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					                           DARLINGTON
                        FI
               LOCALBROWN ELD STR,A.TEGY




vli
  DARLINGTON
  BOROUGHCOUNCIL
                   affin'.,
                             lThomos
                             3 lister




         20{
  November 1
                        CONTENTS
                                               Page No.

        SUMMARY
EXECUTIVE                                       2.

1.0  INTRODUCTION                               5.
2.0  POLICYAND ECONOMICCONTEXT                  7.
3.0  EVIDENCEBASEREVIEW                         16.
4.0  PROPERTY MARKETREVIEW                      19.
5.0  REVIEW IDENTIFIED
           OF         SITES                     35.
6.0          ANALY$ISOF THEPROPOSED
     FINANCIAL
     REDEVELOFMENT BROWNFIELD
                   OF          SITES            40.
7.0 POTENTIAL MEASURE$ SUPPORT
                      TO        SITEDELIVERY    43.
8.0 APPROACH DELIVERY THEDEVELOPMENT
              TO        OF               ON
     BROWNFIELD SITES                           51.
9.0  MONITORINGAND EVALUATION                   63.
10.0 coNcLUSIONS                                65.


                         ANNEXES
I     MARKETASSE$SMENT  REPORT
tl    SITEPROFORMA
ill             VIABILITY
      PRELIMINARY        ASSESSMENTS
IV    PROJECTACTIONPLAN
1.0       INTRODUCTION

The purposeof the Darlington               $trategy(DLBFS)is to providea better
                            Local Brownfield
             of                    siteswithinDarlington identify
understanding the stockof brownfield                   and         thosesitesthat
                         use,for hardand softend uses,the timescales
can be returned beneficial
               to                                                          which
                                                                     against
thiscan be achieved the actions
                  and                           site
                               needed achieve specific
                                       to                   goals.

                of                     land is definedin accordance
                              brownfield
For the purposes this Strategy,                                    with Planning
PolicyStatement (PPS3)as being a site "whichis or was occupiedby a permanent
                3
         including curtilage the developed and anyfixedsurface
structure,       the       of            land                    infrastructure".

Darlingtoncoversan areaof 19,745hectares   and is situated the NorthEastof England,
                                                          in
16 mileswestof Middlesbrough approximately milessouthof Durham.Nearby
                               and             21                                major
roadlinksinclude 41(M),466 and 468 withjunction of the A1(M)some2.5 miles
                  the                                58                              to
the northwest of the town centreand junction approximately milesto the southwest.
                                            57                3
Railservicesfrom Darlington Middlesbrough 25 minutes
                            to              take             and travelto London takes
approximately hours 50 minutes. Darlington
              2                               has an estimated   residentpopulation  of
100,800 people (NOMIS:  office National
                              for                2010), The Borough
                                        Statistics                    retains market
                                                                             its
towncharacter is predominately
              and                  urbanin naturebut includes suburban  and rural/village
communities.

Darlington formspartof the widerTeesValleyregionwhichembraces          Stockton
                                                              Hartlepool,
on Tees,Redcar Cleveland Middlesbrough the east. lt has a widecatchment
                 &          and             to                            area
                          people
of up to 20 milesattracting    fromneighbouringNorthYorkshire SouthDurham.
                                                            and

The $trategymakesspecificreference a total of 12 separate
                                     to                      sites,a samplefrom a total
of approximately brownfield
                 85           siteswhichare included the National
                                                     on              LandUse Database
for the Darlingtonborough area. The selected sitesprovide totalgrossdevelopment
                                                         a                        area
of 42.8hectares   and eitimatednet developable  area of 37.8 hectares. An inspectionof
each of these sites has been undertaken   and consideration  given to their development
potential. This reportconsiders potential
                               the         futureusesof thesesitesfor a rangeof uses,
the existing barriers development recommendations to the stepswhichmay be
                    to              and                   as
necessary overcome
           to           these barriers the context currentmarketconditions the
                                     in            of                           and
existing constrainedpublicsectorfunding environment.

The Strategyseeksto identify potential
                             a                           on
                                      levelof development the identified brownfield
sitesfor uses including          industrialiwarehousing officeuses in the short(0-5
                       residential,                 and
years),medium   (6-10years)         (11
                           andlonger years   andbeyond)term.

                                  Strategy be usedby Darlington
It is notedthat the LocalBrownfield      will                             to
                                                                    Council
                                                              Borough
deliver following
        the          objectives;

      .   To supportthe Core Strategyspatialapproachand growth networkparticularly
          relating the focuson previously
                  to                          developed withinurbanareas.
                                                       land
      .   To respond    to nationalguidance PPS3 requiring
                                              in                                to
                                                               LocalAuthorities undertake
          strategies interventions
                     and               to bringpreviously developed land back into use in line
          with localtargets.
      .   To inform planning
                     a          policy                          land
                                      context bringbrownfield backintouse.
                                               to
      .   To improve understanding the supply brownfield
                       the                of           of          landacrossDarlington  and
          factorsaffecting delivery thesesites.
                           the         of
      r   To inform  policies strategies
                             and                    to       brownfield
                                             relating bringing         sitesintoreuse.
      .   To consider approach funding
                        an           to                        to
                                                  whererequired supportthe development      of
          brownfield  sites.


                                                    -
                    DarlingtonLocalBrownfieldStrategy November 2011
                                            6


   r                                                                     sites
       To prioriti$e opportunities earlywins in the development brownfield
                   key           and                         of
                       of
       across Borough Darlington.
             the

                                   sections;
The Strategy set out in thefollowing
           is

1.0  lntroduction
2.0  Policy and Economic                          on
                          Context-Commenting national,         regional localpolicies.
                                                                       and
3.0   Evidence  Base Review- Considering     previous  relevant studiesand research     and
     theirimpact the subject
                  on             strategy.
4.0   Property Market Review - A review of current market conditionsincluding
     commentary supplyand demandrelated
                   on                             issues withinthe borough.The section
     considersfactors affectingthe supply side includingdevelopment           viability,site
     constraints suchas siteconditions,  availability finance
                                                    of        and developer   confidence.
S.0 Reviewof tdentified   Sdes- An analysis the 12 sitesis undertaken,
                                               of                              including an
     asse$$ment the more appropriate
                   of                         future use for each site and anticipated
     timescale bringing
               for        forward            development
                                    individual             projects.
0.0   Financial         -
                Analysis To considerthe preliminary       assessment viabilityof the
                                                                        of
     development   proposals eachsiteanddeliverability siteson thisbasis.
                             for                           of
                                                                      -
Z.O PotentiatMeasuresto SupportBrownfietdSite Development To considerthe
     variousfundingopportunities delivery
                                     and          mechanisms                         at
                                                                which are available the
     current                                 of
             timeto support development brownfield
                            the                            sites.
8.0   Consideration Potential
                    of                        -
                                 lnteruentions To considerthe specificmeasures       which
     willsupport delivery the development the identified
                 the         of                  of              brownfield  sites.
g.0  Monitoring                   -
                 and Evaluation This sectionconsiders                           for
                                                             the requirement ongoing
     updateof the strategy ensurethat it may be maintained a
                              to                                    as     "live"document
     including identification key performance
               the               of                 indicators to identify key risks
                                                               and            any
     in the implementation the identified
                           of              strategy.
10.0 Conclusions




                                                -
                                         Strategy November 2011
                           LocalBrownfield
                  Darlington
2.0   POLICY           CONTEXT
            AND ECONOMIC

2.1   Introduction

The past 18 monthshaveseen majorchanges    withinthe politicallandscape economic
                                                                         and
structurewhichhaveresulted  fromchanges the economic
                                        in              climate alsoarising
                                                               but            fromthe
election the Coalition
        of             Government.                              of
                                   This hasseenimplementation radical            to
                                                                          reform the
publicsectorand fundingregimes,along with extensive     cuts to budgetsto  reducethe
e$timated            public
          t156 billion     sectorbudget                   the
                                       deficit.In addition, CoalitionGovernment    has
introduced new "localism"
           the                     -
                             agenda the full impactof whichis difficult assessat the
                                                                      to
currenttime.

Consequently,  the Regional Development      Agencies,includingOne NorthEast,have
effectivelyceasedto exist with One NorthEast   having previously taken a key role in the
        of
funding economic     regenerationwithinthe NorthEast (supported the One.NorthEast
                                                                   by
investment        of
            budget around                                         &
                            f240 million annum),The Homes Communities
                                         per                                     Agency
(HCA)whichsupported delivery marketand affordable
                       the         of                      housing   has seen its budget
cut by over40% with its role proposed be reduced
                                      to            fromthat of landowner, development
partner and grant provider that of a development
                           to                       enablerand investor   who wouldbe
seeking longertermfinancial                  to
                            returns relation investment
                                  in                     made.

                     of
Manyof the functions the Regional           Agencies
                                  Development        havenow beenpassed the
                                                                         to
1*"*ntlycreatedLocalEnterprise           (LEPs)and the Tees ValleyUnlimited
                              Partnerships                                 LEP
compriies one of the 23 LEPsapproved Central
                                    by       Government. TeesValleyLEP covers
the boroughs Hartlepool,
             of           Stockton Tees,Middlesbrough Redcar& Cleveland
                                 on                   and                   as
wellas Darlington coversa population 650,000 approximately
                 and                 of      and              800,000sq'km.

However, new LEPsdo not haveanyallocated
          the                                          or
                                               revenue capital budgets and as private
sectorled organisationstheirfuturerolein the coordination prioritisation investment
                       -                                and             of
within LEF boundary not specifically
      the                is             determined this stage,although is clearthat
                                                   at                   it
Central Government  regard LEP as a keyconsultee new policy
                            the                     in          withinthis areawhich
has included endoriement bidsfor Regional
             the               of               GroMh Funding                 of
                                                              and nominating sites
for EnterpriseZonestatuswithinthe LEPareas. The various   LEPsare currentlyseekingto
establish         business
         individual          plansandworkingstructures'

The March2011 Budgetannounced creation 21 Enterprise
                                 the         of            Zones(EZs)acrossthe
Country,          ringe of benefits the 1980s
        withsimilar               as          models             planning
                                                    withsimplified        policies,
capital-allowances occupiers
                 and                   from business exemption up to 5 years'
                              benefiting           rate          for
A TeesValleyEnterpriseZonehas beenapproved Central
                                             by        Government         5
                                                                  including major
sitesthroughout sub-region
              the                   Central
                            including      Parkin Darlington,

The Coalition Government  has soughtto replacethe investment providedby Regional
Development  Agenciesand CentralGovernment    AgenciesincludingBusinessInnovation
and Skllls(BtS),Communities LocalGovernment
                            and                   (CLG)and Deparlment Transport
                                                                    for
(DfT)into projects a national
                  on                                   GrowthFund (RGF),with the
                               basissuch as the Regional
second round-of                                          of
                bidsreceived July2011. The announcement successful
                            in                                              from
                                                                     projects
the July biddingroundis to be madein November 1. The secondroundof
                                                201                     RGFbids
                              of
weremadeagainst allocation f950 million.
                  an

The abovechangesare made in the contextof a reduction the CentralGovernment
                                                       in
funding LocalAuthorities
       of                            provides a 20-25o/o
                        whichtypically      for                    in        of
                                                          reduction the budget
         LocalAuthorities
individual              phasedovera three year periodand  provides a f22 million
                                                                  for




                                                 -
                 DartingtonLocatBrownfieldStrategy November 2011
                                          I


budget to Darlington
      cut          Borough Council      the    financial
                                  within current                       job
                                                       yearand projected
cutsannounced the Council up to 400 posts.
            by          of

The potentialramifications the severity funding
                          of          of       cuts and radicalreformimposed  upon
an economybeginning recoverfrom economic
                       to                     recession has raisedconcerns  for the
economy slide into a "double recession".
         to                   dip           The spending  cuts come at a time when
                                  by
privatesectoractivityis hampered limitedavailability of private/bankinvestment thus
               sectoroperations growth.
         private
curtailing                      and

                                                        in          of
In the context the abovecircumstances futureuncertainty respect the availability
             of                     and
of public       areassuchas Darlington needto identify
         funding,                    will              alternative           to
                                                                   strategies build
on and driveforwardsuccessful regeneration The DLBFS
                                          .            will seek to identifypotential
mechanisms deliverphysical
            to                          withinDarlington the context the current
                             regeneration              in              of
economic market
          and             andto support continuing
                    climate            the                       of
                                                    regeneration thetown.

2.2   PolicyContext

2.2.1 National
             PolicvContext

             has announced
The Government             proposals replacethe collection planningpolicy
                                    to                   of
statements guidance
         and                                Policy
                                     Planning
                  witha singleNational            Framework(NPPF)

The Government's   consultationperiod the draftNPPF(July2011)closed 17th
                                     on                                  on     October
2011 and it is anticipated the proposed
                         that                     will
                                          changes come       intoeffectfromSpring  2012.
The proposal  wouldrepresent  fundamental          to
                                          changes the     planning systemwith a change
from a ';topdown"approach    with the removalof national  and regional targetsto a more
locallyfocussed  approach  with a new presumption  in favourof sustainable development
wherea LocalPlanis not up to dateand advocating   a  pro groMh agenda.The draftNPPF
places increased
       an                                                                         of
                                       viability deliverability the preparation new
                     focuson feasibility,      and              in
planning documents.

In the interimperiod,      policies summarised follows;
                    relevant      are        as

Plannino    $tatement (PP$1):
       Policv       1                         Development
                                     Sustainable
                            Deliverinq

PPSI containsthe overarching                     that underpinthe Government's
                            policiesand principles
approachto planning. lt seeks to ensure plans and proposalsachievesustainable
          objectives,
development         adopta spatial
                                 approach, promote highqualityinclusive
                                                                      designand
allow community
     for        involvement.
paragraph contains advicenotefor the delivery brownfield
           27         the                          of          land,requiring Local
Authorities prepare
          to        development  plansto seekto promote moreefficient
                                                       the              use of land
through use of suitably
        the               locatedpreviouslydevelopedland and buildings.Accordingly,
vacant and underusedbrownfield and buildings
                               land            shouldbe brought              use
                                                               intobeneficial to
helpto achieve       set
              targets for brownfield land.

            Policv
DraftPlanninq                              and     Environment
                          Planninq a Natural Healthv
                  Statement:     for

                                                            policyin PPS7,land
This draft PPS published March2010 set to replacebiodiversity
                         in
protection                                                       lt      LDFs
                                       policyin PPG17whenadopted. requires
           policyin PPS9and recreational
to set out policies conservation,
                   for                      enhancement enjoyment the natural
                                 restoration,          and          of
environment.




                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                         I


The document                                                       stipulating policy
                                       policyin greeninfrastructure,
             sets out the first national                                     the
             manageand add to existing
shouldprotect,                            networks. Locations will assistin reducing
                                                              that
climatechangeimpactsare encouraged                        for
                                         and opporlunities enhancement     which allow
             linking
greencorridors      ruralandfringeareasand urban    greenareasare alsowelcome.

Plannino    Statement (PPS3\:
       Policv       3       Housinq

PPS3was published June2010withthe key policy
                    in                            goalof ensuring all people
                                                                that         had
the opportunity livingin a decenthome,
              of                                       and               location.
                                      whichis affordable in an appropriate
                                  the
Thismaybe achieved undertaking following;
                     by

   .   Broadening choice affordable market
                 the      of         and    homes.
   .   lmprovingaffordability.
   .                     of
       lncreasing supply housing.
                the
   r   Wideningopportunities homeownership.
                           for
   r   Creating          inclusive mixed
              sustainable,       and     communities.

              for
The requirement sustainablecommunities  indicates need to providehousingwith
                                                a
      to                          jobs,services infrastructure.
                         facilities,
access a rangeof community                    and

The policyalso identified requirement
                           a         that 60% of nationalnew housingis built on
         land. However, targethas beendropped the Coalition
brownfield               this                   by             Government. Local
PlanningAuthoritiesare also requiredto consider  "strategyfor bringing previously
develop-ed-land housing use - and should considerarrangements,
                into                                                         or
                                                                    incentives
intervention couldhelpto ensure
           that                 thatpreviously
                                            developed  landis developed linewith
                                                                       in
localhousing trajectories,

                                  the       issues;
           LocalAuthorities address following
PPS3requires             to

   .                                                                   land
                                                         sitesto resolve
       Address obstacles the development vacantor derelict
              the          to               of
                      blY
       ownership/assem issues;
   .   Considerwhether sites with employment commercialallocations
                                               or                  could be
                   re-allocated housing;
       appropriately          for       and
   .   Useof public               -         land.
                   sectorpreviously developed

ppS3 now placesa requirement individual
                                 on            Local Authorities producea Strategic
                                                               to
Housing LandAvailabilityAssessment  (SHLAA) partof an approach monitor,
                                              a$                   to         manage
and enlure that sufficient,suitableland is available achievehousingon previously
                                                     to
developedtand. SHLAAs have assistedin identifying        potentialsites for residential
development includinganticipated       overa 15 yearperiod.
                                delivery                     The SHLAAalsoidentifies
          associated
constraints          with bringingpotentialsitesforward and how thesecan be removed
to improve potential housing
         the          for        delivery.

            Statement (PPS4):
       Policv
Planninq            4                                 Growth
                                               Economic
                            Plannino Sustainable
                                   for

pp$4 considerspotential                                                      of
                         for reuse of premisessuitableto meet the requirements
businesses,addressing issuesof quality,accessibility proximity marketas well as
                                                  and        to
                     workforce.
accessibility required
           by

The PPS includes sequential
                a          testingapproach ensurethat priority
                                            to                 shouldbe givento
town centreand edge of centle sites beforeany consideration given to out of centre
                                                          is
developmentopportunities.




                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                          10


       Policv
Planninq           (PPS1 Local
            Statement  2):         Plannino
                             Spatial

PPS12promotes concept placemaking
                 the       of                                       grounds
                                                 one of the principal
                                      and provides                         of
justification the compulsorypurchaseof land by public sector agenciesto allow
            for
regeneration projects be undertaken.
                     to

The guidanceconcludes the principal
                     that           purposes localbrownfield
                                           of              strategyshouldbe to
identify                             to                          against
                                               uses,the timescales
       thosesiteswhichcan be returned beneficial                        which
                     and
delivery be achieved actions
        can                                   the
                                needed achieve sitespecific
                                       to                   roles.

PlanninqPolicv GuidanceNote 17 (PPG17)'Planninqfor Open $pace, Sport and
Recrealian

Theguidance PPG17 aimedat maintaining adequate
             of         is                 an         supply openspacein sport
                                                             of
and recreation                                                        in
                        although is recognised all land and buildings recreation
              facilities,       it            that
use. PPG17  advises LocalAuthorities consider
                    the               to                      sitesin preference
                                                usingbrownfield                  to
greenfield
         siteswhenlocating  newareasof public
                                            openspace, sportand recreationfacilities.

Planninq    Statement (PPS23):
       Policv      23                        Control
                            Planninq Pollution
                                   and

The statement notesthat bringing                                             risks
                                         sitesbackintobeneficial will mittgate
                                brownfield                    use
to healthandthe environment frompolluted
                                       sites.

PPSZ3 notesthe presentcontamination landcan present
                                  of                 risksto humanhealthand the
environmentand can restrictthe beneficialuse of land althoughhighlightsthat new
                                                                             of
          offersthe opportunity dealwiththeseriskspotentially the widerbenefit
development                   to                             for
thecommunities.

                   Context
            Plannino
2.2.2 Reqional

"The North East of EnglandPlan"was published the Government July 2008 and
                                                 by                in
provides Regional
        the                Strategy the period 2021. The RSS sees Darlington
                     Spatial        for          to                               as
havinga key role in contributing regional
                               to        economic   growthand a gateway the Tees
                                                                         to
Valleyand NorthEast. The Planidentifies CentralDarlington a priority development
                                                         as          for
and landin Faverdale Heighington
                     and             Laneareasas key employment  locations. However,
as previouslynoted,the Coalition Government announced intention abolish
                                             has           its         to        the
Regional SpatialStrategy and has alreadyremoved requirement a minimum
                                                  the           for            fixed
proportion newhousing be on brownfield
          of            to                sites.

2.3   EconomicContext

2.3.1 hlrcdlctiatr
                                                                   centrefor
The Boroughretainsits markettown cultureand functions a sub regional
                                                     as
          shopping culture.
employment,        and

                   in
The main industries Darlingtoninclude             publicadministration,
                                     manufacturing,                  banking,
financial                                  includeOrange,Darlington
        and businessservices. Main employers                        Memorial
Hospital,          Borough
          Darlington              Cummins
                           Council,      UK, Darlington Collegeof Technology,
MagnetLtd, ClevelandBridge UK Ltd and Capita BusinessServices. The Darlington
economy supports 3,630businesses approximately
                               and            45,200employee jobs.




                                                     -
                     DarlingtonLocatBrownfieldStrategy November 2011
                                        11


Grossaverage  weeklypay for full time workers f440 compared
                                             is                             for
                                                            with the average the
NorthEastof t443.10and the UK average f501.80
                                         of      per week (NomisOfficeFor National
         2010).
Statistics

Unemploymenttotals4,100comprising ratioor 8,3% (Nomis
                                a                                     Statistics
                                                     OfficeFor National
2010)compared                  14.3%
              with Middlesbrough      and Stockton8.3%in the TeesValleyregion.
         schools
Darlington                 havestrongand improving
                and colleges                       pedormances GCSEand A
                                                                at
Level.

Owneroccupier levelsamount 70.8%of totalhouseholds the urbanareaswhilstprivate
                         to                      in
sector rented accommodation 9.3%. The
                             is             remainder is rented from housing
associations/RSLsthe Council
                or          (2001Census).

The averagehouse price acrossthe Boroughis currentlyf149,213 (findaproperty.com
2010).

Duringthe last five yearsthere has beensomedevelopment    successfullydeliveredwithin
Darlington. recenisignificant
            A                  development Teesside
                                           is                     new
                                                       University's f13 million  five
storey buildingprovidingunder graduateand     post graduateteachingfacilitiesand the
DarlingtonCollegescheme. The building    was procured                 contributions
                                                       with significant            to
fundingfrom Darlington College,          Borough
                                Darlington        Counciland One NorthEast, together
with supportfrom Tees ValleyRegeneration Tees ValleyUnlimited.The Darlington
                                           and
Eastern Transporl Corridor ReliefRoadwas openedin 2008 with the bulk of the scheme
funded Ceniral
       by         Government together                 from
                                     witha contribution Darlington   Borough Council.

