIS figures current as at January 2011 together with the views and experience of our building consultancy team.

Professional Fees

9.10 Design team fees include architect, quantity surveyor, project management, structural engineer, CDM and highways.




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Interest

9.11 The interest costs have been calculated with a margin to the current bank rate to reflect the risk profile of the development options. At present however it remains difficult to obtain some development funding, due to the lending policies of the banks, particularly where there is perceived exposure to risk. This includes funding of speculative development, residential and hotel development.

Phasing

9.12 Where appropriate, the development appraisals assume that the sites are acquired immediately prior to development in that there are no holding costs relating to land acquisition costs.

Profit

9.13 A return is allowed to reflect current market anticipated returns for developers. As the market is currently risk averse, the required profit margins, depending on the content and risk profile of the proposals, range from 20% to 30% return on cost with the higher profit margin on residential-based development.

Exclusions

9.14 A number of costs may have to be potentially deducted from the site values to facilitate development comprising

� Abnormal ground conditions, for example requiring piling

� Archaeology

� Asbestos removal

� CPO costs and related advisor costs should these be required

� Demolition costs relating to existing buildings on site

� Flood alleviation measures

� Internal estate and service roads

� Off site highway improvements

� Planning and building regulation fees

� Removal of japanese knotweed

� Service diversions

� Site management

� Site remediation costs and any specialist de-contamination

� Third party issues and land acquisitions

� Utilities - new supplies/diversions

Market value

9.15 The appraisals adopt market values current as at January 2011 when the market conditions remain challenging. The yields and rents have been sourced through CB Richard Ellis Research and the views of our valuers and commercial and




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residential agents. We have included incentives to be paid to ingoing occupiers to achieve the rents.

9.16 In terms of office rents used in the development appraisals, the rents for new office

accommodation are above prevailing rental levels in Cwmbran town centre but will need to be at this level as a minimum to justify new development of a good quality building. Where it is anticipated that the public sector will take space, there is an improved yield (enhanced capital value) as the investment is considered to be more secure, particularly if fixed rental increases can be agreed.

Residual Site Value

9.17 All of the component parts of the development assume that a residual land value is derived from the costs and values relating to the development proposals taking into account a profit allowance to the developer.

9.18 The purpose of reviewing the development appraisals now is to assess which,

comparatively, are the most viable uses rather than to establish precise site values. This is before any exclusions as detailed above such as third party acquisitions, site remediation costs etc.

9.19 A summary of the headline development content for the three options is as follows:

Option 1 Proposed Mix Comments

Area 1Area 1Area 1Area 1

Retention of station No change

Area 2 & 3Area 2 & 3Area 2 & 3Area 2 & 3 ArvinMeritorArvinMeritorArvinMeritorArvinMeritor north car north car north car north car park and linking area park and linking area park and linking area park and linking area to incluto incluto incluto include de de de Grange Grange Grange Grange RRRRoad oad oad oad and open areaand open areaand open areaand open area


Positive land value due to foodstore.

Area 4 midArea 4 midArea 4 midArea 4 mid----section, section, section, section, formerformerformerformer ArvinMeritorArvinMeritorArvinMeritorArvinMeritor factory factory factory factory

New offices with car parking - 75,000 sq ft net of which circa 50,000 sq ft net public sector and 25,000 sq ft net private sector developed in phases. Hotel with car parking

Marginal land value due to build cost exceeding capital value that is affected by current yield/rent profile. Yield is improved for public sector investment.

Area 5 Area 5 Area 5 Area 5 southern area southern area southern area southern area

Refurbishment/redevelopment of ArvinMeritor factory Refurbishment of WAG offices

Will be retained by current owners. Positive land value due to existing use.

Option 2

Proposed Mix Comments

Area 1Area 1Area 1Area 1 Retention of station No change

AreAreAreArea 2 & 3a 2 & 3a 2 & 3a 2 & 3 ArvinMeritorArvinMeritorArvinMeritorArvinMeritor north car north car north car north car park and linking area park and linking area park and linking area park and linking area to include Grange to include Grange to include Grange to include Grange Road and open areaRoad and open areaRoad and open areaRoad and open area


Positive land value due to foodstore for this part of the Site.




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Area 4 midArea 4 midArea 4 midArea 4 mid----section, section, section, section, formerformerformerformer ArvinMeritorArvinMeritorArvinMeritorArvinMeritor factory factory factory factory

New offices with car parking - 75,000 sq ft net of which 50,000 sq ft net public sector and 25,000 sq ft net private sector developed in phases. Hotel with car parking

Marginal land value due to build cost exceeding capital value that is affected by current yield/rent profile. Yield is improved for public sector lettings.

Area 5 southern areaArea 5 southern areaArea 5 southern areaArea 5 southern area

Small business units – 10,000 sq ft Retail warehousing – 100,000 sq ft Refurbishment of Welsh Assembly Government offices

Option 3

Proposed Mix Comments


No change

Area 2 & 3Area 2 & 3Area 2 & 3Area 2 & 3 ArvinMeritorArvinMeritorArvinMeritorArvinMeritor north car north car north car north car park and linking area park and linking area park and linking area park and linking area to include Grange to include Grange to include Grange to include Grange Road and open area Road and open area Road and open area Road and open area leading to St David’s leading to St David’s leading to St David’s leading to St David’s RoadRoadRoadRoad

Budget hotel site sale Residential – 115 units (private 80 units and affordable 35 units) 60 bed care home site sale

Positive land value

Area 4 midArea 4 midArea 4 midArea 4 mid----section, section, section, section, formerformerformerformer ArvinMeritorArvinMeritorArvinMeritorArvinMeritor factoryfactoryfactoryfactory

Foodstore 78,000 sq ft gross Positive land value due to foodstore for this part of the Site.

