Item No. 6.

Classification: Open

Date: 1 November 2011

Meeting Name: Planning Committee

Report title:

Release of S106 Monies: in respect of Larnaca Works, Grange Walk, Bermondsey Spa to deliver a project to improve Grange Yard in order that it can become adopted highway and ensure the future permeability of this site

Ward(s) or groups affected: Grange

From:

Deputy Chief Executive

RECOMMENDATIONS That the Planning Committee: 1. Approves the proposed release of £131,000 of section 106 funding from the legal agreement

in respect of the development at Larnaca Works, within the Bermondsey Spa Regeneration area. Funding from the associated development at Larnaca Works is intended for site specific transport improvements and works to the public areas within the adjoining site, be released to deliver a project that will improve the public realm in Grange Yard to an adoptable standard and ensure public access to this area.

2. That the Planning Committee authorise the release of funds totalling £131,000 from Legal

Agreements dated 25 June 2007 and Legal Agreement dated 15 February 2011 (Planning Application Number 06-AP-2272 Corp ref S106/122837 Account 328) for Larnaca Works to deliver public realm improvements in Grange Yard.

BACKGROUND INFORMATION 3. Planning permission was granted to Jadeguild Limited for the development of the site know as

Larnaca Works within Site C Bermondsey Spa under a consent granted in 2007 06-AP-2272. The consent was for the construction of 90 flats with commercial space at ground floor and basement car parking. This site is shown hatched blue on the plan at Appendix 1.

4. The original section 106 legal agreement number 328 relating to this development at Larnaca

Works was completed on 25 June 2007 and was later varied by an Agreement dated 25 March 2009. These agreements provided for a contribution of £47,000 to site specific transport improvements and for the developer to build two public squares to the value of £84,000.

5. A further Legal Agreement dated 15 February 2011 amended the earlier agreement to enable

the developer to make a payment of £84,000 in lieu of carrying works to build two public squares within the site now know at Site C5 ( shown hatched green on the plan attached at Appendix 1). That site has now been sold to Notting Hill Housing Association who will be landscaping this area within their scheme that was approved in January 2011.

6. The Larnaca development is now nearly complete and the flats will be occupied over the next

few months. 7. Grange Yard was identified in the Site C Masterplan as a key east west route through this site.

The area to the west is adopted highway but title searches have revealed that that the eastern

section has no registered owner although the neighbouring properties have the right to use it for access.

Proposal 8. It is proposed that the s106 funding from the Larnaca works scheme is used to fund public

realm improvements to the eastern section of Grange Yard (as shown coloured red in the planned attached as Appendix 1). These works would include resurfacing and new lighting and improve this route to an adoptable standard.

KEY ISSUES FOR CONSIDERATION 9. Section 106 payments are secured as part of the planning permissions in order to mitigate the

harmful impact of new developments on the area, and provide the infrastructure and services to support new developments. This proposal will improve the public realm immediately adjoining the Larnaca development.

10. It will benefit the residents of the affordable block at the rear of the development that fronts

onto Grange Yard providing a safer access route to these units. The improvements will also benefit other local residents by generally providing additional permeability in the area The new access route will also provide improved access to the remaining sites within Site C that are due to come forward for redevelopment including over 0.5 hectares of land still owned by the Council.

11. This area is currently in very poor condition as shown in the attached photographs. 12. These works support the aims of the original master plan produced for the regeneration of the

area, approved by full Council Assembly on 18 October 2000, and the delivery of which has been further supported by the various planning approvals sought and granted over the subsequent period.

13. These proposed works also form a key part of the implementation plan for the Bermondsey

Spa Public Realm Strategy that was agreed in January 2009 and would contribute to making this area a better place to live. There has been extensive local consultation on this Strategy document and residents were enthusiastic about proposals that create safer routes through the area for pedestrians and cyclists.

COMMUNITY PROJECT BANK GUIDANCE AND PRIORITISATION 14. At its meeting on 21 July 2009, the Executive approved a list of community project bank

projects for prioritisation. 15. Although this proposal it not on the current schedule as a priority, the s106 funding is currently

tied to carrying out works in the immediate vicinity of the Larnaca Site. Policy implications 16. This public realm project complies fully with council policy contained in the local

implementation plan and the Southwark plan and contributes to the objectives of the sustainable community strategy, 2016 by making the borough a better place to be in and improving individual life chances.

Financial implications 17. Gateway approvals will be sought for this project’s delivery as required by the Council’s

standing orders once the release of funds is agreed. Local agenda 21 (sustainable development) implications 18. This project will result in the development of a high quality public space with long lasting, high

quality materials, specified in line with maintenance guidelines from all relevant departments of Southwark Council. Existing materials will be reused within the design or recycled where possible.

