CBRE Cwmbran commercial assessment - Eastern Strip Central - final by fdh56iuoui

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									TORFAEN COUNTY BOROUGH
COUNCIL - LOCAL DEVELOPMENT
PLAN
Commercial Assessment of Cwmbran Town Centre
Expansion
Eastern Strip Central
February 2011
CONTENTS
X1    Executive Summary .................................................................... i

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

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

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

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

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

6.    Development Constraints ........................................................ 25
7.    Property Market Assessment .................................................... 30

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

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

10. Mechanisms for Delivery .........................................................70
11. Conclusion and Next Steps ......................................................77
12. Recommendations ...................................................................85
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL

Executive Summary
Executive Summary

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

                                X1.2        TCBC is seeking to bring forward development on the Site to contribute to the
                                            economic prosperity and future regeneration of Cwmbran Town Centre. This is
                                            with a view to maximising employment opportunities and delivering a
                                            comprehensive mixed-use development in a planned and integrated way.

                                X1.3        The report is to inform the long-term development objectives for the Site; to support
                                            the allocation of the site in the LDP; to demonstrate that the allocation could be
                                            deliverable and; to demonstrate that the proposal is viable.

                                X1.4        TCBC set out its vision for the Eastern Strip area within the pre-deposit LDP “Draft
                                            Plan for Cwmbran Town Centre”. This document acknowledged the potential role
                                            of the Eastern Strip as an expansion area for the town centre to the east allowing
                                            commercial uses to integrate and link with Cwmbran Town Centre as a whole.

                                            The Site
                                X1.5        The Site lies approximately 150 metres east of Cwmbran Town Centre and
                                            comprises approximately 13.99 ha (34.57 acres). It has been used primarily for




                                                                                                                                       PAGE I
                                            industrial uses and the majority of the site is in the ownership of ArvinMeritor. The
                                            Welsh Assembly Government, TCBC and Cwmbran Railway Station comprise the




                                                                                                                                       EXECUTIVE SUMMARY
                                            other land owners.

                                X1.6        To the south the Site adjoins land owned by Alfa Laval (leased to Crane Process
                                            Flow Technologies) and beyond this is a vacant area of land owned by Carillion
                                            Richardson which is the former Saunders Valve site. To the north the site adjoins
                                            Stagecoach and the Somerset Road Industrial Estate. The Afon Lwyd lies beyond
                                            the railway line to the east.

                                X1.7        The site is well positioned in relation to its proximity to Cwmbran Shopping Centre,
                                            although the Site is at a lower level, and it presents a significant opportunity to act
                                            as the major gateway for both road and rail travellers with prominence to St
                                            David’s Road and Edlogan Way.

                                X1.8        Grange Road is within the site boundary and runs parallel to St David’s Road and
                                            provides access to the ArvinMeritor, Assembly Government, Alfa Laval and Carillion
                                            Richardson properties and sites. Extensive landscaping between Grange Road and
                                            St David’s Road also currently provides a further physical barrier in terms of
                                            integration with and linkage to the town centre.

                                            Constraints
                                X1.9        The Eastern Strip Central Site is burdened by a number of development constraints
                                            that affect the viability of potential land uses and also the timing as to when the site
                                            can come forward. The development constraints include the following:
                                                 a number of potential sources of contamination relating to the current and
                                                 previous industrial uses of the Site.  There will need to be significant
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Executive Summary

                                                 remediation to allow the Site to come forward for redevelopment and some
                                                 uses may be unviable.
                                                 TAN15 Development Advice Maps (Development and Flood Risk ’09) show
                                                 much of the ArvinMeritor site (the middle and southern section) as Flood Zone
                                                 C2 due to the risk of fluvial flooding from the Afon Lwyd. A small area of the
                                                 middle and southern section is identified as Zone B defined as known to have
                                                 flooded in the past. The northern car park section is primarily defined as Zone
                                                 A with little or no risk fluvial flooding. A small part of the northern section
                                                 shown as Zone B has been known to have flooded in the past. TAN15 states
                                                 that the emergency services and highly vulnerable forms of development, such
                                                 as residential, would not be permitted within Zone C2.
                                                 there are a number of utilities running alongside and through the Site including
                                                 low voltage cables; underground cable routes originating from sub-stations to
                                                 the north and south of the Site; underground BT cables; low and medium
                                                 pressure gas pipes; and water supply pipes and foul/storm sewers.
                                                 both St David’s Road and Grange Road create severance between the Site and
                                                 Cwmbran Shopping Centre.
                                                 there are a number of landowners to deal with and achieve consensus as to
                                                 emerging development proposals. This will also impact on the timing of the
                                                 release of sites due to existing occupation.




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                                X1.10       Both the commercial and residential property markets peaked in the summer of
                                            2007 and since then land values have fallen significantly and the occupational




                                                                                                                                      EXECUTIVE SUMMARY
                                            market has also contracted. The lack of availability for mortgage and development
                                            finance has stalled many development schemes. The implications for the Eastern
                                            Strip Central are that some commercial uses may not generate a positive land
                                            value and a long-term view will need to be taken due to the difficulties facing
                                            various property market sectors.

                                            Emerging Development Proposals in Cwmbran
                                X1.11       The PruPIM land on the eastern side of Cwmbran Shopping Centre between
                                            Glyndwr Road and St David’s Road may be identified as a Strategic Action Area in
                                            the LDP to allow for an outward-looking expansion of Cwmbran Shopping Centre
                                            for additional comparison retailing and could integrate with the Eastern Strip
                                            Central. Retail capacity studies have highlighted that Cwmbran Shopping Centre
                                            could accommodate a net increase in comparison goods sales area.
                                X1.12       Sainsbury’s has received planning permission to extend their existing store (subject
                                            to signing the Section 106 Agreement) which sits to the immediate west of
                                            Cwmbran Shopping Centre.
                                X1.13       The Eastern Strip North may be defined as a Strategic Opportunity Area in the LDP
                                            and may come forward for comprehensive redevelopment in the future although
                                            this is not currently being actively promoted by the main landowner, the Assembly
                                            Government.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Executive Summary

                                X1.14       The Eastern Strip South may also be defined as a Strategic Opportunity Area and
                                            this comprises land in the ownership of Alfa Laval (Cranes) and the Carillion
                                            Richardson site. The Carillion Richardson site has the benefit of an extant planning
                                            consent for a DIY retail store.
                                X1.15       A planning application has been received in respect of the ArvinMeritor northern
                                            car park site from Morrisons for a new food store of circa 7,250 sq m (78,000 sq
                                            ft) gross. GVA’s recent sequential analysis has reviewed a number of sites in and
                                            around the town centre and commented that this site would be likely to act as a
                                            stand-alone retail destination unless land to the west, i.e. land between Grange
                                            Road and St David’s Road, is integrated into the development proposals.

                                            Viability/Development Options
                                X1.16       The commercial assessment undertaken has sought to be commercially realistic in
                                            identifying a deliverable development option for the Site. Undertaking a residual
                                            site value exercise in today’s current market demonstrates that some preferred uses
                                            such as employment-led development are unlikely to generate positive land values
                                            unless there is some cross-subsidy from higher value land uses to bring the site
                                            forward including infrastructure provision.
                                X1.17       To achieve a comprehensive development, there needs to be an “economic driver”
                                            to allow the overall development proposals to be self-funding. The inclusion of a




                                                                                                                                       PAGE III
                                            food store within the proposals would allow a substantial land value to be realised
                                            and therefore used as leverage to cross-fund other development uses across the




                                                                                                                                       EXECUTIVE SUMMARY
                                            Site as part of the comprehensive strategy.
                                X1.18       TCBC will therefore need to consider the regenerative benefits that could flow from
                                            locating a food store in a suitable position on the Eastern Strip Central (albeit better
                                            integrated to the town centre than the current Morrison’s proposal). Any planning
                                            strategy related to a new food store should allow for maximum leverage to benefit
                                            wider regeneration ambitions.
                                X1.19       The creation of a new “office park” within any development proposals would
                                            provide the maximum benefit to Cwmbran in terms of future vitality and viability.
                                            The town centre would be able to benefit from the spending power of the office
                                            workers in terms of additional usage of retail and leisure provision together with
                                            offering a sustainable transport solution in terms of proximity to the railway and bus
                                            stations.
                                X1.20       The office park could provide an opportunity for TCBC to relocate from County Hall
                                            in a bespoke building in a prominent town centre location close to public transport
                                            links. There could also be the opportunity to co-locate with other public sector
                                            occupiers such as Gwent Police who we understand also have an office
                                            requirement. JESSICA RIFW monies could be used for enabling employment uses
                                            and infrastructure and levering in additional public sector investment.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Executive Summary

                                X1.21       We have suggested three development options. All of the three options include a
                                            foodstore in a form that is integrated with and linking to the town centre to enhance
                                            vitality and viability. If a foodstore is not a component of the development, on the
                                            basis of current market values and demand the Site would not be able to generate
                                            an overall positive site value.
                                X1.22       A summary of the three options is as follows:
                                                 Option 1 – comprehensive proposals that will deliver regeneration benefits with
                                                 the retention of existing employment on site but in modernised premises
                                                 together with the creation of an office development site for quality new offices.
                                                 It is assumed that ArvinMeritor will remain on site in reconfigured premises. A
                                                 new foodstore will provide a value driver to cross-fund development.
                                                 Option 2 – assumes ArvinMeritor vacates and disposes of its land interest to
                                                 allow the creation of retail warehousing and office development on the mid
                                                 and southern sections of the Site. A new foodstore will provide a value driver to
                                                 cross-fund this development. Delivery will be dependent on onward disposal to
                                                 a private sector facilitator such as a developer.
                                                 Option 3 – this option assumes ArvinMeritor vacates and disposes of its land
                                                 interest and that the food store development locates on the mid-section of the
                                                 Site. Retail warehousing and office development is assumed on the southern
                                                 part of the Site with residential development on the northern area as this part of




                                                                                                                                                PAGE IV
                                                 the Site does not have contamination or serious flooding issues. Delivery will
                                                 be dependent on onward disposal to a private sector facilitator such as a




                                                                                                                                                EXECUTIVE SUMMARY
                                                 developer.
                                X1.23       A summary of the development content for the three options is as follows:
                                                         Option 1                   Proposed Mix
                                             Area 1                                 Retention of station

                                             Area 2 & 3                             Foodstore 78,000 sq ft gross with petrol filling station
                                             ArvinMeritor           park
                                             ArvinMeritor north car park
                                             and linking area to include
                                             Grange Road and open
                                             area

                                                    mid-
                                             Area 4 mid-section, former             New offices with car parking - 75,000 sq ft net of which
                                             ArvinMeritor factory                   circa 50,000 sq ft net public sector and 25,000 sq ft net
                                                                                    private sector developed in phases.
                                                                                    Hotel with car parking

                                             Area 5 southern area                   Refurbishment/redevelopment of ArvinMeritor factory
                                                                                    Refurbishment of WAG offices
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Executive Summary


                                             Option 2                               Proposed Mix

                                             Area 1                                 Retention of station

                                             Area 2 & 3                             Foodstore 78,000 sq ft gross with petrol filling station
                                             ArvinMeritor north car park
                                             and linking area to include
                                             Grange Road and open
                                             area



                                                    mid-          former
                                             Area 4 mid-section, former             New offices with car parking - 75,000 sq ft net of which
                                             ArvinMeritor factory                   50,000 sq ft net public sector and 25,000 sq ft net private
                                                                                    sector developed in phases.
                                                                                    Hotel with car parking

                                             Area 5 southern area                   Small business units – 10,000 sq ft
                                                                                    Retail warehousing – 100,000 sq ft
                                                                                    Refurbishment of Welsh Assembly Government offices

                                             Option 3                               Proposed Mix

                                             Area 1                                 Retention of station




                                                                                                                                                  PAGE V
                                             Area 2 & 3                             Budget hotel site sale
                                             ArvinMeritor north car park            Residential – 115 units




                                                                                                                                                  EXECUTIVE SUMMARY
                                             and linking area to include            (private 80 units and affordable 35 units)
                                             Grange Road and open                   60 bed care home site sale
                                             area leading to St David’s
                                             Road

                                                    mid-
                                             Area 4 mid-section, former             Foodstore 78,000 sq ft gross
                                             ArvinMeritor factory

                                             Area 5 southern              area,     Foodstore’s petrol filling station
                                             mixed use                              Small business units – 10,000 sq ft
                                                                                    New offices with car parking - 75,000 sq ft net of which
                                                                                    50,000 sq ft net public sector and 25,000 sq ft net private
                                                                                    sector developed in phases.
                                                                                    Refurbishment of Welsh Assembly Government offices
                                                                                    Retail warehousing – 50,000 sq ft



                                            The Preferred Option
                                X1.24       Option 1 is the preferred scheme as it is the most viable and the proposed mix of
                                            uses would provide a comprehensive, employment-led solution that is self-funding.
                                X1.25       It would allow the town centre to expand eastwards; the remediation of
                                            contaminated land; the cross-funding of office development; and the retention of a
                                            local employer and local jobs.
                                X1.26       It would be the most deliverable of the three options because it would not require
                                            intervention in that it could be brought forward by ArvinMeritor, the major
                                            landowner, who would remain on the Site in refurbished flagship premises.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Executive Summary

                                X1.27       The deliverability of Option 1 and the lack of intervention required will also ensure
                                            that it can be progressed in the shortest timeframe.