                                                          depotfor Argosat
Othermajorschemesincludethe development a majordistribution
                                      of
Faverdale                                               withinthe NorthEast
                                      position Darlington
        whichdemonstrates key strategic
                        the                  of
                    schemes WestParkandSnipeHouseFarm.
andmajornewresidential      at

The current position of the town was set out within "Darlington's
                                                                Local Economic
Assessment- $ummary"   datedOctober2011 produced DBC. The principal
                                                 by                  issuesare
summarised follows;
          as

2.3.2 Economic    *
             Outnut GrossValueAdded

a.     Summary

The economyof Darlingtonin 2011 is driven by the service sector. Where once
manufacturing was pre-eminent,today's Darlington structuredaround employment
                                                is
            and economicoutput generated
opportunities                                                      Education,
                                         throughPublicAdministration,
     and OtherServices,
Health                                     and
                                  Transport Communications.
                       Distribution,

                      for:-
           aloneaccount
Thesesectors

.                       opportunities
     80%of all employment          within borough
                                         the      (approximately
                                                              40,000jobs)
'         50%of Darlington's economic
     almost                total             (Gross
                                        output     ValueAdded- GVA)

                             GVA is generated PublicAdministration,
Almosta quarterof Darlington's               by                     Education,
                                                 jobs in the borough.
                                            14,200
                                approximately
                     representing
     and otherservices
Health

The re-balancing the economy
               of             towards the service sectorhas, in real terms,impacted
uponGVA per worker(a measure productivity)
                               of             whichsince2003/04has steadily   been
declining Darlington,ln 2008 GVA per filledjob in Darlington
         in                                                was 14.60/o belowthe UK
average 2.7Yo
        and     belowthe NorthEastaverage,


                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                          12


The down-sizing the public sec{or has the potentialto impact on the economyof
                of
Darlingtonin a number of ways - direct and indirectjob losses, reduced household
spending,reduced employment             mismatch
                           opportunities,        betweenskillsand the employment
            available.
opportunities

b.     Trends in GVA by industryrsector

o Almost a quarter of Darlington's GVA is generatedby public servicessector,which
  accounts 27.8016 all employment
           for        of               (approximately 14,200jobs)withinthe borough;
r GVA generated the production
                  by               industries  has declinedover the period2000- 2008
  along with employmentassociatedwith the industry,although GVA generatedper
  employee          its
            reached highest   levelin 2007/08;
                                                                  and
r The contribution GVA generatedby the Distribution/Transport Communications
                   of
  sector has risensteadilyover the period2000 - 2008 althoughemployment     withinthe
  sector has shrunk. This has in turn increased  GVA per employee €38,126,
                                                                   to         whichis
  abovethe England   average;
o GVA generatedby the BusinessServices& FinanceSector has increased           over the
  period2000 - 2008 alongwith fluctuating    levelsof employment.The sectorcurrently
  contributes 1m to Dadington's
              €41                    economy and employs 7,686 people. GVA per
  employee                                is
            withinthe sectorin Darlington considerably   lowerthan in England(t53,473
            to
  compared t7'1,20o);
r GVA per employee    generated the PublicAdministration,
                               by                           Education,Healthand Other
  Services in Darlington has increasedover the period 2000 - 2008 along with rising
  employment   levels. Economic outputper employee also risen(€30,227)
                                                       has                    although
  fallsshortof England's average(€3a,100)  ;
o Darlingtonhas above national levels of employmentwithin a number of sectors,
  primarily:-telecommunications;  manufacturing furniture; manufacturing motor
                                                  of                         of
  vehicles;specialized construction;             of
                                    manufacture wood/wood     products; manufacture of
  chemicals chemical
            and           products;

Table2.3.2(1)

         Breakdown % shareof employmentby Sectorin
                 by
                      Darling(2008)
                                  t Agriculture,forestryand fishing

                                  I Production

                                  lConstructiofi

                                                transport
                                  I Distribution,        and
                                    communrcatron
                                  I Businessservicesand finance

                                  t Publicadministration, education.
                                    health and other scrvices


     Darlingtonhas below average levels of employmentwithin a number of sectors,
               manufacture food products;
     primarily:-         of                textiles;basicpharmaceuticalproducts;
                                                                               rubber
     and plastic products; electrical equipment; scientific research and development;
     computerprogramming consultancy;
                          and               advertising and marketresearchand motion
     picture,
            videoandtelevision;


                                                   -
                 DarlingtonLocal BrownfieldStrategy November 2011
                                                                                                ,l',.




Table2.3.2(2)


        D a r l i n a t o nG r o s sV a l u e A d d e d ( a t c u r r e n t p r i c e s l b y
                                i n d u s t . y ( 2 o O O .2 O O 8 )




      200




      roo




         o          l
             ^€ "o\ .s1 ^do dr.$e.s6                      *r1 ^$




Table2.3.2(3)

                                                                 -
      D . , | | n r t o n m p l o y m eb y i n d u s t r( 2 0 0 02 0 0 8 )
                        E              nt               y


                                                     -{-M;nofJdurngl5lC          O)




              1", f-** ;P
             'ii /"""Y.
             .i t-J                       n""

                                                           G,fi



 0   3,000
                                                           coDm!D(JLion5(t C
                                                           r)
     5,@0                                            *-Banhnc. hnri!cifd
                                                         , trurjn..,.tc (9lClkr




                                                           id'rinistriron,cnocrL

     2,0@                                                  LM.N)


                                                           oPqi




                                   Darlington
                                            LocalBrownfield      -
                                                          Strategy November2011
                                                               14



c.          GVA - AverageAnnual Growth

r       The construction sectorin Darlington shownthe most GVA growthover the period
                                           has
        2000- 2008withan average    annual       of
                                          change 11.6%;
.       GVA growth the Distribution,
                    for                         &
                                       Transporl Communications       groupincreased
                                                               Industry
        at an average annualrateof 6,31%overthe 2000- 2008period;
.       The averageannual growth rate for the production           over 2000 - 2008
                                                         industries,
        timeframe,is -2o/o:
r       Public               Education,
               Administration,                &            has seen an average
                                        Health OtherServices                  annual
        growth rateof 5.8%overthe 2000  - 2008period'

2.3.3 CompetitivenessDarlinoton
                   of

r       The 2010 UK Competitiveness                    Index (UKCI) ranks Darlington the 247'nmost   as
        competitive    locality     (benchmarked of 379). This is a small
                                                        out                                       downward from its
                                                                                                                fall
        2009 position. Darlington still the most competitive
                                              is                                         area within the Tees Valley,
        atthough NorthEastis the second
                   the                                     leastcompetitive          region  withinthe UK;
.       One of the key premises the UKCI is that knowledge
                                            of                                            basedindustries vitalfor
                                                                                                                are
        economic     success. WhilstDarlington experienced   has                      some growthwithinthis area it
        h a s b e e n r e l a t i v e l y m o d e s t o v e r t h e p e r i o d l g g T - n 2 0 1 0 1 B o / o o lb uls i n e s s e s
                                                                                        l 2008.                  al
        in Darlington      were "Knowledge             Based",this is less than both Middlesbrough                         and
        Stockton-on-Tees;

          business
Darlington's       baseis characterised a smallnumber largebusinesses
                                        by               of                (1,000+
emploirees) a largenumberof smallbusinesses
          and                                   (0 - 4 employees). Although this is
broadlycomparable      ttre business
                  witt'r            structure other partsof the Tees Valleyand the
                                            of
NorthEastregion is adriftof the England
               it                      average.

Levelsof entrepreneurship generally
                           are       considered be relatively withinthe North
                                               to             low
East, althoughDarlington  appearsto be buckingthat trend. The boroughhas seen
continued growtl"' the indigenous
                in                     baseeventhrough recession,
                                business                the                this
                                                                    although
may  be indicative individuals
                   of          becomingredundant  and lookingfor new employment
opportunitie$ and abovewhatis available the locallabour
            over                         in              market.

$uch gro6h is primarily
                      withinthe servicesectorwhichgiventhe natureof the Darlington
        is
economy unsurprising.

Handin handwith business      startup ratesgo business failureratesand the NorthEastas a
whole has the lowestfour year business            ratesof all the UK regions,
                                           survival                          althoughthey
survive just as well for the firsttwo years. Darlington a greaterpropotlion closures
                                                       has                     of
within 0 - 4 and 5 - 9 employment bands,
      ttre                               size       although  giventhe structure sizeof
                                                                                and
the business  basethis is unsurprising. Equally unsurprising that"SoleTraders"
                                                           is                   accountfor
the greatestnumberof business                 in
                                     start-ups Darlington,  which may reflectnot only the
        ease by whicha new business be established, alsomay be indicative the
relati-ve                               can                but                      of
lackof "highgrowth"   expectations the business
                                    of            owner.

                        &
               Attainment Qualifications
2.3.4 Educational

    r   Darlington significantly
                   is                thanotherareaswithin TeesValleyin termsof the %
                                better                   the
        of working age population NVQ4or above,
                                with                         is                 in
                                                                         better terms
                                                  and indeed significantly
                              age population at leastLevel2 or Level3 qualifications;
        of the % of the working            with




                                                           -
                                                    Strategy November2011
                                      LocalBrownfield
                             Darlington
                                             15


r     The proportion 16 - 18 year old NEET(not in employment,
                    of                                                     or
                                                                 education training)  in
      2009was 7.1%. Among    the 12 upper authorities
                                         tier                     was
                                                        Darlington ranked     1 (where 1
      is best);
.     In 2009therewere 8,300peoplein Darlington no qualifications
                                                 with                accounting 13%
                                                                                 for
      of the populationaged 16 - 64. This is lowerthan the Norlh East but higherthan the
      England  average;
.     The  proportion boy pupils
                    of          (2008 2009)at the end of Key$tage4 achieving A* - C
                                     -                                         5+
      inctuding Mathsand English Darlington 45.4%and lessthanthe proportion girls
                                 in           is                                  of
      (56.e);

2.3.5 Deprivaliqn

.     The Indices Multiple
                  of          Deprivation2010rankDarlington the 75th
                                                            as         mostdeprived area
      in the country, fallfrom
                     a         its 2007position the 95'n
                                               as       mostdeprived  areain the country;
.     According                             has
                tothe IMD2010Darlington 16,638        people who are income  deprivedand
      7,528  whoareemPloYment     dePrived;
.     At ward level Park East containsa LSOA (code E01012359which covers the
      south/south areaof the ward)whichis amongstthe mostdeprived England.
                  east                                       1%                in
      ln essence 53% of the population  withinthis LSOAare income deprived           arc
                                                                           whilst32o/o
      employment  deprived;
.     Darlington showna significant
                 has                     increase the propotlion LSOAswithinthe most
                                                  in            of
      deprived 5%.
.     Nine other individual  LSOAgwithinDarlington withinthe 10% most deprived
                                                     are                               in
      England;

             Aqttyily
2.3.6 Esanqmra

r      Darlington'$employment hasfallenby ?.60/,
                                rate                between  2008/09(71.3o) and 2009/10
       to Og.7%,Whilsttiris is better thanTeesValleyand the NorthEastit is stilladriftof the
       GreatBritainemPloYment    rate;
.      The male employment    rate in Darlington fallen5.4o/o
                                               has                   -
                                                             2008109 2009/10 72.6%,
                                                                                 to
       whilstthe femaleemployment has risenmarginally 0.1%
                                      rate                 by     to 64.9%for the same
       period.
r      Employment   levelsfor bothsexesare betterthanacrossthe TeesValley,   although  they
       are lowerthanfor GreatBritain a whole;
                                      as

2,4       Summary

The policy and economic context provide the statutoryframework and economic
                  whichproposals outwithin strategy to be considered.
            against
circumstances                   set        the        are

The changes  withinthe planning system ongoing the new procedures replace
                                        are       and                to       the
National PlanningPolicyFramework finalised whilethiswill
                                    not         and          providemoreautonomy
to localauthorities,                                      whilethe new policies
                   therewill inevitably a period uncertainty
                                      be         of                           are
finalised understood bothdevelopers localauthorities.
         and            by                  and

    The economic                                       withinthe localeconomy
                  contextsets out the role of Darlington                       and factors
    outside the availability brownfieldsites for development
                           of                                     which will influencethe
    preparation a Brownfield
               of              Strategy the borough
                                        for             togetherwith the challenges the
                                                                                    of
    changingeconomicbase of the area, low wage levels, competitiveness,         pocketsof
    deprivation issues the agingpopulation the borough.
              and       of                     of




                                                     -
                     DarlingtonLocalBrownfieldStrategy November 2011
                                            16



3.0               BASEREVIEW
           EVIDENCE

3.1                                          -
                                     Framework Core $trategy
           DarlingtonLocal Development

The Core $trategywas adoptedon 6thMay 2011 and provides spatialframework
                                                        the                 for
                  withinthe Borough
plansand strategies                             the
                                    and comprises   principal
                                                            document withinthe
LocalDevelopment Framework,                         will
                            setting how the Borough develop
                                   out                         withinthe period
2011-?026.

The CoreStrategy informa rangeof implementation
                will                           plansand set out how the policies
         for                 communities
provided withinthe sustainable                "OneDarlington:
                                       strategy                       Placed
                                                              Perfectly       -
A Vision Darlington
        for                  will         overthe Plan
                    2008-2021" be delivered           period.

The CoreStrategyidentifies key roleof Darlington a gateway the TeesValleyand
                         the                   as        to
                                        whichrequire be overcome
NorthEast regionas well as key challenges           to           over the Plan
period
     whichinclude;

      .    Addressingissues an ageing
                            of          population.
      r    Dealingwith pocketsof deprivation   with 7 Wards withinthe most 10% deprived
           nationally.
      .    Diversifying economy
                      the          awayfromtraditional                                 to
                                                                     whichis in decline,
                                                        manufacturing,
           growth$ectors such             engineering.
                              as specialist
      .    Addressing pockets unemployment as a 12.2o/o
                             of                such           unemployment within
                                                                           rate       the
           innercentralward compared  wilh  1.7o/o the Hummersknott
                                                 in                 ward.
      .    To improvehousingchoiceand in particular improve
                                                       to        the supplyof aspirational
           housingaway from the stock of terracehousingto      seek to attractand retain
           graduates otherkeyworkers
                    and                  and managers.

The Core$trategy      the                         planning
               provides framework otherkeystatutory
                                for                              which
                                                         documents
include:

      a.      MakingPlacesand Accommodating  GrowthDPD - this emerging         will
                                                                        document
              setout siteallocations development
                                   and          policies'
      b.      Darlington EasternTown CentreFringeArea ActionPlan - this document
                                                                               will
              providb area basedActionPlanfor the development
                      an                                       of a key regeneration
              areacloseto the towncentre.

3.2        OtherKey Documents

                           below;
Otherkeydocuments identified
                are

                 and         Statement Ambition June2010- TeesValley
i.2.1 The Economic Regeneration     of        -
      Unlimited

The document                     outcomes the Tees Valleyover a 15 year period
              sets out anticipated      for
whichshallinclude:

      .           GVAfrom75%to 82%ol the national
           lncrease                                average.
      .           employment to the national
           Increase          rate            average.
      r                            above national
           Create1.000new businesses     the         trend.
      .    Increase
                  the number people
                            of      withhigher            by
                                              skillslevels 5o/o.




                     Darlington                   -
                                           Strategy November2011
                                  Brownfield
                              Locat
                                          17


                      Growth
3,2.2 TeesVallevHousinq          Proqramme Deliverv
                            Point:       of

                                   were awarded
The five Tees ValleyLocalAuthorities           HousingGrowthPointStatusby the
Government mid 2008with a view to accelerating
             in                               housinggroMh in the period 2016-
                                                                        to
17. An initial     allocation f6.2 million awarded support programme.
             funding        of           was      to       this

               Transpod
3.2.3 Darlinqton             2006-2030
                      Strateqv

Thedocument  was published an annexto the second
                         as                                  Planandfocussed
                                                LocalTransport
          congestion improving
on tackling        and                     through
                               accessibility              changeand managing
                                                  behaviour
thetransportnetwork makebestuseof it (LTP3published March2011).
                  to                               in

                               2007-2017
               OpenSpaceStrateqv
3.2.4 Darlinqton

           was adoptedin 2007 and provides evidence
The Strategy                             the       base and surveyof open
      to
spaces inform              within CoreStrategy.
                    policies
             relevant            the

                                           Assessment
                             LandAvailabilitv
                       Housino
               Strateqic
3.2.5 Darlinqton

The Darlington  SHLAAidentifies quantifies
                              and                 sources housing
                                          potential      of         landsupplyin
the borough the next 15 years or so. lt has been
             for                                 prepared meet national
                                                         to              housing
policyrequirements and to informthe preparation the Council'sLocal
                                              of                     Development
Framework. also identifies
             lt                                                          housing
                          whether not thereis a 5 yearsupplyof deliverable
                                  or
sitesin the borough.

The mostrecent  updateidentifies thereis likely be a surplus 668 dwellings
                                that          to            of             against
the RSS requirement the first 10 yearsof the plan period(2011112-2020121)
                      for                                                assuming
the sites identified the SHLAA are suitableand achievable
                   in                                      are delivered, There is
anticipated be a net shortfall 154dwellings
           to                of             against R$S requirement the period
                                                  the                for
ZOO4-ZOZ1.                         of
            Thereis a 5 yearsupply specific          sitesfromApril2010capable
                                           deliverable                         of
delivering surplus 597 dwellings
          a        of             whencompared        the
                                               against RSS requirement.

                       LandReview
               Emnlovment
3.2,6 Darlinoton

The Employment   Land Review  was undertaken partof the Darlington
                                           as                           Strategy
                                                                  Gateway
and identified totalof 353 hectares landavailable accordance the target "upto
             a                    of            in           with       of
360hectares" withinthe R$S.

Thisfigurecompare$    with the anticipated employmentgrowth   forecastingwhichindicates a
requirement only 101 hectares employment
            of                      of            over the plan periodwhich is therefore
likelyto give rise to a significant surplusof employment    sites. The key issuesfor the
consideration employment
             of               sitesrelates ensuring thereremains supply
                                          to        that               a       suitableto
meetthe requirements a full rangeof businesses
                        of                           withinthe boroughin terms of size,
        and
location availability.    Sitesreleased fromemployment in the futureshouldbe those
                                                          land
                      for
thatare leastsuitable employment       useswhoselosswill not prejudice intentions an
                                                                       the          of
employment portfolio
            land           whichprovides  landto meetall needs.
                                    -        2011
                            Assessment October
                LocalEconomic
3.2,7 Darlinqton's

The Local Economic Assessment  provides economicprofileand assessment the
                                       an                                of
economic competitiveness Darlington
                       of          basedaroundkey themesof economic  geography,
economy, Businessand Enterpriseand Peopleand Places. The Assessment  provides a
detailedunderstanding local economic
                    of                        for
                                     conditions the Counciland   its partnersto
         key
determine issues           inform
                  and better     decisions localpriority delivery.
                                          on           for



                 Darlington                    -
                                        Strategy November2011
                               Brownfield
                           Locat
                                      18



3.3   Summaryof EvidenceBase Review

Eachof the abovedocumentswas prepared Darlington
                                       for                Council theirpartner
                                                    Borough     as
organisations setsout keyexisting
            and                   policies,
                                          strategies keydatawhichwillinform
                                                   and                     the
preparation the LocalBrownfield
          of                  $trategy.

Any proposals                            with the requirements achievegoals and
              will requireto be consistent                   to
targets outwithinthe keydocument
      set                          within context the current
                                         the        of                context
                                                               economic      as
setoutwithin LocalEconomic
            the                Assessment.




                                                -
               DarlingtonLocalBrownfieldStrategy November 2011
                                            19



            MARKETREVIEW
     PROPERTY

4.1 lntroduction

A Market Assessment been undertaken
                    has                            issuesof supplyand demand
                                     whichidentifies
withinthe Borough. The assessment           issue$of valuesacrossthe various
                                also consider
property      and         of           on
        sectorg the impact thesefactors development  viability.

A copy of Market Assessmentprepared by Caruer CommercialChaftered Surueyorsrs
attached Annexl.
       at

                     assessment summarised follows;
Thefindings the market
          of                 are         as

4.2 Office Market Review

4.2.1 Supplv

            has been undertaken relation the supplyof both available
An assessment                 in        to                           land for
development officeaccommodation
          and                          available the marketwith the following
                               currently       on
results:-

a.    SitesForOfficeDevelopment

Officesitesare allocated                   towncentre
                        bothwithinDarlington                              of
                                                      and on the periphery the town
with recentpurpose  builtdevelopments MortonPalms,Pioneer
                                     at                       Courtto the east of the
towncentre. This site comprises   11.3ha and has planning         for
                                                         consent ?3,225      sq.m.of
offices whichPhase1 and2 are nowcompleted
       of                                     providing totalof 12,469
                                                      a               sq.m.

Thereis someidentifiablevacantpotential
                                      officelandwithin coretowncentre
                                                      the               fringearea
suchas the formerEvansHalshaw    garagesite on St CuthbertsWay adjacent the Peel
                                                                       to
Courtofficedevelopmenl  (2.47ha) and at CentralPark on Haughton Roadwherea total
area of 10.47ha allocated employment
                           for           use. The site includesDarlingtonTechnical
Collegeand more recentlyTeessideUniversity    has constructed multi storeyfacility.
                                                             a
CentralParkis identified officedevelopment potential deliverup to 27,871
                       for                  with        to                   sq.m.
of space.

It is notedthatCentralParkis identified partof theTeesValleyEnterprise
                                      as                             Zonewhichwill
encourage    officedevelopment withinthis scheme. A Local DevelopmentOrder is being
prepared facilitate
          to         employment development  withinthis area

b.    Available
              OfficeAccommodation

Research  has been undertaken        FOCUSdata basedresearch
                             utilising                     engineto ascertain
availableofficespacewithin Darlington.We summarise findingsof this research
                                                  the                     as
follows:-

                       30,263sq.m. (325,630
      There is currently                                               in
                                            sq.ft.)of officeavailability Darlington,
                                              (3
      madeup of 73 unitsof which13 are freehold of whichare freehold    investments),
                  17o/o
      representing of the stock.

      Average  askingrentsare f9.81 per sq.ft.witha rangeof minimumfl2.50per sq.ft.
                                                                                  to
      maximum    f18.60 per sq.ft.;however figureis distorted to someofficerents
                                          this                due
      beingall inclusiveratherthana net rent.



                   Darlington Local Brownfield Strategy - November 2011
                                           20



     .                                                             space, A large
         Most stock is secondhand stock with some modern/refurbished
         proportion the refurbished
                   of                                           at       Pointoff
                                   officestockavailable situated Lingfield
                                                      is
         McMullen                wherewe haveidentified
                   Road,Darlington                       9,000sq,m.(98,613     of
                                                                         sq.ft.)
         vacantofficesPace.

Thesizeof existing    officeaccommodationsummarised follows;
                 vacant                is         as

         Unit Size                                        No. of Units
         Lessthan46 sq.m.(500sq.ft)                       24
         46-93 sq,m,(500-1,000sq.ft.)                     23
         93                 -
            - 464sq.m,(1,000 5,000  sq.ft.)               1l_
         464- 929sq.m,(5,000-10,000   sq.ft.)             7
         In excess 929sq.m.(10,000
                  of                  sq.ft.)             5

c.       Summary

                                                                 to
Thereis an oversupplyof officespaceavailable Darlington relation current
                                           in           in                 demand.
The accommodation  availableis of reasonable fair quality. However,
                                             to                       there are no
         requirements officespaceover 1,000sq.ft.,
significant          for                                                 that
                                                    with marketindications some
companies haverationalised reduced
                          and                                           into
                                     theirofficerequirements relocating smaller
                                                           by
units.

                up
4.2.2 Demand/Take

We have reviewed        of          throughFOCUSweb baseddata of reported
                evidence transactions
                   as
dealsandwouldreport follows:-

a.       Offiee$Xe

We have been unableto identify  any officeland transactions recentyears due to the
                                                          in
                                                                       to
inactivity this sector. We are awarethat officedevelopment transacted Cityand
         in                                               land
Northern Developments Darlington
                        with         Borough         was negotiated f250,000per
                                               Council             at
acre(2003) facilitate firstphases Pioneer
            to        the          of         CourtScheme.

b,            for      Office
         Demand Existino     Accommodation

                                                 we
In order to estimatedemandfor office accommodation have analysedtransactional
evidence         from FOCUSdatabase the period2008,2009 and 2010to datewe
          obtained                    for
                      as
wouldreport findings follows:-
            our

Office           in
      Transactions 2008

              werecompleted
23 transactions                      2
                             including freeholdsproviding a totaltake up of 24,533
                                                         for
sq,m,(263,975        The rangeof rentals
              sq.ft.),                  was f2,95 - t18.75 per sq.ft.with the largest
letting
      comprising Student
                of        Loansacquiring                   at
                                        6,536sq.m.of refurb Lingfield Point.