Area 5 southern area, Area 5 southern area, Area 5 southern area, Area 5 southern area, mixed usemixed usemixed usemixed use

Foodstore petrol filling station Small business units – 10,000 sq ft New offices with car parking - 75,000 sq ft net of which 50,000 sq ft net public sector and 25,000 sq ft net private sector developed in phases. Refurbishment of Welsh Assembly Government offices Retail warehousing – 50,000 sq ft

Marginal land value due to build cost exceeding capital value that is affected by current yield/rent profile. Yield is improved for public sector investment. Positive land value for retail warehousing and petrol filling station.

POTENTIAL SOURCES OF PUBLIC FUNDING

9.20 Public funding of various forms and within the regulations governing State Aid may

be required to fuel certain elements of this regeneration project, particularly as there are potential negative land values for some elements. Various commercial uses proposed for the Site are constrained by low values whereby the cost of development exceeds the value created, therefore needing some form of cross-subsidy or grant to make the use viable.

9.21 We set out below a summary of the various funding sources potentially available:

Convergence Funding

9.22 The West Wales and the Valleys region has been awarded Convergence funding from the European Union for the Structural Funds programming round for the period 2007 – 2013. This includes TCBC as one of 15 local authority areas covered. A consultation process is now underway on the EU Budget Review on the principles and options for the period post 2013. In response to the economic




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downturn the European Commission has agreed to changes to the ERDF Convergence programme.

9.23 We understand there are no current live bids for Convergence funding from TCBC in respect of the Site.

WISP (Welsh Investment Strategic Partnership)

9.24 The Welsh Assembly Government’s WISP (Welsh Investment Strategic Partnership) vehicle has been established to facilitate speculative office development. It is acknowledged that Cwmbran town centre will struggle to position itself as an office location unless it has available new accommodation as a catalyst for further demand and development.

9.25 WISP is a 10-year strategic agreement between the Welsh Assembly Government and Amber Infrastructure Group to deliver high quality office space in the regional centres of Wales with the aim of delivering a minimum of 375,000 sq ft. net of new office buildings. The locations are to be those which would not normally attract speculative, quality buildings and the Welsh Assembly Government is prepared to provide an overriding lease to underwrite the development risk.

9.26 Using the WISP model, the Welsh Assembly Government’s private sector developer

partners (Amber Infrastructure) would bear the full cost of developing the new property and a new 25-year public sector lease will be taken on the completed building and then let to business occupiers which can include the public sector. The structure of the vehicle is also designed to promote high quality design.

9.27 To date this scheme has supported office development in Swansea, Newport,

Treforest and Caerphilly. Newport City Homes has recently taken a 15 year lease of 24,300 sq ft at WISP’s Orb development in Newport. However there are now funding constraints imposed affecting future investment and revenue commitments.

9.28 Consideration should therefore be given to undertaking consultations with the Welsh Assembly Government to confirm their interest in Cwmbran as a location for a new WISP project in the longer term but WISP should not be seen as being available to enable new office development in the short to medium-term.

JESSICA (Joint European Support for Sustainable Investment in City Areas)

9.29 In partnership with the private sector and using European Regional Development Fund (ERDF) Convergence funding, the Welsh Assembly Government has established an all-Wales Urban Development Fund (UDF) known as the Regeneration Investment Fund for Wales (RIFW). It is based on the JESSICA initiative. It will allow for the contribution of publicly owned land and building assets to match European funding with returns being reinvested together with engaging private sector investment.

9.30 Investment by the fund is designed to act as a catalyst for the construction of a diverse range of projects throughout Wales, many of which have been curtailed by the economic conditions.

9.31 The Welsh Assembly Government has now appointed Amber Infrastructure with

Lambert Smith Hampton as the fund and investment managers. The fund is to be used for the following:




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� financing projects

� regenerating the built environment

� creating value added through the long-term partnership

� to produce investment returns

9.32 The UDF will be based on the principle of public/private partnership with the public

sector having no more than 50% equity. The projects will be required to generate positive returns to all investors including ERDF, allowing European funding to be recycled back into future projects. The UDF will invest with a local project partner which could be the local authority or a private sector developer. The aim is to leverage in private sector investment into major regeneration projects resulting in significant environmental, economic and social improvement of urban areas of Wales.

9.33 In practice JESSICA has been set up to help bring forward large physical

regeneration schemes to include contaminated or derelict brownfield land; the creation of new premises; delivery of infrastructure and job creation. Projects within the fund can include any activity that would qualify for ERDF support such as sites and premises, site remediation and urban infrastructure. The investments can also include expenditure not eligible for ERDF support such as housing, retail and leisure which can be useful value generators.

