REPORT OF THE CHIEF EXECUTIVE AND DIRECTORS OF HOUSING AND DEVELOPMENT SERVICES
To CABINET on 26 June 2001
Subject:LOWER BROUGHTON REGENERATION STRATEGY
EXECUTIVE SUMMARY
Consultants, Taylor Young Urban Design, were commissioned by the City Council and Northwest Development Agency to review regeneration strategies for the Lower Broughton area and to advise on the potential to assemble and market a significant site for private sector development.
The consultants have submitted their final report. A copy of their summary report is attached and a copy of the full document has been placed in the members’ library.
The consultants will be attending the meeting to present their conclusions and answer questions.
In brief, their conclusion is that Lower Broughton is not currently attractive for private sector investment. They have developed proposals to change the character and image of the area that would create significant opportunities for new development. Their vision for the area appears attractive but poses some difficult questions for the City Council.
This report provides a commentary on the key issues arising from the proposals and suggests the next steps to be taken. Cabinet is requested to take an overview on the report, to support or amend the vision, and comment on proposals that they see as viable or unacceptable.
RECOMMENDATIONS
That the report from Taylor Young be accepted and used as the basis for further consultation and development of proposals.
FURTHER DETAILS CAN BE OBTAINED FROM:
Harry Seaton, Director of Housing Services, Turnpike House (0161 925 1201)
Barry Whitmarsh, Development Planning Section, Civic Centre, Swinton (0161 793 3645)
1PURPOSE OF REPORT
1.1To comment on the proposals for the regeneration of Lower Broughton prepared by consultants, Taylor Young Urban Design, to consider the most important issues raised by their report and to agree the next steps in developing a strategy for the area.
2INTRODUCTION
2.1The Council adopted a corporate Strategy for Action for Lower Broughton in 1994, including the reduction of local authority housing stock, refurbishment of the remainder, and disposal of land for private sector housing development. The programme of clearance of unpopular stock and comprehensive refurbishment is well underway, funded by SRB and HIP. However, the planned new private sector housing has not proceeded, following the withdrawal of Miller Partnerships. Closure of the Lowry High School site will add to the large amount of vacant land in the area. Clearance of older derelict stock in the Lucy/Muriel Street area has also commenced, releasing further land for development.
2.2Given the failure of the previous attempt to attract private investment and the opportunities presented by the release of the Lowry High site, it was decided to take a fresh look at the area. Consultants were invited to tender for a study, jointly funded by the Northwest Development Agency, to review regeneration strategies for the Lower Broughton area and to advise on the potential to assemble and market a significant site for private sector development. At the meeting of Cabinet on 26 September 2000, it was agreed to appoint the consultants team lead by Taylor Young Urban Design to carry out the study.
2.3The agreed study brief set out the following draft objectives for the regeneration of the area:
Secure sustainable development for a variety of uses
Provide a catalyst for radical and long-term change
Retain and support the existing community and population
Provide opportunities for additional population and/or economic growth
Repopulate the urban core
Improve the environment and quality of accommodation
Agree a medium term strategy with key partners such as the government and
Work towards incremental achievement of UDP objectives.
2.4Following consultation with a wide range of local stakeholders, prospective developers and other interests, the consultants have submitted a report outlining their assessment of the area and proposals for attracting development interest. A copy of their summary report is attached and a copy of the full report has been placed in the members’ library.
3SUMMARY
3.1The consultants’ first conclusion is that Lower Broughton is not an attractive location for private sector investment. The poor image and scale of deprivation of the area, coupled with the dominance of social-rented housing, deter developers. The available land at the Lowry High site and around Clarence Street is not thought to be a realistic development opportunity, in isolation. The suggestion is that developer interest could be created in the area, if development opportunities could be delivered which are of sufficient scale to allow a developer to “paint a new canvas” for the area. This would mean breaking up the public sector housing stock, introducing much larger elements of private sector investment and taking advantage of assets, such as proximity to the regional centre and riverside frontage.
3.2The key elements of the consultants’ vision for radical change are:
Change of use of the riverside frontage of Cambridge Industrial Estate to housing/mixed uses.
Replacement of the University’s Meadow Road campus and local authority housing on the riverside frontage at the south of Spike Island with private sector housing.
Closure of the Mocha Parade shopping centre and redevelopment for housing/mixed use.
Development of a replacement retail/service centre on the southern part of the former Lowry High School site, accessed by a reopened Broughton Lane.