                                            Delivery
                                X1.28       Justification will be required in planning terms for the inclusion of a food store on
                                            the northern car park. This will include the regeneration benefits of the remediation
                                            of other parts of the Site; creation of a new office quarter; and the retention of a
                                            local employer and local jobs on Site.
                                X1.29       The planning strategy will need to ensure that the Site is developed
                                            comprehensively and that receipts from the foodstore development are reinvested
                                            into bringing forward the refurbished facility for ArvinMeritor and the release of the
                                            mid-section of the Site for office and hotel development.
                                X1.30       Discussions will need to be progressed with ArvinMeritor to establish a mutually
                                            acceptable development solution.
                                X1.31       Opportunities to attract public sector funding should be encouraged to lower the
                                            risk profile, cross-fund primary infrastructure requirements and assist new
                                            occupiers. Consideration will therefore need to be given to the extent to which the
                                            public sector and TCBC will want to get involved in the project. This could include
                                            recycling TCBC’s receipts from any land disposal into further regeneration
                                            initiatives and using its own office requirement to kick-start the office quarter.




                                                                                                                                      PAGE VI
                                X1.32       Discussions should be explored in more detail with the Welsh Assembly
                                            Government in respect of JESSICA RIFW and other available funding sources. The




                                                                                                                                      EXECUTIVE SUMMARY
                                            involvement of JESSICA RIFW could facilitate wider regeneration projects across the
                                            town centre.

                                Conclusion & Next Steps
                                X1.33       A significant opportunity exists for TCBC to promote the comprehensive
                                            development of the Eastern Strip Central and contribute to the wider regeneration
                                            of Cwmbran Town Centre.
                                X1.34       Development of the site creates the opportunity for TCBC to meet its aspirations of
                                            an employment-led development including an office quarter for the town centre
                                            that will attract new, high quality jobs and bring additional vitality and viability to
                                            the town centre.
                                X1.35       There will need to be a clear planning strategy to include the following:
                                                 an agreed Development Framework to determine uses across the site and a
                                                 scheme of appropriate quality;
                                                 a planning strategy to allow for a comprehensive development solution for the
                                                 Site without allowing piecemeal development;
                                                 ensuring integration and links with the town centre and indicating the direction
                                                 of the extension of the town centre eastwards.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Executive Summary

                                X1.36       Key short term action points include:
                                                 further discussions to be held with ArvinMeritor to work towards an acceptable
                                                 development proposal that delivers a comprehensive solution.
                                                 TCBC to consider an explicit site specific policy for the LDP to allocate the site
                                                 as an Action Area indicating the proposed uses for the Site, the vision for its
                                                 redevelopment potential and its comprehensive nature. This will also allow the
                                                 inclusion of a food store as value driver to deliver regeneration benefits.
                                                 the LDP to also promote the direction of growth and extension of the town
                                                 centre eastwards to incorporate the Eastern Strip.
                                                 in the event that agreement is not reached with ArvinMeritor, then TCBC to
                                                 consider its contingency position and the extent to which it would facilitate site
                                                 assembly including considering the use of compulsory powers.
                                                 TCBC to work with ArvinMeritor to establish a development strategy that
                                                 incorporates flood alleviation measures and a remediation strategy, also to be
                                                 agreed with the Environment Agency.
                                                 pursue discussions with the Welsh Assembly Government’s JESSICA team to
                                                 establish whether additional regeneration benefits for the town centre can be
                                                 delivered through their involvement.




                                                                                                                                      PAGE VII
                                                 co-ordinate discussions with potential public sector occupiers to confirm
                                                 occupational requirements.




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

Introduction
Introduction

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

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

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

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




                                                                                                                                      PAGE 1
                                1.5         Subsequently CB Richard Ellis was re-appointed in October 2010 to consider




                                                                                                                                      INTRODUCTION
                                            commercially viable land uses for the redefined and smaller area known as Eastern
                                            Strip Central.

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

                                            CB Richard Ellis’ terms of reference to undertake the commercial appraisal of the
                                            Eastern Strip Central included the following:
                                                 a review of the planning policy framework;
                                                 consultations with relevant parties including the landowners;
                                                 a review of the commercial context of Cwmbran Town Centre as a whole;
                                                 generation of a number of commercial options for the Eastern Strip Central;
                                                 identification of a preferred development option having regard to all criteria
                                                 including phasing, viability of proposals and the potential risks; and
                                                 development appraisal and implementation advice.

                                1.7         As a background to the current study, TCBC had concerns (in 2003) about the
                                            future of Cwmbran Town Centre including the pressure to develop retail floor space
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Introduction

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

                                1.8         As a result of these concerns, various steps were undertaken to review Cwmbran
                                            Town Centre and prepare plans for its expansion:
                                                 GVA Grimley, Halcrow and HMA published a report in February 2005 entitled
                                                 “The Future Development of Cwmbran Town Centre – Torfaen Local
                                                 Development Planning Policy Options Paper”. This presented masterplan
                                                 options for the future development of Cwmbran Town Centre for consultation.
                                                 the Consultation Draft Plan for Cwmbran Town Centre was subsequently
                                                 prepared and published in November 2007 for consultation with the aim of
                                                 guiding the various developments envisaged for the Town Centre.
                                1.9         TCBC’s Local Development Plan (to 2021) is currently being prepared in
                                            accordance with the Planning and Compulsory Purchase Act 2004 and will be
                                            considered by Full Council on 15th February 2011 with the six week consultation
                                            period beginning in March 2011. This sets out the Council’s objectives and
                                            priorities for the development and use of land within Torfaen and its policies for
                                            implementing them for the period to 2021.

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




                                                                                                                                      PAGE 2
                                            redevelopment with a mixed-use scheme.




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

Context of the Proposed Development
Context of the Proposed Development

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




                                                                                                                                      PAGE 3
                                                                                                                                      CONTEXT OF THE PROPOSED DEVELOPMENT
                                2.2         The Site is predominantly rectangular in shape with a frontage to St David’s Road
                                            of some 670m (2,200 ft). It has been occupied primarily by industrial and office
                                            properties since the late 1930’s and the extent of the Site also includes the railway
                                            station to the north of Edlogan Way. The Site lies at a lower level than Cwmbran
                                            Shopping Centre.

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

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

                                2.5         The previous extent of the wider site, known then as Zone 2, Eastern Strip South,
                                            was defined within the Consultation Draft Plan for Cwmbran Town Centre. It
                                            included all of the land between St David’s Road to the east, the railway line to the
                                            west, and Llanfrechfa Way to the south including the Alfa Laval and Carillion
                                            Richardson ownerships. To the northern boundary it included the railway station
                                            and the Stagecoach depot. Now the Stagecoach depot forms part of the Eastern
                                            Strip North Strategic Opportunity Area and land to the south of ArvinMeritor forms
                                            the Eastern Strip South Strategic Opportunity Area.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Context of the Proposed Development

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

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

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

                                2.9         Grange Road is within the site boundary and runs parallel to St David’s Road and
                                            provides access to the ArvinMeritor, Assembly Government, Alfa Laval (Cranes) and
                                            Carillion Richardson sites and properties. The extensive landscaping between




                                                                                                                                        PAGE 4
                                            Grange Road and St David’s Road also currently provides a further physical barrier
                                            in terms of linkage to the Town Centre.




                                                                                                                                        CONTEXT OF THE PROPOSED DEVELOPMENT
                                2.10        The status of the Site within the Local Plan is as “white land” within the Urban
                                            Boundary but is not within the Town Centre Boundary. The site is not located within
                                            a Conservation Area and we are not aware that any of the buildings on the Site are
                                            listed.

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

                                2.12        The Site is subject to a number of development constraints that are commented on
                                            in more detail in Section 6. These most notably include:
                                                 Flood risk – parts of the Site are categorised as Flood Zone A (little or no risk of
                                                 flooding), Zone B (areas known to have flooded in the past) and Zone C2 (area
                                                 without significant flood defence)
                                                 Contamination - due to the industrial processes carried out on the Site

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

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

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

                                2.15        Cwmbran was designated a New Town in 1949 and has been a focus regionally
                                            for commercial and residential growth. Its New Town status ended in 1988
                                            following the demise of Cwmbran Development Corporation. The design of the
                                            Town Centre is similar to many “New Towns” in that it is characterised by a
                                            shopping centre that is a pedestrian precinct enclosed by a circular highway
                                            network with pedestrian movement via subways and bridge links. Uses around the
                                            perimeter of the Town are very much zoned into specific areas with a lack of
                                            integration, partly due to the highway configuration.

                                2.16        In terms of public transport serving Cwmbran, the bus station is located within
                                            Cwmbran Shopping Centre on the north east side. This is currently operating at
                                            capacity and may in the long term be relocated. The railway station sits outside the
                                            Town Centre Boundary and is approximately 5 minutes walk from Cwmbran Town
                                            Centre to the north east but the pedestrian links are poor.

                                2.17        Cwmbran is identified as a “Sub-Regional” shopping centre, behind Cardiff and
                                            Newport in the regional hierarchy. The total retail floorspace in Cwmbran is
                                            estimated to be 72,000 sq m (780,000 sq ft) of which circa 65,000 sq m (700,000
                                            sq ft) is in the town centre. The shopping centre first opened in 1965 and has
                                            benefited from ongoing refurbishment and extension including newer development
                                            on the western and southern boundaries to provide an ASDA store and additional




                                                                                                                                      PAGE 5
                                            shop units with integral multi-storey parking.




                                                                                                                                      CONTEXT OF THE PROPOSED DEVELOPMENT
                                2.18        Cwmbran Shopping Centre provides a diverse range of shopping from major
                                            multiples to local traders and therefore offers an attractive range of retailing and
                                            service uses. It also has a good range of convenience facilities (ASDA and
                                            Sainsbury’s). In total the shopping centre has some 170 retail units and is
                                            anchored by House of Fraser, Marks and Spencer, ASDA, Matalan, Wilkinson’s,
                                            Primark, Iceland and New Look.

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

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

                                2.21        Office uses are also located within Cwmbran Shopping Centre above the retail
                                            floorspace in four purpose built blocks. The office space is now tired and dated
                                            and many of the leases are on short-term arrangements. There is currently some
                                            vacant space.

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

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

                                2.23        Car parking within the town centre is free of charge although some car parks are
                                            short-term time limited.

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

                                Other Emerging Development Opportunities in Cwmbran Town Centre
                                2.25        Eastern Extension to the town centre - PruPIM has reviewed ongoing investment
                                            into the Town Centre and looked at its future development potential within the
                                            existing Town Centre Boundary. PruPIM commissioned a masterplanning exercise




                                                                                                                                      PAGE 6
                                            (in July 2008) to review redeveloping parts of the Town Centre for additional retail.
                                            Preliminary proposals then included a foodstore, reconfiguring existing retail units,




                                                                                                                                      CONTEXT OF THE PROPOSED DEVELOPMENT
                                            providing new decked car parking and alterations to both Glyndwr Road and St
                                            David’s Road to provide shopper and servicing access. These proposals are not
                                            currently being brought forward.

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

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

                                2.28        Eastern Strip North Strategic Opportunity Area – this may come forward for
                                            comprehensive redevelopment in the future and was previously identified in the
                                            Consultation Draft Plan for Cwmbran Town Centre for business/office
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Context of the Proposed Development

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

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

                                2.30        Canalside – the Canalside area has been identified for comprehensive
                                            development as a new town centre quarter for Cwmbran. It is located to the north
                                            west of Cwmbran Town Centre and comprises some 23 ha (56.8 acres). The




                                                                                                                                      PAGE 7
                                            boundary of the site includes Cwmbran Retail Park and the Forgehammer Industrial
                                            Estate. The area is occupied by a range of land uses including retail and industrial,




                                                                                                                                      CONTEXT OF THE PROPOSED DEVELOPMENT
                                            residential, a funeral home, a public house, a private members club and a vacant
                                            former gas holder site. The Council has proposed a high quality development to
                                            incorporate waterside living (100 dwellings in the Plan period), civic and public
                                            space, provision for commercial development, cultural uses, a canal basin, a hotel
                                            and biodiversity enhancements. An initial masterplan for the Canalside area was
                                            prepared although not formally adopted by TCBC. Due to the current difficult
                                            market conditions, the development has currently stalled.

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

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




                                            ArvinMeritor – they own and occupy approximately 10.57 ha (26.1 acres). The
                                            site is used for the manufacture and assembly of automotive parts with the factory




                                                                                                                                      PAGE 8
                                            works forming the central part of the site. ArvinMeritor has put forward proposals
                                            for the development of its northern car park site and previously submitted an




                                                                                                                                      LAND OWNERSHIP
                                            outline planning application (see para 5.1) for retail development with ancillary car
                                            parking.

                                            More recently ArvinMeritor has proposed the development of its northern car park
                                            site for a foodstore with parking and a petrol filling station. A detailed planning
                                            application has been submitted by Morrison’s for development on 7 acres (2.83
                                            ha) for a retail foodstore of 78,000 sq ft (7,216 sq m) gross / 37,000 sq ft (3,427
                                            sq ft) net together with a petrol filling station and a 496 space shoppers’ car park.

                                            Welsh Assembly Government – owns the freehold of two buildings fronting
                                            Grange Road totalling circa 35,000 sq ft that sit at the southern end of the Site on
                                            a plot comprising 0.26 ha (0.63 acres). One block is arranged on the ground and
                                            first floor and the second block is arranged on ground, first and second floors and
                                            has previously been let to Lufthansa for office accommodation and training rooms
                                            but is now vacant.

                                            Cwmbran Railway Station – this is operated by Arriva Trains Wales and sits to the
                                            north of Edlogan Way to the northern extremity of the site. The train station and
                                            associated car park cover an area of approximately 0.91 hectares (2.24 acres).