9.34 Initial discussions with the Welsh Assembly Government have indicated that

Cwmbran Town Centre could be one of the projects considered for inclusion in the fund. The fund could work alongside Convergence funding that will be available until 2013.

Other available grants

9.35 There are various grant vehicles provided by the Welsh Assembly Government to give a range of support and advice for businesses in Wales together with developers and investors. The following below are a selection of the current programmes that could benefit Cwmbran Town Centre:

� Property Development Grant – this is available to private sector companies and

financial institutions undertaking new development or the upgrading /

extension of existing business sites and premises including speculative or

bespoke schemes. The grant is available to fund the deficit between the costs

of the project and the value of the completed development. The use of the land

is to be for business purposes including industrial, warehouse, office, retail and

the commercial element of mixed – use development but not residential. In

Cwmbran the grant would be available to small, medium and large sized

enterprises. The applicant would need an interest in the land of either freehold

or a lease of a minimum of 10 years.

� Regional Selective Assistance (RSA) & Assembly Investment Grant (AIG) are

discretionary grants for businesses requiring financial assistance towards capital

investment projects. Eligible expenditure can include new investment in capital

assets such as buildings and machinery.

� The Single Investment Fund – this provides financial support to help businesses

in Assisted Areas to undertake good quality new projects including costs




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relating to starting up, expansion, modernisation and restructuring. Cwmbran

sits within the West Wales and The Valleys Tier One Area. It is the first Tier One

area on the north side of the M4.



Mechanisms for Delivery

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10.1 There are a number of considerations to be taken into account when identifying the most appropriate vehicle or mechanism to bring forward the comprehensive development of the Site:

� The role of the local authority as both planning authority and landowner in

helping to facilitate development and exert influence over a regeneration

scheme and its successful delivery.

� The extent to which the landowners will be pro-active in bringing any

development forward and securing an appropriate planning consent.

� The role of the private sector in providing finance, expertise in delivering

complex projects and commitment to deliver within programme and budget

where a third party is brought in to deliver any elements of the development.

� End users – who will be occupying the completed development that may include

owner occupiers who have developed out parts of the site themselves.

� Risk profile – all of the potential end users or owners will have a view on the

extent of risk that they are prepared to take. The amount of risk is likely to

impact on the amount of return that would be generated by the proposals.

� Intervention – the extent to which the public sector will participate in or facilitate

the development either by voluntary or compulsory means.

� Funding – the vehicle or financial institution that would provide funding for any

aspect of the project or individual components.

� Programme – to what extent the development process will be affected by

timescales related to public procurement processes, intervention such as

compulsory purchase to deliver site assembly and the vagaries of the property

market.

PLANNING STRATEGY TO ASSIST DELIVERY

10.2 The planning system itself can be a powerful tool in helping to facilitate regeneration projects. Mechanisms within the planning system include the role of the Local Development Plan to promote sites; Supplementary Planning Guidance (SPG); S106 obligations and CIL to use land value for the delivery of infrastructure; and CPO powers for land assembly.

Masterplanning the Site/Development Framework

10.3 The Deposit LDP will state that Development Frameworks are to be prepared for the various Action Areas (including the Eastern Strip Central) to the satisfaction of the TCBC in advance of any planning application being submitted. The Development Frameworks produced will be used as guidance and will then be adopted by TCBC.

10.4 There are various advantages in preparing a Development Framework for the Eastern Strip Central as it will inform the subsequent planning application whilst ensuring that all proposed uses can be fully integrated across the Site with appropriate linkages to the town centre. It can also allow for different community-led services and activities to be co-ordinated within the development and inform the siting of buildings in respect of existing site constraints such as contamination or flooding.





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10.5 It will be important that the consensus of all of the landowners is achieved in agreeing the form of the masterplan/Development Framework.

10.6 A commercial assessment would be undertaken to ensure that any development

strategy is supported by sound development economics, including an update on current provision, occupier demand and values. The Development Framework would need to be underpinned by commercial market realism to determine the extent of development form and the nature of accommodation, supported by financial analysis. Outputs would include:

� a preferred development option that has been fully tested for viability;

� spatial design comprising a 3-dimensional plan which presents proposals for

massing, scale, public realm, broad identification of uses, car parking and

access (but does not go as far as designing buildings). It would be presented in

written text and through plans, images and models;

� a detailed implementation plan to address key aspects of delivery to include

programming, phasing, analysis of risk and likely investment from the private

sector.

Supplementary Planning Guidance

10.7 SPG can be produced to provide guidance for the specific Development Frameworks for each of the Action Areas adjacent to Cwmbran town centre. The SPG document would be consulted upon and adopted by the Council. It would serve as a means to set out more detailed thematic or site specific guidance on LDP policies for the Action Areas e.g. Eastern Strip Central.

10.8 In addition, the SPG could assist with the following:

� To provide more detailed guidance on the mix of land uses, form, layout and

nature of the proposals and design guidance for the proposed Development

Framework.

� To provide a robust platform for the use of CPO powers if these are required.

� To provide a planning basis for any necessary road closure orders as these

would require planning consent.

� Define the planning contributions that would be required.

Emphasise the need for linkage of the Eastern Strip Central to the town centre.