Development of the northern part of the former Lowry High site for recreation/open space.
3.3The report contains other significant proposals for change, including clearance of other local authority and private housing. However, the key elements listed above are seen as the building blocks that will allow the character of the area to be changed. The consultants’ advice is that all these key elements are essential and interlinked. The new retail development could act as an early phase that would establish Lower Broughton as a location for private sector development, but may not be commercially viable without the additional spending power of the planned private housing. The private sector housing would only be viable if large enough opportunities to enable economies of scale are achieved. The reduction in the amount of public sector housing is necessary to change the image and character of the area.
3.4The consultants’ vision for the area appears attractive. However, it raises some difficult choices for the Council. Change on the scale proposed would inevitability have significant impact on existing residents and businesses in the area. Several elements of the proposals could face difficulties when assessed against planning policy. There is also a fair degree of risk in the market and cost assumptions. The costs of relocation from and demolition of a substantial amount of currently let public sector stock would be considerable and serious consideration would have to be given to how this might be funded.
4IMPACT ON EXISTING BUSINESSES AND RESIDENTS
4.1The imminent closure of Granyte Surface Coatings offers an unusual opportunity to effect significant change on the riverside frontage of Cambridge Industrial Estate with relatively little impact on existing businesses and jobs. The company occupies a large site with a long river frontage that would be the key to land assembly in the area. A number of smaller businesses in the area would have to be relocated or extinguished.
4.2The relocation of the local shopping centre from Mocha Parade to the Lowry High site would clearly have an impact on existing traders. It may be practical and appropriate to retain a smaller parade of local convenience shops at Mocha Parade, but any remaining traders would suffer from the competition of the new centre and reduced footfall. Some traders may be able to relocate to the new centre, although commercial rents are likely to be higher than their present rent. In practice, some businesses may be extinguished.
4.3The consultants are clear that the strength of the existing community is a major asset and that any resident who wants to stay in the area should be relocated. However, they consider that the proportion of local authority rented stock is too high to ensure a balanced sustainable community for the future. Around 350 existing local authority houses would be affected by the proposals. 123 of these are within the key site at the southern end of the Spike Island estate, although redevelopment of this area is seen as a longer-term project.
4.4Spike Island is a popular estate, currently with very few vacancies. Over the last two years, the Council has committed to firm proposals for the refurbishment of Spike Island, following extensive consultation with residents. The option of partial demolition has previously been considered and rejected. Implementation of the consultants’ proposals would require a reversal of recent policy towards Spike Island and go against the wishes of existing residents.
5PLANNING POLICY
5.1Retail policy:The proposed development of new shopping facilities would have to be tested against UDP Policy S2 and government advice contained in PPG6, which resist the development of new shops outside existing centres, except to meet local need. There is a risk that the proposals will fail this test. The consultants suggest that the scale of retailing necessary to achieve commercial viability is greater than necessary to meet local need. The new centre is therefore likely to draw trade away from neighbouring centres.
5.2A strong case for the new centre can be made on planning grounds, given the anticipated regeneration benefits. However, the impact of these proposals on the retail hierarchy of the inner city, and particularly neighbouring centres such as Salford Precinct and Broughton Village, has yet to be fully assessed. There also needs to be co-ordination with retail proposals emerging from the Chapel Street and New Deal programmes.
5.3Further investigation of the retail issues would be required before a commitment to the proposed strategy could be made. If it is decided to pursue the proposals, it is suggested that a retail strategy for the entire inner city be commissioned, as part of the UDP review process, before the Lower Broughton plans are finalised. However, it is important that a quick decision be taken so that redevelopment can commence soon after the school is relocated.
5.4Recreation Policy:The majority of the Lowry High site is open space, originally laid out as playing fields and pitches. UDP policy R1 protects recreation land and facilities from development. Government policy also supports the protection of recreation land and any planning application for the development of the former pitches for the proposed local centre would automatically be called in if Sport England lodges an objection.
5.5Draftgovernment guidance, currently subject to consultation, suggests that the existing presumption against the development of open space may be strengthened and that playing fields should not be lost to development unless there is an established surplus of all forms of open space.
5.6A case for the development of the southern part of the site can be made. The Lowry site does not currently contribute to formal recreation provision and was not included in the audit of existing provision within the recent Playing Pitch Demand Study. The proposed development of part of the site for formal recreation would meet the shortfall in provision of mini soccer pitches identified by the Demand Study. There is a large amount of open space in Lower Broughton, most of which is of limited value to the community. The strategy proposes an overall reduction in the quantity of open space, but a significant enhancement of its quality.