                                            Torfaen County Borough Council – TCBC owns the extensive landscaping strip
                                            between Grange Road and St David’s Road forming the western boundary of the
                                            site and adjoining PruPIM’s land ownerships. The area of land is landscaped
                                            including grassed areas, mature trees and hedging together with footpaths.
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Land Ownership

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

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

                                3.4         In terms of key messages from the landowners these can be summarised as
                                            follows:
                                                 the site has a number of constraints that will need to be addressed in any
                                                 redevelopment;
                                                 there does not appear to be any collaboration between the landowners of the
                                                 Eastern Strip Central and Eastern Strip South sites in terms of comprehensive
                                                 development proposals for the Site. There has therefore been no consensus as
                                                 to bringing forward a proposed joint framework for the development of the
                                                 Site;
                                                 the emerging proposals from the various landowners assume different
                                                 timeframes i.e. the cleared Carillion Richardson site is available for




                                                                                                                                      PAGE 9
                                                 development now and has an extant planning permission; the northern car
                                                 park area owned by ArvinMeritor could come forward for development now,




                                                                                                                                      LAND OWNERSHIP
                                                 subject to planning; the remainder of the ArvinMeritor site may take longer to
                                                 become available due to operational activity and; Alfa Laval will not be
                                                 available at the earliest until 2015 without intervention;
                                                 the mix of uses suggested for individual sites includes a foodstore, retail
                                                 warehousing, retail, residential, business/office accommodation and leisure;
                                                 the landowners have aspirations to maximise land values from their respective
                                                 ownerships.
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Strategic Planning Policy Context
Strategic Planning Policy Context

                                4.1         This section provides a high level overview of the planning policy framework
                                            relevant to the consideration of the Eastern Strip Central Site. In undertaking our
                                            review we have considered the following documents:
                                                 Planning Policy Wales – Chapter 10 Planning for Retail and Town Centres
                                                 (Edition 3, July 2010)
                                                 Torfaen Local Development Plan – Planning Policy Options Paper, January
                                                 2005
                                                 LDP Draft – Consultation Draft Plan for Cwmbran Town Centre, published
                                                 November 2007
                                                 TCBC Deposit Local Development Plan (To 2021) Written Statement
                                4.2         In addition we have looked at various background studies undertaken as follows:
                                                 TCBC Employment Land Study – Update Report February 2010 - DTZ
                                                 Cwmbran 2020 People, Prosperity & Place Regeneration Strategy (Draft)
                                                 Torfaen Retail Study Update February 2011 – GVA

                                Planning Policy Wales – Chapter 10 Planning for Retail and Town Centres
                                (Edition 3, July 2010)
                                4.3         This replaces the advice in MIPPS 02/2005 Retailing and Town Centres.                     The




                                                                                                                                            PAGE 10
                                            Assembly Government’s objectives for retailing and town centres include:
                                                 secure accessible, efficient, competitive and innovative retail provision for all




                                                                                                                                            STRATEGIC PLANNING POLICY CONTEXT
                                                 the communities of Wales, in both urban and rural areas;
                                                 promote established town, district, local and village centres as the most
                                                 appropriate locations for retailing, leisure and for other complementary
                                                 functions;
                                                 enhance the vitality, attractiveness and viability of town, district, local and
                                                 village centres; and to
                                                 promote access to these centres by public transport, walking and cycling.

                                4.4         Para 10.1.2 states that wherever possible the retail provision should be located in
                                            proximity to other commercial businesses, facilities for leisure, community facilities
                                            and employment.

                                4.5         Para 10.2.1 states that local planning authorities should develop through their
                                            community strategies and development plans a clear strategy and policies for retail
                                            development which seek to achieve vital, attractive and viable centres. It goes on to
                                            say that development plans should also identify changing pressures and
                                            opportunities and advise appropriate responses to them and in some situations it
                                            may be necessary to take pro-active steps to identify town or city centre locations
                                            for expansion. In others it may be necessary to identify measures to reinvigorate
                                            centres, or to manage decline in the relative importance of a centre as other
                                            centres expand. Dealing with change may mean redefining the boundaries of
                                            centres or identifying acceptable changes of use.

                                4.6         Para 10.2.4 states that policies should encourage a diversity of uses in centres.
                                            Mixed use developments, for example combining retailing with entertainment,
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Strategic Planning Policy Context

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

                                4.7         Para 10.2.6 states that development plans should encourage the provision of good
                                            access to town and other centres for walkers and cyclists and for public transport,
                                            allowing for bus priority measures and public transport facilities.

                                4.8         Para 10.2. 9 states that uses which need to be accessible to a large number of
                                            people, including retailing, major leisure uses, offices of central and local
                                            government, commercial offices, hospitals and tertiary education facilities are
                                            preferably to be located in town centres.

                                4.9         Para 10.2.10 states that precedence should be given to establishing quantative
                                            need for both convenience and comparison floor space, particularly as a basis for
                                            development plan allocations before qualitative factors are brought into play. It
                                            states that qualitative assessments should cover both positive and negative
                                            implications and where the current provision appears to be adequate in quantity,
                                            the need for further allocations must be fully justified in the plan. It states this may
                                            be the case if new provision can be located where it:
                                                 supports the objectives and strategy of an up to date development plan or the
                                                 policies in this guidance;
                                                 is highly accessible by walking, cycling or public transport;




                                                                                                                                       PAGE 11
                                                 contributes to a substantial reduction in car journeys;
                                                 contributes to the co-location of facilities in existing town, district, local or




                                                                                                                                       STRATEGIC PLANNING POLICY CONTEXT
                                                 village centres;
                                                 contributes to the vitality, attractiveness and viability of such a centre;
                                                 alleviates a lack of convenience provision in a disadvantaged area.

                                4.10        Para 10.2.11 identifies that local planning authorities should adopt a sequential
                                            approach to selecting sites where a need is identified for such new development.
                                            This includes many uses best located in existing centres including retail
                                            development, leisure development and uses that need to be accessible to a large
                                            number of people. The sequential approach identifies that first preference should
                                            be for town centre locations, where suitable sites or buildings suitable for
                                            conversion are available. If not then consideration should be given to amending
                                            the boundaries of existing centres so that appropriate edge of centre sites are
                                            included. When proposing a development plan allocation in an edge of centre or
                                            out of centre location for uses best located in an existing centre, local planning
                                            authorities must have regard to need and to the sequential test and must be able to
                                            justify the proposal fully.

                                4.11        Para 10.2.12 states that local planning authorities should take a positive approach,
                                            in partnership with the private sector, in identifying additional sites which accord
                                            with this approach. It stated that they should not however prescribe rigid floorspace
                                            limits, whether for town centres or other development that would unreasonably
                                            inhibit the retail industry from responding to changing demand and opportunity.

                                4.12        Para 10.2.13 states that Development Plans should include a criteria based policy
                                            against which proposals coming forward on unallocated sites can be judged.
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Strategic Planning Policy Context

                                4.13        Para 10.3.1 states that when determining a planning application for retail, leisure
                                            or other uses best located in a town centre, including redevelopment, extension or
                                            the variation of conditions, local planning authorities should take into account:
                                                 compatibility with any community or up to date Development Plan strategy;
                                                 need for the development / extension unless the proposal is for a site within a
                                                 defined centre or one allocated in an up to date Development Plan;
                                                 the sequential approach to site selection;
                                                 impact on existing centres;
                                                 net gains in floorspace where redevelopment is involved, and whether or not it
                                                 is like-for-like in terms of comparison or convenience;
                                                 accessibility by a variety of modes of travel;
                                                 improvements to public transport;
                                                 impact on overall travel patterns;
                                                 best use of land close to any transport hub in terms of density and mixed use.


                                4.14        Para 10.3.2 reinforces the role of centres and states that the need for additional
                                            provision is not to be taken into account where proposals come forward for uses
                                            best located in centres as it is “not the role of the planning system to restrict




                                                                                                                                      PAGE 12
                                            competition”.




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

                                4.16        Para 10.3.4 states that developers should be able to demonstrate that all potential
                                            town centre options and then edge of centre options have been thoroughly
                                            assessed using the sequential approach, before out of centre sites are considered
                                            for key town centre uses.

                                4.17        Para 10.3.12 states that some types of retailing such as stores selling bulky goods
                                            and requiring large showrooms may not be able to find suitable town centre sites.
                                            Such stores should be located at edge of centre sites or, where such sites are not
                                            available, at locations accessible to a choice of means of transport. Retail parks,
                                            where such stores are grouped, should only be considered where accessible to
                                            public transport as well as private transport. The need for retail parks should be
                                            tested.

                                4.18        Para 10.3.18 states that planning applications for retail development should not
                                            normally be permitted on land designated for other uses.

                                The Future Development of Cwmbran Town Centre Torfaen Local
                                Development Plan: Planning Policy Options Paper January 2005
                                4.19        This document was effectively the earliest draft of the Consultation Draft Plan for
                                            Cwmbran Town Centre (see below).
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Strategic Planning Policy Context

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

                                4.21        The document was prepared to provide a detailed context against which any future
                                            development proposals for the Town Centre could be assessed. It states that all
                                            future development proposals will therefore need to have regard to the context of
                                            the strategy and be expected to assist in achieving its aims and objectives.

                                4.22        The vision stated within the document is that:

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

                                4.23        Three options were put forward within the document for the expansion of the Town
                                            Centre to allow for new mixed use development in terms of retail, office,
                                            commercial leisure and residential use, transport improvements and additional civic
                                            use. Subsequently the north of the Eastern Strip (Central) site was identified for




                                                                                                                                      PAGE 13
                                            mixed retail, office, leisure and car parking uses. It was also proposed that the
                                            railway station should be relocated to south of Edlogan Way. Linkages were to be




                                                                                                                                      STRATEGIC PLANNING POLICY CONTEXT
                                            created to the Town Centre with an enhanced area of public open space centred on
                                            Llantarnam Grange. Glyndwr Road was also removed as a through route and the
                                            bus station relocated to the South East. The north west of the Town Centre was
                                            identified for new housing integrated with the creation of a canal basin.

                                4.24        Following the consultation exercise on the Planning Policy Options Paper, it was
                                            proposed that TCBC should prepare a pre-deposit document that is less prescriptive
                                            than the Paper but broadly embraced the following:
                                            1. Identifies proposals and opportunities for development/redevelopment in the
                                               Town Centre and its environs.
                                            2. Provides information and guidance to co-ordinate and ensure development is
                                               comprehensively achieved.
                                            3. Provides design guidance both for the built environment and open space
                                               networks.

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

                                4.26        The aims and objectives of the Consultation Draft Plan as defined in the document
                                            are as follows:
                                                 to encourage improvement and development of the existing shopping area
                                                 whilst ensuring the wider function of the town is enhanced;
                                                 to respond to the identified demands for increased retail floor space;
                                                 increase the office employment in the town;
                                                 encourage leisure activity, especially related to the evening leisure uses;
                                                 encourage the provision of housing at appropriate locations;
                                                 encourage the use of public transport;
                                                 ensure the existing road system servicing the Town Centre functions efficiently;
                                                 strengthen the economy of the area; and
                                                 integrate the Monmouthshire and Brecon Canal into the Town Centre.

                                4.27        The study area was divided into the following:
                                                 Zone 1: the Town Centre;
                                                 Zone 2: the Eastern Strip (South) that included the Eastern Strip Central;
                                                 Zone 3: the Eastern Strip (North);




                                                                                                                                      PAGE 14
                                                 Zone 4: the Canalside Area ;




                                                                                                                                      STRATEGIC PLANNING POLICY CONTEXT
                                                 Sainsbury’s / Lidl area;
                                                 Southville area albeit there are no proposals advanced in the Plan for this area
                                                 and;
                                                 Brookfield School Site.

                                4.28        In respect of retail and leisure provision for Cwmbran, the Consultation Draft Plan
                                            draws on the findings of GVA’s Retail and Leisure Study for TCBC (2007). It
                                            includes the recommended estimates of the quantity of need, on a revised market
                                            share basis. The Consultation Draft Plan summarises GVA’s recommendations on
                                            retail strategy including that the following actions are undertaken:
                                                 the LDP and supporting strategy documents should identify a range of sites for
                                                 new retail development within the Town Centre. The priority should be to
                                                 identify areas within the existing Town Centre Boundary which can provide a
                                                 net addition of retail floorspace. In addition, given the physical constraints
                                                 imposed upon the current Town Centre Boundary, it is possible that TCBC
                                                 should consider the need to expand the Town Centre Boundary to incorporate
                                                 currently edge-of-centre sites. Care should be taken to ensure that any edge-
                                                 of-centre sites identified offer the opportunity for logical, appropriate and
                                                 sustainable town centre growth.
                                                 for sites identified for retail development in the LDP, rigid floorspace limits
                                                 should not be given. GVA recommended that TCBC should adopt a phased
                                                 approach to retail development in Cwmbran which gives priority to the release
                                                 of town centre sites. Edge of centre sites should only be brought forward where
                                                 there is a need for additional retail floorspace and/or town centre locations are
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                                                 not able (having regard to the need for flexibility) to accommodate retail
                                                 requirements. For sites to form part of an expanded Town Centre Boundary,
                                                 GVA recommend that they must be assessed against a basket of key criteria to
                                                 ensure that they benefit the health, role and function of the centre as a whole.
                                                 given the low level of leisure uses/floorspace currently in Cwmbran, there is a
                                                 need to improve existing provision from both qualitative and quantitative
                                                 perspectives. (Since the issue of the Consultation Draft Plan a multi-leisure use
                                                 development on the eastern side of the town centre has now been developed,
                                                 “Leisure @ Cwmbran”.)
                                4.29        Offices – the Consultation Draft Plan refers to DTZ’s Employment Land Study dated
                                            2006. It confirms the findings of the DTZ report that proposals to regenerate the
                                            Town Centre through developing office accommodation “should be supported”. It
                                            concludes that “this plan should identify areas where the development of offices
                                            would be supported and encouraged”.