Office           in
      Transactions 2009

27 transactions                all
               were completed, transactions were leasehold               a
                                                          and comprising totalof
3,018.5 sq.m.(32,492 sq.ft.). Rentsrangefrom f5.06 - f25.00 per sq.ft.although
                                                                             the
highest                                         rental
             werefor smallsuites an all inclusive
       rentals                   on                  basis.




                     DarlingtonLocalBrownfield        -
                                              Strategy November 2011
                                           21


Office           in
      Transactions 2010

19 transactionscompleted(includingthree freeholdinvestment             providing
                                                           transactions),       a
totalof 12,896sq.m.(138,822       Freehold
                           sq.ft.).        investment
                                                    transactionsincludedHackworlh
House,  BeaumontHouse andWoodlands   House  whichaccounted 10,061
                                                           for      sq.m. (108,301
sq.ft.) therefore
      and        leaseholdtransactionsprovide totalof 2,835sq.m.(30,505
                                             a                         sq.ft.).

Transactions                201
                2011to Auqust 1
          Januarv

              havebeencompleted 2011 including
12 transactions                 in             threefreeholdsalesof vacantunits.
Takeup totals853 sq.m.(9,191sq.ft.)
                                  and rentsachievedvariedfromf4.78 - f15.00 per
sq.ft..

         of
Analysis transactions                          to
                        showsthatthe demand occupy       officespacehascontinued fall
                                                                                   to
bothin numbers                            in
                 and spatialrequirements realterms,with a significant    furtherreduction
yearto datewithin2011. The Darlington     Employment   LandReview    indicates average
                                                                              an
annual take up of officespaceof 5,410sq.m.(estimated     between  2006 and 2008). Whilst
notset out withinthis analysis, is notedthattransaction
                              it                              for
                                                        levels 2008-2010 lessthan
                                                                            are
50%of thosefor 2007 priorto the economic     recession therefore
                                                      and           reflect impact
                                                                          the        that
thefinancial                     has
            crisisand recession hadon thissector the market,In the absence any
                                                     of                           of
majorpublicsectorincentives stimulate
                               to           occupier,developer  and investor demandthe
positionwithin the office market in Darlington likely to remain unchangedin the
                                                  is
foreseeable future.

Takeup of offices summarised
                is         withinTable4.2.2as follows;

                                    2008              2009              2010
      Totaltransactions             23                27                19
      Leasehold                     21                27                16
      Freehold                      2                 0                 3*
      Totalfloorspace(sq.m.)        24,533            3,018             12,896
      Average take up space         1,066             11?               679
      (sq,m.)
* These figuresare affectedas 2 of the freehold
                                       3        deals were investmentsales i.e.
Hackworth  Houseat MortonPalmsand Woodlands Housewherethe freehold properties
                                                                  of
weresoldsubject the existing
                 to                   and
                             tenancies no additional             was
                                                   accommodation occupied
by eitherthe freeholdpurchaser tenantcompanies. vacantfreehold
                             or               A               dealwas doneat
Beaumont  House. The investment
                              dealsequate 8,853
                                         to    sq.m.showing netannual
                                                            a         takeup
      of
space 4,043    sq.m.

Thefigures showthatwhilstmoretransactions                in
                                          wereconcluded 2009therewas significant
reduction floor$pacelet. This may be an indicator morebusinesses rationalising
         in                                       that             are
                               pad of their existing
into smallerspace or sub-letting                                in
                                                    accommodation orderto reduce
runningcosts"

The 2008 figuresincludetwo significant lettingdeals at LingfieldPoint,one to Student
Loans. Thesedealsequateto 20,471sq.m.it wouldbe reasonable assumethat in the
                                                                 to
currenteconomicclimate it is unlikelythat there will be further requirements such
                                                                            for
            of
volumes space, This leavesa netfigureof 4,062sq.m,of dealsand an average     takeup
o f 1 9 3s q . m .




                Darlington
                         LocalBrownfield      -
                                       Strategy November 2011
                                          22




4.2.3 OfficeValueg

a.    OfficeSites

As previouslynotedthere has been no officelanddisposals the open marketin recent
                                                        in
years. We can only assessfiguresbaseduponhistoric  evidence. this basiswe would
                                                            On
estimate officelandvaluesassuming
        that                         sitesare readyfor development no abnormal
                                                                 with
worksand associated costsand depending uponlocation lot sizesis between
                                                   and                 f125,000
             per
andf 175,000 acre.

b.    OfficeRentalE

Historically office rents have peakedat f14.50 per squarefoot at PioneerCourt,Morton
Palms. However     rentalvalueshavedeclined   since2008and it is considered net rents
                                                                             that
rangecurrently   between                                      valuesfor freehold
                           t3.50 and f10.00 per sq.ft.. Capital                 disposals
for i well located modernspecification  buildingwith parkingwould be in the regionof f120
persq.ft.withpoorer   quality secondaryaccommodationthe region f50 per sq ft..
                                                        in         of

4.?.4 Summanr

Existingsupply of office sites is sufficient accommodate
                                            to               significantfufther office
develofiment   with sites at Central Park and Morton  Palms availablefor immediate
development.    However,in presenteconomic  conditions                     on
                                                      and the constraints funding
availability,limiteddemand is identified this time.
                                        at          The sites identified Darlington
                                                                        by
Borough   bouncilas potential                 sites
                             officedevelopment together   with sitesalready committed
                       i.e.
for offile development Central    Parkandfurtherphasing MortonPalmsshouldprovide
                                                       at
sufficient supplybeyond LDF period.
                         the

         of
Analysis available                              takeup trendscontinue current
                  officespaceindicates if current
                                      that                           the
suppiy provide
      will                                           has
                 approximatelyyearssupply.Our analysis covered
                              B                                  a periodduring
                            activity.
            downturnin market
a significant

4.3IndustrialMarketReview

4.3.1 Supply

                                                      as
Theavailability bothindustrial and unitshasbeenassessed follows:-
             of              land

a.     IndustrialSiteE
                                                                  2009
                                    Land Reviewreportdated December
             BoroughCouncilEmployment
The Darlington
                                                land
and provides keyevidence the assessment industrial supply.
           the         in             of

Employment   sitesare categorised sitessuitable B1(b)Research
                                   as             for                 and Development,
B1(c)LightIndustry, (General
                      82          Industrial) BB
                                            and    (Storage and Distribution).Darlington
Borough  Council  haveestimated thereare 235 hectares
                                 that                               general
                                                          of existing       employment
sites within this classificationtogetherwith a further 125 hectaresidentified key
                                                                                as
employment   sites, lt is assessed that by 2026there                     of
                                                    will be 360 hectares employment
sitesin the Darlington  Borough area however figureis a maximum the basisthat it
                                             this                     on
assumes   that all sites are capableof reclaimedand utilised employment
                                                            as              development




                                                 -
                 DarlingtonLocatBrownfieldStrategy November 2011
                                                      23


                                  of         landavailability on the outeredgesof
site$. lt is notedthat the majority employment              is
Darlington/Borough  boundaries.

b.               lndustrialAccommodation
         Available

As atAugust                   thatthere 90,500
           2011,it is estimated       is                                  space
                                                             industrialfloor
                                              sq.m.of existing
                                 spaceis second
          the market.All available
availabldon                                    handstock. The largest         is
                                                                    availability
situated Lingfield
       at        Point (24,711sq.m.).

        properties be summarised follows;
Available        may           as

     .   Thereare 59 unitscurrently available
     .                                           basis
         Of the 59 units, are available a freehold
                         7             on
     t        of
         78o/o available                  only
                          stockis leasehold
     .   An indication unitsavailable summarised the tablebelow
                      of              is           in

          of                         unitsis provided table4.3.1below;
A breakdown the sizeof vacantindustrial             in

          lnif Size                                            Numberof Units
         U pt o 9 2 s q . m ( 1 , 0 0 0 q . f t . )
                            .         s                        B
         Upto465sq.n G,o!qrq ftI-                              26
                 -
         465 sq.m. 929sq.m.(5,000    -      sq.ft.)
                                sq.ft. 10,000                  6
                -
         g2gsq.m, 1,858   (10,000 - zlJqq rq-!J-
                      sq.m.     sq,ft.                         6
         1358 sqff. - 4,645sq.                                 I
         +,0+Ssqm. - 9,290 m. (50,000
                           sq                    r9
                                    sq.ft.- lQQIQQ             3
         9,290 q.m+
              s     .                                          2

The overallassessment supply concludes
                        of                                            development
                                           that there is no speculative
coming forwardat this time which may be due to currenteconomicconditions, lack of
fundin[ and viabilityissues in respect of developersbeing able to undertakenew
development appropriate
           at             returns.

                                        premises immediate
The lack of new or high qualityindustrial        for        occupation may resultin
Darlington being able to secure new investment  from companies seekingto undefiake
inward investmentwithinthe areaor the retention existing
                                               of       companieswho are seeking to
acquire highquality                                               are
                   premises theirown occupation. the companies unable
                            for                      lf                     to wait
for 1? monthsfora designand buildopportunity                               to
                                              thenthey may decideto relocate other
areas.

               UP
4.3.2 Demand/Take

a.       Demand Sites
              for

The position       to                development the occupier developer
            relating landfor industrial        by           and          market
is that few occupiersgiven the currentmarket and currenteconomic positionare in
circumstances                           to        and
              wheretheyare ableto commit purchase develop            sitesat this
                                                             industrial
time.

The natureof marketdemandfor freehold   sitesis limited       there is some demand
                                                       although
from the owner occupiersector,particularly where they are unable to source suitable
       property purchase theirown needs.Thereis a shotlsupply quality
existing       to           for                                     of     freehold
         propertyon the open marketat this time and therefore
industrial                                                      some           are
                                                                       companies
seeking suitable                         new premises their own
                sites in orderto construct             to                      Site
                                                                   requirements.
sizerequirements typically acresmaximum
                 are          1-2              however  occupiers generally
                                                                 are        seeking


                                                       -
                                                Strategy November2011
                                       Brownfield
                                   Locat
                          Darlington
                                          24


serviced  plotsavailable immediate
                       for         development thereare limited
                                                 and                             at
                                                                      opportunities this
time. lt is stressed,       that this is a limited
                     however,                                           that
                                                  market. lt is estimated demand     for
industrial for developments an investment
          land                from                perspective presently
                                                              is        nil.

We are not aware of any open market industrial                which have been
                                              land transactions
completed                         The following was sold by CarverCommercial
        withinthe lasttwelvemonths.            site
        Surveyors EMRfor wastehandling
Chartered        to                     purposes:-

Former                                           -
                                        Darlington 1.24acres
                                  Estate,
                          Industrial
             site,Cleveland
       haulage
Sold- f200,000
Date- February
             2009

b.                              Buildinqs
       Demand TakeUn of lndustrial
            and

FOCUS          dealsin Darlington industrial
        reported                 on           premises to date(August
                                                      year             2011) 17
                                                                            as
           totalling
transactions        6,996sq.m.(75,300                                     and
                                            withall dealsreported leasehold the
                                     sq.ft.),                   as
rentalsachieved iange of f3.06 - t6.50 per sq.ft.. Analysis Transactions
                a                                          of           completed
overthe previous threeyear periodshowsa decline the amountof industrial
                                                 in                    floorspace
takenup after?009as follows;

                  in
          Completed 2008
Transactions

30 transactionswere completedin 2008 of which 4 transactions   were freehold,16
transactions for new/refurbished
           were                  accommodation, volume property
                                               Total        of       transactions
was20,114 sq.m,(216,426 sq.ft.) which719sq.m.(7,744
                              of                          wasfreehold.
                                                    sq.ft.)            The rental
achieved variedfrom f2,00 to a maximum f12.00 per sq,ft. which relatesto Evans
                                       of
Easyspace Lingfield
          on         Way who werequoting             dealson flexible
                                         partinclusive               easyin easy
outterms.

           Completed 2009
Transactions       in

              were completed
36 transactions             within2009of which9 werefreehold.This represented a
totalvolume 49,459
           of       sq.m.(532,178                                    sales
                                                 9,436sq.m.of freehold
                                         Including
                                  sq.ft.).                                and 3
warehouse dealscirca28,498 sq,m.Rentsachieved  wereminimum 1,92per sq.ft.
                                                            f             and a
maximum         f6.84 persq.ft..
         rentalof

                  in
          Completed 2010
Transactions

17 transactionscompletedwithin2010 including smallfreehold
                                           1               transactiontotalvolume
6,308sq.m.(67,899 sq,ft) Rentsachieved wereminimum   f2.43 per sq.ft.and maximum
f7.63 persq.ft..

                             Year2008            Year2009             Y e a r2 0 1 0
       TotalTransactions     30                  36                   17
       Leasehold             26                  27                   16
       Freehold              4                   o                    1
       Total Floor Space     20,114              49,459              6,308
       (sq.m,)
       Average Take Up       670                 1374                 371
       (sq.m.)

Withthe exception 2009,the analysis transactions the threeyear period
                of                of           over                  showsa
considerable in the amount floorspaceand
           drop            of             number deals.
                                                 of




                  DarlingtonLocatBrownfield$trategy- November 2011
                                         25


The industrialsector was significantlysuppressedby the market crash during 2008
compared    with previous                                           spaceotherthanfor
                                                take up of industrial
                         yearswith no significant
smallunitsillustrated the numberof unitstransacted
                       by                                and the averagetake up space.
Approximately    30% of these deals were concluded     with Evans Easyspace, small
                                                                               a
              of
development flexible                                                  This
                        easyin/easy unitswith no leasecommitment. may indicate
                                       out
that it is lack of confidence  withinthe market,and reluctance committo fixed term
                                                                to
leasehold   contracts,preferring flexibility
                                 the        and abilityto vacateif requiredand at short
notice, without leasehold liabilities.

Marketactivity improved 2009 with a significant
                        in                       numberof freehold  transactions(9,436
sq.m.)and warehousing  lettings Faverdale
                               at                   $avers
                                            including       (15,492 sq.m.) and the two
furtherlettingdealsat Faverdale's Easter warehouse  development   (13,006 sq.m.). This
reflectedsomeconfidence           to
                          returning the industrialmarket placeand therewas increased
demand freehold
        for         accommodation the owneroccupier
                                    from                                         is
                                                            sector. An example the
Volvo site at the Faverdale IndustrialEstatesold due to their relocationto a new build
development Preston
             at       Farm,Stockton wasto VertuPlc.for theirownoccupation.
                                      and

The 2010 industrialtake up figures           yearto August2011are showing
                                   and current                               similar
                with an increase take up of spaceso far this
levelsof activity               in                           year by 10%. Therefore,
2011on the basisthat trendscontinue, showimproved
                                     will             levelsof activitycomparedwith
   0
201 .

It is considered                                                         in
                that there has been an upturnin activity requirements the industrial
                                                          in
sectorfor unit sizesof 9?-372sq.m.generally.In the Tees      Valleyregionthere has been
dealsconcluded much largervolumes manufacturing
                 of                      for                 basedcompanies.The weak
sterlingexchange                           factorto this upturnas manufacturing export
                  rate may be a contributory                                  for
is more competitive. Labour costs have also stabilisedwhich contributes more    to
competitive output pricing,

Overthethreeyearperiod                                            to
                                                  spaceis estimated represent
                              takeup of warehousing
                      analysed,
approximately of the volume industrial up of accommodation
            80%            of        take                   withinDarlington.

Present availability spacetotalsapproximately
                  of                          90,500                     is
                                                    sq.m.of which24,711 at Lingfield
Pointand 15,700at Faverdale    (formerAmdegasite)in largedatedbuildings.In broad
terms,thereis approximatelyyearssupply existing
                            5              of      industrialaccommodation   basedon
currenttake up rates. However,   there is a mismatchbetweensupplyand demandwith
currentdemands smallerunitsand enquiries largewarehouse
                for                           for                requirements likelyto
be limited.Mostof the stockis datedand somewillrequire               to
                                                        refurbishment satisfy modern
demands.Thereis a shortsupplyof modernlightindustrial     unitsgenerally.However,   in
currenteconomic  conditions, withinthe unavailability funding,
                           and                       of         thereare no incentives
to developspeculative schemes thistime.
                              at

4.3.3 Values

a.     Land

                                       land there is little comparable
With regard to the disposalof industrial                              transactional
evidence. Industrialland is being quoted presently f100,000-f125,000 acre
                                                   at                    per
dependinguponsitelocation.

b.              Units
       lndustrial

In respect rentalsachieved industrial
         of              for                              thesefall between
                                                  typically
                                      accommodation                          a
range f3.00 andt4,50 persquare
      of                      foot nethowever depends
                                            this                            on
                                                       on lot size. Presently



                 Darlington                     -
                                         Strategy November2011
                           LocalBrownfield
                                       26


the marketthereis 30,000 sq.ft.of spacebeingoffered €1.00persquare
                                                   at              footat Faverdale
and warehousing Lingfield
                  at                            at
                           Pointis beingoffered 50p-f1.00  per squarefoot depending
uponlot size. Thesebuildings olderstockcirca 1930s- 1960s. lt is considered
                               are                                             that
f4.50 per sq.ft. is the headlinerate for modern/nearlynew accommodation.  Deals are
        beingagreed this levelat Morton
currently             at                  Park.

           to
W1hregard freehold  valuesdepending  uponthe age and condition propedy would
                                                               of       we
suggest,(based historic
              on        evidence                                   f30
                                overthe lastthreeyears)is at between   per square
footandf60 per squarefootcapitalvalue.

             MarketReview
4.4Residential

4.4.1 SupBly

                         land and dwellingshas been consideredas part of this
Supply of both residential
assessment it is repoded follows:'
          and             as

a.             Land
      Residential

The most recentevidence       of             Borough
                      comprises the Darlington                     Housing
                                                    CouncilStrategic
              Assessment
LandAvailability        (SHLAA)Assessment      Autumn2010.
                                          Update

             SHLAA identifies
The Darlington               and quantifiessourcesof housingland supply in the
                                                 whetheror not there is a five year
Borough the next 15 yearsor $o. lt also identifies
        for
     of                sitesin the Borough.
                 housing
supply deliverable

       conclusions thisstudyare as follows;
Specific         from

      a) Thereis likelyto be a surplus 668 dwellings
                                       of              against R$S requirement
                                                               the               for
         the firstten yearsof the planperiod(2011112 20201?1)
                                                    to           assuming the sites
                                                                        that
         identified the SHLM are suitable achievable delivered.
                    in                     and            are
      b) There is anticipated be a net shortfall 154 dwellings
                               to                  of                againstthe RSS
         requirement the period2004-2021.
                       for
      c) Thereis a fiveyearsupply specific
                                    of       deliverablesitesfromApril2010capable of
         deliveringa surplus of 597 dwellingsand comparedagainst the RSS
         requirement,

b.                    Dwellinos
      Supplv Residential
           of

This research             through
             was undertaken                web basedproperly
                                   utilising                research toolssuchas
                 rightmove.com zoopla,com.Our research
findaproperty.com,            and                                   that thereare
                                                           identifies
currently1,989 propediesavailable sale within the Boroughof Darlington
                                 for                                      and the
                                                         as
breakdown respect typeof properly the market identified follows:-
          in        of             on           is

Detached           25oA 498
Semi-detached      32o/o 636
Terraced           35o/o 696
Flats              8%    159
Bungalows                                 stockfigure
                   represent of the overall
                           7o/o

                            secondhand stockspreadthroughout Borough. An
The abovefiguresare primarily                                the
      of
extract new dwellings         for           from rightmove.com are listedas
                     available sale extracted                 data
follows:-




                                                -
                DarlingtonLocalBrownfieldStrategy November 2011
                                           27


Detached(4i5 beds)          11
        (3
Detached beds)              5
Semis(a beds)               I
     (3
Semis beds)                 4
TownHouses(2 beds)          2
Bungalows                   I

Thislow levelsupply newbuilddwellings as a consequence the recent
                   of                  is                  of        recessionand
housing marketcrashwhen no new developments   were beingbroughtforwardand as such
thereis nowlimitedsupply newstock, Thereis a further
                         of                                               at
                                                     phaseto be constructed Miller
Homes,  The Pastures  development Skerne Way, Darlington 27 properties.They have
                                                        of
advised                              stockunsold,
        thatthey have7 unitsof current           whilstthereare ongoingschemes at
West ParkVillage, Faverdale Bussey& Armstrong at College
                            by                   and           Gardens, Glaisedale
Courlwhichis beingdeveloped Charles
                             by        Church.

planningpermission   has recentlybeen grantedfor a new residentialdevelopmentat
Lingfield-pointfor Marchday padnership Taylor
                          in           with     Wimpeywho will build270 homesin
                                   the                         mixedcommunity
ttreiirstphaseof new homesto deliver nextstageof the sustainable             at
Lingfield Point.

4,4.? Demand

a.     ResidentialSites

With regardto demandfrom residential   developers,there is limitedinterestin acquiring
          landfor futuredevelopment the present
resideniial                         at           time. However,  developers have
                                                                            who
madeenquiries  haveexpressed                                                   of
                              someinterest sitesfor smallscaledevelopments up to
                                           in
15 unitsfor development 3/4 bed detached
                         of                  housesin good residentiallocations where
phasedschemesmay be delivered     from a builders                            to
                                                 own resources opposed relying
                                                                as
upondebt or bank facilities.However  privateownersare not bringing sitesto the market
due to currenteconomic  conditions proceeds saleare perceived a low leveland in
                                 as           of                  at
somecaseslowerthaneither    costor valuation.

