Date: 18 December Development Management planning application: Application 14/AP/1862 for: Full Planning Permission

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1 Item No. Classification: Date: Meeting Name: 2 OPEN 18 December 2014 Planning Committee Report title: Development Management planning application: Application 14/AP/1862 for: Full Planning Permission Address: BLACKFRIARS ROAD, LONDON, SE1 Proposal: Demolition of existing buildings and development of a mixed use scheme comprised of 5 buildings ranging between 5 and 27 storeys high (maximum height of 96.5m AOD to top of roof plant), comprising 336 residential units (Class C3), 2,502sqm of office (Class B1), 1,200sqm of retail (Class A1-A4), 528sqm of office or retail (Class B1 or Class A1-A4) and 154sqm of ancillary residential floorspace (residents gym), 79 basement car parking spaces together with access, hard and soft landscaping and other associated works incidental to the development. The application is accompanied by an Environmental Statement submitted pursuant to the Town and Country Planning (Environmental Impact Assessment) Ward(s) or groups affected: From: Cathedrals HEAD OF DEVELOPMENT MANAGEMENT Application Start Date 01/07/2014 Application Expiry Date 21/10/2014 Earliest Decision Date 22/11/2014 RECOMMENDATION 1 a) That planning permission is GRANTED subject to conditions and the applicant entering into an appropriate legal agreement by no later than 28 February 2015, and subject to referral to the Mayor of London; b) c) d) If it is resolved to grant planning permission, that it is confirmed that the environmental information has been taken into account as required by Regulation 3(4) of the Town and Country Planning (Environmental Impact Assessments) Regulations 2011; That it is confirmed that, following issue of the decision, the Head of Development Management should place a statement on the Statutory Register pursuant to Regulation 24 of the Town and Country Planning (Environmental Impact Assessments) Regulations 2011 which contains the information required by Regulation 21 and that for the purposes of Regulation 24(1)(c) the main reasons and considerations on which the Planning Committee's decision is based are as set out as in this report; In the event that the requirements of (a) are not met by 28 February 2015 the Head of Development Management be authorised to refuse planning permission for the reasons set out under paragraph 402. BACKGROUND INFORMATION Site location and description

2 2 The application site is approximately 1.02ha is size and located at the southern end of Blackfriars Road at its junction with St. Georges Circus. The site is bounded by Blackfriars Road to the west, Tadworth House to the north, Bazeley House and Milcote Street to the east, Muro Court to the south east and Borough Road to the south. 3 The site is currently occupied by three buildings of up to nine stories in height dating from the 1960s, these being Hill House, Milcote House and Erlang House. Hill House has been vacant since 2009, Milcote House is currently let for use as three artist studios, whilst Erlang House is currently occupied by the Artists Studio Company and is used as studios for approximately 105 artists. The buildings originally provided 13,348sqm of B1 office floorspace. To the south of Erlang House the site comprises a disused car park. 4 The area is characterised by a mix of uses and building types, including residential, commercial, education uses and student accommodation. The surrounding buildings vary in design and height of between four and 12 storeys. The predominant height of buildings along Blackfriars Road is eight storeys. 5 There are no listed buildings or structures within the application site, however at the southern-most end of the application site, the portion of the site that is currently fenced off to the south of Erlang House and extends from Blackfriars Road around the edge of the Circus and just into Library Street, falls within the St George's Circus Conservation Area. Several Listed Buildings (Grade II) are located in the vicinity, the closest being: - The Obelisk at the centre of St George's Circus (Grade II*) - St George the Martyr Library - The Duke of Clarence Public House - Nos Borough Road, former Presbyterian Chapel - Nos Borough Road - The Peabody Estate 6 The site has a high public transport accessibility level (PTAL) of 6b. There are mainline stations and underground stations within the vicinity of the site, including Elephant and Castle which is approximately 500m away. Numerous bus routes serve the site along Blackfriars Road and Borough Road and the nearest Transport for London (TfL) road is the A201 Blackfriars Road. Details of proposal 7 The proposed development involves the erection of five blocks comprising the following: Use Area (m2) Residential 34,518 Office (B1) 2,502 Retail (A1, A2, A3 and A4) 1,200 Office or Retail 528 Total (including basement) 39,467 Block A 8 A nine storey building to the north of the site fronting Blackfriars Road. This provides retail and office use at ground floor, residential accommodation above with a communal amenity space at roof level. Block B