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




                                                                                                                                      PAGE 15
                                4.31        Section 2.5 of the Consultation Draft Plan deals with traffic and transport strategy.
                                            The Consultation Draft Plan refers to the VISSIM traffic model commissioned from




                                                                                                                                      STRATEGIC PLANNING POLICY CONTEXT
                                            Halcrow that gives a visual representation of the effect of additional traffic on the
                                            existing highway network resulting from further development in the Town Centre.
                                            The Consultation Draft Plan states that “developers will be responsible for
                                            identifying appropriate measures to mitigate the impact of developments for which
                                            they are responsible”. The initial studies suggests that works could include
                                            improvements to:
                                                 St David’s Road / Edlogan Way junction
                                                 Tudor Road / Llewellyn Road
                                                 Cwmbran Drive / Tudor Road
                                                 St David’s Road / Tudor Road
                                                 The opportunity to downgrade or remove Glyndwr Road.

                                4.32        In terms of the Transport Strategy, the key principles relating to development
                                            proposals in the Town Centre include:
                                                 developers will be required to pay for works to mitigate the transport impact of
                                                 their development;
                                                 developer contributions could be employed to improve a portion of the network
                                                 remote from the actual development that is provided in the contribution, if to do
                                                 so will address more urgent network capacity problems;
                                                 developers will be required to include measures to improve pedestrian, cycle
                                                 and public transport facilities;
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                                                 TCBC to work with Cwmbran Shopping Centre and other car park owners to
                                                 encourage a co-ordinated parking management strategy that offers safe and
                                                 convenient parking for shoppers and visitors to the town and allocates long stay
                                                 and short term parking;
                                                 future development proposals will be required to apply levels of parking
                                                 provision given in the South Wales Parking Guidelines;
                                                 developers will be expected to provide footpath links in and connecting with
                                                 developments to promote and encourage travel on foot.

                                4.33        Section 2.7 Design Guidance sets out key design principles to be considered in
                                            relation to any town centre development. It also states that development proposals
                                            will need to be accompanied by a design statement based on the principles
                                            included in TAN12. The design principles stated include:
                                                 promoting high quality and inclusive design to improve the character and
                                                 quality of the town centre;
                                                 “Landmark Development” will be encouraged in the four corners which define
                                                 the town centre;
                                                 buildings to be innovative in design and of high architectural quality;
                                                 new development to contribute to the legibility of the town centre by having




                                                                                                                                      PAGE 16
                                                 regard to existing barriers, visitors, gateways or landmarks which guide visitors
                                                 through the area;




                                                                                                                                      STRATEGIC PLANNING POLICY CONTEXT
                                                 development should be orientated so that it has a street frontage and avoiding
                                                 inward looking design;
                                                 scale, massing and layout should be well related to its context, in particular to
                                                 neighbouring development, urban space and transport routes;
                                                 should be designed to ensure they benefit from energy efficiency savings;
                                                 should usually have entry level activity to increase the vibrancy of streets and
                                                 other public places.

                                4.34        In terms of environmental sustainability, the design guidance states that new
                                            development should be designed to maximise energy efficiency and minimise
                                            resource use and as far as possible to meet best practice environmental standards
                                            and design. Impact on bio-diversity and outline appropriate mitigation measures
                                            to preserve and enhance the nature environment.

                                4.35        With regard to transportation and movement, the design guidance includes:
                                                 measures to encourage and improve the movement of pedestrians, cyclist and
                                                 public transport users;
                                                 increase permeability by providing and improving linkages and routes for
                                                 pedestrians and cyclists.
                                                 proposals in and around the existing town centre should help to address the
                                                 barrier effect of the ring road to pedestrians, in particular Glyndwr Road and
                                                 ensure better integration between the existing town centre and new
                                                 development outside this area;
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                                                 large amounts of surface level parking will be discouraged;
                                                 any surface level parking should incorporate high quality landscaping;
                                                 any new multi-storey car parking to be sensitively designed to contribute to the
                                                 street scene.
                                4.36        In respect of public realm, the design guidance states that design of public space
                                            should be undertaken in parallel in design with the building to which it relates and
                                            there should be a provision of a series of well linked, high quality public spaces
                                            and routes across the town centre.

                                4.37        The design of public spaces and street scene should include quality signage,
                                            lighting, planting, street furniture and public and Access Statements will be required
                                            to demonstrate that the principles of inclusive design and access for people have
                                            been considered throughout the development process.

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




                                                                                                                                                  PAGE 17
                                4.39        Site proposals – the Consultation Draft Plan states in para 3.2.2 that TCBC would
                                            encourage a commercial/employment led mixed-use development on the Eastern
                                            Strip (South). A summary of the potential uses detailed comprise:




                                                                                                                                                  STRATEGIC PLANNING POLICY CONTEXT
                                                 the site is stated to be well located for potential office development. Other uses
                                                 that may be suitable should be subsidiary to TCBC’s main aim to promote
                                                 employment creating uses;
                                                 leisure uses due to the proximity of the Leisure @ Cwmbran complex;
                                                 retail uses albeit new or redeveloped retail space is to be largely located within
                                                 the existing Town Centre Boundary. There may, however, be requirements that
                                                 cannot be located in the Town Centre and TCBC would require a full
                                                 justification for the location of such uses on the Site;
                                                 housing uses – TCBC would not support the development of a significant
                                                 amount of housing on the Eastern Strip site as Zone 4 (Canalside and the
                                                 Brookfield School site) will accommodate the bulk of housing allocated in the
                                                 Plan. There are however opportunities for an element of housing within any
                                                 wider proposal;
                                                 hotel use.

                                4.40        Para 3.2.3 sets out Design Guidance for the Site including:
                                                 improving accessibility and ease of movement – the provision of                      new and
                                                 upgrade routes for pedestrians and cyclists between this Zone                         and the
                                                 surrounding area particularly the linkages from the railway station to               the Town
                                                 Centre and between the Zone and the Town Centre, particularly                        across St
                                                 David’s Road;
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                                                 response to context and character – ensuring the opportunity for comprehensive
                                                 redevelopment of the area is fully exploited to create a location of quality and
                                                 distinctiveness that also integrates well with the Town Centre;
                                                 aiming to enhance biodiversity and nature conservation – by making best use
                                                 of the existing green strip adjacent to St David’s Road to create green space of
                                                 ecological value and creating new appropriately landscaped areas within the
                                                 redevelopment;
                                                 encouraging legibility, variety, diversity and adaptability – by using gateway/
                                                 landmark features that allow orientation and provide visual as well as physical
                                                 links to the Town Centre. The development and building types are also to
                                                 encourage alternative uses and future adaptability.

                                4.41        Section 4 sets out the principle of “Development Frameworks” whereby TCBC will
                                            require that developers prepare a Development Framework for any Zone in
                                            advance of a planning application being submitted either for the development of
                                            the whole of the Zone or part of it. TCBC is seeking that each Zone is considered
                                            on a comprehensive basis and that any development proposals also take account
                                            of the potential for proposed development in other Zones.

                                4.42        The Consultation Draft Plan states that “it is the intention of TCBC that each
                                            Development Framework will be formally adopted by TCBC in advance of the
                                            determination of planning applications for that Zone”. TCBC would also actively




                                                                                                                                      PAGE 18
                                            participate in preparing the Development Framework.




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

                                4.44        On adoption of the LDP, it will replace the existing Adopted Torfaen Local Plan
                                            (1991-2006) and the adopted Gwent Structure Plan (1991-2006) as the
                                            Development Plan for the County Borough and for decision-making on land use
                                            planning matters. The Deposit LDP contains a Development Strategy, Strategic
                                            Policies, Borough Wide Policies and Detailed Policies.

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

                                4.46        The consultation process on the Deposit LDP allows for TCBC to advertise any
                                            “Alternative Sites” put forward by representors during the consultation stage of the
                                            LDP. Alternative Sites can include new sites put forward, amendments to allocated
                                            site boundaries and amendments to the Urban Boundary.
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                                4.47        The LDP will be subject to independent examination to determine whether it is
                                            “sound” and the assessment will relate to the process by which it has been
                                            prepared, its consistency and its coherence and effectiveness.

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

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

                                STUDIES RELEVANT TO CWMBRAN TOWN CENTRE

                                Torfaen County Borough Council Employment Land Study – Update Report
                                February 2010 - DTZ


                                4.50        The purpose of the Study is to forecast the demand for employment land in Torfaen
                                            up to 2021 and to re-assess the suitability of the proposed employment land




                                                                                                                                      PAGE 19
                                            allocations in the emerging Local Development Plan.




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

                                4.52        In terms of the industrial market, the local market has experienced contraction in
                                            line with regional and national trends. Sites have come forward for development
                                            for other uses such as residential.

                                4.53        The Study highlights the need to protect employment land from being redeveloped
                                            for alternative uses and suggests the following:
                                            1. Sites to be protected using a criteria based policy approach including naming
                                               the key sites with the criteria focussing on quality, range and choice. It would
                                               also allow for the release of poor quality sites.
                                            2. Cwmbran to be recognised as a focus for employment growth due to various
                                               factors including its strategic location; accessibility by a variety of transport
                                               modes; it will help regeneration of the Town Centre and provide a
                                               complementary mix of uses; and compatibility with PPW encouraging the
                                               provision of employment sites in close proximity to town centres and in line with
                                               sustainable development principles.
                                4.54        The Study makes recommendations as to sites that should be allocated for
                                            employment development in the LDP. This includes the 2.78 hectare site at
                                            “Edlogan Way South” (the north car park on the Eastern Strip (Central) site) which is
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                                            described as “is a highly accessible site which is flat and located close to the train
                                            station and Town Centre and would be an ideal location for an office development
                                            to complement the Cwmbran Town Centre regeneration proposals”.

                                Cwmbran 2020 People, Prosperity and Place – Regeneration Strategy Draft
                                4.55        The Regeneration Strategy is in draft form and is to be adopted by TCBC at a later
                                            date. The Regeneration Strategy sets out a vision for the future of Cwmbran over
                                            the next 10 years providing a framework to support the sustainable regeneration of
                                            the town and its communities. The purpose is to join up economic, social,
                                            environmental and community outcomes and guide the activities of the public,
                                            private and voluntary sectors in respect of the long term regeneration of Cwmbran.
                                            It aims to promote the efficient use of funding and resources and sets out positive
                                            outcomes to be achieved with a prioritised action programme of projects and
                                            initiatives over the 10 year period. It was informed by the Cwmbran Regeneration
                                            Strategy Baseline Report dated December 2009.

                                4.56        The Strategy highlights the challenges facing Cwmbran where it is reaching its
                                            original planned capacity of 50,000 inhabitants and needs to address issues
                                            associated with urban renewal and regeneration. It highlights the potential of the
                                            town including the opportunity to create a more equal and inclusive community
                                            using the assets of its people; the need to improve the physical environment by
                                            upgrading buildings, green spaces and investing in local neighbourhoods and the
                                            Town Centre; and the potential to build on its role as a centre for economic growth




                                                                                                                                      PAGE 20
                                            including as a major sub-regional employment and retail centre in South-East
                                            Wales.




                                                                                                                                      STRATEGIC PLANNING POLICY CONTEXT
                                4.57        In terms of the Strategic context, it highlights that Cwmbran together with Pontypool
                                            is identified as a key settlement within the Wales Spatial Plan and has a critical role
                                            to play in the success of South-East Wales.

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

                                4.59        The Strategy provides a framework for a joined up and prioritised approach to the
                                            regeneration of Cwmbran with a shared vision that is not intended to be fixed but
                                            will be developed and reviewed over time. The framework is divided into six
                                            strategic themes as follows:
                                            1. Economic prosperity and employment – strategic objectives include realising
                                               Cwmbran’s potential as a catalyst for economic growth and regeneration
                                               throughout Torfaen and enhancing the town centre’s position as a prime sub-
                                               regional shopping centre in South Wales.
                                            2. Housing and neighbourhood renewal – strategic objectives include capitalising
                                               on the potential for housing growth in Torfaen focusing on the redevelopment
                                               of previously used sites, diversifying and improving the housing stock and
                                               providing more affordable homes.
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                                            3. Health and community – strategic objectives include improving the provision
                                               and use of health, leisure and community facilities and services within
                                               Cwmbran.
                                            4. Education, training and skills – strategic objectives include developing a more
                                               skilled and responsive workforce and improved access to local employment
                                               opportunities.
                                            5. Transport and infrastructure – strategic objectives include encouraging the
                                               provision and use of a sustainable and integrated transport system in Cwmbran
                                               Town Centre.
                                            6. Environment and pride of place – strategic objectives include promoting high
                                               quality, sustainable and inclusive design in buildings, public realm and green
                                               spaces.
                                4.60        The Regeneration Strategy will be the overall responsibility of TCBC’s Strategic
                                            Projects Team with the Cwmbran Regeneration Strategic Partnership having an
                                            overarching role in monitoring and reviewing its delivery and progress.

                                4.61        In its conclusions, the Baseline Report states that Cwmbran has the potential to
                                            reaffirm its position in the South East Wales sub-region acting as an economic
                                            driver for the social, economic and environmental regeneration of Torfaen and its
                                            communities. It highlights the significant links between land use and transport
                                            noting the accessibility of Cwmbran and the opportunity to capitalise on the links as




                                                                                                                                      PAGE 21
                                            they potentially provide the opportunity for future growth.




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

                                4.63        The Report also comments on sustainability objectives put forward by the Welsh
                                            Assembly Government and that these will be a significant consideration throughout
                                            any development, assessment and implementation of a regeneration strategy for
                                            Cwmbran.