10.9 Whilst any SPG would remain a non-statutory document, it may be taken into account as a material consideration. The Assembly Government and Planning Inspectorate will give substantial weight to approved SPG which derives out of and is consistent with the LDP. It would also give the opportunity for other planning applications within the town centre to take account of a clearer statement as to the emerging preferred development form for the Eastern Strip Central.

10.10 Local Development Plans Wales (2005) states that any SPG should be clearly cross-referenced to the relevant adopted plan policy. The SPG would then be subject to regular reviews alongside the annual monitoring review of the LDP.




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S 106 Agreements/Community Infrastructure Levy (CIL)

10.11 These can have a role in delivering infrastructure, remediation and other wider benefits for the Site including linkages to the town centre. As a matter of policy, they will need to relate to the individual planning application in question and on/off-site works related to that development.

10.12 The relevant Welsh Office Circular, 13/97, states that any S106 must be, amongst other things, relevant to planning; necessary to make the proposed development acceptable in planning terms; directly related to the proposed development; and fairly and reasonably related in scale and kind to the proposed development.

10.13 CIL was brought in under recent legislation (April 2010) that allows councils to charge a levy to developers to help fund improvements to local infrastructure which is based on the size of the development. In Wales it can be implemented by county borough councils. The government has now amended the legislation to fit in with the “localism agenda” giving councils more control over how much to levy and also allowing developers more scope to build infrastructure themselves.

10.14 CIL would not be a delivery mechanism of the project itself but would generate revenues that could fund upfront infrastructure costs and therefore assist development coming forward.

Grampian Conditions

10.15 “Grampian” conditions for individual planning permissions can also be used to secure the benefit of environmental and infrastructure improvements and control development under a planning permission where works are to be carried out off-site. It is lawful for a local planning authority to grant planning permission, subject to a negative condition restricting its implementation, in whole or in part, until some event has occurred.

10.16 Here Grampian conditions could be used as a mechanism to facilitate comprehensive rather than piecemeal development where development of parts of the site such as the foodstore could not be implemented unless wider benefits are first delivered.

DELIVERY MODELS

10.17 In terms of the delivery of the development, the main options that exist are:

� ArvinMeritor leads the development process as an owner occupier whereby the

foodstore development cross-funds the refurbishment of its factory with the

release of the central site for employment uses.

� ArvinMeritor vacates the Site with disposal to a third party or third parties to

bring forward the comprehensive scheme for which planning permission may

have been granted at that stage.

� TCBC assumes control by compulsory acquisition (TCBC will in any event have

powers through its planning role).

10.18 In the event that ArvinMeritor vacates (Development Options 2 and 3 in Section 8)

or TCBC assumes control, a strategy for procurement of the development will need




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to be established. Potential mechanisms that are used for the delivery of regeneration projects that could be relevant here include:

� Traditional development agreement structure – this could comprise a

development agreement with the strategic partner with the flexibility to allow

individual projects to be covered by individual contracts if required. The private

sector partner would need to be able to demonstrate expertise and experience

in delivering complex projects and a thorough procurement process would

need to be undertaken to ensure that the partner has the appropriate

capabilities to enter into a long-term contractual arrangement. Potential

development partners could include contractor/developers where the appeal of

the project to them will comprise a large build contract as well as the

opportunity to realise development profit.

� Public private partnership vehicles – these include Local Asset Backed Vehicles.

whereby the participating public sector bodies enter into a long-term

partnership with a private sector partner by contributing assets on a 50/50

basis and subsequently can influence development and allow sites to come

forward that may not otherwise happen at that point in time.

10.19 Issues that would need to be addressed where there is more than one delivery

partner include:

� there may need to be some equalisation of land values across the site to fund

infrastructure improvements etc.

� there will need to be an agreed process for approving detailed planning

applications which would need to be in accordance with the Development

Framework.

� timescales would need to be set for an action plan and implementation strategy

to ensure momentum is maintained.

10.20 To enhance viability, consideration could be given within development partnership

structures that can improve land values by “de-risking” the development. As an example this could be where the development of public sector elements could be structured to allow the developer a project management fee rather than a profit based on development cost. This would serve to improve viability and reduce negative land values in particular relating to the delivery of public sector offices.

Role of TCBC

10.21 In respect of the Eastern Strip Central, TCBC has a role as planning authority and will have controls through its planning powers.

10.22 TCBC also has a position as landowner in respect of its landholding of the landscaping strip alongside St David’s Road that is key in providing a linkage to the town centre.

10.23 The role of TCBC in bringing forward the development proposals will need to be

ascertained at an early stage and this will partly be determined by whether consensus is achieved between the key landowners comprising ArvinMeritor, TCBC and Welsh Assembly Government, as to the future development of the Site within an agreed and prescriptive Development Framework.




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10.24 TCBC may need to decide the extent to which it will seek to intervene if consensus is

not achieved with ArvinMeritor and it chooses to instigate compulsory processes to deliver the Site. In the event that the site is acquired by compulsory means, this will allow TCBC to have greater control as a facilitator in terms of delivery of the appropriate planning framework and ensuring that infrastructure and community facilities are provided.

10.25 If a third party developer partner is required to bring the scheme forward,

procurement including the structuring of any joint venture and the delivery of public sector elements all have the potential to involve EU competitive processes if led by the public sector. The complexity around procurement means that it will need to be addressed at the beginning of a project with clear legal advice about how the project and procurement processes should be structured. This has implications in terms of programming and cost to TCBC.