19. This project will assist in the overall sustainability of the area by helping to provide safer and

more direct pedestrian and cycle routes through. This will also help people wishing to use the nearby public transport at Bermondsey Tube Station and access both Spa Gardens and the shops and restaurants on Bermondsey Street.

Community impact statement

20. The programme is designed to enhance the attractiveness of Bermondsey Spa as a place

where people live and work. By improving the environment of the area, providing high quality public places for new and existing residents and workers and which promotes the potential for social interaction.

21. The projects will have a positive impact on the environment and upon the provision of public

areas and will not have a detrimental impact upon any one group. It is designed to be inclusive and accessible without prejudice for all sectors of the community.

Resource implications 22. The funding will come from S106 agreements as outlined above and set out below in the

summarised in the S106 finance concurrent report below. 23. The projects will be project managed by the Property Team. There are no legal or financial

implications as a result of the recommendations set out in this report. Consultation 24. The Chair of Bermondsey Community Council is happy for this proposal to come forward to

Community Council. 25. This proposal has the written support of the developer, Findon Urban Lofts. SUPPLEMENTARY ADVICE FROM OTHER OFFICERS Finance Director 26. This report seeks comment and approval for the proposed release of £131,000 of section 106

funding from the legal agreement in respect of the development at Larnaca Works, within the Bermondsey Spa Regeneration area. The Finance Director notes the recommendation.

S106 Concurrent (from S106 Manager) 27. The total value of the agreement for amounts to £482,285 of which £196,636 has been

received by the Council to date pursuant to the Agreement terms. The agreement provides for a total of £131,000 payable, £47,000 under the original agreement for site specific transportation works and £84,000 under the Deed of Variation relating to the open space works.

28. Subject to the legal concurrence with respect of the purpose of the expenditure being covered

within the planning agreement, the amount of £131,000 is available from the funding available under the Agreement and is recommended for approval as capital expenditure.

Strategic Director of Communities, Law & Governance 29. This is a report seeking a recommendation to Planning Committee and then authorisation by

members of Planning Committee for the release of the total sum of £131,000 from the s106 Agreement as varied for Larnaca Works under the Town and Country Planning Act 1990 (“the 1990 Act”), for the purpose of funding works to Grange Walk.

30. The S106s monies must be expended in accordance with the terms of the specific S106’s and

the relevant legal tests and policy tests set out in Circular 2005/05 and regulations 122 and 123 Community Infrastructure Regulations 2010.

31. The S106 and subsequent variations have been reviewed and it is considered that the

proposed expenditure accords with the terms of the agreements, the relevant legal and policy considerations detailed above and is otherwise reasonable in all other respects.

32. The proposed expenditure has been considered in the context of its impact on the community

and human rights and is not considered to have any disparate or disproportionate impact on any section(s) or individuals within the community.

33. This report has already been before Community Council Members’ in accordance with Part

3H, paragraph 3 of the Constitution (‘Consultative/Non Decision Making’) which enables members to comment on the proposed expenditure of S106 funds totalling over £100,000.

34. The decision to consider and approve S106 expenditure exceeding £100,000 is reserved to

Planning Committee in accordance with Part 3F, paragraph 2 under the heading ‘Matters Reserved for a Decision’.

BACKGROUND DOCUMENTS Background Papers Held At Contact Planning and Section 106 agreements relating to the Development at Larnaca Works, Bermondsey Spa Confirmation from Chair of Community Council Confirmation from Developer

5th Floor, 160 Tooley Street, SE1 2QH As above As above

Jane Seymour 020 7525 4907 As above As above

APPENDICES

No. Title Appendix 1 Map Appendix 2 Photographs AUDIT TRAIL Lead Officer Jon Abbott, Director Elephant and Castle, Canada Water and Bermondsey Spa Report Author Jane Seymour, Principal Surveyor Version Final Dated 21 October 2011 Key Decision? No CONSULTATION WITH OTHER OFFICERS / DIRECTORATES / CABINET MEMBER Officer Title Comments Sought Comments included Strategic Director of Communities, Law & Governance Yes Yes Departmental Finance Manager Yes Yes S106 Finance & Monitoring Officer Yes Yes Community Project Bank Yes Yes Cabinet Member Yes No Date final report sent to Constitutional Team 21 October 2011

APPENDIX 1

PHOTOGRAPHS APPENDIX 2

Site FSU from Marine Street Marine Street/Old Jamaica Road Junction

Marine Street Arch

Marine Street Arch from Old Jamaica Road/Marine Street Junction