                                GVA - Torfaen Retail Study Update 2011

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

                                4.65        The report includes:
                                                 an updated town centre healthcheck analysis of Cwmbran, Pontypool and
                                                 Blaenavon;
                                                 overview of the results of an up-to-date household survey of shopping patterns;
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                                                 an update of the quantitative assessment of retail sales floorspace capacity
                                                 within Cwmbran for both comparison and convenience retail sales floorspace
                                                 for the period 2010 to 2021;
                                                 the sequential site analysis of potential retail development sites in and around
                                                 Cwmbran Town Centre against a framework of retail planning policy criteria.
                                4.66        GVA has analysed the capacity for additional convenience goods floorspace in
                                            Cwmbran (dependent on the operator) and has identified 1,943 sq m net sales
                                            space (20,915 sq ft) to 2,390 sq m net sales space (25,725 sq ft) in 2010, rising to
                                            between 2,378 sq m (25,596 sq ft) and 2,925 sq m (31,485 sq ft) in 2021, the end
                                            of the LDP period. This is based on a constant market share approach. The figures
                                            represent a decrease since 2007 which is partly attributable to the approved
                                            Sainsbury’s extension and a reduction in per capita expenditure due to the
                                            economic climate but is principally due to the reductions in forecast population
                                            growth.

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

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




                                                                                                                                       PAGE 22
                                                 ArvinMeritor northern car park (and undeveloped land to the west)




                                                                                                                                       STRATEGIC PLANNING POLICY CONTEXT
                                                 The former Alfa Laval site (Carillion Richardson)
                                                 Eastern side of town centre (PruPIM) including land to the east of Glyndwr Road
                                                 Land north of Edlogan Way (DPCTC Eastern Strip North)
                                                 Homebase, Tudor Road

                                4.69        GVA reports that “in pure retail planning terms the following sequential order of
                                            preference emerges....and of these it is only the first three sites that warrant further
                                            consideration given their locations and their realistic potential to contribute to the
                                            vitality and viability of the town”:

                                               1.    Eastern side of town centre (PruPIM)
                                               2.    ArvinMeritor Northern Car Park
                                               3.    DPCTC Eastern Strip North
                                               4.    Homebase, Tudor Road (defined as out of centre)
                                               5.    Carillion Richardson (defined as out of centre)

                                4.70         GVA’s further comments include:
                                                 the land on the eastern side of Cwmbran Town Centre (PruPIM’s land) provides
                                                 an opportunity to accommodate the available capacity for additional
                                                 comparison floorspace whilst the Eastern Strip Central site provides the most
                                                 sequentially preferable site (of those assessed in the study) for a new foodstore
                                                 development;
                                                 the ArvinMeritor site has the potential to function as a true “edge of centre” site
                                                 but this requires improved integration with the town centre including effective
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                                                 pedestrian and visual linkages. GVA suggest that an expanded site to take in
                                                 Grange Road and land to the west of Grange Road could offer a “different
                                                 potential” to other edge of centre sites in Cwmbran;
                                                 the benefits of bringing the expanded site forward are cited as the delivery of
                                                 economic gains in the form of job creation, an enhanced retail offer and
                                                 retained local expenditure together with the creation of a direct link between the
                                                 town centre and the rail station.

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




                                                                                                                                      PAGE 23
                                                                                                                                      STRATEGIC PLANNING POLICY CONTEXT
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Planning History of the Site

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

                                            03/P/09585 Meritor North Car Park – outline application for the erection of
                                            8,556m2 of former large retailing and associated parking and access arrangements
                                            and a car park and facilities ancillary to the Meritor operation. The retailing to be
                                            accommodated in 10 units from 210m2 to 2,217m2. The development to also
                                            consist of 340 car parking spaces. The application remains undetermined.

                                            Meritor North Car Park – in April 2009 Wm Morrison Supermarkets submitted a full
                                            planning application to develop a retail foodstore of 7,216 m2 gross /3,427 sq m
                                            net, a petrol filling station and 496 space shoppers’ car park at Grange
                                            Road/Edlogan Way with access from Grange Road. The application remains
                                            undetermined.




                                                                                                                                      PAGE 24
                                                                                                                                      PLANNING HISTORY OF THE SITE
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Development Constraints

                                6.1         As part of the original study brief for the Eastern Strip (South), in 2009 CB Richard
                                            Ellis Geo-Environmental undertook a review of the environmental conditions
                                            affecting the site that may have an impact on the land values and potential uses for
                                            future development. These “Additional Studies” included:
                                                 Contamination study – desktop study to identify if there is any potential
                                                 contamination due to the previous history of the use of the site for heavy
                                                 industries since the 1930’s.
                                                 Topographical survey – commissioned to establish the difference in levels from
                                                 Glyndwr Road towards St David’s Road and the Site which sits at a lower level
                                                 than the Town Centre.
                                                 Flood consequence assessment – The Welsh Assembly Government’s Technical
                                                 Advice Notes (TAN 15) entitled “Development & Flood Risk” dated July 2004
                                                 identified the Site as being within Zone B flood zone (area known to have
                                                 flooded) and part of the site is located within Zone C2 flood zone (area without
                                                 significant flood defence). The flood consequence assessment undertaken pre-
                                                 dated the release of TAN15 Development and Flood Risk 09: Development
                                                 Advice Map (ST29NE) which has subsequently provided updated guidance as
                                                 referred to in para 6.20.
                                                 a review of the provision of foul and surface water drainage and all utilities has
                                                 been undertaken.




                                                                                                                                      PAGE 25
                                6.2         We set out below a brief summary of the findings together with comments where
                                            more recent site investigations have been undertaken.




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

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

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

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

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

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

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

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




                                                                                                                                        PAGE 26
                                            commissioned Arcadis (UK) Limited to undertake further detailed assessments of the
                                            presence and extent of soil and groundwater contamination which may be present




                                                                                                                                        DEVELOPMENT CONSTRAINTS
                                            on the ArvinMeritor site. These comprised a Phase I Environmental Site Assessment
                                            (ESA) of ArvinMeritor’s facility and an initial Phase IIA ESA followed by a Phase IIB
                                            ESA.    These studies have assisted in ascertaining not only the extent of
                                            contamination across the ArvinMeritor site but also in informing the uses that could
                                            be developed on the site in the context of clean-up costs that would be viable.

                                6.11        The investigation considered issues such as the following:
                                                 potential source areas of contamination;
                                                 whether there are risks to the deeper aquifer underlying the site and
                                                 consequent lateral migration;
                                                 whether there have been off-site migration of impacts to soil and groundwater
                                                 on adjacent land including the playing fields;
                                                 recommendations as to further investigations strategy including a groundwater
                                                 monitoring programme and completion of a Detailed Quantitative Risk
                                                 Assessment and a subsequent Remediation Options Appraisal.

                                6.12        CB Richard Ellis Geo-Environmental also reported that the site is located in an area
                                            where between 3% and 5% of residential properties are above the action level for
                                            Radon set by the National Radiological Protection Board. Basic radon protection
                                            measures are considered necessary by the BGS for new residential properties. It is
                                            recommended that enquiries are made specific to a predominantly commercial
                                            redevelopment.
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Development Constraints

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

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

                                6.15        Underground BT cables are present across much of the Site and overhead supply
                                            appears to be limited to the area to the east of Grange Road between ArvinMeritor
                                            and the Alfa Laval site. Specified stand off for BT underground plant is 600mm.




                                                                                                                                      PAGE 27
                                6.16        The Site is crossed by low and medium pressure gas pipes. The medium pressured
                                            pipelines are predominantly in the pavements and verges alongside the road
                                            network with the local supply leading to the industrial units to the southern half of




                                                                                                                                      DEVELOPMENT CONSTRAINTS
                                            the Site and from Grange Road towards the railway station. In terms of constraints,
                                            mechanical excavation must not be used within 1m of a low pressure gas pipe or
                                            within 3m of a medium pressure gas pipe. In addition, there may be protection
                                            through an easement agreement that would stipulate use and working restrictions
                                            within a stated distance of the pipe.

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

                                6.18        In respect of media apparatus, recorded locations of Virgin Media appear to only
                                            encroach around the periphery of the Site.

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

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

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

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

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

                                Highways




                                                                                                                                      PAGE 28
                                6.23        Both St David’s Road and Grange Road create severance between the Site and
                                            Cwmbran Shopping Centre.




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

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

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

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

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

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

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

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




                                                                                                                                      PAGE 29
                                            cost of further highways studies.




                                                                                                                                      DEVELOPMENT CONSTRAINTS
                                OTHER DEVELOPMENT CONSTRAINTS AND ISSUES

                                6.31        For a comprehensive scheme to be progressed, vacant possession would need to
                                            be obtained in respect of any existing leases i.e. any leasing arrangements made
                                            by WAG in respect of the office buildings beside ArvinMeritor.

                                6.32        A phased relocation on site or relocation off site would be required for ArvinMeritor
                                            to deliver a developable site and a comprehensive redevelopment solution for the
                                            whole of its land in addition to the northern car park site.

                                6.33        We understand that there is Japanese Knotweed in the area and is likely to be
                                            within the Site. This would require removal as hazardous waste prior to the start of
                                            any building works.

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


Property Market Assessment

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

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

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




                                                                                                                                      PAGE 30
                                7.4         The recovery continues to be characterised by wide variations in rates growth across
                                            the global economy. Both the US and Eurozone remain in the slow lane but growth




                                                                                                                                      PROPERTY MARKET ASSESSMENT
                                            in the UK over Q2/Q3 surprised most observers on the upside including a rebound
                                            in construction output.

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

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

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

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

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

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

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

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




                                                                                                                                      PAGE 31
                                            which retail rental growth has tended to lead the other sectors.




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

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

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

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


                                7.16        According to Verdict, grocers have seen their share of national non-food sales
                                            increase from just over 8% in 2003 to more than 14% in 2010. Almost 50m sq ft of
                                            foodstore space is currently estimated to be allocated to non-food goods.

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

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

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




                                                                                                                                      PAGE 32
                                7.20        Industrial occupier demand weakened in October with rents falling by 0.2% taking
                                            the year date fall to 1.6%. With demand for industrial and distribution space tied to




                                                                                                                                      PROPERTY MARKET ASSESSMENT
                                            a considerable extent to the fortunes of the retail economy, industrial property is
                                            also expected to see relatively weak growth of only 0.5% p.a. over the forecast
                                            period.

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

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

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

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

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

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

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

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




                                                                                                                                      PAGE 33
                                7.28        In terms of competition to Cwmbran’s retail offer, Cardiff and Newport are the
                                            nearest large competing centres and there is also leakage to Cribbs Causeway to




                                                                                                                                      PROPERTY MARKET ASSESSMENT
                                            the north of Bristol. The new “St David’s 2” shopping centre in Cardiff has opened
                                            and is trading well. This comprises a £675m investment to provide 1.4 sq ft of new
                                            retail space including the first John Lewis store in Wales and many other new
                                            names including high quality retailers.

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

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

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

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

                                             Cardiff Central                                      8                                   530,444

                                             Mall at Cribbs Causeway                             52                                   244,436

                                             Newport                                            121                                   128,399

                                             Woking, Surrey                                     139                                   107,035

                                             Burnley, Lancashire                                140                                   105,977

                                             Cwmbran                                            141                                   105,272

                                             Aylesbury, Bucks                                   142                                   104,489

                                             Lancaster, Lancashire                              143                                   102,977

                                            Source: National Survey of Local Shopping Patterns

                                7.33        Cwmbran Town Centre is self-contained in providing all of the in-town comparison
                                            retailing. It is currently anchored by House of Fraser, a recently refurbished and




                                                                                                                                                   PAGE 34
                                            extended Marks & Spencer, Primark (newly opened in the former Woolworth’s unit),
                                            Wilkinson’s, WH Smith, Matalan, Argos and Boots plus a wide range of fashion




                                                                                                                                                   PROPERTY MARKET ASSESSMENT
                                            retailers. There are also a number of regional and local operators to help provide
                                            a wide ranging product offer. In addition, there is a selection of high street banks
                                            and building societies located throughout the shopping area to provide a complete
                                            shopping and service environment.

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

                                7.35        In their 2011update of the Torfaen Retail and Leisure Study, the range of capacity
                                            forecast by GVA for comparison retailing is10,854 sq m (116,800 sq ft) net sales
                                            area in 2009 rising to 13,679 sq m (147,240 sq ft) at 2016 and 20,678 sq m
                                            (222,575 sq ft) by the end of the LDP period in 2021.

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

                                7.37        These large stores are currently over-trading and this was exacerbated by the
                                            relocation of the Somerfield store in Gwent Square, Cwmbran Shopping Centre to
                                            Llantarnam. Additional convenience retailing is provided by discount operators
                                            including Lidl and Aldi and some smaller retailers. Neither Tesco nor Morrison’s
                                            are currently represented within Cwmbran although they have known requirements.
                                            Tesco has a store at Pontypool that attracts some convenience expenditure from
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                                            Cwmbran. Morrison’s has recently submitted a planning application on the
                                            ArvinMeritor northern car park site.

                                7.38        GVA has reported that the capacity for convenience goods is 1,943 sq m net sales
                                            space (20,915 sq ft) to 2,390 sq m net sales space (25,725 sq ft) in 2010, rising to
                                            between 2,378 sq m (25,596 sq ft) and 2,925 sq m (31,485 sq ft) in 2021, the end
                                            of the LDP period.

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

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




                                                                                                                                      PAGE 35
                                7.41        There is an extant planning consent for the construction of a DIY retail store
                                            totalling 100,000 sq ft together with car parking on the Carillion Richardson site on
                                            the Eastern Strip South Strategic Opportunity Area.