Role of a Lead Developer Partner

10.26 The lead developer partner could include a key landowner such as ArvinMeritor.

10.27 The lead developer partner’s role would include:

� development of a detailed masterplan/Development Framework for a

comprehensive development solution for the whole development area including

an agreed phasing plan.

� submission of a detailed planning application

� negotiation of any Section 106 / 278 agreements or CIL requirements.

� promotion of the opportunity to the market including tenants and funders and

negotiating with all potential pre-lets.

� underwriting the cost of any compulsory purchase where relevant.

� designing the infrastructure for the development site and securing the funding

for this together with any public realm.

� delivering a comprehensive development that will meet the design and

sustainability requirements of TCBC and Welsh Assembly Government.

Local Asset Backed Vehicles

10.28 The public sector can bring a number of resources into the relationship including exclusive access to development sites that provides an asset base upon which private finance can be raised. The basic principle is that both the public and private sectors are equal equity holders with the local authority’s interest represented by the value of assets it puts in. The private sector may itself also input assets but importantly it would provide financial ability together with development expertise and capacity to take risk.

10.29 The benefits of any LABV structure include the following:

� there can be a transfer of the private sector’s expertise and ability to resource

projects with the public sector’s knowledge of local issues, opportunities and the

assets themselves.




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� a range of public sector stakeholders can be involved who can contribute assets

such as Health Trusts, Welsh Assembly Government, housing associations, etc.

Funding streams might include CIL, TIFs etc.

� the creation of a long term business plan and asset management strategy. It

offers the potential to realise long term value growth with a sharing of risk and

reward with the private sector.

10.30 Here TCBC’s land ownership is key to the comprehensive development of the site as it can facilitate linkages to and integration with the town centre. It would therefore be possible for this land together with other TCBC land interests to be placed into such a vehicle. However in terms of timeframe it could take a considerable period of time to procure the relevant vehicle that could lead to a commercial risk that, for example, the foodstore requirement is developed elsewhere and the value driver is lost.

10.31 LABVs are not always the right solution and the following matters would need to be

taken into consideration:

� TCBC and other public sector bodies would need to identify a portfolio of assets

to provide a pipeline of regeneration projects.

� setting up the vehicle and its terms of reference could take a long time with

extensive decision making and procurement processes

� consensus would be required amongst the parties as to the overall business

plan

� barriers to the implementation of LABV’s include long term political support,

investor interest and stakeholder engagement and these would need to be

clarified to allow for successful implementation.

10.32 There would need to be an evaluation of TCBC’s land holdings alongside strategic

development priorities to assess whether there would be benefits in leveraging additional investment through such a vehicle or whether the town centre would be better served by sites coming forward individually with different investors/developers involved.

JESSICA / Regeneration Investment Fund for Wales

10.33 The development of the Eastern Strip (Central) could potentially fit with JESSICA’s remit and in effect JESSICA monies could be used as a contributor to de-risk and help fund the project. The JESSICA monies could be combined with other funding streams including Prudential Borrowing, private sector investment or cross-subsidy from elements within the development project. In addition JESSICA could include any Convergence funding allocated to the site that will be available until 2013.

10.34 The JESSICA monies maybe used for forward funding development to open up the

Site. the regeneration issues in which it could participate could potentially include:

� Contribution to upfront infrastructure including access to the Site and within the

Site

� Site remediation

� Flood remediation measures

� Site assembly




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� Public realm

� Delivery of new offices

10.35 Consideration should be given to undertaking further detailed discussions with the

Welsh Assembly Government now to establish whether Cwmbran Town Centre could be a feasible project for RIFW. It will then be necessary to clarify the stage of readiness that the project should have reached to be a qualifying candidate.

Tax Increment Financing

10.36 The introduction of Tax Increment Financing (TIF) has now been approved in principle by the National Assembly. It is to be used for funding the infrastructure needed to support major regeneration projects working on the principle that the supply of new or improved infrastructure usually leads both to new development and to an increase in the value of surrounding property. These both serve to increase the level of property taxation in the area. Within a designated TIF district, this anticipated increased taxation (the ‘tax increment’) is captured and used to fund the infrastructure that has been provided.

10.37 The key criteria for allowing the creation of a TIF should be that it supports a

project that promotes regeneration and that the project would be unviable without the use of TIF. It is likely that the focus for TIF initiatives will initially be on large-scale schemes in major centres.



Conclusion and Next Steps

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11.1 The purpose of this report has been to develop a series of options for the future regeneration and redevelopment of the Eastern Strip Central. This is to inform the long-term development objectives for the Site to be allocated in the Deposit Local Development Plan (to 2021).

11.2 We have therefore reviewed the Site with the purpose of investigating commercially viable land uses that include offices, residential, leisure, convenience retailing and retail warehousing. The Site is owned by a number of parties including ArvinMeritor as the majority landowner, TCBC, the Assembly Government and Network Rail. We have suggested three development options to allow for ArvinMeritor remaining on site in redeveloped premises or else to vacate the Site.