5.7Consultation with Sport England will help clarify whether development of part of the existing open space is viable. However, uncertainty over the detail of future government policy places some risk over this element of the proposals.
6MARKET AND COST ASSUMPTIONS
6.1A recent study of housing demand commissioned from the Northern Consortium of Housing Authorities concluded that the net demand in the inner city east over the next five years would be +51 houses. The consultants’ proposals envisage the development of 900 new homes in Lower Broughton, probably over a longer timescale.
6.2Achieving this higher level of housing growth depends on there being a sea change in perceptions of inner city Salford and attracting an entirely new market segment to the area. New housing markets have successfully been established at Salford Quays and Chapel Street and in areas such as Hulme in Manchester. Similar radical change is certainly an appropriate aspiration for Lower Broughton. However, it must be recognised no guarantee can be given of the success of such a strategy and it could take several years to achieve success.
6.3Although Lower Broughton clearly has attractions, the area would be in competition with other inner city regeneration projects. Over 1500 new housing units are to be built in the Chapel Street area and there are emerging plans for housing development in the New Deal area and Ordsall. Outside Salford, extensive new housing development is proposed in East Manchester. Serious consideration of the capacity of the inner city to absorb significant growth of this nature will have to be given. It is also vital that the necessary non-residential supporting infrastructure is in place to sustain population growth of this volume
6.4The consultants have identified potential developer interest in the comprehensive redevelopment proposals. However, given the history of developer resistance to the area, there is some risk that this may not be realised.
6.5If it is the ultimate aim to support this radical approach, some form of fiscal incentive, either from the City Council or the Government may be required to stimulate interest from the private sector. It should be noted that schemes such as Hulme and East Manchester have received considerable government subsidy.
6.6The report contains only indicative costs for the implementation of typical projects. These suggest that gap funding will be required at the start of the programme, but that if the development is successful, the gap should reduce over time and potentially produce positive returns. However, the true costs of taking forward the strategy cannot be accurately assessed at this stage and may not become clear until detailed plans are worked up with a development partner. If it is decided to pursue this strategy, there is a risk that the eventual cost analysis may require significant changes in strategy.
7OTHER ISSUES
7.1Implementation of the strategy will require considerable public-sector pump priming, through land assembly, remediation of contaminated land and gap funding of development. NWDA, as joint sponsor of the study appear supportive of the proposals, in principle, and may be willing to confirm financial support. However, given the likely scale of funding required and the limited funding available to the Agency, the relative priority of Lower Broughton against other regeneration projects in the City may be an issue.
7.2The current plans for Spike Island have significant confirmed funding from SRB and HIP. If it is decided to reduce or delay the existing remodelling scheme (phases 4, 6 and 7 are affected), this funding may be put at risk. Any decision to change or alter the planned programme will require significant remodelling of the three year Housing Investment Programme.
7.3The proposals have implications for the University’s emerging estate strategy. The plans assume that the University will dispose of their Meadow Road campus. This may be an attractive option for the University, but other options are still being assessed in connection with the University’s desire to consolidate their presence around the Crescent and Adelphi Campuses. If the Meadow Road site were not available for development, the scope for new private housing would be reduced, but would appear to remain viable.
8OBSERVATIONS
8.1Overall, it is considered that the consultants’ report sets out a convincing vision of a new image for Lower Broughton. To greater or lesser extent, it meets all the brief objectives and it could certainly be a catalyst for radical and long-term change. The consultants have successfully challenged some preconceptions and generated some development options that had not previously been considered.
8.2It is inevitable that a radical option will leave some questions unanswered at concept stage and it is clear that no definitive decision on the proposals could be taken at this stage. Although the majority of residents and businesses in Lower Broughton would benefit from the successful long-term regeneration of the area, some would clearly suffer in the short term. As the proposals depend on attracting private sector investment and new households to an unpopular area, there is an element of risk.
8.3The decision as to the future of Spike Island is particularly difficult. Residents of the estate support the existing remodelling plans and are opposed to any further clearance. If the current remodelling plans are put on hold pending development of the consultants’ proposals, the existing funding will be put at risk and confidence in the estate will be damaged. If it is decided to proceed with the existing remodelling proposals, the consultants’ advice is that reduced scale of development opportunity may be too small to attract development interest to the area.