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

                                7.43        “Leisure @ Cwmbran” provides a 100,000 sq ft town centre mixed used leisure
                                            scheme involving a capital investment of circa £15m. The development comprises
                                            an 8-screen cinema let to Vue, a 20-lane bowling alley let to Bowlplex and a
                                            10,000 sq ft Zoopadoopa Play Centre. There are also six restaurant units of which
                                            two are let to Frankie and Benny’s and Tiffin‘s Indian Restaurant.

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

                                7.45        Traditionally the restaurant offer has been weak within Cwmbran Town Centre with
                                            many residents travelling to Newport. In terms of market share, Cwmbran now
                                            appears to provide a stronger offer to retain a higher percentage of the local
                                            population rather than travelling to Newport or Cardiff. Cwmbran Town Centre
                                            traditionally has had a below average representation of food and drink uses within
                                            the total retail space which historically would be linked to the lack of an evening
                                            economy within the Town Centre although this is now changing with the arrival of
                                            “Leisure @ Cwmbran”.
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                                7.46        Previous research had indicated that visits to pubs and bars are the most popular
                                            leisure activity in the Cwmbran area. The state of the pub market is, however,
                                            affected by the downturn in consumer spending. There has been an increasing
                                            importance of food to the sales mix offered by the pub market. There has also
                                            been increasing demand for stand-alone edge of town centre sites for the building
                                            of new public houses.

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

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

                                Offices




                                                                                                                                        PAGE 36
                                7.49        Cwmbran Town Centre has the potential to be an attractive office location. Despite
                                            currently being a secondary office location with little stock available, Cwmbran
                                            benefits from good connectivity to the M4 and frequent rail services to London and




                                                                                                                                        PROPERTY MARKET ASSESSMENT
                                            Cardiff via Newport. It is positioned between the centres of Cardiff and Bristol and
                                            can offer potential cost savings for occupiers who are able to be flexible in terms of
                                            location. It also benefits from the amenities offered by Cwmbran Shopping Centre,
                                            the centrally located railway station and local bus services.

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

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

                                7.52        As a competitive destination to Cwmbran, Newport has historically attracted
                                            considerable inward investment support from the public sector and is now highly
                                            dependent on public sector-based office employment with 29% public sector
                                            occupancy (source: DTZ). The recently announced closure of the Passport Agency
                                            Office will have an impact in terms of job losses to the local economy and the
                                            quantum of second-hand space on the market. Recent transactions include the
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                                            letting of part of the Welsh Assembly Government’s Nexus House comprising
                                            48,000 sq ft of Grade A new office accommodation developed under the WISP
                                            initiative and where the Assembly Government has taken an overriding lease.
                                            Newport City Homes has taken occupation of 24,200 sq ft in the building. The
                                            investment has subsequently been sold to Legal and General Property. Other public
                                            sector lettings include the National Probation Service taking 15,000 sq ft at Usk
                                            House.

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

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

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

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




                                                                                                                                      PAGE 37
                                            Park which is located approximately 1.5 miles south east of Cwmbran Town Centre
                                            on the A4042. It has been developed in phases and provides modern high quality




                                                                                                                                      PROPERTY MARKET ASSESSMENT
                                            office accommodation in approximately 130 acres providing a quality environment
                                            and it benefits from good infrastructure. It is a popular location for occupiers in the
                                            electronic, software and high tech sectors.

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

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

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

                                7.60        In their Employment Land Study Update Report 2010, DTZ stated that Cwmbran
                                            does have potential as an office location but it must secure the correct product as it
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                                            is a secondary location. DTZ comments that “high density office development with
                                            limited or no car parking is not likely to attract occupiers”.

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

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

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

                                7.64        To date, any inward investment to Cwmbran has tended to be technology-led and
                                            many of the offices requirements have been small. The Technium Springboard




                                                                                                                                        PAGE 38
                                            Innovation Centre at Llantarnam Park has helped in supporting smaller companies
                                            including start-up businesses and local firms looking to expand in the area. It




                                                                                                                                        PROPERTY MARKET ASSESSMENT
                                            offers fully serviced office suites with business support facilities ranging in size from
                                            202 – 1,126 sq ft. It has had a total of 60 tenants of which 28 are current and 26
                                            of whom are successful graduating businesses - 21 of these went on to take office
                                            accommodation of under 2,000 sq ft; 3 went on to accommodation of 2,000 –
                                            5,000 sq ft; and 2 companies went into industrial accommodation of 2,000 –
                                            5,000 sq ft.

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

                                7.66        There have been a number of enquiries to TCBC’s economic development team
                                            indicating some activity in the local market. Since April 2009 property enquiries
                                            direct to TCBC are set out in the table overleaf. It should be noted that the large
                                            office requirement has however not progressed and most of the small enquiries
                                            were to Technium Springboard.
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                                             Property             Up to             2–          5–             10 –               20 –     50,000
                                             Enquiries to         2,000 sq          5,000       10,000         20,000 sq          50,000   sq ft plus
                                             TCBC                 ft                sq ft       sq ft          ft                 sq ft

                                             Industrial                 4              5             3                4               4        4

                                             Office                    24              4             1                0               0        1

                                            Source: TCBC

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

                                             Office property                        Supply – Torfaen               Demand – Torfaen
                                                                                    (South Wales                   (South Wales Valleys)
                                                                                    Valleys)
                                             Up to 5,000 sq ft                      17 (36)                        5 (31)

                                             5,001 – 10,000 sq ft                   1 (1)                          6 (10)




                                                                                                                                                        PAGE 39
                                             10,001 – 15,000 sq ft                  3 (1)                          2 (3)




                                                                                                                                                        PROPERTY MARKET ASSESSMENT
                                             15,001 – 20,000 sq ft                  0 (0)                          2 (1)

                                             20,001 – 25,000 sq ft                  0 (0)                          0 (1)

                                             25,001 – 50,000 sq ft                  0 (0)                          4 (5)

                                             50,001 – 100,000 sq ft                 0 (1)                          0 (1)

                                             100,000 sq ft +                        0 (0)                          0 (2)

                                            Source: Welsh Assembly Government

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

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

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

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

                                7.72        In terms of enquiries related to industrial/warehouse accommodation for
                                            Cwmbran, we set out below a summary of the data compiled by the Welsh
                                            Assembly Government for the Torfaen (South Wales East) area for the dates 01




                                                                                                                                                    PAGE 40
                                            April 2009 to 31 March 2010. Figures for the corresponding period in 2008/09
                                            are shown in brackets and these demonstrate a substantial fall in the number of




                                                                                                                                                    PROPERTY MARKET ASSESSMENT
                                            enquiries over the period but also a fall in available premises:

                                             Industrial/warehouse                     Supply – Torfaen (South               Demand – Torfaen
                                             property                                 Wales Valleys)                        (South Wales Valleys)

                                             Up to 5,000 sq ft                                    17 (27)                              5 (21)

                                             5,001 – 10,000 sq ft                                  2 (13)                              6 (16)

                                             10,001 – 15,000 sq ft                                 0 (15)                              3 (17)

                                             15,001 – 20,000 sq ft                                  2 (1)                              3 (16)

                                             20,001 – 25,000 sq ft                                  0 (5)                              3 (8)

                                             25,001 – 50,000 sq ft                                  3 (3)                              6 (17)

                                             50,001 – 100,000 sq ft                                 1 (2)                              4 (20)

                                             100,000 sq ft +                                        2 (0)                              3 (21)

                                            Source: Welsh Assembly Government

                                7.73        The local market does however benefit from the availability of grant aid as it is
                                            located in a Tier One area for Regional Selective Assistance and maximum levels of
                                            grant may be available for qualifying purposes.
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                                7.74        Land values for industrial in the area remain depressed and there is cheap
                                            available space elsewhere around the perimeter of the town centre. Industrial use
                                            is unlikely to sit well with other uses in the town centre itself and was not within the
                                            list of acceptable uses for the Site stated within the Consultation Draft Plan.

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

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

                                7.77        The ongoing weaker market reflects lower confidence and economic uncertainty




                                                                                                                                       PAGE 41
                                            particularly in the light of the Comprehensive Spending Review. In addition the
                                            ongoing shortage of mortgage funding continues to hinder buyers and the low level
                                            of transactions means that small shifts in demand and supply can hugely affect the




                                                                                                                                       PROPERTY MARKET ASSESSMENT
                                            market dynamics making prices volatile.

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

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

                                7.80        As with all regions within the United Kingdom, Cwmbran residential land values
                                            have fallen substantially since the peak of 2007 and the lack of available mortgage
                                            product and stricter lending criteria having stymied overall housing demand. In
                                            terms of current market activity, potential buyers for the site could include a housing
                                            association probably in joint venture with a contractor or developer. A purchaser is
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                                            likely to seek to deliver the affordable element as part of the first phase of any
                                            residential scheme as this is effectively a pre-sale.

                                7.81        Part of the issue of town centre housing within Cwmbran at present is the uniformity
                                            of design and a new town centre development would offer the opportunity to
                                            provide a greater diversity of housing types and sizes to meet the needs and
                                            aspirations of the local population.

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

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

                                Hotels
                                7.84        Cwmbran is currently underprovided with branded hotel accommodation. The
                                            recently refurbished Best Western Parkway Hotel located on Cwmbran Drive




                                                                                                                                      PAGE 42
                                            provides 70 rooms with both conference and gym facilities. Other hotels in close
                                            proximity include the new Travelodge and Premier Inn in Pontypool and a new
                                            Premier Inn that opened in June 2010 at the Ashbridge Inn at Pontrhydyrun. There




                                                                                                                                      PROPERTY MARKET ASSESSMENT
                                            are also a number of hotels close to Junctions 24 and 26 of the M4 motorway near
                                            Newport and the majority of these are privately run with 50-80 rooms.

                                7.85        As Cwmbran does not currently have a large commercial (office) base, there would
                                            need to be additional office development to attract further hotels to the town centre.
                                            Agents indicate that active requirements exist in the region for Accor (Ibis/Etap),
                                            Hilton (Hampton Inn), Premier Inn, Purple Hotel and Campanile. These branded
                                            operators currently tend to seek locations closer to the M4 including sites closer to
                                            the office centres around Newport.

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

                                Arts and Culture
                                7.87        Arts provision in the town centre is currently focused on the Congress Theatre within
                                            Cwmbran Shopping Centre and Llantarnam Grange Arts Centre, which is located
                                            adjacent to the Leisure @ Cwmbran complex with access from Glyndwr Road. This
                                            provides a wide range of arts activities and inter-action with the local community.
                                            The Arts Centre hosts exhibitions, arts and crafts workshops, provides facilities for
                                            community groups, includes a retail area and café and provides educational
                                            activities.
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                                7.88        An opportunity exists for the creation of a new cultural hub to include Llantarnam
                                            Grange Arts Centre and The Congress Theatre. Relocation of the Arts Centre would
                                            release a key site that could link the Shopping Centre with the Eastern Strip Central.

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

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

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




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

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

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

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

                                8.5         It is anticipated that the private sector will bring forward the comprehensive
                                            development of the area but will be supported by the public sector to optimise




                                                                                                                                               PAGE 44
                                            funding opportunities and assist with delivery. Due to the current market conditions
                                            and the site being currently occupied, the strategy must assume a realistic




                                                                                                                                                               OPTIONS
                                                                                                                                       REVIEW OF PROPOSED DEVELOPMENT
                                            timeframe for development to come forward over a number of years.

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

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

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

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

                                8.10        There are a number of constraints attaching to the development of the Site as set
                                            out in Section 6. This includes the extent of remediation required due to the
                                            industrial processes undertaken on site over a considerable number of years.
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                                            Agreement needs to be reached between the land owner and the Environment
                                            Agency for a strategy to address this. The identification of contamination and
                                            flood risk on the ArvinMeritor site will determine the nature of uses across the site
                                            as the cost of remediation/flood alleviation measures may be too high and
                                            therefore unviable for uses such as residential on the southern parts.

                                8.11        The proximity of the Eastern Strip (Central) to the defined Town Centre Boundary
                                            gives the potential for a natural expansion of the town centre. One of the
                                            intentions of the Consultation Draft Plan has been to promote linkages between
                                            redevelopment areas and existing areas, together with integrating the railway
                                            station with the town centre.