3 9 Comprised of two parts being a 10 storey building (Block B1) fronting Blackfriars Road, with upper floor set back, and a 27 storey tower being 96.5m in height (Block B2). Block B accommodates office units at ground and first floor, retail units at ground floor and residential accommodation above with a communal amenity space at roof level. Block B3/4 10 Set to the east of Blocks B1/2 and comprising a five storey building accommodating a restaurant/cafe use at ground floor, office uses at basement, ground and first floor, and residential accommodation above with a communal amenity space at roof level. Block C 11 An eight storey building, with upper floor set back, at the St George's Circus junction of Blackfriars Road and Borough Road. The building would provide retail and office use at ground floor and residential accommodation above. 12 A single level basement would be provided beneath Blocks A, B1/2 and C and partially beneath Block B3/4. The basement would provide 78 car parking spaces, 662 secure cycle parking spaces (with a further 92 provided at ground floor level), 8 motorcycle parking spaces, an energy centre and plant rooms, ancillary residential storage and office space (under Block B3/4). 13 The residential accommodation comprises 336 residential units providing a mixture of one, two and three bedroom units. Unit type Quantity Studio 10 1 bedroom bedroom bedroom 51 Total The development proposes 91 affordable homes representing 30% of total habitable rooms and comprising affordable rent and shared ownership units. These are provided within Blocks A and B1. A further in-lieu affordable housing payment has been offered. 15 Amendments have been received during the course of the application as follows: Alteration to mix and layout of units resulting in increased number of affordable habitable rooms. Alteration to window arrangement on blocks A and C to accommodate change of layout of units. Removal of servicing route through the site. Segregation of cyclists at top of basement access ramp. Reallocation of basement parking spaces for service vehicles. Minor changes to detailing and material use within tower. Planning history 16 13/AP/1766 Application type: Scoping Opinion (EIA) (SCP) Request for an EIA Scopining Opinion in relation to the redevelopment of the site to provide a mixed use development up to 27 storeys high comprising 384 residential units (Class C3), retail (Classes A1 and A3) and office (Class B1) uses with underground car parking, a landscaped public area and other ancillary works Decision date 13/08/2013 Decision: Scoping Opinion - EIA Regs (SCP)

4 Planning history of adjoining sites AP-2427 LAND ADJOINING LIBRARY STREET DAVIDGE STREET KING JAMES STREET AND MILCOTE STREET SE1 0RN Erection of a part three, part four, part five, part six storey block (22.69m AOD) comprising 34 residential flats with private terraces/balconies, communal courtyard and roof garden with pergola and cycle parking; erection of 6 three storey 4 bedroom townhouses with private gardens and provision of a community allotment garden. Part of the Elephant and Castle Early Housing Scheme. Decision date 17/12/2008 Decision: Granted with Legal Agreement KEY ISSUES FOR CONSIDERATION Summary of main issues 18 The main issues to be considered in respect of this application are: a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) q) r) s) t) u) Principle of the proposed development in terms of land use and conformity with strategic policies; Environmental impact assessment; Density; Dwelling mix; Affordable housing; Quality of residential accommodation; Impact on the amenities of occupiers of adjoining properties; Impact of adjoining uses on occupiers of proposed development; Transport issues; Design issues, including layout, height and massing; Impact on strategic and local views and setting of adjacent listed buildings and conservation areas; Ecology and biodiversity; Landscaping and Impact on trees; Wind; Archaeology; Land contamination; Water resources and flood risk; Socio-economic implications; Equalities; Planning obligations; and Energy and sustainability. Statutory Duties 19 The following main duties apply: a) b) In dealing with the application the Council is under a duty to have regard to the provisions of the development plan, so far as material to the application, to local finance considerations so far as material to the application, and to any other material considerations (Section70(2) Town & Country Planning Act 1990); The Council is to determine the application in accordance with the development plan unless other material considerations indicate otherwise (Section 38(6) of the Planning and Compulsory Purchase Act 2004);

5 In considering whether to grant planning permission for development which affects a listed building or its setting, to have special regard to the desirability of preserving the building or its settings or any features of special architectural or historic interest which it possesses. (S66 (1) Planning (Listed Building and Conservation Areas) Act 1990). Part of the site lies within a conservation area and therefore the duty imposed by section 72 of the Planning (Listed Buildings and Conservation Areas) Act 1990 applies. Accordingly, with respect to any buildings or other land in the conservation area, special attention shall be paid to the desirability of preserving or enhancing the character or appearance of that area. d) The effect of sections 66 and 72 of the Planning (Listed Buildings and Conservation Areas) Act 1990 is to create a strong presumption against the grant of planning permission in the event of a finding that a proposed development would cause harm to the setting of a listed building or to a conservation area. If it is found that the proposal would harm the setting of a listed building or the character and appearance of the conservation area, that harm must be given considerable importance and weight. c) Planning policy d) 20 The statutory development plan for the borough comprises the London Plan 2011, the Southwark Core Strategy 2011, and saved policies of the Southwark Plan (2007). 21 The site is within the Central Activities Zone (CAZ), and Air Quality Management Area (AQMA). The northern half of the site (Hill House and Milcote House) is within the Bankside, Borough and London Bridge Opportunity Area and the Bankside and Borough District Town Centre. The southern part of the site (Erlang House and car park) is within the Elephant and Castle Opportunity Area and the Elephant and Castle Major Town Centre. 22 The site in its entirety is within an area defined by Southwark's Blackfriars Road SPD. Within the SPD, the site is designated a 'Potential Development Site' (Nos. 41 and 42). The SPD replaces the guidance set out in the Elephant and Castle SPD/OAPF for the area around the southern end of Blackfriars Road (including the application site) which forms part of the Elephant and Castle Opportunity Area. National Planning Policy Framework (the Framework) Section 1: Building a strong, competitive economy Section 2: Ensuring the vitality of town centres Section 4: Promoting sustainable development Section 6: Delivering a wide choice of high quality homes Section 7: Requiring good design Section 8: Promoting healthy communities Section 10: Meeting the challenge of climate change, flooding and coastal change Section 11: Conserving and enhancing the natural environment Section 12: Conserving and enhancing the historic environment London Plan July 2011 consolidated with revised early minor alterations October 2013 Policy 2.5 Sub-regions Policy 2.9 Inner London Policy 2.10 Central Activities Zone - strategic priorities Policy 2.11 Central Activities Zone - strategic functions Policy 2.12 Central Activities Zone - predominantly local activities Policy 2.13 Opportunity Areas and Intensification Areas Policy 2.15 Town Centres Policy 3.1 Ensuring equal life chances for all Policy 3.3 Increasing housing supply