Thereremainsa great deal of uncertainty        aboutthe stability the housingmarketand
                                                                  of
whether this is likeiy experience
                      to             furtherfallsin valuewitha potentialdouble recession
                                                                               drp
as the Government    spending   cutsstartto takeaffect withinthe localeconomy.The viability
of residentialdevelopment      hingeson pricingand demand. From discussions      with estate
agents,there   is a real demandfor housingacrossthe spectrum,          particularly
                                                                                  affordable
housing However,     it is the borrowingconstraints  imposed the financial
                                                             by                       which
                                                                           institutions
are preventing housingmarketfrom movingforward. Therefore,
                 the                                                    untilthere are some
reat GovernmLnt     initiativeito addressthis difficulty there is no prospectof land being
developed or  existing  planning  permissions somecasesbeingimplemented.
                                              in

          development
Residential                                  beingsold is for smallsitesfor 2+ units
                       land which is presently
which                financedby the developer
      can be privately                         and which,in the affordablesectorare
being                       or
     constructed the rental intermediate
                for                       tenuremarket'

b.          for        Propertv
       Demand Residential

The Strategic HousingLand AvailabilityAssessment (SHLAA)produced Autumn2010
                                                                   in
indicates numberof dwellings
         thl                    required meetthe Regional
                                       to                 SpatialStrategydwellings
targetfor the Borough.The Darlington Borough CouncilCore Strategydocument  adopted
tr,ta-y l states
     ZOt        thatoverthe periodfrom2004to 2026,8,675net additional        need
                                                                     dwellings
to be provided                  Borough. lt statesthe averageannual net additional
                within Darlington



                  DartingtonLocalBrownfield        -
                                           Strategy November 2011
                                          28


dwellings      for                                     is
                                  2011-2016 target 1,700
        required the fiveyearperiod         the               dwellings a 10
                                                                       with
                                                       as 5,000dwellings.
yeartarget 3,025dwellings the 15 yeartargetis identified
         of              and

Discussions localagentsindicate the highest
            with                 that                                      is
                                               levelsof demand properties for
                                                                for
         threebedroom
traditional                    including
                      properties       semidetached  houseswithinthe everpopular
WestEnd areaof the towntogetherwithCockerton Harrowgate areas. Prospective
                                            and            Hill
purchasers attracted reasonably
           are       by           priced         whichare wellappointed.
                                        properties

There is also good dernandfrom the "buy to let" investormarketwho are purchasing
properlies                wouldbe of interest thefirsttimebuyermarket.Suchbuyers
          whichtraditionally                to
are'looking bargains
           for                  properties low priceswhichrequirerenovation.
                       preferably         at                                 The
lackof traditional time buyersin this marketis having
                first                                           effecton pricesof
                                                       a downward
theseproperties.

A contributory factor to the increasein supply of properties the market is some
                                                              on
purchasers
'Stock     wishing downsize orderto release
                   to          in               cashor reducemortgage     commitments.
      is also movingmore slowlyin view of    some sellershavingpurchased a better
                                                                              in
market and havingspentfurthermonieson     improvingtheirproperty whichmay havebeen
acquired through le+nortgaging  and are now technically a position negative
                                                       in           of            equity.
Therefore                   in
          thereis resistance reviewing                 on selling
                                        theiraspirations         price. lt is understood
agentsare experiencing  rejection realistic
                                  of       offersmadeon properties sellershaving
                                                                     and
retonsidered some days laterfindingthey have lost that  prospective purchaser    who has
moved  ontoanother  ProPertY,

With regardto pricing,agents have generallyreportedthat prices have fallen by between
15%-?Oo/o the last3 Years.
         within

LandRegistry Figures     totalsalesJan-June
                    Report                                       lf
                                            2011at 414 dwellings. we assume
      perfortance Dec 2011 this indicates
similar          to                     42%of       stocklevels.
                                              current

Research       from home.co.uk                        average
                                     showsthe following      housesale pricesby housetype
                     -
f r o mJ u l y2 0 1 0 J u l y2 0 1 1

                     J u l y2 0 1 0           2
                                          July 011      Change
                     8217,116             t200,163      -3Yo
Detached
                     f 145,055            t132,361      -9o/o
Semi
                     f93,042              t79,726       -14o/o
Terraced
                     f 156,667            t132,483      -11Yo
Flat

Fundamentally, levelof transactions the currentmarketis likelyto be restrained
               the                     in                                           by
currenteconomic  and financialsituations,         relating job security
                                        uncertainty        to                       to
                                                                        and inability
securemortgage   financedespitelowerhou$e    prices, In the currentclimatedemandand
                                     market remain uncertainand subject to volatility
activitylevels wittrin the residential
           in                       within economy job uncertainty.
particularly termsof the sensitivities    the          and

Withregardto the needfor affordablehousing,therecontinues be a strongrequirement
                                                          to
for affoidablehousingin the DarlingtonBorougharea,                        in
                                                    this is well documented the
Darlington  Boroughfiouncil's HousingStrategydocument   2008-2012and a Strategic
Housiig MarketAssessment                           and commissioned the Tees
                           which was jointlyprocured                  for
Valley sub region November
                 in         2007and prepared ARC4.
                                             by

The currentmarket  conditions affordable
                            for                                       to
                                         housing deliverable regard newstock
                                               is          with
on a limitedbasis. New developmentis affected present
                                            by        economic conditions direct
                                                                         and
cuts in Government  funding. There is a reasonablesupplyof secondhand stockwith



                  Dartington                    -
                                         Strategy November2011
                                Brownfield
                            Locat
                                        29


reasonable                                           fully modernised up to a
           demandfrom first time purchasers properties
                                          for                       and
                                        severeconstraints this
valueof circaf100,000. Therestill remains               on     demand,however,
fromthe inability obtainmortgages fundsuchpurposes.
                to                to

Someaffordablehousing schemes havebeenbroughtforward       including
                                                    recently        Woodland
View,Harrowgate Darlington Fabrick
               Hill,         by                          of
                                     Housing, development 213and
                                            a                      4 bedroom
homes. Theyofferflexible        options rent,partownership outright
                        ownership     i,e.                or        purchase,
price                      to
     ranges fromt130,000 t175,000.
          are

4.5RetailMarketReview

       -centredin Darlington concentrated the heartof the town centrewith the core
Retailingactivity            is            in
activity        aroundHigh Row and Norlhgate          betweenHouseof Fraserand
                                              primarily
Marksand Spencer, Ofl the outerfringeof Darlingtontown centreto the east is a small
retailparkincorporatingbulkygood retailers              Village,
                                         suchas Furniture       DFS,Comet,Currys
and Fiomebase.   Darlington wellservedby supermarkets,
                          is                          includingSainsburyslocated to
                                                                   at MortonPark'
the west of the town centreand Morrisons the east side of Darlington
                                         on
There is a Co-Operative    food store at Faverdale's"West Park" mixed residential
development.            and exclusiveshops are locatedwithin the "lmperialQuarte/'
               Individual
schemeproviding rangeof fashion,
                  a                 homeand restaurant businesseswithina traditional
streetscene the westof the towncentre.
             to

4.5.1 Supplv

a,    RetailSites

The firstprioritywithinDarlington furtherretaildevelopment Commercial
                                  for                      is             Streetwithin
thetowncentre facilitate proposed
                to         the           OvalShoppingCentre.This        was dueto be
                                                                  project
undertaken Discovery
            by           Properties over2 yearsago however due to the economic climate
                                       to
this has notyet takenplaceand is likely be scaled down. The extant  permissioninvolves
              of
the demolition existing  buildings the Commercial
                                   on                   sitepresently towncentre
                                                   Street             a            car
park. The project  was to deliver22,100sq.m.of retailspaceon two floorstogether   with
fu,OOO of leisure
      sq.r.                                               and
                                            cinema/nightclub restaurants
                      facilitiesi,e.multiplex                             togetherwith
winter garden and atrium.

The scheme           to                shorlfall modern
          wa$ proposed meetan identified      of                shopunits
                                                       comparison
within towncentre.
      the

Kendrew Street was to accommodate six levelmultistoreycar parkwith a linkacross
                                 a                                             the
ring road on St Augustines Way to the main shoppingcentre. KendrewStreet      also
incorporated residential
            26                    fronting
                         aparlments       NorthLodgeParkwith returnfrontage   onto
KingStreet,

Debenhams   haverecently announced                            of
                                   proposals the development a new 62,000
                                             for                             sq.ft.
storewithin Northern
           the                                        CornMillShopping
                       Echowhichwilllinkto the existing               centre which
          of
comprises the largest  shopping centrewithinthe town Therehave beendiscussions  in
the past with regardsto the presentTown Hall site for mixed use development and a
planningbrieffor the Feethamsareaincludes element retailas partof a widermissed
                                         an          of
use scheme. Sainsburys    have recentlybeen grantedplanningpermission appealto
                                                                      at
extendtheirfoodstoreon Victoria                             an upperlevelrestaurant
                                Roadon the ringroadto include




                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                         30


It is alsonotedthatthe ownersof the former          Workssite (NLUDRef: 135000160)
                                           Torrington
are proposing seek retailplanning
               to                                                      retailneedin
                                   permission the site to meetidentified
                                              on
                        failure delivery retail
the lightof the perceived      of       of              in
                                               floorspace moresustainablelocations.

b.            RetailUnits
      Available

Darlington  presentlyhas 90 retail units available, providing total of 17,424sq.m. The
                                                             a
largestsingleunit available 1,539sq.m. locatedon the inner ring road (formerAllied
                            is
Carpets). All retailunits are secondhand space. I unitsare freehold. One unit is A5
(takeaway), unitsare A3 (restaurant) 2 unitsare A4 (publichouseiclubs). termsof
             3                         and                                   In
                                             in
                       unitsthis is identified the table4.5.1below;
the sizeof the available


      Unit $ize                               No. of Units
      Up to 92 sq.m.(1.000sq.ft.)             48
      92-464 sq.m.(1,000-5,000sq.ft.)         33
      464-929  sq.m.(5,000-1
                           0,000  sq,ft,)     5
      930-2.322      (10,000-25,000
                sq.ft.             sq,ft.)    4
                of
      ln excess 2,323sq.m.  (25,000 sq.ft.     0

               Up
4,5.? Demand/Take

a.    Sites

On the basisthat the majority retailactivityis primarily
                               of                          concentratedwithinthe town
centre,there is no real land availability retailuse out of centre,although
                                        for                               proposalsin
relation the former
       to           TorringtonWorksindicate developer/occupier demand.

b.         andTakeUo for RetailAccommodation
      Demand

Between                                                     for
        June 2009and July 2011thereare 10 retailrequirements Darlington  between
        and up to 50,000
300sq,ft.                                                from
                            Thisincludes A3 requirement Frankie
                       sq.ft,            an                           and Bennys
seekingspaceup to 5,000sq.ft.on leisure          parksand in town centreschemes.
                                       parks/retail
The remainder retailrequirements primetown centrespace of between
              are                  for                                   500 and
2,500sq.ft.

                  for
           Evidence 2008
Transactional

              were completed
30 transactions            with 11 transactions                    properties).
                                               freehold(7 investment
Totalarea2,234sq.m.(24,038      Space
                         sq.ft.).     sizes ranged
                                           let                  -
                                                    from11 sq.m, 475 sq.m.

           Evidence
Transactional     2009

30 transactionswerecompleted which25 wereleasehold.
                             of                    Totalarea8,587sq.m.(92,412
      this included freehold
sq.ft.)           2         deals(investments) Nettoand one WickesDIY totalling
                                            one
38,090       (3,540
        sq.ft,    sq.m.),

           Evidence 0
Transactional     201

              werecompleted which11 werefreehold
45 transactions            of                   (including freehold
                                                         4         investments
        18,119
totalling          (1,684
              sq.ft.                   space
                              Totalfloor
                        sq.m.).             8,531sq.m.(91,805 ft )
                                                             sq




                 Darlington                     -
                                         Strategy November2011
                           LocalBrownfield
                                           31


                        to     2011
                  Januarv Auqust
           Evidence
Transactional

27 transactions were completed including freehold
                                       5                         1          sale.
                                                 whichincorporated investment
                 1,654sq.m.of space
Of the 22 lettings                  was let (17,797
                                                  sq.ft.).

                                   Year2008        Year2009          Y e a r2 0 1 0
      TotalTransactions            30              30                45
      Leasehold                    19              25                34
      Freehold                     11               4                11
      Total Floor Space (exc       2,234            8,587            8,531
      investments)
      Ayerag9lqtq_qp_Eq.ln.        97               180              133

The figuresare distortedas in 2008 there were 7 investmenissold within Darlington. In
200g,therewere 2 investment   dealsequating 3,540
                                           to        sq.m.givinga net lettingfigureof
5,047sq.m.,average180 sq.m. In 2010,4 freehold      investments were sold including 3
mixeduse retailsschemes  comprising totalof 1,684sq.m.
                                    a                   with yieldsranging from6'4%
(tenant      to
       Tesco) 10.8%.

Our analysis available
             of         spaceidentifies17,424 sq.m.(187,48? sq.ft.)of spacecurrently
availablebasedon average  take up overthe lastthreeyearsand indications take up to
                                                                        of
date,the present supplycurrentlyexceeds demand. lt is notedthat muchof this spaceis
secondaryand of smaller units of accommodation. There is little availability      to
accommodate   requirements any largerenquiries
                          of                           to
                                                wishing re-locate in the town centre,
particularly goodsecondary
          in                locations.

The abilityto addresssupplyof good qualitynew spacemay existwith a suitablerevised
scheme Commercial
       on                                              Otherwise
                           whenthe retailmarketrecovers.
                      Street                                      thereremains an
imbalance  betweensomenational retailrequirements the stock
                                                and         available the present
                                                                     in
climate.

4.5.3 RetailValues

a.     Retail$rteq

We havebeenunable identify disposals retaillandand are unable report
                     to         any         of                    to      further
              Landat MortonParkadjacent Premier is being
in this regard.                           to       Inn       marketed a quoting
                                                                     at
priceof f350,000per acre,this landis presently              not        use.
                                                 offerhowever for retail
                                             under

b.     RetailAccommodation

Rentalsfor secondary accommodation withinthe town centre area notablyPost House
Wyndand Skinnergate  whichhaveachieved       valuesin the region f30-f40 persq.ft.
                                        rental                  of
                                                 have
ITZA.Primeretailareasof the towncentrein Northgate                           with
                                                       peaked f 106 per sq.ft.
                                                               at
headline                     of
        rentsnowin the region f85 persq.ft.ITZA.

          of
In respect freeholdtransactions,is noted
                              it                                        yields
                                                             haveachieved
                                                     disposals
                                        thatinvestment
                     - 10.8%notably
withina rangeof 6.40/o             Skinnergate          (8.8%),
                                              (Ladbrokes)      YarmRoad(Tesco
Convenience) (6.4olo) NorlhRoad(Co-op)
                   and                   (10.8%).




                                                   -
                                            Strategy November 2011
                              LocalBrownfield
                     Darlington
                                         32


c,    $ummarv

Thereis no evidence the earlydelivery the proposed
                    of                of           OvalShoppingCentrein current
marketconditions.                     suchas Feethams, former
                  Siteson the periphery              the      bus depotand the
townhallare identified potentially
                     as          mixeduseschemes.

In termsof supplythere is around3 yearsof supplyof available   spacecurrently available.
Mostof this spaceis secondary natureand includes
                               in                     smallunitson the periphery the
                                                                                 of
towncentreand is therefore               for
                            only suitable a limited  marketas opposeto beingable to
accommodate largeroperators
              any                  whichmay wish to consider   beingrelocatedwithinthe
towncentre,Thisissuemay be difficult address
                                     to                newdevelopment
                                                 without                suchas a retail
                the
schemehowever currenteconomic         climate and the abilityto secureprivatefinanceto
         development continue frustrate delivery theseschemes the present
facilitate          will          to         the         of              at
time.

4.6Leisureand Other Uses MarketReview

4.6.1 $upplv

                        facilities
Thereis a rangeof leisure                       Borough
                                 withinDarlington       including Golf Clubs,Gala
                                                                5
Bingo, Ode-on
      the       Cinema, Darlington        Stadium, nightclubs,
                                   Football       3          Darlington Centre,
                                                                      Arts
Darl-ington Theatre
          Civic       together               Leisure
                               withthe Dolphin      Centre,Bannatynes HealthClub,
a variety independent
        of                                                       and
                      smallrestaurants manyfastfoodrestaurants takeaways.
                                      and

The townhas a selection hotelsincluding King'sHotel(a boutique
                         of               The                       hotel)in the town
centreand premierInn at MortonPalms.On the edge of the town centre(west)is The
Blackwell Grange Hotel and Bannatynes    togetherwith the five star Rockcliffe Hall at
Hurworth,The Tees ValleyHotelFuturesReportcommissioned 2008 by Tees Valley
                                                              in
LocalAuthorities                      has
                 statesthai Darlington a significant numberof hotelsfor a town of its
size, althoughindicatesprojection growthwithin the next 10 years, particularly
                                  for                                              for
budgeUupper budgethotels. We also havereferred the NorlhEast
            tier                                    to               retailand leisure
stud-ycommissioned One NorthEastand prepared DTZin February
                    by                           by                 2011.

a,     Land

Sites with planningpermission  are typicallymarketedon a design and build basis as
opposed                                            Works site which has the benefit
         to land slle such as part of the Torrington                               of
pianning approval hoteland related
                  for                  useson a smallpartof the site. We are awareof
siteswfrichmay have potential leisureuse however
                              for                    there is no evidence significant
                                                                         of
interestcomingforwardfor such sites, developer    interestis tentativedependant  upon
potentialpre-lelconditions,This is furtherfettered landowners
                                                 by            expectationsof disposal
priceandcostviability any potential
                      of             schemes.

b.                     For           Uses
                               Related
               Buildinqs Leisure
       Available

Thereare presently  two publichouseson the marketfor sale close to the town centre
namely Greyhound Parkgate
        the            in        and the Half Moonon Northgate.We are also aware
thatthe Chinagutteton Northgate currentty the marketfor sale. The formerEscapade
                               is         on
Nightclub whichis located Gladstone
                          on        Streetandcomprisessome2,322sq.m.. spaceis
                                                                         of
vacant.




                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                          33


c.                         OpenSpace
                      Public
          Useslncludinq
      Other

We have referred Darlington
                  to           Borough  Council'sopen spacestrategy    produced April
                                                                                in
2007 and for the period2007-2017 Boroughhas
                                  the             a total of 923 hectaresof open space
including urbanarea and the threelargest
         the                                villagessurrounding  Darlington. Withinthis
openspacethereare 27 allotment   sites,26 equippedchildren's  playareaswithinthe urban
arca,7designated   localnaturereserves threenationally
                                      and                 recognised  parksand gardens
             or
of landscape historic  interest.Focuson the strategy on driving
                                                      is           forward quality
                                                                          the        of
       openspaceand planning a number majornewopenspaces.
existing                        for         of                         Theseinclude:-

a)    A newparkto be provided partof the centralParkdevelopment.
                             as
b)    Newplayingpitches be provided west Parkor Mowden
                       to           at                   Rugbyclub.
cl    Newcommunity  woodland           with
                             associated housing             at
                                                  development Merrybent.
d)    Threenewlocalnature reserves.

Almosta thirdof all open spacesare primarily informal
                                              for          recreationwhilstjust over 20%
are primarily
            outdoor  sportfacilities.On the basisof total site areasopenspacesthat are
primarily
        ouidoor                account just undera thirdof all openspace. Natural
                 sportfacilities       for                                            and
seminatural greenspacemakesup      just overa quafier the total. The Gradell SouthPark
                                                     of
has benefited from substantial investment, improvement upgrading
                                                        and            works. In termsof
analysing the existingprovision  the informationprovided                              the
                                                           within the report identifies
        issues:-
following

                Un
4.6.2 Demand/Take

a.                   Uses
       Landfor Leisure

Fromour own experience the marketplaceand contacts
                      in                          withthe CharteredSurveyors in
the market                                         requirements
                                             leisure
         placewe are unable identif,T specific
                           to       any                        at thistime. We
           unable report
aretherefore     to      further thisregard'
                               in

b.                             Accommodation
            andTakeUp of Leisure
       Demand

We have referred transactional
                 to            evidence disposal leisurepropedyover the three
                                        of          of
yearperiod2008-2010. havebeenunable identify transactions
                      We                  to       any            withinthis period'
bn thisbasiswe do not haveevidence enable to identify
                                   to       us         trendsin demand andtakeup
rates and would thereforereportthat future leisureprovision likelyto remainstatic'
                                                           is
         we
However consider    theremay be limitednew leisureprovision any mixeduse schemes
                                                          in
coming forward the future.
             in

There are some elementsof existingreasonable        leisure provisionwhich is evening
entertainment offerin the towncentre.
             on                        However wouldidentify
                                                we                someinadequacies  in
otherareassuchas modernmultiplex   cinema  facilities replace datedexisting
                                                     to       the               cinema
whichis located of the town centre. lf thereis a significant
               out                                           upturnin marketconditions
and demandfor furtherleisurefacilities over the next 10 years, Darlington need to
                                                                           will
identify      and deliverabte
       suitable                               demandand compete
                             sitesto facilitate                     with otherstrategic
centres TeesValleyandthe widernorthern
       in                                 region,

Other           public
    usesincludinq    openspace

                                                       is      to         We
ldentification demandfor otherusesparticularly generis difficult establish.
            and                             sui
havenotbeenableto identify specific
                         any       requirementsor trends suchuse in Darlington.
                                                        for




                                                  *
                  DartingtonLocalBrownfieldStrategy November 2011
                                         34


In termsof any new developmentcomingforward                     throughplanning
                                           thereis an opportunity
procedures addressprovision furtheropen spacesand facilities
            to                of                               throughplanning
                       Clearly
requirements/obligations.     wherenew development not proposed
                                                   is             there is limited
opportunity address
           to                    unless publicsectorown/control siteswhich
                    any imbalances     the                        any
maybe vested openspaceiamenity
               for               use.

4.7Summaryof PropertyMarkets

Darlington generallyis performing reasonably a commercial
                                              as                 centre in the current
challengingfinancial
                   and economic climate.lt remains  reliant the greatest
                                                          on              proportionof
employment publicadministration,
             in                    education  and healthservices. Despiteeconomic
conditions town centreis performing
          the                         modestly.Thereare only 2 vacantunitsin the
CornmillShoppingCentre at presentalthoughdiscussions        with the managingagents
indicate positive
       a         outlookwith the development the Northern
                                              of               Echo building whichwill
bringDebenhams   Department $torewithinthe shopping          We
                                                     centre. wereadvised      thatthey
continue receive
        to       enquiriesfromsomenational   retailers spacewhichtheyare confident
                                                     for
theycanaccommodate the future
                      in        withfurther              of
                                            development the existing  centre.

              properly
The residential        market                        by                availability
                             continues be constrained the lackof funding
                                     to
                                                                          on
                                                    over supplyof dwellings the
                                     with the present
particularly first time buyerstogether
          for
market.

As documented                                            developer investor
               withinthis reportthereis a lackof occupier,        and          activity
in the areacommercially manydevelopments
                       with                                                     being
                                                beingnon viabledue to low returns
generated inability obtain
           and       to       fundsfor procurement.

As the economicclimateremainsuncertain,    prospects comprehensive
                                                    for                development
                                                          scale are likelyto remain
                        acrossall sectorsof any significant
activitywithin Darlington
extremely limited,




                 Darlington                     -
                                         Strategy November2011
                           LocalBrownfield
                                                                           35



5 REVIEW IDENTIFIED
        OF        SITES

5.1        lntroduction

An inspection undertaken eachof the 12 sitesidentified proforma
            was            of                            and                   lt
                                                                     completed. is
notedthatthis represents sample 12 sitesout of a totalof around83 siteson the NLUD
                       a       of
register     the
       within Borough.

Dueto the nature the $tudyand unknown
                of                      ownership manyof the sites,thenit was not
                                                  of
possibleto access all areas and where appropriate site inspections
                                                the               were undertaken
fromthe boundary sites.The inspections
                 of                             a                       usesand
                                        included reviewof the surrounding
viable        constraints potential
      potential          on        futureredevelopment wellas information
                                                     as                  included
within           Land Use Database
      the National                  (NLUD) assistin the informing judgements
                                           to                     of          on
thefutureuseof individualsites.