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

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




                                                                                                                                              PAGE 45
                                Development Content




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                                                                                                                                      REVIEW OF PROPOSED DEVELOPMENT
                                8.14        In Section 7 we have provided market commentary on uses that could potentially
                                            be developed on the Site. We set out below comments on the uses that may be
                                            components within a mixed use development:
                                                 Offices – Cwmbran town centre does not currently provide any new office
                                                 accommodation and as a consequence of this, office requirements have in the
                                                 past located elsewhere. The Site could be considered for public sector offices
                                                 such as the relocation of TCBC’s offices and Gwent Police headquarters. TCBC
                                                 currently has a requirement that is likely to be for 15,000 – 20,000 sq ft. and
                                                 we understand that Gwent Police has a requirement for circa 35,000 sq ft.
                                                 The delivery of new offices for TCBC and Gwent Police could act as a catalyst
                                                 for attracting further inward investment from private sector companies in the
                                                 long-term. Leasing accommodation to public sector occupiers would also help
                                                 the viability of development proposals due to the higher capital values that can
                                                 be achieved from government-related covenants.
                                                 The amount of speculative office content should be kept to a minimum due to
                                                 the weakness of the current office market. Pre-lets would need to be explored
                                                 to mitigate letting risk.
                                                 With regard to the format of any office development, we would suggest an
                                                 “office park” with medium density and generous car parking. An office park
                                                 located in the town centre would be able to offer the regenerative and
                                                 economic benefits of the provision of quality employment space to assist job
                                                 creation; promote the usage of the Town Centre and its amenities; promote use
                                                 of the leisure facilities including an improved evening economy; and delivery of
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                                                 sustainable objectives through accessibility to public transport including the
                                                 railway station and bus station.
                                                 Should PruPIM bring forward proposals for the eastern expansion of Cwmbran
                                                 town centre, there may be an opportunity to relocate some office occupiers that
                                                 are currently within existing town centre office space. In addition the Welsh
                                                 Assembly Government office buildings could provide an available cost effective
                                                 solution for relocated tenants.
                                                 Convenience retailing – the inclusion of a foodstore would be a key economic
                                                 “driver” for the development in terms of generating high land values and jobs.
                                                 The sequential test and current planning policy encourages such development
                                                 in town centres in acknowledgement of foodstores’ ability to promote
                                                 sustainable economic growth.
                                                 A separate study has been undertaken by GVA on the assessment of capacity
                                                 for Cwmbran together with a sequential test of potential sites.            This
                                                 demonstrates additional capacity for a foodstore and identifies the Site as
                                                 suitable for foodstore development which can bring regeneration benefits. The
                                                 inclusion of a foodstore on the Eastern Strip Central would need to have proper
                                                 linkages and integration with the town centre.
                                                 Morrison’s submitted a full planning application on the ArvinMeritor northern
                                                 car park site in April 2009 for a retail foodstore of 7,216 sq m s (77,672 sq ft)




                                                                                                                                              PAGE 46
                                                 gross/3,427 sq m (36,888 sq ft) net.
                                                 Comparison retail – the updated Torfaen Retail & Leisure Study has




                                                                                                                                                              OPTIONS
                                                                                                                                      REVIEW OF PROPOSED DEVELOPMENT
                                                 demonstrated that there is additional capacity for more comparison goods
                                                 retail space. We would however anticipate that this is accommodated to the
                                                 eastern side of the existing Cwmbran Shopping Centre (to the west of St David’s
                                                 Road) or by the reconfiguration of existing properties within the Town Centre.
                                                 This expansion would allow Cwmbran to improve its market share in the region
                                                 as a primary shopping destination within the regional hierarchy as a Sub
                                                 Regional Centre.
                                                 We would not envisage comparison retailing within any proposals for the Site
                                                 unless small units are developed to create a link with land on the eastern side
                                                 of Cwmbran Shopping Centre which may come forward for additional
                                                 comparison retailing floorspace in the long-term.
                                                 Retail warehousing –the current state of the retail warehouse market is weak
                                                 and there is an extant consent on the Carillion Richardson site to meet the
                                                 requirements of a large bulky goods retailer. There is an under-representation
                                                 in Cwmbran in terms of DIY goods, sport and furniture/furnishing and when
                                                 there is an element of recovery in these market sectors, retail warehousing
                                                 could become a viable component of proposals.
                                                 Leisure, food and drink – the opening of “Leisure @ Cwmbran” has taken up
                                                 much of the outstanding leisure and restaurant requirements for Cwmbran
                                                 Town Centre. It has established this part of the town centre as a daytime and
                                                 evening destination for shoppers, residents and visitors to the town. Whilst the
                                                 main leisure uses of cinema and bowling are now provided for in modern
                                                 facilities, there may be scope for additional restaurants located close to the
                                                 town centre. In addition the development of an office park may generate
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                                                 requirements for coffee bars/ sandwich shops and small convenience retailing
                                                 for office workers together with the benefit of greater usage of the existing
                                                 restaurant and leisure facilities.
                                                 Hotels – Cwmbran is currently lacking a town centre branded hotel. With a
                                                 strengthened office sector within the town centre, this would also help to
                                                 support hotel demand. Whilst the hotel market is currently quiet due to market
                                                 conditions, there is likely to be scope to include a branded budget operator as
                                                 an edge of centre use, potentially through a site sale.
                                                 Residential – this could be a component of the mix of uses even though the
                                                 market is currently affected by the downturn. Once market activity returns,
                                                 residential development will be able to help restore and pump prime
                                                 development activity. However, the extent of remediation and flood mitigation
                                                 measures required across parts of the Site and the location of B2 uses adjacent
                                                 may make residential uses unviable. Potential demand still exists from housing
                                                 associations and there is likely to be interest in the longer term from house
                                                 building companies. It is likely that a low density solution such as 2, 3 and 4-
                                                 bed houses is likely to be the preferred form of any development.
                                                 Retirement accommodation/health care – the site could deliver retirement
                                                 accommodation, sheltered housing, or a nursing home/close care
                                                 accommodation but again subject to the issues affecting residential uses




                                                                                                                                              PAGE 47
                                                 identified above.
                                                 Arts – the Site could offer a potential relocation opportunity for the Llantarnam




                                                                                                                                                              OPTIONS
                                                                                                                                      REVIEW OF PROPOSED DEVELOPMENT
                                                 Grange Arts Centre as part of a wider redevelopment of the land adjacent to
                                                 “Leisure at Cwmbran” to link the Site with the town centre.
                                                 Community uses – integral with any larger scale residential development will
                                                 be the opportunity to incorporate the masterplanning of the area to include
                                                 landscaping/public open space, community facilities and local amenities.
                                                 Community uses could include a health centre or place of worship subject to
                                                 the issues affecting residential uses identified above.
                                                 Car parking – this will need to form part of the overall masterplan for the Site
                                                 to serve the businesses located on the Site and also to provide a shared facility
                                                 accessible to town centre shoppers and visitors. It could therefore provide a
                                                 useful link between the town centre and the Site. There are viability issues
                                                 however in car parking provision as parking within Cwmbran Shopping Centre
                                                 is free of charge and therefore is not self-funding. It therefore creates no land
                                                 value to justify its development, particularly in terms of multi-storey or decked
                                                 parking.
                                                 Public transport – we have assumed that the rail station remains in its current
                                                 location as it would be too costly to move or to find a large enough site.

                                Development Options
                                8.15        The challenge in relation to the development proposals for the Site is to establish a
                                            comprehensive development solution in this current market that is viable and “self-
                                            funding” and which can optimise the values of the component uses. We set out
                                            below three options for development of the site which assume an integrated
                                            approach.
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                                8.16        Whilst we have not been commissioned to undertake a masterplan process, we
                                            have used descriptive text rather than images of the proposals but have included
                                            some indicative plans to show suggested land uses.

                                8.17        For the purposes of describing the three options, we have divided the Site into five
                                            areas. This includes sub-division of the ArvinMeritor land ownership into three
                                            areas comprising the northern car park; the mid-section comprising part of the
                                            operational factory; and the southern section also currently operational.




                                                                                                                                              PAGE 48
                                                                                                                                                              OPTIONS
                                                                                                                                      REVIEW OF PROPOSED DEVELOPMENT
                                                 Area 1 – 0.91 ha (2.24 acres). Land to the north of Edlogan Way comprising
                                                 Cwmbran railway station and station parking. Out of the town centre and
                                                 segregated by Edlogan Way and the roundabout with St David’s Road with a
                                                 pedestrian subway link under Edlogan Way. Adjacent to Eastern Strip (North)
                                                 Strategic Opportunity Area.
                                                 Area 2 – 3.17 ha (7.83 acres). ArvinMeritor north car park site to the south of
                                                 Edlogan Way. This comprises the surface car park, bowling green and other
                                                 recreational facilities. It is segregated from the town centre by Grange Road
                                                 and St David’s Road and a landscaped area with limited pedestrian linkages. It
                                                 sits at a lower level to the existing town centre and partly at a lower level to
                                                 Edlogan Way. ArvinMeritor is looking to dispose of this site for foodstore use.
                                                 Area 3 – 0.85 ha (2.1 acres). TCBC owned land including St David’s Road.
                                                 Heavily landscaped area with limited pedestrian linkages to PruPIM’s land to
                                                 the east of the town centre. This is at a lower level to the existing town centre.
                                                 Potential for upper level walkway link to bridge over St David’s Road beside
                                                 “Leisure at Cwmbran”.
                                                 Area 4 – 2.74 ha (6.77 acres). Mid-section of main factory currently occupied
                                                 by ArvinMeritor for its manufacturing operation.    It is segregated from St
                                                 David’s Road by Grange Road and a landscaped area in TCBC’s ownership
                                                 with limited pedestrian linkages.
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                                                 Area 5 – 5.41ha (13.37 acres). Southern section of main factory currently
                                                 occupied by ArvinMeritor for its manufacturing operation. Also includes Welsh
                                                 Assembly Government office buildings. Segregated from St David’s Road by
                                                 Grange Road and a landscaped area owned by TCBC with limited pedestrian
                                                 linkages.


                                8.18        We set out overleaf a summary of three development options for the Site including
                                            indicative block plans illustrating the potential uses.




                                                                                                                                              PAGE 49
                                                                                                                                                              OPTIONS
                                                                                                                                      REVIEW OF PROPOSED DEVELOPMENT
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                           Development Option 1
                           General                 Comprehensive proposals that will deliver the regeneration benefits of the retention of
                           Theme                   existing employment on site but in modernised premises together with the creation of a
                                                   future office development site for quality new offices. New foodstore provides a value
                                                   driver to cross-fund development.         It assumes ArvinMeritor remain on site in
                                                   reconfigured premises. Deliverability will be significantly assisted by the role of
                                                   ArvinMeritor as the facilitator.




                                                                                                                                                               PAGE 50
                                                                                                                                                                               OPTIONS
                                                                                                                                                       REVIEW OF PROPOSED DEVELOPMENT




                           Scheme                  Area 1                                 Retention of the railway station and its customer car
                           Content                                                        parking in its current position but with improved
                                                                                          pedestrian linkages across Edlogan Way.
                                                   Area 2 & 3                             Redevelopment of main area for foodstore.
                                                                                          Petrol filling station for foodstore fronting Edlogan Way.
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                                                                                          Surface car parking as shared facility for foodstore and
                                                                                          town centre shoppers/leisure visitors
                                                                                          Linkage to and integration with town centre by
                                                                                          completion of upper level walkway beside “Leisure at
                                                                                          Cwmbran”; traffic calming to facilitate ground level
                                                                                          crossing of St David’s Road; and development of new
                                                                                          food/drink units complementary to adjacent leisure
                                                                                          complex.
                                                                                          Removal of landscaping to improve linkage and
                                                                                          visibility to town centre

                                                   Area 4                                 Part demolition of ArvinMeritor building.
                                                                                          Development of office quarter to provide public and
                                                                                          private sector offices
                                                                                          Branded hotel fronting St David’s Road with
                                                                                          pub/restaurant.
                                                                                          Surface and undercroft parking.

                                                   Area 5                                 Extensive refurbishment and redevelopment of
                                                                                          ArvinMeritor factory premises to create a new technical
                                                                                          headquarters.
                                                                                          Retention and refurbishment of WAG office buildings
                                                                                          for re-letting

                                                   Infrastructure                         Traffic calming measures to St David’s Road including
                                                                                          potential tabling




                                                                                                                                                             PAGE 51
                                                                                          Works to Edlogan Way/St David’s Road roundabout to
                                                                                          facilitate additional foodstore traffic
                                                                                          Grange Road is closed at northern end to form part of




                                                                                                                                                                             OPTIONS
                                                                                                                                                     REVIEW OF PROPOSED DEVELOPMENT
                                                                                          the development site but will continue to provide access
                                                                                          to Alfa Laval and Carillion Richardson.

                           Constraints             Remediation of ground contamination will be required to allow development to take
                                                   place. Uses will need to take account of positioning of contamination hot-spots on site.
                                                   Any Japanese knotweed will need to be removed.

                                                   The implications of the flood risk and necessary flood alleviation measures will need to
                                                   be resolved as this will affect the uses on site including civic offices.

                                                   Utilities running across the site will need to be rerouted or mitigating measures will
                                                   need to be taken in terms of stand-off areas.

                                                   Agreement may need to be reached with Network Rail on the interface of third party
                                                   works in relation to any construction close to the railway line.

                                                   Stopping-up required of part of Grange Road.

                                                   Phasing (see below) will impact on the early availability of the office site whilst
                                                   ArvinMeritor reconfigures their premises to relocate to the south of the site.

                           Phasing                 The comprehensive development of the Site will need to be brought forward in phases
                                                   to facilitate the reconfiguration of the Arvin
                                                   Meritor buildings. Phasing is likely to be as follows:

                                                                    Confirmation of stopping up order (Grange Road)
                                                                    Ongoing site remediation
                                                                    Release of northern car park site for foodstore development and
                                                                    highways works
                                                                    Decanting by ArvinMeritor to mid part of site to release southern end for
                                                                    refurbishment / redevelopment and fit-out
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                                                                    Decanting by ArvinMeritor to southern part of Site
                                                                    Subsequent demolitions of buildings on mid-section of Site and release of
                                                                    this area

                           Strengths               The delivery of wider regeneration benefits including the creation of an integrated
                                                   mixed use scheme with enhanced linkages to and integration with the town centre.

                                                   The creation of new quality public realm, including a civic square, around St David’s
                                                   Road that can become a new civic focal point for the town centre. This will also benefit
                                                   the leisure offer of the town centre.

                                                   Potential to create a link to any eastwards expansion of Cwmbran Shopping Centre in
                                                   the longer term.

                                                   Implementation of a remediation strategy for a currently contaminated site.

                                                   Opportunity to involve a more contemporary form of development and enhance
                                                   diversity in design for the town centre.

                                                   New “gateway” development fronting Edlogan Way/St David’s Road will sign the east
                                                   side of the town centre.