The Vision

11.3 TCBC’s vision for the Site is for a commercial and employment-led comprehensive redevelopment that properly integrates and links with the town centre and provides a quality and distinctive location. The long term redevelopment of the Site offers the only real opportunity for the commercial expansion of the town centre.

11.4 TCBC is seeking to maximise employment opportunities with the potential to create a new office focus for the town centre. Cwmbran currently performs very successfully as a Sub-Regional shopping centre but has no current role as a location for offices even though there have been a number of public sector requirements around in recent years.

11.5 If the Site is brought forward for redevelopment it also offers the opportunity to regenerate and remediate land previously used for industrial uses. It will bring into commercial use a “brownfield” location in a sustainable development form.

Supportive planning policy

11.6 The existing planning policy context recognises the potential of the Site and provides a firm endorsement of the principle of redevelopment of the site. The Planning Policy Options Paper of January 2005 refers to the expansion of the town centre with significant mixed use development and environmental improvements.

11.7 More recently the Consultation Draft Plan for Cwmbran Town Centre (LDP Draft) highlighted the opportunity for a comprehensive redevelopment of the Site with the relocation of industrial uses out of the town centre. Proposals that would be appropriate for the Site were identified as comprising a commercial/employment led mixed-use scheme with the potential for office, leisure, retail, residential and hotel uses. The Consultation Draft Plan also emphasised the need for improving accessibility including the linkages to the town centre and to the railway station.

11.8 The Consultation Draft Plan set out the principle of Development Frameworks to be

prepared for any Zone in advance of any planning application being submitted.

11.9 The uses for the Site suggested in this commercial assessment report are compatible with those cited in the Consultation Draft Plan. The proposed foodstore use will require “full justification for the location of such uses” as the Site is not currently within the Town Centre Boundary. If the foodstore use can be integrated with the town centre, then it offers the opportunity to contribute to the vitality and viability of Cwmbran and introduce wider regeneration benefits.





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11.10 It will be essential for any Site allocation within the Deposit LDP to highlight the need for comprehensive development across the Site and not permit piecemeal development of the higher value uses. This should subsequently be addressed in any planning consent granted.

Constraints

11.11 Any redevelopment will need to address the issues of land contamination and flooding. The Phase I Environmental Assessment undertaken by CB Richard Ellis Geo-Environmental demonstrated a number of potential sources for contamination related to the current and previous industrial uses of the Site.

11.12 As part of the Phase I EA we suggested that a Phase II intrusive instigation is undertaken and this is likely to be required as a condition of planning. This has since been commissioned by ArvinMeritor.

11.13 The European Directive 2004/35/EC Environmental Liability confirms the “polluter pays” principle so that operators whose activities have caused environmental damage will be held financially liable for remedying this. The responsibility for clean up of the Site therefore will remain with the landowners with the assumption that sufficient clean-up is undertaken to ensure that it does not prejudice the form of development on the Site.

11.14 The findings of the Phase II EA are that the extent of remediation required would make residential development unviable on any part of the Site other than the northern car park area.

11.15 The latest Development Advice Maps, updated in November 2009, categorises much of the mid and southern sections of the Site as Zone C2 (at significant risk of flooding) with part of the mid and southern sections as Zone B (lower risk of flooding). Flood Zone C2 limits the form of development permitted including excluding residential and emergency services. Flood alleviation measures are however being considered by ArvinMeritor’s consultants.

11.16 A further key constraint in respect of bringing forward comprehensive development of the Site is the current land ownership and occupation. In the event that ArvinMeritor does not bring forward proposals for the refurbishment and redevelopment to create a new modern factory headquarters, then some intervention may be required to allow redevelopment to happen. A planning application has already been submitted in respect of the ArvinMeritor northern car park site for a new Morrison’s foodstore.

Emerging proposals in Cwmbran

11.17 Due to the difficult market conditions a number of the key development schemes have not progressed:

� Canalside is on hold and there is currently no private sector interest to deliver

this

� Eastern Strip North Strategic Opportunity Area is not being progressed by the

Assembly Government at this stage

� Eastern Strip South Strategic Opportunity Area has an extant planning consent

on the Carillion Richardson site for retail warehousing that is not currently being

implemented and Cranes are remaining in occupation of the Alfa Laval land




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11.18 There are currently no significant proposals for new development that would

directly compete with the Site for a foodstore operator although Sainsbury’s should shortly commence their extension works when the S106 is signed.

11.19 In the longer term the eastern side of the town centre may come forward for an outward looking expansion but this is likely to be for a comparison-led retail mixed use scheme.

11.20 In respect of the current planning application for a foodstore on the ArvinMeritor northern car park site, GVA’s independent commentary states concerns over lack of integration with the town centre and that it is likely to act as a stand-alone retail destination. GVA therefore suggests that the land is integrated with the landscaped area to the west, including Grange Road, to create a close relationship with the town centre and link the town centre with the rail station whilst delivering regeneration benefits.

Viability

11.21 It is unfortunate that the timing of this commercial assessment is when current market conditions remain difficult and have led to significant falls in land values. This reflects the fall in capital values (rising yields and lowering rents), the lack of available development funding, the “mothballing” of some development sites and the withdrawal of a substantial number of developers from acquiring and developing sites.