6 Policy 3.4 Optimising housing potential Policy 3.5 Quality and design of housing developments Policy 3.6 Children and young people's play and informal recreation facilities Policy 3.8 Housing choice Policy 3.10 Mixed and balanced communities Policy 3.11 Definition of affordable housing Policy 3.12 Affordable housing targets Policy 3.13 Negotiating affordable housing on individual private residential and mixed use schemes Policy 3.14 Affordable housing thresholds Policy 4.1 Developing London's economy Policy 4.7 Retail and town centre development Policy 4.8 Supporting a successful and diverse retail sector Policy 4.12 Improving opportunities for all Policy 5.1 Climate change mitigation Policy 5.2 Minimising carbon dioxide emissions Policy 5.3 Sustainable design and construction Policy 5.5 Decentralised energy networks Policy 5.6 Decentralised energy in development proposals Policy 5.7 Renewable energy Policy 5.9 Overheating and cooling Policy 5.10 Urban greening Policy 5.11 Green roofs and development site environs Policy 5.12 Flood risk management Policy 5.13 Sustainable drainage Policy 5.15 Water use and supplies Policy 5.18 Construction, excavation and demolition waste Policy 5.21 Contaminated land Policy 6.1 Strategic approach (Transport) Policy 6.3 Assessing transport capacity Policy 6.5 Funding Crossrail and other strategically important transport infrastructure Policy 6.9 Cycling Policy 6.10 Walking Policy 6.11 Smoothing traffic flow and tackling congestion Policy 6.12 Road network capacity Policy 6.13 Parking Policy 7.1 Building London's neighbourhoods and communities Policy 7.2 An inclusive environment Policy 7.3 Secured by design Policy 7.4 Local character Policy 7.5 Public realm Policy 7.6 Architecture Policy 7.7 Location and design of tall and large buildings Policy 7.8 Heritage assets and archaeology Policy 7.11 London View Management Framework Policy 7.14 Improving air quality Policy 7.15 Reducing noise and enhancing soundscapes Policy 7.18 Protecting local natural space and addressing local deficiency Policy 7.19 Biodiversity and access to nature Policy 8.2 Planning obligations Policy 8.3 Community infrastructure levy Core Strategy 2011 Strategic Targets Policy 1 - Achieving growth Strategic Targets Policy 2 - Improving places Strategic Policy 1 - Sustainable development Strategic Policy 2 - Sustainable transport Strategic Policy 3 - Shopping, leisure and entertainment

7 Strategic Policy 5 - Providing new homes Strategic Policy 6 - Homes for people on different incomes Strategic Policy 7 - Family homes Strategic Policy 10 - Jobs and businesses Strategic Policy 11 - Open spaces and wildlife Strategic Policy 12 - Design and conservation Strategic Policy 13 - High environmental standards Strategic Policy 14 - Implementation and Delivery Southwark Plan 2007 (July) - saved policies The Council's cabinet on 19 March 2013, as required by para 215 of the NPPF, considered the issue of compliance of Southwark Planning Policy with the National Planning Policy Framework. All policies and proposals were reviewed and the Council satisfied itself that the polices and proposals in use were in conformity with the NPPF. The resolution was that with the exception of Policy 1.8 (location of retail outside town centres) in the Southwark Plan all Southwark Plan policies are saved. Therefore due weight should be given to relevant policies in existing plans in accordance to their degree of consistency with the NPPF. Policy 1.1 Access to employment opportunities Policy 1.4 Employment sites outside the Preferred Office Locations and Preferred Industrial Locations Policy 1.7 Development within town and local centres Policy 2.5 Planning obligations Policy 3.1 Environmental effects Policy 3.2 Protection of amenity Policy 3.3 Sustainability assessment Policy 3.4 Energy efficiency Policy 3.6 Air quality Policy 3.7 Waste reduction Policy 3.9 Water Policy 3.11 Efficient use of land Policy 3.12 Quality in design Policy 3.13 Urban design Policy 3.14 Designing out crime Policy 3.18 Setting of listed buildings, conservation areas and world heritage sites Policy 3.19 Archaeology Policy 3:20 Tall buildings Policy 3.28 Biodiversity Policy 4.2 Quality of residential accommodation Policy 4.3 Mix of dwellings Policy 4.4 Affordable housing Policy 5.1 Locating developments Policy 5.2 Transport impacts Policy 5.3 Walking and cycling Policy 5.6 Car parking Policy 5.7 Parking standards for disabled people and the mobility impaired Regional Supplementary Planning Documents (SPDs) and Guidance London View Management Framework (2012) Providing for Children and Young People's Play and Informal Recreation (2012) Sustainable Design and Construction (2006) The Mayor's Energy Strategy (2010) The Mayor's Transport Strategy (2010) World Heritage Sites (2012) The Mayor's Economic Development Strategy (2010) Housing (2012) Planning for Equality & Diversity in London (2007)