The information      fromthe siteinspections
              obtained                               photographs assessment
                                            irrcluding         and         of
potentialfuture wereincorporated
             uses                 withinSiteProformas                at    ll.
                                                      whichareattached Annex

5.2        Characteristics BrownfieldSites
                         of

            of
5"2.1 Summarv Sites

                                                         sitesis set out below;
A summary the grossand netdevelopable of the 12 identified
        of                         area

 able 5.2. - Analvsisof ldentifiedSites bv Size
  SlteDescrlptlon                                                         Struet             GroEE Site                           Net SitE Ar€a   Acres
                                                                                             Area


SiteOf FormerBleckettsBrickworks                    And Petrol6umD6pot   \lexander Streel    2 , 6 6h a     6.6acres              210ha           5,2acres
       .ettsTio                                                          Mcmullen Road       6.35 ha        15.7acres             600he                  a
                                                                                                                                                  14.8 cres
 ormer Coal Debot                                                        EastmountRoad          1 4h a      5.3acres              1.32 a h        3.3 acres
L a n dA d i o i n i n q 2 5 1 5 7 H a u q h t o n o a ,
                       1                          R                      lauahton Road       3 , 0 5h a     7.5acres              193ha           4 I acres
  rseCarrWestWorksSite                                                   rNhessoe Road       9 . 4 7h e     23,4acres             8,10 a h        2 0 . 0a c r e s
VacantLand o                                                             Heron Drive         134he          3.3acres              134ha           3.3acres
trormerHoDetown
              HouseAnd HopetownStudios                                   BrinkburnRoad       1 . 4 3h a     3.5acres              143ha           3.5acres
                                                                                   Way
                                                                         St Cuthberts        1.02 a h       2.5acres              102ha           2 5 acres
VantaqepointIndustrialEstate                                             Faverdale           4 , 3 2h a     1 0 . 7a c r e s      432ha           1 0 , 7a c i ' e s
Jrchid House                                                             Four Rjqqs          0 . 3 1h a     0,8acres              031ha           0 8 acres
 ite Of FormerTorrinotonWorks                                            Yarm Road           805ha          19 . 9 a c r e s      8 . 0 5h a      19.9 acfes
Slte Of Former SprinqfieldPrimarySchool                                  SaltersLane South   2 . 6 4h a     6.5 acres                             4.7acres

                                                                                             4 ? . 7 7n a   10 5 . 6 3a c r e s       h
                                                                                                                                  37.E1 a         9 3 , 4 0a c r e s


5.2.2 Analvsis Sitesbv Size
             of

                            sitescovera totalgrossareaof 42.77hectares
It is notedthat 12 identified                                          and,therefore,
provide average 3.56 hectares.However,4
         an          of                         sitesmake up a totalof 28.19hectares
withthe balance sitesproviding average 1.82hectares.
                 of              an         of

                               as
             sitesare identified follows;
Thefourlargest

FormerBlackettsTip                                             6 . 3 5h a
RiseCarrWestWorksSite                                          9.47ha
Vantagepoint        Estate
            Industrial                                         4 . 3 2h a
Former    ngtonWorks
      Torri                                                    8 . 0 5h a
                                                              28.19 a h




                                                                -
                               DarlingtonLocalBrownfieldStrategy November 2011
                                        36


It is notedthat 3 of the 4 sites are formerfactorysiteswherethe existing        have
                                                                        buildings
beendemolished slab levelwith the exception
                  to                                          Tip - wherethe site has
                                                 beingBlacketts
beensubject clayextraction subsequently
             to               and              filled.

                              Use
5.2,3 Analvsis Sitesbv Previous
             of

It is notedthat I of the 12 siteshavebeenmostrecently industrial withthe exception
                                                      in       use
beingBlacketts (as notedabove),
                 Tip                 former
                                          $pringfield                     as
                                                          whichwas utilised school
                                                     School
playing fieldsand I St. Cuthberls Waywhichwas utilised car showrooms.
                                                     as

                                                to                     has
                                                                however, more
It is notedthat landoff HeronDrivewas alsosubject clayextraction,
recently beenusedas a buildersyard.

All of the sites have had the previousbuildings
                                              demolished                    of
                                                          with the exception Orchid
House   anda listedbuilding Haughton
                           at         Roadwithall sitescurrently                  for
                                                                vacantand available
development   subject obtaining
                    to          necessary        approvals'
                                         statutory

                              withinDarlinqton
5,2.4 Analvsis Sitesbv Location
             of

                                          sitesmaybe characterised follows;
The nature the location eachof the proposed
         of           of                                         as

   a.      TownCentreand FrinqeArea

   Former  CoralDepot,       Road
                     Eastmount                 2.14 a h
                 WaY
   I St, Cuthberts                             1.02 a h
   Orchid House                                0 . 3 1h a
   Sub Total                                                3.47 ha

   b.      Suburban

   LandAdjoining125-127 HaughtonRoad           3 . 0 5h a
   Landoff HeronDrive                          1.34 a h
   Former          Primary
         $pringfield       School              2 . 6 4h a
   Hopetown  House                             1.43 a h
   FormerBlacketts      rd
                  Brickya                      2.66ha
   Sub Total                                                    h
                                                            11.12 a

   c.                lndustrialAreas
           Established

           Tip
   Blacketts                                   6 . 3 5h a
   RiseCarrWestWorks                           9.47 ha
   Vantagepoint         Estate
               Industrial                      4.32 ha
   FormerTorringtonWorks                       8 . 0 5h a
   Sub Total                                                     h
                                                            28.19 a

   Total                                                     42.77ha

5.3     ProposedFutureUsesfor ldentifiedBrownfieldSites

5.3.1 lntroduction
                                                                  and
Following inspection eachof the sitesandwithreference bothexisting emerging
        an          of                              to
planningpoliciesas well as to the marketassessmentreportsfor the Borough. The




                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                        37


                                                                  in
                                                sites is summarised table5.3,1
       use and capacity each of the 12 identified
proposed               of
below:
         -
Table5.3.1            Use and           of Sites




                                that                                  for
                                                  sitesprovide capacity the
Basedon the above,it is estimated the 1? identified          the
following;

   t   487dwellings(including affordable
                             62         properties).
   .   81,684sq.m, B1(c), and BBemployment
                  for       82                  uses.
   .   3,000sq.m.for B1(a)officesuses.
   r   6,000sq.m.for retail         uses.
                          and leisure

                                                                       of
It is notedthat office,retailand leisureuses would comprise elements mixed use
                                                           of
schemes                                                  Way and on the siteof Orchid
          on sitescloseto the towncentreat I St. Cuthberts
House FourRiggs,
       on

                                of           siteswhichare les$easyto quantify
Otherbenefits the redevelopment the brownfield
            of
butarealsoregardedas important thewiderregeneration the areainclude;
                             to                   of

   .                 of
       lmprovement environment      and image of the area - particularly  throughthe
       regenerationof prominentsitessuch                                Tip
                                                         Way or Blacketts
                                          as St. Cuthberts
       Delivery sectionsof the GreenCorridor sites such as Eastmount
               of                                 on                        Road and
       Haughton Roadto improve              and
                                cycle-ways footpaths          the
                                                        within town
   a              of
       Restoration listedbuilding       the
                                  within overall   HaughtonRoadscheme,
   a   Provideprovision the expansion successful industrial
                        for              of          key         areas;
          o Faverdale           Estate
                        Industrial
                 - Vantagepoint
                 - RiseCarrWorks

                            Road
          o YarmRoad/McMullen
              - Torrington
                         Works
              - Blacketts
                        Tip


                                                -
                DarlingtonLocalBrownfieldStrategy November 2011
                                                                             38



Unless adjustedto reflect site specificfactors (such as existingor historicplanning
approvals),the assessmentis undertaken     on the basis of the following standard
assumptions regard sitecapacity
           with      to             baseduponthe netdevelopable  areas;

Table5.3.1(              - StandardAssum  ns   ardinq Site Gapat
                         Use                                  D.
                                                Developmenttrytly
                         g1,82 andBBDevelopmel 3,442        per
                                                      sq.m. hectare
                         B1aOfficeDevelopment                                         4,589 sq.m.perhectare
                         Residential - Housing                                        30 - 35 per hectare
                                     - Flats                                          50 per hectare
                         AffordableHousinq                                             ?5-30o/o market housing
                                                                                              of


5.3.2 Proqramme Delivery
              of
                                                                      and
An assessment undertaken to the timeframes whicheachsitewillcomeforward
            is         as                in
thisassessment basedupona range factors
             is                of                  the
                                        whichinclude following;

                     The planningstatus the sites- manyof the siteshavethe benefit existing
                                        of                                        of       or
                     expiredplanning consentswhichare likely be capable beingrenewed.
                                                            to         of
     b.              Market                -             of         site coming
                            Attractiveness the likelihood the subject          forwardrelative
                     to Othersites whiChmay share     the same proposeduse in currentmarket
                     conditions.
     c.                               -                           affecting
                     Site Constraints the level of site constraints        the site which may
                     include;

                                Contamination
                                                    issues
                                Site ownership/access
                                Floodrisk
                                The implementationwiderregeneration
                                                 of                  strategies
                                The ownersaspirations towards              or         (more
                                                             price required alternative
                                        uses.
                                valuable)

                                       that            will        for
                                                 schemes comeforward
Baseduponthe abovefactors, is assessed the subject
                           it
          withinthe following
development                   timeframes;

            -
Table5.3.2(1) Proiects               Within2011-15
                      Capable Delivery
                            of

   -
2011 2015
                                                                                                                                 iross     Net Site        \,letProflt
  SitEDescrlptlon                $fteet             8 1 , ? , Eb u i l t   B i a b ui l t   letall /    louEing     Affordable
                                                                                            .els u re   !o'E        Content      iit€ AreE AruA            rBf
                                                    spac6                  sPACe

:ormer HopBtownHou$e And                                                                                l6          l4
l^6atAr^rn   Str rdins          JrinkburnRoad                                                                                    1 . 4 3h a   1 . 4 3h a    38.80
 iite Of Former Springfield                                                                             78          t2
 rrimarv School                 SEltersLane South                                                                                2 . 6 4h a   1. 9 0h a     45 00


                                                       m2                  )m2              l m ?       174 units   lb unlts        h
                                                                                                                                 +.07 a       3 . 3 3h a




                                                              -
                              DartingtonLocalBrownfieldStrategy November 2011
                                                                                  39

            -
Table5.3.2(2) ProjectsCapableof DeliveryWithin 2016-2020

201 - 2020
  6
                                                                                                                                    jrosa        'lst Sito    ,,let Profit
lite DeEcrlptlon               StEBt                  8 1 , 2 , 8b u l l l   ll a bullt     letail /    H o u si n g   \ffordablE
                                                                                                        No'E           lontent      ilte Area    \rea         lsf
                                                      space                  ipace          -eit u re


                                                                                                        108            16
            Blacketts
sit60f Former
Brickworks Petroleum
          And        Depol {lexander Street                                                                                         1 . 6 6h a       h
                                                                                                                                                 2,10 a       i28 80

Land Adjoining125 157                                                                                   99             15
HsuohlonRoad                  .laLrohlon Road                                                                                       l05hd        1 93ha       818.20
                              -lerdn Drive                                                                                                       'l 34 ha     i22 00
       l-5nd                                                                                            48                          1. 3 4h a
                                                                                                                                                              '825 00)
llacketls Tin                 VcmullanRoad            10.652 fi2                                                                    i.35ha       i,00ha
Forrner Depot
      Coal                     astmountRoad           1 000 m2                 000m2                                                1.14 ah      1. 3 ?h a       54
                                                                                                                                                              'F?O 60)
tise Carr Wsst Works Site     n,/hessde Road           I 880 m2                                                                       47 ha      1.10  h
                               t Cufhbcrtc   \^./av                          1 . 0 0 0n 2   1 .0u0 m2   70                          102h         1 .02 ha     i30.33
/dntaoeodinl
           lndustriEl
                    Estale    :averdale                 4 869 m7                                                                    t3?ha        4.32 ha       E i 0.00)
 rchid I                       our F{roo3                                    I OOOm?                                                1 . 3 1h a   131 ha        :2.49
                                                      17,283 n2                             i,000 m?
iite Of FormerToffinqtonWorks /arm Road                                                                                             1.05ha       8 . 0 5h a    432

                                                       11.684 2
                                                            m                    n?
                                                                             1,000          t O0Om2       l3 units     i6 unrts     3 8 , 7 0h a 34.49ha



5.4         Summary

The review siteshas identified sitescapable delivering
            of                     2             of           new development withinthe
period 2011-2015
       of             with eachof the sitesproposed residential
                                                    for                      and
                                                                development having
the benefit existing recently
            of         or         expired        approval residential
                                          planning        for          uses. lt is noted
that3 out of the 5 sites                    BC
                        arewithinDarlington ownership    whichwouldmeanthatthe Local
Authority                                                   as
          may take a more flexibleapproach site delivery explained
                                              to                         laterwithinthis
Strategy to meetidentified           whichwillextend
                            objectives                beyond maximisingfinancialreceipts
within short
      the       term.

The remainder sitescomprise
               of               employment mixeduse schemes
                                            or                   whichare all vacant
sites and important projectswithintheir own rightsbut are constrained factorswhich
                                                                    by
include the stateof commercial propertymarkets, contaminationissuesand the impacton
        and changesof use whichwill resultin the sites beingestimated be delivered
viability                                                            to
withinthe period 2016-2020.
                of




                                                            -
                            DarlingtonLocalBrownfieldStrategy November 2011
                                              40



6.0       FINANCIAL ANALYSI$ OF                                      OF
                                            THE PROPOSED REDEVELOPMENT
          BROWNFIELD SITES

6.1       lntroduction

                                                                           of
                                                                   viability the
The purpose this sectionis to undertake high levelreviewof financial
            of                        a
proposedsiteswitha viewto assessing overall
                                  the                to
                                           constraints the development.

The assessment not undertaken a detailedsite appraisal there is insufficient
                is                as                          as
informationavailable undedake
                    to                                      to
                                this exercisebut is intended considerthe scale of
        issueswhere such problems
viability                          exist basedon standard           in
                                                          assumptions relationto
development                            from the propertymarket assessment
             costs and values identified                                   report
undefiaken.

          is
Theanalysis set out as follows;

6.2       Basis of ViabilityAssessment

In orderto consider viability redevelopment the various
                  the       of           of                     sitesthena high
                                                       brownfield
leveldevelopment appraisal undertaken eachindividual baseduponthe following
                         is         for              site
standard assumptions;

      r                           forward
          Siteswill only be brought      wherethey are capable delivering minimum
                                                              of        a
                                        levels;
          landto the owners the following
                            at

             -     ResidentialSites           t250,000peracre
             -             Sites
                   Industrial                         per
                                              f 100,000 acre
             -                  Sites
                   Retail/Leisure             f250,000peracre

          Mixeduse schemeswould requireto generateland values betweenthese levels
                  on          mix.
          dependant development
      .
      .                                                              and
          $ales valuesare basedupon the outcome the site assessment the values
                                                of
          as$essed the
                   for   proposeduseswithinthe relevant                  and
                                                       marketasses$ment based
                              completed. Values applied
          upon site inspections                        againstdifferentuses are as
          follows:
             -     Residential                -
                                      f 1,883 t2j52 persq.m,
             -     Industrial         t592 - f645 Persq.m.
             -     Offices                    per
                                      81,7?? sq.m.
             -     Retail/Leisure             per
                                      81,722 sq.m.

      .            construction is applied the grossbuiltareasas follows;
          A standard          cost       to

             -     Residential
                   o Apartments          f 8 6 1p e rs q . m .
                   o Houses              f 807persq.m.
             -     lndustrialA//arehouse t 430persq.m.
             -     Offices               t 1 , 0 7 6p e rs q . m .
             -     Retail/Leisure        f 807persq.m.

                                  costs is providedto reflect costs of infrastructure,
          An uplift on construction
          remediation                                  varies between25o/o
                     and 5106 costs.This figuregenerally                   and 40Vo



                   Darlington                     -
                                           Strategy November2011
                             LocalBrownfield
                                                          41


         dependant our preliminary
                   on                       of             however few sites
                                 assessment site conditions,     a
         haveuplifts 60-90%
                   of                  site        issues identified.
                           wherespecific development      are

                                                 costs is made to reflectthe costs of
         A further allowanceof 40% of construction
         professional                         profit,
                                 and developers
                      fees,finance

                  housingis assumedat 25o/o new housing
         Affordable                          of          with the value included
                                                                               at
         50% of marketvalue as the majority anticipated be required socialrented
                                          is          to           as
         properties.There is no assumption viability
                                         that                         by
                                                    wouldbe supported affordable
         housinggrant,


                                                          at
A preliminaryviabilityassess,nen for all sifes rs attached Annexlll'
                               t

6.3                                   and Sensitivity
         Analysisof ViabilityAssessment              Analysis

It is recognised the UK economy at the lowerend of the economic
               that              is                             cycleand property
valueshave reducedby typically around?0% on a national basis sincethe peak of the
property                                      in
                                        greater someareas.
          market mid 2007and significantly
                in

The assessment                                     is          viablebasedon
                                             schemes financially
               indicates eachof the residential
                       that
the identified       assumptions achieving minimum
             appraisal         and         the       landvalueof f250,000per
acre.

The commercialschemes                gap assessed 20-40%of project
                       havea viability            at                 costwiththe
exception the Blacketts site wherethe viability
        of            Tip                      gap is assessedat beingin excessof
50o/o.

Table 6.3 below sets out the impact on the numberof sites which have a positive
redevelopmentvalueagainst rangeof increases values;
                          a                in

                                                                                 qffordable
/alues Uplift flumber o                                                                        l€tail and LGisuft
                          Total Ha   8 1 ,8 2 a n dB B   )fflces   lesidential
\gainst Base r'iableSites                                                        R6sld6ntial



)o/o                          ha
                          22.63      18,283 Z
                                          m                  m2
                                                         1.000     487units      32units       i.000  m?
10%                       14.58 a
                              h             0
                                     1 . 0 0m 2          3,000
                                                             m2    187units      j2 units      1 , 0 0m 2
                                                                                                      0
                              ha
                          22.63           m
                                     18.283 2                m2
                                                         1,000     187units      i2 units      j,000m2
70Vt
3Qo/o        10               ha
                          26.95      ] 3 . 1 5m 2
                                              3              m2
                                                         1,000     187units      i2 units      1.000 2
                                                                                                    m
 40%         10               ha
                          26.95      1 3 , 1 5m 2
                                              3              m2
                                                         ],000     t87units      3?units       1 000m2
50%           1               ha
                          16.a2        1 , 0 3m 2
                                              2              m2
                                                         ].000     187units      32 units      i.000m2


The table shows the impactof an increase value on projectviability
                                        in                        which may be
addressed an increasein projectvalue throughthe courseof the economic
          by                                                           cycle or
through provision appropriate
       the        of                        measures.
                                      support
                              financial

Summarv
                                                                  schemesproduce
It is notedthat at currentlevelsof sales valuesthat all residential               a
positive landvaluefor redevelopmentpurposes. However, levelmay not be sufficient
                                                       this                      to
justifythe costsof securing necessary
                           all          covenants, provide sulficient
                                                  or         a         land valueto
justifyhistoriccostswhichmay havebeenpaidfor sitesin bettermarketconditions.

The viabilityassessment has been undertaken the basis of 25o/o
                                          on                  affordablehousing
requirement within planningguidancebeing met unlessthere is an existingplanning
approval                                          are
                                    Manydevelopers currently
        which variesthis requirement.                          arguingthat such


                         Darlington                     -
                                                 Strategy November2011
                                   LocalBrownfield
                                      42


           cannot be justifiedin current market conditions. Any reductionin the
requirements
         for                 will       site
                     housing improve viability,
requirement affordable

                                                                             of
                                                                      majority
lt is notedthat even with an increase valuesof 20% then the substantial
                                     in
         sitesremain
industrial                   for
                     unviable brownfield            purposes.
                                        redevelopment




               Darlington                     -
                                       Strategy November2011
                         LocalBrownfield
                                         43



7.0                  TO      SITEDELIVERY
              MEASURES SUPPORT
      POTENTIAL

7.1   lntroduction

                  the       of          Government seenmajorchanges the
            noted, election the Coalition
As previously                                      has                  in
policytowardsregeneration the removal Regional
                        with          of         Development Agenciesand their
associatedbudgetsand their replacementwith Local Enterprise           with no
                                                           Partnerships
dedicatedbudgets.

Therehas also beenmajorreductions the funding the Homes& Communities
                                  in         of                       Agency
                                                                     Housing
of around40% which has impactedon the fundingof the NationalAffordable
Programmes  and variousgrant regimeswhich has impacted housingdeliveryin the
                                                      on
current
      economic climate.

However Government encouraged
         the           has                                        partners
                                     LocalAuthorities localdelivery
                                                    and                  to
utiliseexistingand emergingfundingand deliverymechanisms supportregeneration
                                                        to
activities.

        of                               is
                 measures support delivery set out below;
A review potential      to      site

7.2                          and
      Review FundingProgrammes Mechanisms
            of

         programmes mechanisms set out below;
Thevarious        and        are

                          Lew
              lnfrastructure
7.2.1 Communitv

A Community   Infrastructure is an existing
                           Levy              funding mechanism up in England
                                                                 set             under
the Planning 2008whereby publicsector
             Act              the                                          of
                                               wouldfundthe undertaking localor sub
regionalinfrastructure wouldobtain payment funding
                     and             the          of         oncesitesare developed out
by the privatesector. This mechanism  couldbe applied a cost per dwelling cost per
                                                       as                     or
sq.m.of commercial   development  although more commonly
                                           is                  appliedon a property  by
property basiswith recentexamples  comprising rooftax applied
                                              the                 withinMiltonKeynes to
fund key infrastructure works and the fundingof public realm by the HCA within the
Greengate   area of Salford. CIL arrangements   often sit side by side with Section106
Agreements   operatedby Local Authorities   but do typicallyrequirethe relevantLocal
Authority secure
         to        access the relevant
                         to            capital funding,                 to
                                                       whichis required fundworkson
an upfront basis, The normalroutewouldbe for a schedule infrastructure
                                                          of             proposals be
                                                                                  to
incorporated withinthe LocalDevelopment  Framework supported way of a Charging
                                                     and           by
Schedule  whichwouldbe consulted  uponandformpartof the LDF.

CIL is not chargeable relation affordable
                    in       to         housingand properties
                                                            used for charitable
purposes.

The LocalAuthority would have to demonstrate the proposed
                                           that              workswere not funded
from otheractualand expected sourcesof funding  and the proposed levy does not have
negative potential
                 effectson the economic         of
                                        viability development   acrossits area as a
whole. The schemehas beenbroadly   welcomed LocalAuthorities a mechanism
                                             by                  as             for
funding            worksacrossbothlocalandsub regional
       infrastructure                                    areas.

                     to       adopta CIL mechanism London
ThefirstLocalAuthority formally                    is       Borough Redbridge
                                                                   of
with ShropshireCounty Council and Newark & Sherwoodshotlly to adopt similar
mechanisms. is notedthat arounda further LocalAuthorities withinconsultation
             lt                        25                are                to
introducesucha mechanism.                                      between
                                                      identified
                          ldentified ratesare currently
                                   CIL                                f75-t150



                                                 *
                 DarlingtonLocalBrownfieldStrategy November 2011
                                         44


per sq.m.and are charged a varietyof criteria
                        on                                                high
                                                               ratesbetween
                                                     differential
                                             including
                                or
and lowvalueareaswithina district borough.