11.22 Our commercial assessment is focussed on deliverability and is assuming a 10 to 15-year programme to bring the development to completion. This is due to the complexities in preparing the site for development including remediation, obtaining vacant possession and the need for the occupational and funding market to improve.

11.23 To achieve a comprehensive development, there needs to be an “economic driver” to allow the overall development proposals to be self-funding. The inclusion of a foodstore within the proposals would allow a substantial land value to be realised and therefore used as leverage to cross-fund other development uses across the Site as part of the comprehensive strategy.

11.24 There is interest from Morrison’s foodstore on the northern car park area. The

inclusion of a foodstore would act as a necessary “value driver”, even if other property values generally improve. If a foodstore is not a component of the development, on the basis of current market values and demand the Site would not be able to generate an overall positive site value.

11.25 A recent negative impact on the property market has been the reduction in public sector demand that has sequentially followed on from the problems within the private sector. The Comprehensive Spending Review has lead to a contraction of the public sector and a need for greater efficiencies. This is having a direct impact on the number of office requirements that had previously existed for the Cwmbran area.

11.26 The residual land value exercise, adopting today’s costs and values, demonstrates that some of the preferred uses such as offices, even with the benefit of a public sector covenant, are unlikely to generate a positive land value at an affordable rent. In addition the take-up of office development sites is likely to be over a long




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period and will need the catalytic effect of say the development of civic offices for TCBC to kick-start activity.

The Options

11.27 Option 1Option 1Option 1Option 1 assumes the following:

� ArvinMeritor remains on site but relocates to the southern end into modernised

premises

� a foodstore on the northern car park area where the high high development

land value can help cross-subsidise remediation, the redevelopment of the

southern end and lower value uses such as the introduction of new office

development into the town centre

� the mid-section of the Site becomes an office quarter together with a branded

hotel

� the Assembly Government’s offices on the southern section are refurbished

� the upper level walkway beside the leisure complex is completed and Grange

Road is removed to improve linkages and integration with the town centre and

extend the developable area. St David’s Road is traffic calmed.

� the redevelopment is delivered by ArvinMeritor in a comprehensive scheme that

allows early development of the foodstore and the later release of the mid-

section for office and hotel development

� requires the agreement and long-term commitment of ArvinMeritor to facilitate

the development.

11.28 Option 2Option 2Option 2Option 2 assumes the following:

� ArvinMeritor vacates and disposes of the Site with a third party

investor/developer bringing forward the comprehensive proposals

� a foodstore on the northern car park area where the high development land

value can help cross-subsidise remediation, the redevelopment of the southern

end and lower value uses such as the introduction of new office development

into the town centre

� the mid-section of the Site becomes an office quarter together with a branded

hotel

� the southern section of the Site is developed for small business units; retail

warehousing; and the Assembly Government’s offices are refurbished


Road is removed to improve linkages to the town centre and extend the

developable area. St David’s Road is traffic calmed.

11.29 Option 3 Option 3 Option 3 Option 3 assumes the following:

� ArvinMeritor vacates and disposes of the Site with a third party

investor/developer bringing forward the comprehensive proposals

� the northern car park area comes forward for residential development with a

care home and hotel




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� the foodstore is situated on the mid section and therefore would not be

available for development as early as the foodstore site in Options 1 and 2

above

� the southern section of the Site is developed for the foodstore petrol filling

station; small business units; new offices; retail warehousing; and the Assembly

Government’s offices are refurbished


Road is removed to improve linkages and integration with the town centre and

extend the developable area. St David’s Road is traffic calmed.

11.30 Option 1 presents the most viable scheme both in terms of land value and viable

uses together with ArvinMeritor being available as a delivery partner. 11.31 The creation of a new office quarter, which features in all options, would also

provide an opportunity for TCBC to relocate from County Hall into a bespoke building in a prominent town centre location close to public transport links.

11.32 The Council is keen to promote the delivery of new homes as part of its housing

strategy and to introduce a greater diversity in the housing stock both in terms of size, design and tenure. However constraints attaching to the Site in terms of flood risk and contamination would only permit residential development on the ArvinMeritor northern car park area.

11.33 The development of the northern part of the Site for residential use will lead to the loss of a commercial development opportunity in a prime position.

The Preferred Option

11.34 All of the three options include a foodstore in a form that is integrated with and linking to the town centre to enhance vitality and viability. If a foodstore is not deliverable, on the basis of current market values and demand the Site will not be able to generate a positive site value.

11.35 Option 1 is the preferred scheme as the scheme is viable and the proposed mix of uses would provide a comprehensive, employment-led solution that is self-funding. It would allow the town centre to expand eastwards; remediate contaminated land; and retain a local employer and local jobs.

11.36 Importantly it is the most deliverable of the three options because it would not require intervention in that it could be brought forward by ArvinMeritor, subject to agreement with TCBC as landowner, who would remain on the Site in refurbished flagship premises.

11.37 The deliverability of Option 1 and the lack of intervention required will also ensure that it can be progressed in the shortest timeframe.

11.38 The delivery and development content of the emerging scheme will need to be controlled and optimised by TCBC both as planning authority and as joint landowner.




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Delivery

11.39 We would suggest that discussions including pre-application planning discussions are progressed with ArvinMeritor to establish a mutually acceptable development solution.