8 The Mayor's Climate Change Mitigation and Energy Strategy (2011) Southwark Supplementary Planning Documents (SPDs) Sustainability Assessment (2009) Design and Access Statements (2007) Section 106 Planning Obligations (2007) Residential Design Standards (2011) Affordable Housing (2008) Sustainable Transport (2008) Sustainable Design and Construction (2009) Elephant and Castle SPD / Opportunity Area Planning Framework (OAPF) 2012 Draft Affordable Housing 2011 Draft S106 Planning Obligations / CIL SPD 2013 Other guidance documents CABE and EH Guidance on tall buildings (2007) Seeing History in the View (2011) The Setting of Heritage Assets (2011) Understanding Place: Conservation Area Designation, Appraisal and Management (2010) These establish: That when local authorities are preparing an evidence base to identify appropriate, inappropriate and sensitive locations for tall buildings that as a matter of good practice a detailed urban design study should be conducted. This includes analysis of the historic context of the wider area, local character, opportunities and identification of mistakes of the past. The series of criteria for evaluating tall building proposals including: - Relationship to context - Effect on the historic context - Effect on World Heritage Sites - Relationship to transport infrastructure - Contribution to public space and facilities - Effect on the local environment - Contribution to permeability Best practice guidance, including examples, to assist in preparation of heritage area assessments, designation and management of conservation areas, identifying and assessing views, and understanding the character of an area and setting of heritage assets. Principle of development 23 At the heart of the NPPF is the presumption in favour of sustainable development. Amongst the key themes in achieving sustainable development are ensuring the vitality of town centres, promoting sustainable transport, delivering a wide choice of high quality homes and delivering good design. Policy context 24 The application site is located within the Central Activities Zone (CAZ), Bankside, Borough and London Bridge Opportunity Area, Elephant and Castle Opportunity Area, Borough and Bankside District Town Centre and Elephant and Castle Major Town Centre. The site is designated in the Blackfriars Road SPD as a 'Potential Development Site' (Nos. 41 and 42 - Figure 6). 25 The London Plan considers Opportunity Areas to be the capital's major reservoir of

9 brownfield land with significant capacity to accommodate new housing, commercial and other developments linked to existing or potential improvements to public transport. (Para. 2.58). Within Opportunity Areas, Policy 2.13 seeks to optimise residential and non-residential output and densities, provide social and other infrastructure to sustain growth, and, where appropriate contain a mix of uses. Development proposals should contribute towards meeting (or where appropriate, exceeding) the minimum guidelines for housing and/or indicative estimates for employment capacity including supporting wider regeneration (including in particular improvements to environmental quality) and integration of developments to the surrounding area. 26 Table A1.1 (Annex 1) of the London Plan provides an indicative employment capacity of 25,000 new jobs and a minimum of 1,900 new homes to be delivered over the plan period (up to 2031) within the Bankside, Borough and London Bridge OA. Within the Elephant and Castle OA, the target requirement is 5,000 new jobs and a minimum 4,000 new homes. 27 Southwark's Core Strategy reinforces the London Plan aspirations for development in the CAZ to support London as a world class city. The CAZ and Opportunity Areas are targeted as growth areas in the borough where development will be prioritised. The council will allow more intense development for a mix of uses in the growth areas and make sure development makes the most of a site's potential and protects open space (Strategic Policy 1). Strategic Targets Policy 2 reflects the above London Plan targets for the opportunity areas but further seeks around 45,000 sqm of additional shopping and leisure space within the Elephant and Castle OA. 28 The adopted Blackfriars Road SPD sets out (Para ) the emerging vision for Blackfriars Road which is: Blackfriars Road will be transformed into a vibrant place where people will want to work, live and visit. Running south from the river at Bankside to historic St. George's Circus, Blackfriars Road is a gateway north into Central London, and south to the Elephant and Castle. The historic, wide boulevard will provide a range of different activities, regenerating the area from the river along Blackfriars Road and stimulating change at the Elephant and Castle. Much of the character and historic value of the surrounding residential areas, particularly the conservation areas and listed buildings will continue to be protected and enhanced. 29 The existing buildings on the site are either vacant or under-utilised and do not maximise the efficient use of this central urban location. Furthermore, they make a very poor contribution to the local streetscape and detract from the quality of the urban environment. The proposed scheme would deliver a high density residential-led development with new landscaping and public realm which fully accords with the principle of prioritising new development within the CAZ and Opportunity Areas. Redevelopment of the site would make an important contribution towards the regeneration of the southern end of Blackfriars Road and towards achieving the emerging vision for the area as a destination. The principle of redevelopment is therefore strongly supported. Land use assessment 30 The Blackfriars Road SPD aspiration for the area is to have a mix of shops, offices and services. Opportunities to increase the amount and type of development will be maximised, especially opportunities for flexible innovative business space. New homes will be provided, primarily on the upper floors of commercial developments, offering a range of housing types and sizes. Existing and new residents would benefit from the increased range of town centre and business uses to help make Blackfriars Road a destination.