CIL mechanisms typicallyused to fund major infrastructure
                are                                           projectswhich seruea
numberof separatesite ownerships    where the Local Authoritymay deliverworks and
recover capital
       the      costs(together interest
                               with        costs)throughphased  housingdevelopment.
The CIL providesmoreflexibility LocalAuthorities
                              to                 than Section106Agreements how
                                                                            on
and where contributionsare spent   - howeverthe imposition the further levy on
                                                             of
development impacton development
           will                                          low
                                     viability a generally valuearea.
                                             in

None of the 12 identified         sites would be appropriate the use of a CIL
                         brownfield                        for
mechanism whichare morerelevant the creation a major
                               to           of                    for
                                                     urbanextension example.

                                    Authorities
                                Local
              Borrowinq lndividual
7.2.? Prudential      bv

          LocalAuthorities
lrrdividual               may makeprovision  withintheir revenuebudgets an annual
                                                                       for
sum whichwould be capitalised createa capitalsum
                               to                     and may be utilised promote
                                                                         to
property regenerationprojectswithinthe Local Authorityarea. This fund could then be
utilisedto undertake lnvestmentactivitywhich could includeequity investment   within
projects,loan financeto developerswho are unableto secure            from traditional
                                                            investment
bant<ing sourcesor gap fundingprovidingthat the fundingis withinpermittedintervention
levelswithin approved blockexemption
            the          EU               for gapfunding.

Whilstincreasing revenue pressure revenue
                                   on         budgets notedas a resultof reductions
                                                       is
withinCentralGbvernment  funding,  variousLocalAuthorities  have been looking  closelyat
this mechanism promotecontinuing
                to                     economicdevelopment                       funding
                                                                within a difficult
market and buildon work undertaken previous
                                    in         fundingregimes.For example,     DerbyCity
Council established in September 2010 a f 10               million RegenerationFund
(urww.derbyregenerationfund.co.uk)to support delivery highquality
                                            the          of             speculativeoffice
developmeht witnin Citycentreareaand recently
                   the                            announced   foursuccessful  schemes to
be deliveredover the nexi 18 monthsto 2 yearsto deliver     13,935sq.m.of offices. The
entire Councilinvestment projected be repayable
                          is           to                 togetherwith interest/share  in
developerprofitsover a 3-5 year timescale followingletting and disposal of the completed
scheme.

Manchester Council
            City       havealsorecentlyannounced                   a
                                                 proposals establish similar
                                                          to                fund
with a 10 year horizon            that as an
                      and estimates          "evergreen                all of the
                                                               vehicle",
                                                      investment
receiptsmaybe recycled through Fundthreetimeswithin 10 yearperiod.
                              the                    the

           SalfordCity Council(SCC)haverecently
In addition,                                     announced  that they have agreedto
take a pre-tet 50% 6t a t7,651 sq.m.officeat Greengate
             of                                        to enablethe developer (ASK
Developments) securefundingfor the schemeto move
              to                                     forwardon a speculative  basis'
Thesearrangements   have enabledthe schemeto be established,  whichwouldotherwise
require maJor
       a                                                          of
               pre-let be secured advance the commencement construction
                     to           in        of                                 and
          delayingdeliveryof the project. The investment
poientially                                              by SCC seeks to establish
breengat,eas an extension of the ManchesterCity Centre office core following the
completion the Spinningfields
          of                 scheme'

                       borrowing a usefulmechanism establish
On this basis,prudential         is                  to            confidence local
                                                                            in
marketsand the abilityto recyclereceiptswithinsuch a facilitywill be dependant upon
        issues
viability              with
              associated    projectdevelopment,

Whilstthe limitation resources Darlington
                   of           of                                            the
                                             BoroughCouncilis fully recognised,
          of            facilities
utilisation the borrowing                 to the LocalAuthority provideloansand
                                  available                   to



                                                 -
                 DartingtonLocalBrownfieldStrategy November 2011
                                        45


equityto supportprojectswhich are viableyet unableto secure privatesectorfinancein
current      conditions considered useful
        market         is           a       programme fuftherconsideration
                                                      for                    based
              of
on the success a similarprogramme  withinDerby.

            F
7.2.3 JE$SICA undinq

A JESSICA   vehiclewouldseekto utilise                                      (or
                                            investment the LocalAuthority Local
                                      capital         by
Authorities) leverEuropean
           to               Funding an investment
                                    into                                   proposed
                                                           whichis initially
                                                    vehicle,
to provide multimillion
          a            fund.The JESSICA   Fundwouldseeka commercial            on
                                                                        return all
investments would not look at gap fundingpropositions.
             and                                          There have  been existing
JESSICA  vehicles set up withinNorthEast England, NorthWest England  and withinthe
EastMidlands  whichhaveprovided             to
                                loanfinance businesses.

However            concernshave been raisedin connection
         significant                                       with the time and costsof
establishing         vehicles this nature, annualrunning
            investment       of           the                 costswhichare incurred
and the termson whichinvestment may be considered  includingfinancerate. Neither  the
NorthWest or the East MidlandsDevelopment  Fundwhichwere established     over 3 years
ago and have yet investedwithina singleproject with a typicalset up periodof over 12
months costs(setup and revenue) excess f 1 million
       and                         in       of          expended eachvehicle.
                                                                  on

Manylocalauthoritieshave lookedat JESSICA lever unutilised
                                            to                Europeanfundinginto
area basedregeneration  projects                               resources project
                                throughthe use of localauthority        as
match  funding- however costsandtimescales the setting of suchan arrangement
                       the                    for         up
are likelyto be prohibitive a Local Authority
                           for                                   where there is a
                                                such as Darlington
requirement ali investments be contracted 31't December
            for              to            by              2013.

                                 Areas
               Zonesand Enterprise
7,2.4 Enterprise

As notedabove,         Parkhas beenidentified parlof the TeesValleyEnterprise
                 Central                      as                               Zone
witha viewto promoting            withinthe siteand building
                         investment                        on         phases,
                                                               previous       which
included development a new campusfor Teesside
         the               of                          University well as a site for
                                                                 as
Darlington  College. Once legislation in place,throughthe LocalismBill, businesses
                                    is
moving  intoCentralParkwill be exemptfromBusiness                            froma
                                                   Ratesfor 5 yearsand benefit
more relaxedplanningregime (LDO) althoughthe detailed      provisionshave not been
finalised the current
         at          time.

                              LocalAuthorities ableto designate
It is also notedthat individual              are                enterpriseareaswithin
partsof the authority  boundary suchthat businessratesare noi chargeablefor an agreed
periodin orderto attractinvestment  withinan area subjectto appropriateaccounting for
sucha mechanism.

               that                     are       considering abilityto operate
It is understood over 50 LocalAuthorities currently         the
such an Enterprise Area including relevant
                                the                                  for
                                          boundaries the accounting such a
                                                    and
mechanism.
                        (PLl)
           LandInitiative
7.2.5 Public

The programme comprises initiative
                        an          operated the HCAto support
                                             by                housing        on
                                                                       delivery
publicsectorland - largelyland in the directownership the HCA or land withinLocal
                                                    of
        ownership.
Authority

The HCA haveprocured panelof housebuilders/developers
                        a                                                 will
                                                       to whomopporlunities be
offered              parties
       with interested     invited makedetailed
                                 to             proposals schemes.The benefits
                                                          for
of suchan approach that it becomes
                    are                                                 and,due
                                             easyto procure sitedeveloper
                                    relatively             a



                Darlington                     -
                                        Strategy November2011
                          LocalBrownfield
                                         46


                                    developers operateat lower margins
to the rate of deferredland receipts,        will                     than may
otherwise the case.
          be

A number majorprojects
         of             havenowcommenced this basisand it provides potential
                                        on                       the
          earlydelivery Darlington ownedsitessuchas Blacketts
to progress           on         BC                                  and
                                                             Brickyard the
former          $choolsite.
      Springfield

Consideration also be givento the pooling sites underthe PLI to createa critical
            may                          of
                opportunities,
massof development

                          for       (LABVI)
               BasedVehicle Investment
7.2,6 LocalAsset

In these circumstances,LocalAuthorities other publicbodiesutiliseexistingland and
                                        or
propertyassetsto establish vehicle
                          a         with a joint venturepartner(usually private
                                                                      a        sector
developer)                                                for
           who shallbe ableto use suchassetsas security new borrowing     to fund the
            of
undertaking development    activity the sites. Such workswouldbe delivered the
                                   on                                          by
privatesectorpadner in accordance   with a phasedprogramme development
                                                               of             agreed
beforehand         the
            between Parties.

The typicalbusinessmodelfor a LABVIwould requirefor the publicsectorto receivea
"coupon"rateof interest the property
                       on                        intothe vehicleand
                                    assetsinvested                  as suchthis
would typicallyneed to incorporate numberof incomeproducing
                                 a                            assets as well as
development siteswhich often comprise important
                                    an         elementof LocalAuthority revenue
budget.

The mostrecent  example a LABVIarrangement PxPWest Midlands
                         of                     is                    Limitedwhichwas
established between Advantage  West Midlands  (nowHCA)and Langtree    Group  and covers
          covering
a portfolio        approximitely 52,61hectares development and 55,741sq.m.of
                                                of              land
existingworkspace.The joint venturewas established June 2007 with majorongoing
                                                        in
prolecG including formerLDVsitein Birmingham, progression a sitefor residential
                 the                               the             of
development Brindley
             at          VillagePhase ll with the first new construction projectrecently
commenced Bromsgrove
             at              Technology Park where PxP West Midlandsare currently
developing approximately 4,645sq.m. newworkshop
                                    of                                to
                                                      units.In addition Brindley  Village
phasell in Smethwick,                     the
                       otherprojectswithin Black    Country  include          for
                                                                    proposals 17,651
sq.m.in three industrial unitsat CobaltPark in Willenhall                        of
                                                           and the development new
         unitsat HiltonParkcloseto Junction of the M54Motorway.
industrial                                  1

It is understood that PxP West Midlands   has not deliveredthe proposedlevelsof new
speculative development  agreedwithinthe Business  Planand that AWM did not received
the projected returns          whenthe vehicle
                     anticipated               was formed.Whilstthismay be attributed
to changes marketconditions, approach a publicsectorbodyto rely on a single
            in                  the          for
privatesectorpartner takeforward widerange projects a region
                     to            a           of        on        widebasishasnot
delivered           regeneration
          significant           benefits this stageand is regarded manyas tyingup
                                        at                        by
valuable public sectorassetswithina longtermvehicle.

The use of LABVIarrangements                                            area than
                                would requireto cover a wider geographical
                                               -
         - perhapsthe Tees Valleyauthorities howeverconsiderthat this is not an
Darlington
appropriate vehicle for DarlingtonBC or other Tees Valley authoritiesand is more
appropriate bettermarketconditions
           in                        wherethe publicsectorare seekingto createa
       massof opportunities create
critical                  to      privatesector        or
                                               interest activity.




                 Darlington                     -
                                         Strategy November 2011
                           LocalBrownfield
                                        47


                         (TlF)
                   Finance
7.2.7 Tax Incremental

The CoalitionGovernmentannounced   proposals late 2010for the introduction a Tax
                                           in                             of
Incremental Financescheme which is a structurefrequentlyused in other countries
(including US) enabling
         the             LocalAuthorities borrow
                                        to      capital provide
                                                       to               funding
                                                                  capital      to
appropriateprojectsbased upon futureincreases non-domestic
                                             in             rates incomeresulting
fromthe subjectdevelopment.

The first TIF projectscoming forwardare within Scotlandwhere the necessaryenabling
legislationhas already been approvedand the first development             at
                                                                undertaken Leith
Dockyards   with a numberof other proposed               at
                                           futurescheme$ the detailed  assessment
stage including                    of
                 the redevelopment the former Ravenscraig   Steel Works by Wilson
Bowden   Developments  Limited,

                understood LocalAuthorities England
It was originally         that               in        wouldbe invited submitpilot
                                                                      to
projects Central
        to         Government January
                             in        2011for the scheme.However,  therehavebeen
a number delaysin the preparation draftenabling
          of                      of              legislation to the potential
                                                            due              issues
raisedin consultationsfrom LocalAuthorities.                          of
                                            Therehave been criticisms the scheme
whereLocalAuthorities                                base of commercial
                       which do not have a significant                  development
wouldbe unable benefit
                 to      fromsucharrangements.  Furthermore theremay be the potential
impactsthat such a scheme could only benefitareas with existinghigh demandfor
commercial   property            not
                    and therefore benefit   areasin need of regeneration wherethere
maybe issues lowdemand.
               of

Furtherannouncementsregardingthe framework TIF and the call for pilot projectsis
                                           for
                                                                           on
          Autumn2011; howeverit is clearthat thesewill need to be restricted the
anticipated
areaswhereTlFs mayoperate the number schemes avoiddistorting market.
                         and            of        to                the

The use of TlFs is seen as fundingmajor works such as key infrastructure  schemes
including
        highways, services, connections flooddefence
                          rail          and              worksand is notconsidered
relevant appropriate the brownfield
        or           to                            However, may be considered
                                    sitesidentified.          TIF
more appropriate larger schemessuch as new infrastructure
                 to                                             works to serve any
          or
expansion business                                   Airport.
                    parkat the TeesValleyInternational

             Reqional
7.2.8 European              Fund
                   Development

It is noted                            are            the           Areawhich
                                                within Tier2 Assisted
           thatfourwardswithinDarlington situated
comprise  Faverdale,                 St.
                             Middleton George
                    Lingfield,                            &
                                              and Sandberge Whessoe,

On this basis,qualifyingpartiesare able to apply for EuropeanFundingto undertake
commercial and mixed use development   projects.Such schemeswould requireto be
completed allfunding
         and           drawn downby 31" December   2015

It is understood                 significant
                thereare currently         uncommittedresources              3
                                                                underPriority of the
programme    which may be utilisedto supportpropertyregeneration  activity. Qualifying
                                          works subjectto the provisionof appropriate
projectsmay take the form of infrastructure
levelsof match funding,or may take the form of financialsupportfor a gap funding
programme    acrossthe AssistedArea for employment  relatedschemesdelivering   target
outputswhich may includeemployment    floorspace,leverageof privatesector investment,
brownfield remediated new businesses
           land           or               accommodated.

                                                                       to
It will be necessary a public sector body (such as the Local Authority) act as
                     for
accountable bodyfor the fundandto administer fundon a dayto day basis.
                                           the




                                                *
                DarlingtonLocalBrownfieldStrategy November 2011
                                         48


It is notedthat any fundingmustbe advertised the accountable
                                             by                      to
                                                               bodies ensure  that all
interested  partieswould have the opportunity bid for fundingunder any area based
                                              to
programme.    Any fundingprovided the applicant also needto be in accordance
                                   to            will                           with
the gap funding block exemption     and targetedat $mall and MediumEnterprises  with
maximum    intervention              between
                       levelstypically      Zla/oand30% of totalprojectcosts.

The establishment a local gap funding programme
                 of                                utilisinguncommitted  European
                   a
moniesis considered significant         in          funding
                              opportunity the current        climate,       early
                                                                     although
progress needto be made in establishing appropriate
        will                             an                       for
                                                        framework investment  to
meetthe requirement anyfunding be committed 31" December
                  for           to             by               2013and expended
by 31'tDecember2015.

                 Fundinq
            Growth
7.2.9 Reqional

There have now been two roundsof applications Regional
                                              for          GroMh Funding with the
second roundbidsinvited July2011with a decision
                        in                                             201
                                                  due in earlyNovember 1. lt is
noted                f3.5 billion
     thatbidstotalling                      against proposed
                                weresubmitted       a                programme
                                                               capital         of
fl950million.

The RGF programme targeted economic
                      is       at                    programmes
                                          regeneration           whichwill directly
link to privatesector investment and job creation- particularly high added value
                                                              in
businesses  suchas research and development.The programme also seekto promote
                                                           will
economic         withinareaswhichhavebeenaffected publicsectorjob losses.
          activity                                by

Accordingly, programme notsupport
            the           will                                  an         end
                                                          without identified
                                                remediation
                                       brownfield
user and is therefore                            fundingmechanism the above
                     not identified an appropriate
                                  as                              for
schemes.

Thereare no further                                  time.
                                  proposed the current
                  rounds RGFbidding
                       of                at

7.2.10NewHomesBonus

A schemeannounced Government the early stagesof the new Parliament,
                       by             in                                         where
Council is matched
       Tax             fromCentral Government  fundsfor everynew homebuilt  (or brought
                                                  area. This is an incentiveschemeto
back into use) for six years in a Local Authority's
encourage  closerwor:king between  developers                      -
                                              and LocalAuthorities the matching   from
CentralGovernment    shouldbe seenas a revenue   stream the development couldbe
                                                       to                 that
usedto secure          on
              finance a capital   sum.

It is notedthatreceipts                                                  to
                        underthe NewHomesBonus notcurrently fenced housing
                                                  are           ring
delivery                                  used for otherfundingpurposes the current
                          and are typically
          relatedactivities                                           at
time.

7.3    OtherInterventions Suppott Site Delivery
                        to

               may also support development brownfield
LocalAuthorities              the            of       sitesthroughothernon-
        mechanisms wouldbriefly
financial         and            highlight fotlowing;
                                         the

          Sife Assembty                   -
                        and ConsotidationThrough                 of         sites
                                                   the acquisition brownfield
          togetherwith adjoiningareas and offeringthese as more comprehensive
          development               Such an approach
                       opportunities.                                         by
                                                      requires front investment
                                                             up
          the publicsector the basisof futurereturns.
                         on




                 Darlington                     -
                                         Strategy November2011
                           LocalBrownfield
                                      49


b.   tJseof ComputsoryPurchasePowers- To supportprivatesectordevelopers
                                                                      in
     undertaking assembly
                site       workfor key projects
                                              whichmay include securing
                                                              the
     of vacantpossession secure
                       to      comprehensive redevelopment'

c.    Preparation Development
                 of                     -
                                   Briefs The earlypreparation development
                                                                 of             briefs
                       to
     will add certainty the development     processby  providing clear indication
                                                                   a                 of
     permitted use, forms of development any terms and
                                             and                  conditionswhichare
     likelyto be required relation the development
                           in        to                  scheme. This approach    will
     enable developers bring forwardopportunities
                          to                             withoutthe requirement     for
     lengthypre-application   discussions establish type of uses which
                                          to         the                       will be
     permitted.Over previous     yearsthere has been a tendency provide
                                                                    to        detailed
     and prescriptive development   briefs. However, it is felt that such an approach
     may be overly prescriptive    and shouldfocus upon permitteduses, form of
     development keydesignissues.
                  and

d.   Pooling Pubtic OwnedSifes- The brownfield
             of                                      strategyincludesa significant
     numberof public sector owned sites and there may be benefitsin offering
     developers portfolio opportunities
                 a         of              whereas individualsites may not be of a
              scaleto attractinvestment.
     sufficient                           Suchan approach   wouldalso provide  the
     opportunity the mostvaluable
                for                  sitesto crosssubsidiselessviabledevelopment
     opportunities throughlinkingthemwithindevelopment               For
                                                         obligations. example
     good qualityresidential sites could be developed againstan obligation
                                                      out                       to
     develOp cefiain elementof commercial     developments eitherthe same
                                                            on                  or
     separate within sameownership.
              site      the

e,                  -
     JointVentures As opposed disposing sitesfor development,
                                to            of                     publicsector
     bodies can enterintojointventures with private sectordeveloperssuchthat land
     could be vested into development    schemeswith the    returnsreceivedupon
     completion the scheme
                of            and ultimate disposal,Suchan approach   enables the
                                      of
     publicsectorto have an element control      over the developmentprocess  and
     improves  cashflow the private
                        for          sectordevelopment    partner improve
                                                                 to       project
     profitability.
                  This would normally relateto eitherthe privatesectorundertaking
     development publicsectorlandor the publicsectorjoiningwith an adjoining
                   on
     development   schemeto provide more comprehensive
                                     a                       development however
     suchan approach   wouldneedto ensure   thatit complied           guidance
                                                           withrelevant         in
     relation procurement obtaining
             to             and          valuefor money'

     Thepubticsecfor enteringintoa leasefor a new commercial   property/scheme -
     enabling developer secure
              a         to       financebaseduponthe strength a of   public
                                                                          sector
     covenant.The publicsector wouldthensubletthe property termsappropriate
                                                            on
     to secureoccupierswithinthe market.Terminationprovisions the headlease
                                                               for
     wouldbe agreedfor example   uponB0%occupancy   levelswith recentexamples
     in Salfordand Wakefield LocalAuthorities
                             as                                              to
                                                seek to utilisetheir resources
                   sectorinvestment a stateaid compliant
     leverin private               in                   way.

g    DevetopmentVehictesand Tax EfficientSfrucfures- As an incentrve thefor
                of
     regeneration brownfield   sites,the Government introduced seriesof tax
                                                    has          a
              including
     incentives                                               of
                        capitalallowances the undefiaking decontamination
                                           for
     and remediation work underlakenparticularly sites which have historic
                                                   for
     contamination a periodin excessof 15 years. lt is notedthat only private
                 for
     sectorcompanies eligible receive
                     are          to       suchbenefits a number specialist
                                                        and         of
     developmentcompanies currently
                            are          workingwithinthe areawho are seekingto
     undertakequalifying site remediation projects benefitfrom the specific
                                                  to                        tax
     breaks           for
           appropriate sitedecontamination.


                                           -
                                    Strategy November2011
                      LocalBrownfield
             Dartington
                                    50



     Suchcompanies    wouldalsoconsider remediation a number adjoining
                                         site            over           of
     siteswhichwouldprovide            economies scaleand particularly
                               potential           of                      wherea
     site remediation framework may be agreedwith the Environment   Agencywhich
     would allow materials be movedbetween
                           to                     individualownerships  withoutthe
     payment appropriate
              of                  of
                            levels landfilttax(i.e.the varioussites           as
                                                                   are treated a
     single project).

h.   Reuse of BrownfieldSlfesfor the Creation Public Open Space- The viability
                                             of
     as$essment                             to        somecontaminated
                indicates it will be difficult envisage
                         that                                           sites
     comingforward builtdevelopment the futureparlicularly the current
                   for                 in                  as           level
               for
     of demand brownfield   sitesfor employment purposes lessthanthe existing
                                                        is
     supply.

     Consideration shouldbe givento the improvement suchsitesthrough
                                                  of                  utilising
     thesefor environmental improvement  workswhich may includelandscaping  or
     creation of areas of public open space which   would have the effect of
     encouraging marketin relation othersiteswithin immediate
                 the                 to              the           area. Such
     an approach  wouldrequire acquisition suchsitesby the
                              the           of               publicsectorand
     would'require careful
                  a       process identification the mostappropriate
                                  of           of                    siteswith
           development
     limited            potential maximum
                                and               uponthe surrounding as
                                             impact                    area
     accountrequires be takenof boththe capitalcost of works
                     to                                       and the costsof
     futuremaintenance.




                                            -
            DarlingtonLocalBrownfieldStrategy November 2011
                                             51



8.0                                          ON         SITES
             APPROACH DELIVERY THE DEVELOPMENT BROWNFIELD
                    TO       OF

8.1          lntroduction

The declineof manufacturing extraction
                           and                                has left a large
                                               withinDarlington
                                      industries
legacy brownfield
      of          sitesacross Studyareawithmanyof theseconstrained poorsite
                             the                                 by
conditions
         through              or              or      whichhaveincreased
                                    excavations tipping
               contamination historic                                     site
developmentcosts.