11.40 Justification will be required in planning terms for the inclusion of a foodstore on the northern car park area. This will include the regeneration benefits of the remediation of other parts of the Site; creation of a new office quarter; and the retention of jobs on Site.

11.41 In particular the planning strategy must ensure that the Site is developed comprehensively and that receipts from the foodstore development site are reinvested into bringing forward the refurbished facility for ArvinMeritor and the release of the mid-section of the Site for office and hotel development.

11.42 Consideration will need to be given to the extent to which the public sector and TCBC in particular will want to get involved in the project. This could include recycling its receipts from any land disposal or participation in the project into further regeneration initiatives; using its own office requirement to kick-start the office quarter, or optimising the benefit of its covenant in terms of leasing accommodation to assist in any subsequent funding.

11.43 It will also be worthwhile investigating optimising public sector involvement both in

terms of maximising any grant revenues or other funding sources or alternatively exploring whether the JESSICA RIFW could make a valuable contribution. The involvement of JESSICA RIFW could facilitate wider regeneration projects across the town centre.

11.44 The Council will need to adopt a pro-active stance to bring forward any development. This will include the following:

� an agreed Development Framework to determine uses across the Site and a

scheme of appropriate quality

� a planning strategy to allow for a comprehensive development solution for the

Site without allowing piecemeal development

� ensuring integration and links with the town centre and indicating the direction

of extension of the town centre eastwards

NEXT STEPS AND IMPLEMENTATION

11.45 We set out below our thoughts on how matters can be taken forward from this initial commercial assessment:

Delivery of the Site

� Further discussions are to be held with ArvinMeritor to work towards a

development proposal that is acceptable in planning terms and delivers a

comprehensive solution

� Consultations to be held with Welsh Assembly Government in terms of a

strategy and timetable for the refurbishment of their offices and how this is to tie

in with ArvinMeritor’s works




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� In the event that agreement is not reached with ArvinMeritor or a decision is

made for them to vacate the Site then TCBC to consider a contingency position

in relation to the development proposals by facilitating site assembly and the

extent to which it may consider using compulsory powers to deliver the Site.

Further site investigations

� TCBC to work with ArvinMeritor to establish a development strategy for the Site

that incorporates flood alleviation measures and optimises the site layout and

development content in response to the flood risk issues

� TCBC to agree a remediation strategy for the Site with ArvinMeritor and the

Environment Agency

Planning and design

� Consider an explicit site specific policy for the LDP to allocate the Site as an

Action Area indicating the proposed uses for the Site, the vision for its

redevelopment potential and that a comprehensive regeneration scheme must

come forward and not piecemeal development. This will include the foodstore

use as a value driver to deliver other regeneration benefits.

� The LDP to also promote the direction of growth and extension of the town

centre eastwards to incorporate the Eastern Strip.

� Development Framework – once the principles of a development proposal are

agreed, a Development Framework should be prepared for the Site prior to the

submission of any planning application. This would be adopted by TCBC.

� The Council to consider bringing forward SPG as guidance for Development

Frameworks for the Action Areas adjacent to Cwmbran Town Centre.

Other landowners

� Promote discussions with PruPIM to establish whether there is an opportunity for

a joint venture approach to link the Site with the eastern side of the town centre.

Reducing risk

� Co-ordinate discussions with potential public sector occupiers to confirm

occupational requirements and to establish whether there is any opportunity for

shared facilities including reception, meeting rooms etc.

� Establish the likely availability of grants including Convergence funding that

could forward fund primary infrastructure or site assembly to kick-start the

development

� Ongoing monitoring of property market to see if rents, yields and costs are

changing as this will impact on land values

Delivery vehicles

� Pursue discussions with the Welsh Assembly Government team to establish if

JESSICA RIFW is a suitable and viable vehicle to facilitate development and if

the timescales are workable.




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� Consider a longer-term marketing strategy and the programme for the

involvement of a third party developer/joint venture partner should ArvinMeritor

not be available as a development partner.



Recommendations

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12.1 It is recognised at this stage that the concept proposals for the Eastern Strip Central are at a preliminary stage. We consider that the issues that TCBC should now address in the short-term comprise:

� Establish a planning framework underpinned by an explicit site specific policy in

the LDP to include commissioning of a Development Framework that will be

adopted by TCBC.

� Work with ArvinMeritor to establish an acceptable comprehensive regeneration

proposal.

� Pursue discussions with the Welsh Assembly Government’s JESSICA team to

establish whether additional regeneration benefits for the town centre can be

delivered through their involvement.

� Pursue discussions with relevant grant bodies to receive maximum grant

assistance to facilitate development.

12.2 We would also recommend that the Council implements additional points in the

action plan detailed in Section 11 to take positive steps to move the project forward.

Prepared & Edited By:

Caroline Mitchell-Sanders Director Director Director Director –––– Development and Development and Development and Development and Regeneration Regeneration Regeneration Regeneration For and on behalf of CB Richard Ellis LimitedFor and on behalf of CB Richard Ellis LimitedFor and on behalf of CB Richard Ellis LimitedFor and on behalf of CB Richard Ellis Limited

Date of Issue: February 2011 Status: Final

Recommendations

sd42 - commercial assessment of cwmbran town centre - eastern

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