10 31 The proposed development would comprise residential use located at upper floor levels with flexible retail (Classes A1 to A4) and business space located on the ground floors and additional business space on the first floors of Blocks B1 and B3/4 and in the basement. The business space would be targeted towards SMEs with the intention of creating a new employment SME quarter for the area. The proposed uses are considered below. Housing 32 The delivery of a wide choice of high quality homes and the creation of sustainable, inclusive and mixed communities is a key objective of the NPPF and to this extent the NPPF advices that housing applications should be considered in the context of the presumption in favour of sustainable development. 33 The Core Strategy identifies a target of 24,450 new homes to be delivered in Southwark between 2011 and 2026 and, as noted earlier, minimum housing targets have been set for each opportunity area. The existing buildings on the site do not contain housing and therefore the proposal would deliver 336 net new homes. The site lies on the boundary of the Borough, Bankside and London Bridge OA which has a housing target of 1,900 and the Elephant and Castle OA which has a housing target of 4,000. This represents 5.7% of the 5,900 combined housing targets for the two opportunity areas. As such, the proposal would make a significant contribution to housing supply in the borough. The uplift in new homes will maximise the use of the site and fully accords with land use policy objectives for the site. Retail 34 The NPPF recognises town centres as the heart of communities and proposals to support their viability and vitality should be encouraged. Competitive town centres that provide customer choice and a diverse retail offer should be promoted and which reflect the individuality of town centres. London Plan Policy 2.11 promotes the enhancement and expansion of retail capacity in the CAZ to meet strategic and local need. 35 Saved Policy 1.7 of the Southwark Plan requires most new developments for retail and other town centre uses to be accommodated within the existing town centres. Accordingly, the application site is located within a town centre. Policy SPD 2 of the Blackfriars Road SPD encourages the provision of a mix of town centre uses within a range of unit sizes to help enhance the commercial attractiveness of Blackfriars Road, and to increase activity and strengthen the appeal of the area. There is currently limited retail provision at the southern end of Blackfriars Road. The provision is retail use on the site is therefore highly appropriate. 36 1,200 sqm (GIA) of dedicated flexible retail (Classes A1-A4) floorspace is proposed within five units of varying sizes along the Blackfriars Road and St. George's Circus frontages, and at the entrance to the employment courtyard (the "Creative Courtyard") at the rear. A further 528 sqm of either flexible retail or business (Class B1) use is proposed within an additional four units to give a maximum potential retail floorspace of 1,728 sqm (within nine units) for the scheme. 37 The proposed retail strategy is to provide high street type uses along the Blackfriars Road frontage, including the potential for a Metro-sized food retailer. The units fronting the Circus are considered suited to food and drink uses (Class A3 / A4) with a cafe located at the entrance to the Creative Courtyard. Small independent retailers could flank the new public square ("Library Square"). However, at this stage the retail uses are flexible in order to encourage take-up of the units. 38 The proposed scale of the retail offer is appropriate to major and district size town

11 centres and the potential mix of uses would activate the street frontage, thereby contributing to the vitality and viability of the area. The majority of buildings along Blackfriars Road, including those on the application site, present blank frontages to the street and do little to contribute to the vibrancy of the area. The new retail units would be designed to have large open frontages to provide clear views into and from inside to give a much more open and lively feel to the area to ensure better integration with the street environment. The provision of high quality active frontages represents a significant improvement as compared with the existing condition. Business provision 39 A key objective towards achieving sustainable development is building a strong, competitive economy through securing economic growth. Policies 4.1 and 4.2 of the London Plan promotes the contribution made by central London to London's economic success and seeks to meet the needs of the central London office market. 40 At the local level, Strategic Policy 10 of the Core Strategy aims to protect existing business space and support the provision of up to 500,000 sqm of additional business floorspace and 25,000 new jobs in the Bankside, Borough and London Bridge OA. Existing business floorspace will also be protected in the wider CAZ and town centre locations where up to 30,000 sqm of new business space will be encouraged. 41 Specifically to Blackfriars Road, guidance SPD 1 of the SPD encourages new jobs and businesses along Blackfriars Road area to help consolidate and expand the existing business cluster and reinforce the area as a strategic office and employment location. New business floorspace will be encouraged and existing business floorspace is required to be retained or replaced, unless an exception can be demonstrated in accordance with borough employment policies. In this respect, Saved Policy 1.4 of the Southwark Plan sets out the circumstances where a net loss of Class B floorspace may be permitted on sites which have an established Class B use within the CAZ or front onto to a classified road: a) b) c) the applicant can demonstrate that convincing attempts to dispose of the premises, either for continued B Class use, or for mixed uses involving B class, including redevelopment, over a period of 24 months, have been unsuccessful; or the site or buildings would be unsuitable for re-use or redevelopment for B Class use or mixed uses including B Class use, having regard to physical or environmental constraints; or the site is located within the town or local centre, in which case in accordance with policy 1.7 suitable Class A or other town centre uses will be permitted in place of Class B uses. Where an increase in floorspace is proposed, the additional floorspace may be used for suitable mixed or residential use. 42 The existing buildings on site total 13,348sqm (GIA) of Class B1 office floorspace, albeit vacant or under-used space. At least 2,502sqm (GIA) of dedicated replacement business floorspace would be re-provided within the new development but this could increase to a maximum of 3,030sqm if the entire 528sqm of flexible retail / business floorspace space is given over to business use. In addition, the scheme includes 1,200sqm of dedicated retail space which can be included as part of the replacement business floorspace provision in accordance with Saved Policy 1.4(c). A total 4,230sqm (GIA) of replacement employment floorspace would therefore be provided within the new development which would result in an overall net loss of 9,118sqm (GIA) of Class B employment floorspace. This is a significant loss which needs to be considered very carefully in light of the strong policy direction towards retention and expansion of business floorspace in the CAZ. 43 An Employment Review Report accompanies the application which provides