                      Strategy
For any LocalBrownfield                                    then it must seekto
                              withinDarlington be successful
                                             to
address number key issues follows;
       a        of         as

      i.       Addressi$suesof poor site conditions a resultof historic
                                                  as                   site usesand the
               impact theseon deliverability viability sitedevelopment
                    of                     and       of                 opportunities.

      ii.      Relatively valuesachieved bothnew and existing
                        low            for                   housingstockand for
               commercial property.

      iii.     Demandfrom occupiers commercial
                                   of             property short term flexiblelease
                                                           for
                          which impacton risk, viability
               arrangements                             and the abilityto secureprivate
               finance,

      iv.       Lowdemand housing
                            for        development             relative otherareasand in
                                                   opportunities      to
                particular        sitesin outof townlocations.
                         greenfield

      v,        Shortage development
                         of            financewhichimpacts the abilityof housebuilders
                                                            on
                and commercialdevelopers undertake
                                         to          development.  This is a padicular
                                                                                     issue
                wherethereare highup frontcostsin relation site remediation infrastructure
                                                         to                 or
                workswhichneedto be undertaken  priorto receipt income
                                                               of         from development
                saleswithresultant
                                 cashflow issues,

      vi.                                                      sites,with depressing
                Poorenvironment manyareasas a resultof redundant
                                 in
                effecton values,

      vil.      Requirement meetthe costsof affordable
                            to                       housing        whichimpacts
                                                            provision          on
                viability      withotherSection
                        together                    requirements.
                                              1061278

      viii.     To supportthe establishment commercial
                                          of           developmentcapableof attracting
                inward investors retaining employers
                               and       key          through provision highquality
                                                             the        of
                                                                                of
                                    premisesrequiredto supportthe diversification the
                officesand industrial
                economy               on
                         whichimpacts development value.

      ix.       To seek to attractnew investment addressissueswithinthe localeconomy
                                               to
                includingover reliance employment the publicsector,low wage levels
                                      on          in                              and
                relatively levels GVA.
                         low       of

      x.        To addressissuesof pockets deprivation improving
                                          of         by        housing       and
                                                                      delivery
                      -        the       of        housing.
                choice including delivery affordable

The core of any Local BrownfieldStrategymust be a comprehensive approachwhich
impactsupon marketconfidence                                     and
                                                     housebuilders occupiers
                                            investors,
                             from developers,
perspectives, creates
            and       confidence market
                                in               whereby
                                        conditions      significant
                                                                  improvements




                      Darlington                     -
                                              Strategy November2011
                                LocalBrownfield
                                            5?


would be realisedover a period such that new prospective
                                                       purchaserslinvestors
                                                                         are
encouraged areaswhichwouldnothavebeenpreviously
          into                                     considered.

8.2        Approachto BrownfieldSitesWithin Darlington

The 12 identifiedbrownfieldsites each have individual
                                                    constraintswhich have resultedin
theirnot beingbroughtforward economic
                             for         reuseat the currenttime,whichmay generally
be included      the
           within following  factors;

   a.         Marketconditions                                financialreturnsto bring
                               result in there being inadequate
              forward opportunities the current economicclimate - particularly
                                   in                                         with the
              associated frontcostsof siteinfrastructure siteremediation.
                        up                              and

              Examples considered be in relation the formerBlacketts
                       are           to          to                  Brickworkssite
                                                                       ownership
                           School wherebothsitesare withinLocalAuthority
              or Springfield    site                                            or
              on the Hopetown House or Heron Driveschemeswhere the sites are within
              privatesectorownership,

      b.      Whereexistingowner$ seeking utilise
                                 are       to                           to
                                                                  issues seekto
                                                 shorttermviability
              promote       of                  sitesfor morevaluable
                      change usefor key employment                   usessuchas
                              uses.
              retail residential
                   or

              For instance,
                          sitessuchas the formerTorrington Works,VantagepointIndustrial
              Estateand Rise Carr works wherethe ownersare in the processof making
              representations promoting
                             or                                  uses such as retailor
                                         the sites for alternative
                        purposes.
              residential

      c.      Where sites may comprisepart of wider regeneration proposals and may be
                                          due to issuessuch as neighbouring
              difficult deliverin isolation
                      to                                                    uses or the
              impact a blastzonewhichaffects number properties wouldneedto be
                     of                        a       of          and
              addressed a wider basis to maximise
                         on                           the deliverability the area wide
                                                                       of
              regenerationscheme.

              Sites where this presents issue includeEastmount
                                        an                   Road, Four Riggsand
              potentially St. Cuthberts
                       I              Way.

8.3        ProposedApproachto IndividualSites

                   Brickvard
           Blacketts
8,3.1 Former

The site is currentlyvacantand allocated an employment although SHLAAhas
                                          as               site          the
identified the site as suitablefor lower cost housingwith an estimatedcapacityof 108
                                              of
dwellings, The site is withinthe ownership Darlington     BC. $ite investigations  have
identified thereare various
          that                  abnormal                with
                                         costsassociated the treatment landfill and
                                                                           of
underground   petroltankson the siteand alsonotethatpartof the siteis usedas a playarea
for localresidents.

                                                           development
               that the site may come fonruard a residential
It is considered                             as                       opportunity
               and it is proposed the following
         quickly
relatively                       that          stepsshouldbe undertaken;

      i.      A development  brief should be preparedfor the site which shall include
                         with local residents order that the publicopen $pace may be
              consultation                  in
              designed sucha way as to jointly
                      in                      provide the needsof localresidents.
                                                    for




                                                    *
                    DarlingtonLocalBrownfieldStrategy November 2011
                                          53


   il.                                  should be underlaken providecertaintyin
          Any further site investigations                   to
          relation to abnormal developmentcosts including consultationwith the
          Environment         on
                      Agency anycontamination    issues.

   ilt.   An outlineplanning
                           consent                                           all
                                   should secured the sitewhichwill identify of
                                          be        for
                             with site development
          the costs associated                    includingSection106 requirements
          and provisions relation affordable
                        in      to           housingprovision.

   tv.    On the basis of the above,the subjectsite should be marketed suitably
                                                                      to
                    developers the basisof delivering
          experienced           on                     new housing          in
                                                                  development
          accordance the requirements the development
                   with                of               brief.

   V.     The impactof site development abnormal                             of
                                                  costsand also the location the site
          withina low valuearea may impactupondeveloper   interest              it
                                                                    and therefore may
          be necessary the scheme be undertaken a jointventure
                       for           to                on                basissuchthat
          the developer receiverepayment development
                        will                  of             costs as a priorityreturn
          and that landvaluewouldbe received a proportion the surplus income
                                               as             of             of
          from housesales followingthe repayment development
                                                   of              costs. An approach
          wherebythe Councildo not requireupfrontpaymentof land value and are
          prepared share development throughpayments
                    to                   risk                    linkedto housesales
          revenuewill encourage  housebuilder interest the undertaking residential
                                                       in                 of
          development a siteof thisnature current
                       on                  in              conditions.
                                                      market

   vt.    Consideration                             of                        under
                       shouldbe givento the inclusion the siteas an opportunity
                                                               with
                                 either itsownor in conjunction othersites.
          the PublicLandInitiative    on

   vii.   A furtherconsideration be for the subject to be included
                                may               site             within portfolio
                                                                         a
          of sites which would encourage                        to
                                        largerscale housebuilders take on smaller
          scaleprojects.For instance site may be considered conjunction the
                                    the                      in            with
          siteat theformerSpringfield
                                    School(NLUD Ref:135000170)  whichis alsowithin
          Local Authorityownership,

              Tip
8.3.2 Blaqkelts

Blacketts is a highlyprominent adjacent the Eastern
          Tip                  site         to              Transport  Corridor however;
the siteis heavily
                 contaminatedwhichwillsignificantlyincrease development   coststo sucha
level where development be unviable industrial
                        will            for             purposes  within the foreseeable
future. The site comprises tippedarea which is now overgrown
                          a                                        and provides  informal
openspacewhichis well usedby dog walkers,   etc,, lt is notedthat the current siteowners
haveindicated theywouldrequire benefit a retailconsent enable siteto be
              that                the         of                  to        the
brought backintoeconomic reuse.

It is notedthat whilstthere are detailed                 which have been undedaken,
                                        site investigations
manyof the works have not been costedat this time. lt is notedthat the site is withina
popular  industrial
                  location beingadjacent the existing
                                         to            McMullen Road Industrial Estate
and alsohasthe potential accommodate rangeof car showroom,
                          to              a                     tradecounter more
                                                                               or
traditionalindustrial
                    uses.

It is considered the following
               that            stepsmay be undertaken maximising potential
                                                       in         the         for
                            Tip                             of
                                                     forward the sitefor economic
the restoration the Blacketts siteand for the bringing
              of
reuse:

   i.     The LocalAuthority                  a
                               shouldundertake review the existing
                                                      of           site investigations
                                                       of
          for the site in orderto obtainan understanding the levelof costsassociated



                                               -
                                        Strategy November 2011
                          LocalBrownfield
                 Darlington
                                          54


          with site restoration alsothe potential
                              and                          liability
                                                environmental               with
                                                                   associated
          the ownership of the site which is understoodto be generatingmethane
          emissions the current
                     at          time.

   ii.                                will           whether
          A reviewof site investigation also highlight      there is the potential
                                                                                 to
          developsomepartsof the sitefor economic reusewhilstthoseareaswithworse
          contamination/abnormal                                for
                                           costsmay be identified alternative
                                 development                                  uses
          whichmay include  publicopenspaceor openstorageusesfor example.

   iii.   Consultation the land owners(R, Blackett Sons Limited)
                      with                           &             shouldclearly
          identify                                  theywishto dispose theirsite
                 theiraspirations the siteand whether
                                for                                  of
                   newbuilt
          or deliver                               and
                           developmentthemedium longer
                                       in                   term.

   iv.    Darlington shall$eekto agreea Development for the sitebaseduponan
                     BC                                  Brief
          understanding site remediation should suppofted a potential
                         of             and         be          by          delivery
          plan. For example is notedthat the proposed
                             it                                    of         town
                                                        regeneration Darlington
          centre EasternFringemay give rise to the relocation a numberof major
                                                               of
          occupiers  who may considerthatthe Blacketts site wouldprovide suitable
                                                      Tip                 a
                                of          facilities.
          sitefor the development alternative

   v.     lt is recognised thereare significant front development
                           that                    up                   costswhichare
          likelyto be associated with site remediation infrastructure
                                                      and              worksto the site
          and an understanding project
                                 of        cashflow require be obtained orderto
                                                   will      to              in
          consider  the most appropriate meansof financial support. lt is notedthat the
          LocalAuthority   could consider the use of variousmechanisms suppotlthe
                                                                          to
          development thisareawhichmay include following;
                        of                           the

          a.   Funding someelements workagainst
                         of               of            futurebusinessratesreceiptsfor
               the site.
          b.   Assisting  the proposed           in
                                        developer securing   fundingfor up front works
               through means such as prudential      borrowingor similar mechanisms
               whereby the Local Authority receive payment upon ultimate site
               development.
          c,   Working   with the selected                                   for
                                          developer promoting application ERDF
                                                   in          an
               gapfunding support identified
                            to        an        deficit relation the scheme.
                                                       in       to

   vi.                                                        with the site,the Local
                                                     associated
          $ubjectto the identification any liabilities
                                     of
          Authoritymay consideracquiring freeholdof this area such that the site may
                                        the
          be maintained employment
                         for            uses and that the Local Authoritymay make
          application ERDFfunding support remediation infrastructure
                    for              to       site           and              works.

                            Road
                    Eastmount
           CoalDepot,
8,3.3 Former

Thesitecomprises a formercoaldepotand scrapyardsituated
                  of                                           adjacent the formerrail
                                                                         to
lineand is withinthe identifiedtown centreEastern Fringedevelopment    area. The site is
constrained its longand narrow
            by                    shape, limited
                                        a       access  and surrounding   secondary  uses
whichall makeit difficult redevelop sitein isolation.
                       to           the                The siteis identified mixeduse
                                                                            for
purposes hasthe benefit an existing
         and                of           planning        for
                                                 consent 30 dwellings      togetherwitha
requirement the retaining a wildlife
            for            of                within siteboundaries,
                                       habitat     the                   The siteis within
the BlastZoneof an existing holder
                            gas       whichrequires be addressed the benefit the
                                                    to               for            of
widerarea.

It is proposedthat a strategyfor bringing                                      may
                                         forwardthis site for future development
include following
        the        elements;


                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                          55



          It is necessaryto considerthe site in the context of other development
          opportunities  within the area in order to create economic manageable
          development   areas. For instance is notedthat thereare vacantsitesadjacent
                                            it
          to the site entrance and the potential incorporate
                                               to                              parcels
                                                             other underutilised
          withina development   scheme the sitesituated the rearof existing
                                        for               to                  housing
          off Eastmount  Road. On this basis,it is considered           for
                                                               necessary a delivery
          strategy be identified
                   to            across widerEastern
                                        the            Fringe  area.

   ii.               strategy needto address costsof dismantling the nearby
          Any delivery        will                  the                   of
          ga$ holdersite to remove                         this
                                    the BlastZone affecting as well as various   other
          development  sites withinthe area. lt is understoodthat whilstthe gas holder
                                       it
          couldbe removed.However, will be necessary identify
                                                          to                 to
                                                                   sources fundthe
          costof removal and alsodecontamination.

   ilt.   It is understood                               availablein relationto site
                          that there is limitedinformation
          conditions and additionalinformation be requiredin order that a more
                                               will
          complete review                  as
                         may be undertake to development   viability.

   iv.    The deliverystrategywill also need to addressissuesof site assembly   and
          propose uses across this and surrounding      areas which may include a
          requirement compulsory
                      for           purchase powersto take forwarda comprehensive
          approachto the area which will be necessary $ecure the regeneration
                                                           to
          objectives creating newvibrant
                   of         a           mixedusedevelopment as an extension
                                                                   area
          to Darlington town centre. The proposals                          with the
                                                     will involveconsultation
          existing owners(WardBros)
                 site                   and othersiteowners         the
                                                              within area.

   v,     lt is currently anticipated that the site will be broughtforwardfor mixed use
          development    which will includesome elementsof employment     uses. At this
          stageit is difficult assess capacity viability thesebuttheseshould
                            to         the         and         of                    be
          reviewed soonas possible consultation existing owners.
                    as                   in             with       site

                        Hauqhton
                  125-127
8.3.4 LandAdioininq            Road

The site is situated                position
                    withina prominent        adjacent the Park Gate Junction the
                                                       to                    of
East Coast MainlineRailwaywith existingaccess off HaughtonRoad. The site is
constrained an awkwardshape and also containsa listed buildingand part of the
              by
Darlington $tockton
           to         raiMaytrackbed. The siteis in private
                                                          ownership was subject
                                                                  and           to
an outlineapplication 65 dwellings
                      for           although  the applicationwas not determinedand
           in
withdrawn July2010,

The site has a constrained
                         existing       off
                                 access Haughton  Roadand notethatthereare Tree
Preservation                          site                               across
                                                                  footpath
                                                Thereis an existing
             Orderscloseto the existing entrance.
thesite.

         for                             reuseshouldincorporate following;
                  forward sitefor economic
A strategy bringing     the                                   the

   i.     Whilst the site with the benefit of any planning consent for residential
                         is
          development likelyto be an attractive    proposition housebuilders,is noted
                                                              to               it
                         associated
          that liabilities          with the existing             and track bed will be a
                                                     listedbuilding
          concernto any interested     partiesconsidering site. On this basis it is
                                                           the
          considered   that a development  briefshouldbe prepared the site whichwill
                                                                    for
          identify areasfor development also identify
                  the                         but              how it is proposed that the
          listedbuilding                                                           for
                          shall be dealtwith in the future. Optionswould include the



                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011
                                          56


                   of           from the area to be sold, an agreedschemefor the
          exclusion the buildirtg
          restoration the building the paymentof a Section106 or other form of
                    of            or
          payment the building's
                  for           futurerestoration.

   ii.                                                         however;a full site
          lt is noted that there is a desktop site investigation
          investigation needto be undedaken orderto
                      will                   in         provide        to
                                                               certainty interested
          Parties.

   iii.   A development    brief should be prepared the site to providecertainty
                                                    for                            to
          interestedparlies.The development wouldaddress
                                              brief               issuessuchas access
          into the site from HaughtonRoad, Tree Preservation       Orders,dealingwith
          footpaths and the potentialrequirement a GreenCorridor
                                                for                         the
                                                                     through siteas
          well as providing approach dealing
                           an           to       withthe listedbuilding,The completed
          development   briefwouldthen provide opporlunity the site to be formally
                                               the            for
          marketed. lt is noted that there is the opportunity the site to be jointly
                                                              for
          marketed conjunction the formerBlacketts
                    in             with                    BrickWorkssite (NLUDRef:
          135000008)   whichwouldofferany interested partya moresignificantopportunity
          and could, therefore, of interest larger
                               be          to       housebuilders.

8.3.5 RiseCarrWestWorksSite

The sitecomprises formerCorusSteelworks
                     a                    whichhas now beendemolished sitelevel
                                                                         to
withthe site now beingmarketed industrial
                               for        purposes the current
                                                   by                   St.
                                                                 owners, Modwen,
in association adjoining
               with       siteson the Faverdale         Estate.The existing
                                               Industrial                  accessto
the site is restricted HoneyPot Lanealthough
                      via                     notethatthereis the potential create
                                                                          to      a
new accessto the site throughan extension SamianWay on the Faverdale
                                          of                                Industrial
Estate whichwouldsignificantly
                             improve access the41(M).
                                           to

Faverdale represents of the majormostpopular
                     one                       industrialestates      the
                                                                serving Darlington
areaand has attracted               suchas Aldithrough availability largeservice
                       majoroccupiers                   the          of
sitescloseto the 41(M). The subjectsite has the abilityto incorporate rail freightlink
                                                                    a
withinone mileof the EastCoastMainline represents of the few opportunities this
                                      and           one                        of
                   this
scaleto incorporate facility.

It is notedthat St. Modwenhave made representations relation a changeof use to
                                                   in       to
mixed  development,                   for
                            residential, the site.
                    including

             LocalBrownfield
The Darlington                                                        site
                                  wouldsupport regeneration the subject
                           $trategy          the          of
as follows:

   i.     The strategywould identifythe former Rise Carr Works as an important
          employment and seekto resist
                    site                          of
                                       anychange useto residentialpurposes.

          The strategy    shouldseekto prornote sitefor rail related
                                                  the                   purposes.Demand
          for suchusesfrom majorinward       investors demonstrated the recent
                                                       is              by           enquiry
          by Hitachi a majornew sitewithin NorthEastwith a requirement a rail
                       for                        the                              for
          link. Discussions     with largeragentsindicate    that many major occupiers  are
          seekingthe flexibility a potential
                                    of           future rail connection when selecting new
          sites. lt is alsoproposed seekto ensure
                                       to               thatthe proposed to Samian
                                                                         link          Way
          is provided soon as possible
                         as                   whichmay include    the potential
                                                                              use of ERDF
          fundingin conjunction      with DarlingtonBorough   Councilor the potentialuse of
          Local Authorityresources be invested
                                          to              on a joint venture basis with the
          Authoritybenefiting     from a proportion the uplift in site value of future
                                                      of
          development      profits. The site may be fully incorporated withinthe Faverdale



                 Darlington                     -
                                         Strategy November2011
                           LocalBrownfield
                                          57


          lndustrialHstateas opposedto providing self containedarea with an inferior
                                                a
          highways connection.

   iii.   Darlington shouldwork with the developer promotethe opportunity
                       BC                                to                         to
          inward          including full investigation to the ability deliver raillink
                  investors       a                 as              to      the
          in to the site,

8,3.6 Siteoff HeronDrive

The site comprises formerclay pit whichhas subsequently
                  a                                      beentippedwith wasteand
morerecently                 depot. The site hasthe benefit full planning
             usedas a building                            of                  for
                                                                        consent
residentialdevelopment,including Section106 agreement, However,in the light of
                                a
       market
existing      conditions, ownershavenotprogressed sitedevelopment.
                        the                          the

Siteconditions associated abnormal
                and              site           costsare well understood the site owners
                                                                          by
who havetakenthe decision to proceed the scheme the current
                              not            with             at                     on
                                                                           timeeither the
basisof project   viability alternatively they are unable secureproject
                          or             as                  to                      at
                                                                              funding the
current                                                                        of
        time. lt is notedthat the siteadjoins brownfield in the ownership Darlington
                                              a            site
BC whichis also included     withinthe NLUDregister                  utilised openspace
                                                      and is currently       as
and playareafor the localhousing     estate.lt is notedthatthereis somepotential the two
                                                                                 for
sites to be jointly broughtforward,subjectto addressing requirements the local
                                                               the              of
community relation playareaprovision.
           in          to

It is recommended  that the followingsteps should be undertaken promoting
                                                               in        the
regeneration the subject
           of           site;

   i.     Enquiries                                                   the
                                                site ownersto ascertain current
                   shouldbe madewith the existing
          statusof the schemeand whetherthere are existingproposals commence
                                                                   to
                                   to
          workand if notthe barriers development.

   ii.    A reviewshouldbe undertaken to the statusof the adjoining and in the
                                         as                             site
          event that the adjacentsite may be releasedfor new development      then to
          ascertainwhetherthere are benefits the joint development the two areas.
                                             in                      of
          Benefitsmay include  improved layouts and a morecomprehensive    approachto
          development  withinthe areawiththe potentialintroduction a secondmeansof
                                                                 of
          access.

   iii.   Subjectto benefitsof joint developmentbeing identified               the
                                                                then to consider
          basis on which a joint development(potentiallythrough joint venture
                       may
          arrangements) be undertaken      whichwouldrequire have regardto local
                                                              to
          government requirements relation procurement bestvalue,
                                  in       to           and

             House
8.3.7 Hopetown

Hopetown  Housecomprises siteof theformer
                         the                         of
                                               offices Whessoe              whichhas
                                                                  Engineering
                                                     of
now beendemolished the site now has the benefit detailed
                    and                                         planningpermissionfor
          development.The site is privatesectorowned. A Section106 agreement
residential                                                                      has
nowbeenentered  intoby the siteowners and it is assumed the schemeis notcurrently
                                                        that
proceeding the basisof eitherviability the developers
           on                         or                                      for
                                                        ability securefinance the
                                                               to
delivery the scheme.
       of

It is questionable
                 whetherthe approved developmenthousing                 in
                                                       mix is appropriate current
market  conditions a review
                 and                                                       in
                             may be considered conjunction the siteowners this
                                             in          with
regard,



                 Darlington Local Brownfield Strategy - November 2011
                                           58



In relation the Local Brownfield
             to                                                         site
                                       promoting regeneration the subject
                                Strategy       the          of
                     as
then it is recommended follows;

   i.     To approachthe existingsite ownersto secure an understanding to the
                                                                        as
                statusof the scheme
          current                  and whenit is anticipated a starton sitewill be
                                                           that
          undertaken.

   ii.    lf the ownersindicate theyare not currently a position consider early
                              that                  in         to          an
          start, understanding associated
                an              of       issues shouldbe obtained if possible.

   iii.   Darlington BC should considerthe abilityto addressany of the constraints
          identified promoteearly delivery
                   to                       which may includea reviewof affordable
          housing contribution (currentlyby way of financialcontribution off site
                                                                       to
          provision)togetherwith any other planningconditionswhich have a financial
          implicationuponthe scheme.

   iv.                      furtherdetails to the basison whichthe ownersare not
          $ubjectto receiving             as
          currentlyprogressing schemethen the LocalAuthoritymay wish to raise
                              the
                  routes support developability
          potential     to        site           whichmay include following;
                                                                 the

          a. Assisting developer $ecure
                     the        to       project
                                               funding,
          b. Consideringdevelopment for the scheme.
                                   mix
          c. Considering potential introduce
                        the        to                        fundingto improve
                                              land remediation
             project
                   viability,

                    Wav - Former
8.3.8 I St, Cuthberts                     Garaqe
                               EvansHalshaw     and Showroom

The site is a formercar showroom        in
                                 situated a highlyprominentpositionfrontingDarlington
InnerRing Road and is regarded a key site in promoting Darlington
                                  as                      the            town centre
Eastern                            quarter the town. The site has beendemolished
        fiinge area and the cultural      of                                      to
slab leveland a planningbriefwas produced the futuredevelopment the site
                                           for                     of        in 2006
indicating site's suitability mixed use development
           the               for                      purposes. The site has been
vacant the pa$t5 years.
       for

It is notedthatthe siteowners(Pendragon                         a
                                            Group) seeking minimum
                                                   are                     salesvalueof f2
millionand this significantlyexceedsthe level of offersreceived uses which include
                                                                    for
outlineproposals hotel,cinema,officesand residential mixed use schemes.
                   for                                        led                     The
         are
owners currently      usingthe sitefor car parkingpurposes  (withoutplanning permission)as
an interim  solution. is notedthat the site is withinan area subject flood riskwhichwill
                     lt                                              to
impactupon any development        proposals  within this area. The site is considered   an
important  element the development the Eastern
                   to                  of             Fringe area. The siteis alsoimportant
              of
in the linking the culturalquafter the existing
                                   to            towncentre   area.

              the                                                         of
                                    Strategy seeking securethe regeneration
In considering role of the Brownfield      in       to
thesubject thenit is proposed thefollowing
          site                that          stepsshouldbe undertaken;

   t.     Dialogue shouldbe established the site ownersto obtainan understanding
                                      with
                            proposals the site. lt shouldbe emphasised the site
          of theirdevelopment        for                              that
                      as
          is regarded an important                                 of the Eastern
                                    elementto the wider regeneration
          Fringe area.

   il.                  for       usageof the site for car parking
          Any application temporary                               purposes
                                                                         should
          be considered replaceothercar
                       to               parkingprovision the town centrewhich
                                                          in



                 DarlingtonLocalBrownfield$trategy- November 2011
                                         59


          may be removed  through redevelopment key sitessuchas the Feethams
                                 the             of
                                                                           of
                                                                regeneration
                                               term comprehensive
          site. The focusshouldbe uponthe longer
          thisarea.

   iii.                                                         in
          Darlington shouldseek to work with the developer terms of seeking
                     BC                                                          the
          mostappropriate   usesfor this areawhichwouldgenerate acceptable
                                                                  an         levelof
                                                                       to        the
          returnto facilitate disposal the siteand with this information cortsider
                            a          of
          acceptability otherwise planning
                      or           in         terms.

   rv.                                            suitabledevelopers work with
                      shouldbe given to identifying
          Consideration                                             to
          PendragonGroup- potentially a joint venturebasisto actively
                                    on                               promotethe
          scheme,                                            of
                 Thiscouldinclude revisiting someelements higher
                                the         of                       valueuses.