12 information on the marketing undertaken, occupation and condition of the existing buildings, as well as the local office market. Marketing 44 The submitted marketing evidence confirms that the existing buildings were actively marketed for re-let from the last quarter of 2008 through 2009 to The marketing was carried out by mailing and telephone work. Officers consider it somewhat disappointing that the marketing campaign didn't include advertising or publication on websites. However, the report advises that due to the condition of the buildings it was considered that photographs of the buildings on a website would probably deter potential occupiers. The marketing resulted in expressions of interest, but no commitments with the exception of an art based organisation who since 2010 has secured short term lets at nominal rents in Erlang House and more recently in Milcote House. Re-use or redevelopment potential 45 The report advises that Hill House has been vacant since 2009 and is in a very poor, dilapidated condition with signs of vandalism and a back-log of maintenance. The building is not in an occupiable condition and is de-rated (as of April 2012). Although Erlang and Milcote Houses are both occupied as artist studios, the buildings are reported as being functionally obsolete, having been poorly maintained over the years. Milcote House further suffers in terms of commercial viability from being a low-rise building in a back-of site location. 46 Officers accept that in their current physical state, the buildings would require significant investment to bring them up to a condition suitable to meet modern day requirements, and essentially they have come to the end of their economic life. 47 A financial appraisal has been undertaken to assess whether refurbishment would be viable. The appraisal compares the existing capital value ( million) as compared with their residual value following refurbishment ( million). Clearly if the net residual value of the refurbished buildings is less than the value of the existing buildings then refurbishment is not viable. 48 The viability of continued use of the site for Class B purposes through redevelopment has also been considered for two scenarios: wholesale office redevelopment with the same level of floorspace reprovided; and redevelopment as currently proposed. 49 Similarly to the refurbishment option, wholesale office redevelopment was also considered unviable with a net residual value ( 4.05 million) less than the existing value. The Borough Valuer has considered the appraisal and agrees that redevelopment with a similar reprovision of office floorspace would not be viable. Indeed, he considers the assumed rent levels in this scenario to be far too optimistic and as such any positive value would quickly disappear, resulting in a negative residual value. 50 With regards to the viability of the proposed scheme, the findings show a good residual value for the retail element but a near nil residual value for the office area. In effect, the proposed commercial element would be subsidised by the residential element of the scheme. 51 Officers note that an option for redevelopment of the site with a greater quantum of office floorspace has not been considered. Whilst the expansion of business floorspace in the CAZ is strongly encouraged, the policy requires no net loss of business floorspace. As such, there is no policy basis to require an increased level of employment floorspace on the site. Furthermore, the Borough Valuer has advised that it is highly unlikely that a developer would provide more offices than they really needed to given the current residential sale values in this location.

13 Market conditions 52 The report provides commentary on the future demand for office floorspace within the area. It considers that most of the new office supply coming forward is Grade A SE1 market office floorspace, north of Webber Street whereas the application site is in a fringe location with the area more suited to the local office market as opposed to Grade A SE1 office market demand specifications. The report therefore considers that the site would be more likely to appeal to SME companies. As such, it is concluded that there is no real prospect of attracting refurbishment or redevelopment interest for Grade A prime office development. Small and Medium Enterprises 53 SMEs play an important role in Southwark's economy. Whilst the overarching aim in terms of business space for the Blackfriars Road is to reinforce the Blackfriars Road area as a strategic office and employment location (SPD 1), the SPD acknowledges that small office / studio / workshop space would be more appropriate located in the southern part of the area (Para. 3.5). In this respect the proposed provision of small flexible business units is supported and conforms to the council's aspirations for the area. The council's Local Economy Team advise that the type of commercial space proposed is appropriate for the area and local office market. 54 The proposed business units would be clustered around a central courtyard ( Creative Courtyard ) to form a new commercial hub. Approximately 24 units could be accommodated, ranging in size from 67 sqm to 164 sqm although these could be amalgamated or subdivided, as required. A particularly positive aspect of the scheme, is its clustering potential with the London South Bank University (LSBU) new business incubator complex (Clarence Centre for Enterprise and Innovation) located at the southern side of the Circus. It is known there is a growing concentration of technology, media, and telecommunications (TMT) businesses in the locality and the provision of new flexible, small business space is welcomed to support this growing sector. 55 Although the proposed clustering of the units around an internal courtyard would create an attractive business location, it does mean that the units have little street frontage. Officers therefore strongly encourage the applicant to utilise the 528 sqm of flexible retail / business spaces which are more prominently located along the site frontages. Not only would this maximise the amount of Class B floorspace within the development, it would also create a more prominent entrance to the units and give the site a stronger identity and presence as a business location. 56 The applicant has advised that they intend to seek a commercial operator to manage the business space which is welcome. Obligations will need to be included within the legal agreement to require details of the management of this space to help towards establishing a successful new business quarter. Conclusion on land use matters 57 It is acknowledged that the development would result in a large loss of existing employment floorspace which is regrettable. However, the buildings have been marketed for a long period of time, much longer than the 24 month marketing period required by Saved Policy 1.4. The buildings are evidently in a poor state of repair and are only partially occupied for short term lets. This does not represent an efficient use of land in this sustainable location. Whilst office use is appropriate for the site, it has been demonstrated that either refurbishment or wholesale redevelopment with replacement quantum provision is not viable. In addition, the refurbishment option would not deliver the other regenerative benefits associated with the scheme such as provision of much needed new housing, including affordable homes, attractive active ground floor retail frontages, and high quality landscaped open space and public realm.

14 58 The proposed new flexible SME workspace is highly appropriate type of business use in the area and fully accords with the council's aspirations for Blackfriars Road. The proposed 4,230 sqm employment floorspace would generate approximately 252 office workers and 66 retail workers (calculated on the basis of GLA Employment Density) as compared with circa 105 artists currently accommodated on site. The uplift in employment opportunities is welcome and to that extent meets the Core Strategy objective towards increasing the number of jobs in Southwark. Taking all matters into consideration, officers are satisfied that the proposal meets the exceptions test set out in Saved Policy 1.4 and the loss of employment space is on balance acceptable. 59 In reaching this conclusion, officers have taken account of the comments submitted by the council's Local Economy Team who, whilst supportive of the type of commercial space proposed, consider the overall reduction of employment floorspace unacceptable. The team also refer to the council's draft S106 Planning Obligations and Community Infrastructure Levy SPD (December 2013) which seeks a financial contribution to mitigate the loss of employment floorspace from developers who cannot meet the criteria (exceptions test) set out in Saved Policy 1.4. Based on the charge set out in the draft SPD, this would amount to circa 354,000 for the quantum of floorspace to be lost. 60 Officers are mindful that the SPD is draft at this stage and as such only limited weight can be attached to it. In any event, it is considered that the developer has met the exceptions test set out in Policy 1.4 for the reasons set out above. It therefore wouldn't be reasonable or justified to seek further planning obligations under these particular circumstances. This by no means sets a precedent for not requesting obligations on future development schemes where there is a loss of employment floorspace provision. Each application is considered on its own planning merits and it would be for developers to put forward robust justification based on the particular circumstances of each case. Environmental impact assessment 61 Applications where an Environmental Impact Assessment (EIA) is required will either be mandatory or discretionary, depending on whether the proposal constitutes Schedule 1 (mandatory) or Schedule 2 (discretionary) development of the Town and Country Planning (Environmental Impact Assessment) Regulations In this case the proposed development falls within Schedule 2, Category 10(b) 'Urban Development Project' of the EIA Regulations where the applicable threshold for such projects is when the area of the development exceeds 0.5 hectare. The application site area is approximately 1.02 hectare in size and is therefore well above the threshold for this type of project. 62 Notwithstanding this, an EIA is only required if the proposal is likely to have significant effects on the environment by virtue of factors such as its nature, size or location and is therefore EIA development. In determining whether Schedule 2 development is EIA development the Council is required to take into account such of the selection criteria set out in Schedule 3 of the EIA Regulations as are relevant to the development. Those criteria include: the characteristics of the development; the environmental sensitivity of the location; and the characteristics of the potential impact. 63 Based upon a review of the Schedule 3 criteria, it is considered that the proposed development is likely to generate significant environmental effects and therefore an EIA is required. Accordingly, an Environmental Statement (ES) accompanies the planning application.

15 64 Prior to the submission of the planning application, the applicant requested a formal scoping opinion under Regulation 13 of the EIA Regulations to ascertain what information the Local Planning Authority considered should be included within the ES (application reference 13-AP-1766). 65 Regulation 3 of the EIA Regulations precludes the granting of planning permission unless the council has first taken the environmental information into consideration. The environmental information means the ES, including any further information and any other information, any representations made by consultation bodies, and any other person about the environmental effects of the development. 66 The ES should identify and assess the likely environmental impacts at each stage of the development programme, including impacts arising from the demolition and construction phases as well those arising from the completed and operational development. 67 It is not necessarily the case that planning permission should be refused if a development has the potential to have significant adverse effects; it has to be decided whether any of the identified adverse impacts are capable of being mitigated or at least reduced to a level where the residual impact would not be so significant or adverse as to warrant a refusal of permission, or would be outweighed by other factors. 68 The submitted ES comprises Volume I: Environmental Impact Assessment (Main text and figures); Volume II: Townscape, Visual and Built Heritage Assessment; Volume III: Technical Appendices; and Non-Technical Summary. The ES details the results of the EIA carried out and provides a detailed verification of the potential beneficial and adverse environmental impacts arising from the proposed development, including the following areas of impact (in the order they appear in the ES): Demolition and Construction Waste and Recycling Socio-economics Traffic and Transportation Air Quality Noise and Vibration Wind Microclimate Daylight, Sunlight, Overshadowing, Light Pollution and Solar Glare Water Resources, Drainage and Flood Risk, Ground Conditions Archaeology Ecology Electronic Interference Impact Interactions and Cumulative Impact Assessment Residual Impacts Townscape, Visual and Built Heritage (ES Volume II) 69 In assessing the likely environmental effects of a scheme, the ES must identify the existing (baseline) environmental conditions prevailing at the site, and the likely environmental impacts (including magnitude, duration, and significance) taking account of potential sensitive receptors. It further identifies measures to mitigate any adverse impacts, and provides a summary of potential positive and negative residual effects remaining after mitigation measures in order to assess their significance and acceptability. (The ES also discusses alternatives, including the 'no development