   V.     In the absence agreeing routethrough securing earlydevelopment
                         of         a          to      the               of
          the site,then Darlington may consider potential acquire site
                                  BC           the      to       the   as a
          key regeneration andto secure subsequent
                          area             the      development highquality
                                                               for
          andappropriate usesfor the site.

   vi.    In the medium term,the preparation a development for the Eastern
                                            of              brief          Fringe
                                       to        strategic assembly
          may give risefor the potential undertake        site     and the use of
          compulsory  purchasepowerswhere sites cannot be acquiredby agreement
          wheresitesmay be acquired valueas opposed the vendors
                                      at               to         bestvalue.

                               Faverdale
                         Estate.
                lndustrial
8.3.9 Vantaqepoint

The site comprises formerwarehouse
                    a                   buildingwhichhas now beendemolished thewith
site in the ownership Spencer
                      of        Holdings  Limited.Spencer           are
                                                          Holdings currently    seeking
to dispose the freehold an unconditional
            of            on                 basisand are seeking  "finaland best"offers
from interested  partiesin conjunctionwith an adjoining site situatedto the rear of the
Vantagepoint   Industrial    whichis in the ownership ArgonProperties
                        Estate                       of                  Limited.

It is notedthat SpencerHoldings                  Limitedhave soughtto promote
                               and ArgonProperties                            the
two sitesjointly residential
                for                                                       closeto
                            purposes the basisthatthe two sitesare situated
                                    on
theentrance the Faverdale
             oi                          withnewresidential
                                    Estate
                           lndustrial                      development the west.
                                                                       to

                                      of                                   it
                                                                   Strategy, is
                                                     LocalBrownfield
In considering abovesite in the context the Darlington
              the
proposed the following
         that                      be
                      stepsshould undertaken;

   i.                BC
          Darlington should                           site
                                 confirm the existing owners
                                          to                     and any otherinterested
          parties that the Vantagepoint           estateis regarded a key employment
                                          industrial               as
          areaand any changeof u$eto residential retailpurposes)
                                                     (or              wouldbe strongly
          resisted,lt is likelythat the LocalAuthority seeka number enquiries
                                                      will             of          from
          partiesinterested development
                             in               (GVA as agentsfor SpencerHoldings    have
          noted that most enquiriesare from partiesseekingresidential   development  on
          the site)and thatthe LocalAuthority  wouldbe keento workwithany purchaser   to
          promote development industrial
                   site               for         purposes.

    ii.   In the eventthat SpencerHoldings not sell the site then the LocalAuthority
                                           do
          shouldseekto workclosely  withthe developer seekto identify
                                                     to                     in
                                                                      routes which
                                                     purposes. Routes
          the site may be broughtforwardfor industrial                 which may be
          considered shallinclude following;
                                the




                                                 -
                 DartingtonLocalBrownfieldStrategy November 2011
                                         60


          a. Potential         of              funding a funding
                     utilisation landreclamation      as             to
                                                                regime support
             the remediationworks required        removal the concrete
                                          including      of           slab and
             foundations wellas introduction a newsiteservice
                        as                  of               road.

          b. Investigation the use of ERDF funding to meet any gap funding
                           of
                          for                                standing
             requirements built development the LocalAuthority
                                         with                        within
                                  Body
             the roleof Accountable

          c. Consider potential
                     the          funding profile the developer bringing
                                                of             in       forward this
             scheme and to considerwhether Darlington     BC may take any role in
                     any part of the site subject receipts
             acquiring                           to        beingreinvestedwithinsite
                                     of
             preparation an element speculative
                       or                           development.

   iii.   In the eventthat Spencer   Holdingscomplete disposal the sitethenthe Local
                                                       a        of
          Authority shall seek earlyengagement    with the purchasers seek to agreea
                                                                     to
          ptanning  brieffor the sitewhichwouldinclude                    of
                                                        someconsideration siteviability
          issues. Once again the Local Authority                             as
                                                     could give consideration to any
          fundingsupportwhich may be provided outlinedabove but also consider
                                                    as
          whether site has any potential tradecounter
                   the                      for              usesfor instancewhichmay
          seekto improve   overall project
                                         viability.

                FourRiqqs
           House,
8.3.10Orchid

Orchid Houseis located closeto Darlingtontowncentre withinan areaof mixeduseswhich
include industrial,office, residentialas well as various open car parks pending
                The
redevelopment. existing             is       vacant
                            building currently                     ownershavebeen
                                                    and the existing
considering proposalsfor the site for residential led mixed use development. The
administration $outhernCross has resultedin the major office occupierwithin the
              of
immediate  area vacatingtheir formerpremises Northgate
                                             at           Housewhichwill resultin a
          quantity goodquality
significant       of            offices             to
                                       beingavailable the market.

Orchid House is a scheme which needs to be consideredin the context of wider
regeneration proposals the surrounding
                      in              area includingthe impactof the town centre
Conservation on the site and particularly existing
             Area                      the        properties
                                                           frontingSun Street,In
          of                           Strategy is proposed the following
                         LocalBrownfield
the context the Darlington                     it          that            steps
      be
should undertaken;

          A dialogueshould be undertaken with the existingowners to obtain a full
                                                             and to seek where
          understanding to the currentstatusof their proposals
                      as
                 to                regarding proposed of uses.
          possible obtaininformation       the          mix

   il.    To obtaininformation regarding current
                                       the                          to
                                                          constraints development
                                                 identified
                                     by
          whichhave been highlighted the site owner/their                     the
                                                          agentsand to consider
          abilityto meet these throughrevisions the proposed
                                              to             schemeand any other
          measures  whichmay be appropriate,

   iii.   To consider subject
                      the      scheme  withinwider proposals the area whichmay
                                                             for
          give confidence the site ownersor prospective
                          to                                        regarding
                                                           developers         the
          regeneration the area in the short and medium term. This will include
                       of
                    proposals
          residential                                                      of
                                        frontingSun Street)and consideration the
                             (potentially
                for
          market commercial/leisureproposals  withinotherelements OrchidHouse.
                                                                 of

   iv.                     of
          An understanding development viability enablea fuller understanding
                                               will                          of
          any potential          whichmaysupport
                      interventions              project      whichmay
                                                       delivery         include



                 DarlingtonLocalBrownfield        -
                                          Strategy November 2011
                                         61


          gap fundingof commercial                                    foruard
                                  elementsof the schemeor the potential
                               elementsby a HousingAssociation other
          purchaseof residential                              or      relevant
          body.

8.3.11Former        Works
           Torrinqton

The premises  comprise majorformerfactorysite which is situated a prominent
                       a                                           on              site
       Yarm Roadadjacent the existing
fronting                   to            McMullen  Road IndustrialEstate.The existing
siteowners  havepreviouslysecuredplanning approvalforhoteland leisure usesas partof a
mixeduse schemeincorporating   industrial
                                        development.  The site is situated adjoiningan
existingnon-food retailwarehouse  park and the site ownersare now                to
                                                                     understood be
proposing promotethe site for furthernon-food
           to                                   retailuses in the light of an identified
shortfall provision
        of         withinDarlington,

The site is a key employment whichis situated
                                site                directlyopposite majorCummins
                                                                    the
factoryand is seen a$ an idealarea for the extension the successful
                                                       of               McMullen Road
IndustrialEstate. lt is, therefore, con$ideredimportant                        Works
                                                       that the formerTorrington
                   for
shouldbe retained employment                                                   site
                                     uses to provide well locatedand accessible to
                                                    a
meetthe futurerequirements industrial
                             of         companies  withinDarlington.

                   the                            area,it is proposed follows;
In termsof promoting futureregeneration the subject
                                      of                            as

   i.     Darlington shouldclearly
                   BC             identify the site ownersthat they wouldstrongly
                                          to
          opposeany proposals
                            seeking retailuseson siteand this areawill be protected
                           site,
          as a keyemployment

   ii,                                                     shouldprogress
          Discussions the site ownersor theirrepresentatives
                      with                                               matters
          in termsof consented                elements the project
                               hoteland leisure        of         and whetherany
          demarrd has beenidentified. is understood theseelements the scheme
                                      lt           that             of
          were specifically consentedon the basis that they would cross subsidise
                   elementsof the scheme. A full understanding viabilityissues
          industrial                                             of
          associated                                                       to
                     with the existingschemewill enablea betterunderstanding be
          obtained development
                  of             constraints,

   iii.   On the basis that a more completeunderstanding site viabilityissuesis
                                                        of
          obtained                       consent not be pursued);
                 (andthat a retailplanning     will              then Darlington
          BC mayconsider number potential
                         a         of                 as
                                           interuentions follows

          a. To considerthe potential                     fundingto addresssite
                                    use of land remediation
             conditions                introduction a new site accessto create
                       and the potential          of
             serviceddevelopmentplots.

          b   To consider potential supporting developer
                         the        for          the                           for
                                                            withinan application
              ERDFgap funding support element speculative
                               to       an          of                      on
                                                               development the
              scheme. Shouldthe developer comprise smallor mediumenterprise
                                                    a                        then
                                                                  rates to support
              this would providethe oppotlunity higher intervention
                                              of
              viability.

          c. Consideration  may be made towardsthe Local Authorityacquiringthe
             freehold part of the site on the basisthat such investment
                      of                                                 was reutilised
             withinreclamation service
                                and        workswhichwill be required  to support early
             site delivery.Any investmentmay also be considered  ort the basisof future
             additional rates receivable the LocalAuthority the event of such an
                                       by                     in
             investment  beingmade.



                 Darlington Local Brownfield Strategy * November 2011
                                         62


                                                    beingformally
         d. lt is notedthat the site is not currently            marketed.Darlington
            BC may work with the site ownersin terms of promoting      the site as an
            opporlunity industrial
                        for            development                        or
                                                    eitheron a speculative bespoke
                                            new
            basiswith a viewto attracting employment       relatedinvestmentwithinthe
            area.

8.3.12Former         Frimarv
           $prinqfield     School

                                    fieldswiththe siteof the formerschool
The sitecomprises formerschoolplaying
                of                                                      buildings
redeveloped provide new affordablehousing under a joint development
            to                                                           between
Darlington andthe HCA,
          BC

The playing  fieldshad the benefitof outlineplanning      for
                                                   consent residentialdevelopment
although has recently
         this            expiredand notealsopotentialrequirements the provision a
                                                               for            of
playareato servethe requirements the localcommunity. site is withinthe ownership
                                   of                  The
of Darlington BC.

It is recommended the following
                 that            stepsshouldbe undertaken bringforward early
                                                        to            the
                           site;
regeneration this brownfield
            of

   t.    On the basisthatthe previousphasewas undertaken a jointventure
                                                       as              with HCA
                  partof the Borough
         to deliver                         affordable
                                    Council's                           then
                                                           requirements, the
                                                     housing
         Local Authorityshould consideran approachto HCA to seek their views
         regarding extension the programme incorporate playing
                   an          of             to         the       fieldsarea.

   ii.   It is proposedthat a development  briefbe provided relation this areawhich
                                                           in       to
         will requireconsultation                     Spoft Englandand the Highways
                                  with local residents,
         Departmentand any other relevantgroups in order to provide a clear
         development  proposal the site and to removeany potential
                                for                                              with
                                                                       uncertainty
                 to
         regard futureuses.

         Following approval such a briefthen it is recommended an outline
                  the       of                               that
         planning                                                      as
                 consentshouldbe secured the schemeby the LocalAuthority
                                        for
         applicant.

   iv.   The scheme   maythenbe marketed  eitherdirectly the LocalAuthority under
                                                       by                 or
         the terms of the PublicLandlnitiative referred above. The scheme
                                             a$         to                   could
         eitherbe offeredas a singlesite or potentially a phasedbasis subjectto
                                                       on
         detaileddesign.

   V,    Subjectto development  viability, LocalAuthority
                                         the              may considerundertaking
         the schemeon a joint venturebasissuch that eithera fixed levelof receipt is
         deferred untilan agreedpointwithin development
                                           the            process  (suchas saleof a
         ceftainnumberof units)or alternatively site value is linkedto totalreceipts
                                               that
         and therefore potentially abovean agreedminimum
                       will         vary                                      of
                                                                  level. Either the
         above mechanisms    are regardedas reducingdeveloperrisk and would be
         attractive potential
                   to         development  partners who may not otherwise considera
         scheme thisscalewithin Salters
                 of               the        LaneSoutharea.

   An Action                                   sifesrs set ouf in AnnexlV.
            Ptanin relatiort eachof the selected
                           to




                DarlingtonLocalBrownfield        -
                                         Strategy November 2011
                                            63


9.0                   AND
             MONITORING EVALUATION

9.1          Performancelndicators

It is considered important
               an        element                                updated
                                               shouldbe regularly
                               that the Strategy                       and
maintained a "live"document opposed a statement a momentin time whichwill
          as               as        to          at
quicklybecome outdated.

               appropriate the LB$ will be reviewed a regular
It is considered           that                      on        basisto updatethe
factsand figures that have been presented
                                        from varioussources, orderto ensurethat it
                                                           in
represents robustand up to date position informthe variousauthorities
            a                              to                           approach
towards  brownfieldland,

      to                           and                             to
                                              mechanisms be updated help
                          strategies monitoring
Related this,the supporting                            will
monitor takeup of brownfield andtherefore
      the                    land         provide measure the success the
                                                a       of          of
LB$. The followingprovidesa commentary how each documentor processwill be
                                       on
reviewed;

      i.       Annual Monitoring      -
                                Repori TheAMRwillbe published December eachyear
                                                                in         of
               and will demonstrate variousauthorities
                                  the                    performance              and
                                                                    againstnational
                                             including
               regionaltargets and indicators,          the progressagainstthe housing
               trajectory the national
                         and                    target.
                                       brownfield

   ii.         National                  -
                       Land Use Database The Councils submitits NLUDreturnto the
                                                        will
                     &
               Homes Communities   Agency                       to
                                           annually appropriate, ensure
                                                  as                     that brownfield
                                                                           sitesmaybe
               landstatistics keptup to dateand the stockof vacantbrownfield
                            are
               assessed across borough.
                               the

      iii.                         -
               AnnualHousingRepoft This reportprovides factualupdateof the housing
                                                        a
                                                                               of
               landsupplyposition of l"April eachyearand details characteristics the
                                as                             the
               year'shousing           and
                            completions overall  supplyincludingsitesunderconstruction
               andwithplanningpermission.

      iv.      Sfrategrc                                 -
                                               Assessment The SHLAAwill continue be
                         HausingLandAvailabilify                                  to
               reviewed              annually take account the generalhousing
                         and published       to             of                  market
               and changing  circumstances particular
                                         on          sites,suchas a sitegainingplanning
               permission commencing
                          or                                                    of
                                        construction. updatealso takesaccourrt new
                                                    The
               sitesthat have comeforwardor havethe potential comefonruard were not
                                                            to            that
               included previous
                       in                of
                                  versions the SHLAA.

   v.          Contaminated    Land - The Environmental  Services office of the various
               authoritieswill continueto assessand respondto site investigation repofts
               submitted supportof planning
                         in                              and
                                              applications will keep land contamination
               records to dateas sitescomeforward, ensure
                      up                             to      that up to dateadvicecan be
                                       risksandchallenges sites.
               givenout on the potential                to

9.2          RiskAssessment

Risks

                     for                   sites.
                             ownedresidential
             No demand Council

                  continues worseni.e.no demand.
             Market       to




                     DarlingtonLocalBrownfield      -
                                             Strategy November 2011
                                             64


       No co-operationfrom private owners.

       Failureto secure ERDF to supportschemes.

   .                               to       strategy.
                Darlington resources implement
       Inadequate        BC

Mitiqation

   r          an          marketing
       ldentify appropriate          strategy the promotion Council
                                            for             of       ownedassets
       eitheron a phasedbasisor if appropriate a portfolio sitesto ensuremaximum
                                             as          of
                to
       exposure the market.

       Consider                            in
                         arrangements assist scheme
              JointVenture         to              delivery.

       For Councilowned land consider deferred
                                    a         paymentbasisto assistwith project
       cashflow.

       Undertake            to
                 discussions ascertain                        fundingand if
                                      availability ERDF/JESSICA
                                                 of
               mechanisms promote
       available          to      suchfundsto the market.

                                                             fund based upon
       Consideration the Councilto set up a capital investment
                   by
       prudential
               borrowing.

                                  for                         tax        to
                                                     to utilise allowances
       Exploration the opportunity landowners/developers
                  into
       offsetcostsof sitedecontamination,




                 Darlington                     -
                                         Strategy November2011
                           LocalBrownfield
                                         65



10.0 coNcLUsroNs
         comprises important
Darlington         an           town due to its situation the Gatewayto the Tees
                                                        at
Valleyand NorthEast. The situationcloseto the 41(M),the EastCoastMainlineRailway
andthe NorthSea portsof Hartlepool Teesport
                                 and          meansit has beena popular
                                                                      locationfor
      related
railway     manufacturing morerecently
                          and                               uses.
                                                      related
                                           distribution

However economic
        the          recession                                 on
                                                         impact the economy
                              since2008hashada significant                  of
the areaand parlicularly the property
                       on                      industry
                                     development                        slowing
                                                       with housebuilding
andspeculativecommercial            at
                         development a standstill.

                              towncentre
The resulthas beenfor important           schemes be put "on hold"suchas the Oval
                                                 to
Shopping Centre                                                TownCentreFringe
                                              suchas the Eastern
                                    initiatives
                and widerregeneration
scheme become
       to        lessviable deliverable theshodor medium
                           or           in                  term.

Thechange   withinthe variouspublicsectorfundingprogrammes resulted lowerlevels
                                                          has        in
of publiciector fundingsupportwith the disbandment the
                                                   of  RegionalInvestmentAgencies
andtheirvarious  fundingprogrammes the
                                    and     provision manyprevious
                                                    of            functions Local
                                                                          to
EnterprisePartnerships   who have limited financial resourcesto support brownfield
regeneration activity.

There have been two roundsof biddingfor RegionalGrowth Funding. However, isit
understoodthat investment be specifically
                        will            targetedat projectscreatingdirectproject
outputs                 company
       such as supporting       expansion investments createjobs and private
                                         or            to
sectorinvestment opposed site remediation,
                 as       to                       or supporting
                                           servicing            new speculative
development.

The reduction HCA fundinghas seen the Agencyfocuschanging
             in                                          towardsdevelopment
enableand investor opposed grantprovider delivery
                 as       to            or       agency.

Accordingly, is importantfor the Local Authorities take a leadingrole in promoting
             it                                    to
regeneration  activityand Local Authoritiesare requiring be increasingly
                                                        to                 flexibleand
imbginative the use of theirresources
           in                         to promote regeneration        on brownfield
                                                              activity            sites
withina periodof financial constraints.This includes use of Council
                                                    the                assetsand new
funding initiativessuch as CIL or TIF programmes, that any investment
                                                      so                       may be
considered the context potential
           in            of        increased  business rates,New HomeBonusor other
deferredreceipts,

The 12 identifiedsites provide rangeof challenges
                              a                   although notethat each one may be
delivered a standalone project. Each site is withinsingleownership
         as                                                          wherethereare
establishedproposals * manywiththe benefit an existing
                                          of                   consent.The principal
                                                        planning
issuein relation any schemeappears be viability availability financein current
                to                    to            or           of
marketconditions  although severalinstances, ownersare seekingto challenge
                           in                site                               the
       planning
existing        statusof keyemployment                 grounds.
                                       siteson viability

An approach proposed
            is          whichwouldseekto workas closely possible
                                                        as         with site owners
and developers secureas much understanding
               to                              as possible the existing
                                                          of                    to
                                                                         barriers
deliveryand to assist deliverythroughan appropriateminimumintervention  which may
includedeferred                                        pooling assetsand,where
                       jointlyseeking thirdpartyfunding,
               receipts,             of                        of
           to
appropriate, consider selective acquisition
                               site        to promoteprojectdelivery.




                                                 -
                 DarlingtonLocalBrownfieldStrategy November 2011

				
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