16 scenario' and this is detailed below). 70 In order to provide a consistent approach within the ES thereby enabling comparison between the impacts, the ES uses the following terminology to define impacts: Adverse - detrimental or negative impacts to an environmental resource or receptor; Negligible - Imperceptible impacts to an environmental resource or receptor; Beneficial - Advantageous or positive impact to an environmental resource or receptor. 71 Where adverse or beneficial impacts have been identified these have been assessed against the following scale: Minor - Slight, very short or highly localised impact of no significant consequence Moderate - Limited impact (by extent, duration or magnitude), which may be considered significant Major - Considerable impact (by extent, duration or magnitude) of more than local significance or in breach of recognised acceptability legislation, policy or standards 72 Reference to cumulative effects includes two types of cumulative impact: The combined effect of individual impacts, for example noise, airborne dust or traffic on a single receptor; and The combined effects of several development schemes which may, on an individual basis be insignificant but, cumulatively have a significant impact. 73 Additional environmental information or 'Further Information' to support the ES was received during the course of the application (22 September 2014) and in accordance with Regulation 22 of the EIA Regulations, all consultees and neighbours were reconsulted and a press notice re-advertised. The further information included revisions to the planning application. A summary of the conclusions of the assessment contained in the ES (including Further Information) and the conclusions reached regarding the environmental effects of the proposed development as well as mitigation measures (where required) are set out in the report. Alternatives 74 Under the EIA Regulations, an ES is required to provide... an outline of the main alternatives studied by the applicant or appellant and an indication of the main reasons for his choice, taking into account the environmental effects. Accordingly, the ES considers three alternative options. 75 The 'No Development' alternative would leave the application site in its current state. This scenario is considered by the applicant to have a negative impact in that it would result in missed opportunities to regenerate a brownfield site which is in a strategically important location; to contribute positively to the regeneration of St. George's Circus and Blackfriars Road; and to formalise the existing pedestrian routes within the wider public realm. 76 No other alternative sites have been considered in the ES as the site has been designated as a redevelopment site within the Blackfriars Road SPD and hence the ES concludes that the proposed development site is deemed as a suitable location for high quality, residential led mixed use development.

17 77 The ES also describes the design evolution of the scheme which includes eight different block massing options, of which one shows a 34 storey tower on the Circus with lower rise buildings to the east and north (Option 3 - August 2012). The design has taken account of the existing site context, including heritage, and has been influenced by environmental opportunities and constraints such as daylight and sunlight matters with massing studies undertaken at various stages to identify which part(s) of the scheme caused the most significant impacts to surrounding properties. As such, the final design of the scheme is the result of the development of a series of alternatives, and has responded to issues raised by key stakeholders during the process. 78 Officers consider that the ES satisfactorily demonstrates that other alternatives would not be viable or supported in planning terms, particularly given that the site has been identified as a potential development site where proposed housing, office and retail uses would be highly appropriate and consistent with the London Plan, Core Strategy and the council's emerging vision for Blackfriars Road. Alternative quantums and building heights have been considered but these were not considered by the applicant to be a deliverable option. Officers consider that that the applicant has adequately addressed this aspect of the EIA Regulations. Cumulative impacts 79 The ES has taken into account the potential cumulative impacts of the proposed development alongside 18 other committed developments (i.e. those that have been granted planning permission, those with a resolution to grant permission, or those under construction) which produce an uplift of at least 10,000 sqm (GEA) of floorspace and are sited within a 1km radius of the application site. 14 of the schemes are in Southwark and four are in Lambeth borough. The closest construction site would be Eileen House (granted permission 7 January 2014), which is 400m due south east of the application site. 80 During demolition and construction of the proposed development, the localised impacts caused by similar works on other development sites are not close enough in proximity to one another to cause any likely significant impact. Furthermore, any construction cumulative impacts (such as increased traffic, noise, and emissions) would be temporary in nature and can be minimised through the implementation of mitigation measures set out in a Construction Management Plan for the development. 81 The key cumulative impacts of the proposed development with other development schemes once completed and operational are described in the ES. The following potential combined cumulative impacts have been identified and are summarised as: Contribution to the provision of new retail, office, and leisure floorspace to meet the needs of future occupiers as well as enhancing opportunities for existing surrounding neighbourhoods in terms of employment opportunities and increased local spending. New residential housing, thereby contributing to housing targets in terms of dwelling mix, type, and tenures. Minor beneficial impact to the existing sewer infrastructure in terms of reducing flood risk, assuming all schemes incorporate sustainable urban drainage systems - SuDS. Beneficial impact on ground conditions (including groundwater) assuming remediation of sites involving the removal of contaminated land. Minor beneficial impact in terms of biodiversity enhancement through the creation of a range of new habitats in the area from landscaping planting incorporated into development schemes which will provide a net gain in foraging areas for wildlife. Minor adverse cumulative impact in relation to the combined increased pressure on water supply.