                                                   Sustainable design objectives can be met through improving pedestrian access around
                                                   the site and to and from the town centre, bus station and railway station, encouraging
                                                   greater use of public transport. New employment uses will increase and promote
                                                   public transport usage.




                                                                                                                                                        PAGE 52
                                                   The development has the opportunity to attract substantial inward investment and bring
                                                   new jobs, protect existing jobs and bring new employment accommodation to




                                                                                                                                                                        OPTIONS
                                                                                                                                                REVIEW OF PROPOSED DEVELOPMENT
                                                   Cwmbran town centre.

                                                   The private sector would lead the regeneration but could obtain support from the public
                                                   sector in bringing the development proposals forward. This should allow greater
                                                   certainty of delivery and create an opportunity to lever in grant monies and European
                                                   funding.

                                                   The new office core will strengthen activity levels in the town centre with office workers
                                                   contributing to the overall economic vitality of the town centre in enhancing retail and
                                                   leisure spending and use of facilities into the evening. Will provide opportunity to
                                                   accommodate public sector office requirements such as TCBC’s requirement and kick-
                                                   start Cwmbran as an office destination. Effective pedestrian linkages are needed to
                                                   maximise the economic benefits.

                                                   Improved parking facilities on the Eastern Strip will strengthen activity in the area and
                                                   support Cwmbran Shopping Centre which currently suffers from parking issues at peak
                                                   times.

                           Issues                  Requires the agreement and long-term commitment of ArvinMeritor as the key
                                                   landowner to remain on site and bring forward the redevelopment.

                                                   The planning strategy needs to ensure that the Site is developed on a comprehensive
                                                   basis without the foodstore coming forward in isolation.

                                                   The early release of the northern car park site for the foodstore would be necessary to
                                                   cross-fund the refurbishment/redevelopment works being undertaken by ArvinMeritor.

                                                   Proper and effective linkages to and integration with the town centre are required to
                                                   fulfil the planning objectives of expanding the retail base yet ensuring that the Site
                                                   integrates with the town centre. Linkages between the town centre, rail station and the
                                                   Site are also to be promoted.
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                                                   The car parking strategy should ensure that sufficient car parking is available both for
                                                   occupiers and town centre visitors. This may include some provision for shared usage
                                                   of office parking at weekends for shoppers and leisure visitors.

                                                   There will be a need to optimise the amount of active frontages and ensure that these
                                                   are orientated towards the town centre to ensure that the development is perceived as
                                                   an extension and not stand-alone development and that it is fully integrated with the
                                                   town centre.

                                                   The presence of contamination on site and the risk of flooding will impact on the mix of
                                                   uses proposed and the positioning of the buildings on site.

                                                   Potential future development of the Alfa Laval and Carillion Richardson sites will need
                                                   to be taken into account in terms of access linkages.

                                                   Any emerging PruPIM masterplan proposals should take the integration of the Site into
                                                   consideration with proper linkages between the areas to the east and west of David’s
                                                   Road. It should not allow Cwmbran Shopping Centre to turn its back on the eastern
                                                   side by being an inward facing scheme. This includes an appropriate use of levels to
                                                   ensure that connections at ground level are achievable with an appropriate massing
                                                   around any linking development such as public realm.

                           Risks                   The resolution of flood risk and ground remediation issues will potentially add cost to
                                                   the development appraisal but also protract the development programme. The
                                                   implications of the risk of flooding will need to be resolved to establish where buildings
                                                   can be sited and whether certain uses are excluded, including civic offices.




                                                                                                                                                        PAGE 53
                                                   If planning consent is granted for the foodstore in the current form as shown in the




                                                                                                                                                                        OPTIONS
                                                                                                                                                REVIEW OF PROPOSED DEVELOPMENT
                                                   existing application, this would exclude the land immediately to the east of St David’s
                                                   Road and therefore jeopardise the opportunity for improved linkages to the town
                                                   centre.

                                                   The foodstore use will need to be fully justified in planning terms as it is currently not
                                                   within the Town Centre Boundary.

                                                   Any involvement of the public sector could add delays to the overall programme.
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                           Development Option 2
                           General                   This option assumes ArvinMeritor vacates the Site and disposes of its land interest. It
                           Theme                     offers comprehensive proposals that will deliver the regeneration benefits of new
                                                     employment space by the creation of a future office development site together with
                                                     new retail warehousing and leisure. A new foodstore provides a value driver to cross-
                                                     fund development. Delivery will be dependent on onward disposal to a private sector
                                                     facilitator such as a developer.




                                                                                                                                                           PAGE 54
                                                                                                                                                                           OPTIONS
                                                                                                                                                   REVIEW OF PROPOSED DEVELOPMENT




                           Scheme                    Area 1                 Retention of the railway station and its customer car parking in its
                           Content                                          current position but with improved pedestrian linkages across
                                                                            Edlogan Way.
                                                     Area 2 & 3             Redevelopment of main area for foodstore.
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                                                                            Petrol filling station for foodstore fronting Edlogan Way.
                                                                            Surface car parking as shared facility for foodstore and town
                                                                            centre shoppers/leisure visitors
                                                                            Linkage to and integration with town centre by completion of
                                                                            upper level walkway beside “Leisure at Cwmbran”; traffic calming
                                                                            to facilitate ground level crossing of St David’s Road; and
                                                                            development of new food/drink units complementary to adjacent
                                                                            leisure complex.
                                                                            Removal of landscaping to improve linkage and visibility to town
                                                                            centre

                                                     Area 4                 Demolition of ArvinMeritor buildings.
                                                                            Development of office quarter to provide public and private sector
                                                                            offices
                                                                            Branded hotel fronting St David’s Road with pub/restaurant.
                                                                            Surface and undercroft parking.

                                                     Area 5                 Demolition of ArvinMeritor buildings.
                                                                            Creation of additional office site for long-term redevelopment with
                                                                            some small business units.
                                                                            Refurbishment of Welsh Assembly Government offices
                                                                            Commercial      development        comprising     potentially retail
                                                                            warehousing and health and fitness.
                                                                            Surface car parking to include shoppers’ parking.

                                                     Infrastructure         Traffic calming measures to St David’s Road including potential




                                                                                                                                                           PAGE 55
                                                                            tabling
                                                                            Works to Edlogan Way/St David’s Road roundabout to facilitate
                                                                            additional foodstore traffic




                                                                                                                                                                           OPTIONS
                                                                                                                                                   REVIEW OF PROPOSED DEVELOPMENT
                                                                            Grange Road is closed at northern end to form part of the
                                                                            development site but will continue to provide access to Alfa Laval
                                                                            and Carillion Richardson.

                           Constraints               Redevelopment of the Site will be dependent on ArvinMeritor relocating off-site from
                                                     the mid and southern parts of the Site and making the whole Site available for
                                                     redevelopment.

                                                     Remediation of ground contamination will be required to allow development to take
                                                     place. Uses will need to take account of positioning of contamination hot-spots on
                                                     site. Any Japanese knotweed will need to be removed.

                                                     The implications of the flood risk and necessary flood alleviation measures will need
                                                     to be resolved as this will affect the uses on site including civic offices.

                                                     Utilities running across the site will need to be rerouted or mitigating measures will
                                                     need to be taken in terms of stand-off areas.

                                                     Agreement may need to be reached with Network Rail on the interface of third party
                                                     works in relation to any construction close to the railway line.

                                                     Stopping-up required of part of Grange Road.

                                                     Due to the provision of free parking across the town centre, any car parking will be
                                                     non-revenue producing and therefore will not generate land value/profit and multi-
                                                     storey parking will not be cost effective.

                           Phasing                   The comprehensive development of the Site can be brought forward in stages that are
                                                     likely to be as follows:
                                                                    Confirmation of stopping up order (Grange Road)
                                                                    Ongoing site remediation
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Review of Proposed Development Options

                                                                      Release of northern car park site for foodstore development and
                                                                      highways works
                                                                      Vacant possession given by ArvinMeritor and subsequent demolition
                                                                      Release of sites for offices and commercial development

                           Strengths                 The delivery of wider regeneration benefits including the creation of an integrated
                                                     mixed use scheme with enhanced linkages to the town centre. The development has
                                                     the opportunity to attract inward investment and bring new jobs and occupiers to the
                                                     town.

                                                     The creation of new quality public realm, including a civic square, around St David’s
                                                     Road that can become a new civic focal point for the town centre. This will also
                                                     benefit the leisure offer of the town centre.

                                                     Potential to create a link to any eastwards expansion of Cwmbran Shopping Centre in
                                                     the longer term.

                                                     Opportunity to involve a more contemporary form of development and enhance
                                                     diversity in design for the town centre.

                                                     New “gateway” development fronting Edlogan Way/St David’s Road will sign the east
                                                     side of the town centre.

                                                     Sustainable design objectives can be met through improving pedestrian access
                                                     around the site and to and from the town centre, bus station and railway station,
                                                     encouraging greater use of public transport. New employment uses will increase and




                                                                                                                                                          PAGE 56
                                                     promote public transport usage.

                                                     The private sector would need to lead the regeneration assuming the Site is disposed




                                                                                                                                                                          OPTIONS
                                                                                                                                                  REVIEW OF PROPOSED DEVELOPMENT
                                                     of by ArvinMeritor but could obtain support from the public sector in bringing the
                                                     development proposals forward. This should allow greater certainty of delivery and
                                                     create an opportunity to lever in grant monies and European funding.

                                                     The new office core will strengthen activity levels in the town centre with office workers
                                                     contributing to the overall economic vitality of the town centre in enhancing retail and
                                                     leisure spending and use of facilities into the evening. Will provide opportunity to
                                                     accommodate any public sector office requirements such as TCBC’s requirement and
                                                     kick-start Cwmbran as an office destination. Effective pedestrian linkages are needed
                                                     to maximise the economic benefits.

                                                     Improved parking facilities on the Eastern Strip will strengthen activity in the area and
                                                     support Cwmbran Shopping Centre which currently suffers from parking issues at
                                                     peak times.

                           Issues                    Clean-up of the Site will need to be undertaken and this may deter third party
                                                     developers/investors. The presence of contamination on site and the risk of flooding
                                                     will impact on the mix of uses proposed and the positioning of the buildings on site.

                                                     There will be a loss of existing jobs if ArvinMeritor vacate.

                                                     The planning strategy will need to ensure that the Site is developed on a
                                                     comprehensive basis without the foodstore coming forward in isolation.

                                                     The southern section of the Site is not integrated with the town centre and may be
                                                     considered too distant for linked trips. This will influence acceptable uses in planning
                                                     terms.

                                                     The early release of the northern car park site for the foodstore would be necessary to
                                                     cross-fund the office development proposals.
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Review of Proposed Development Options

                                                     Proper and effective linkages to and integration with the town centre are required to
                                                     fulfil the planning objectives of expanding the retail base yet ensuring that the Site
                                                     integrates with the town centre. Linkages between the town centre, rail station and
                                                     the Site are also to be promoted.

                                                     The car parking strategy should ensure that sufficient car parking is available both for
                                                     occupiers and town centre visitors. This may include some provision for shared usage
                                                     of office parking at weekends for shoppers and leisure visitors.

                                                     There will be a need to optimise the amount of active frontages and ensure that these
                                                     are orientated towards the town centre to ensure that the development is perceived as
                                                     an extension and not stand-alone development.

                                                     Potential future development of the Alfa Laval and Carillion Richardson sites will need
                                                     to be taken into account in terms of access linkages.

                                                     Any emerging PruPIM masterplan proposals should take the integration of the Site
                                                     into consideration with proper linkages between the areas to the east and west of
                                                     David’s Road. It should not allow Cwmbran Shopping Centre to turn its back on the
                                                     eastern side by being an inward facing scheme. This includes an appropriate use of
                                                     levels to ensure that connections at ground level are achievable with an appropriate
                                                     massing around any linking development such as public realm.

                           Risks                     Dependent on ArvinMeritor vacating the Site and a third party bringing the
                                                     development forward. This may require use of compulsory powers that would be
                                                     costly and prolong the programme.




                                                                                                                                                          PAGE 57
                                                     The resolution of flood risk and ground remediation issues will potentially add cost to
                                                     the development appraisal but also protract the development programme. The




                                                                                                                                                                          OPTIONS
                                                                                                                                                  REVIEW OF PROPOSED DEVELOPMENT
                                                     implications of the risk of flooding will need to be resolved to establish where
                                                     buildings can be sited and whether certain uses are excluded, including civic offices.

                                                     The foodstore use will need to be fully justified in planning terms as it is currently not
                                                     within the Town Centre Boundary. Proper linkages to and integration with the town
                                                     centre will need to be demonstrated.

                                                     Any involvement of the public sector could add delays to the overall programme.
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Review of Proposed Development Options


                              Development Option 3
                              General                This option assumes ArvinMeritor vacates and disposes of its land interest and that
                              Theme                  the foodstore development locates on the mid-section of the Site. It includes
                                                     residential development on the only feasible part of the Site without contamination or
                                                     serious flooding issues i.e. the northern car park site.




                                                                                                                                                             PAGE 58
                                                                                                                                                                             OPTIONS
                                                                                                                                                     REVIEW OF PROPOSED DEVELOPMENT




                              Scheme                  Area 1                  Retention of the railway station and its customer car parking in its
                              Content                                         current position but with improved pedestrian linkages across
                                                                              Edlogan Way.
                                                     Area 2 & 3               Branded hotel with pub/restaurant
                                                                              Residential area including mix of housing styles and tenures –
                                                                              detached, semi-detached and terraced. Includes affordable
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                                                                              housing and potential care home (circa 2 acres).
                                                                              Linkage to and integration with town centre by completion of
                                                                              upper level walkway beside “Leisure at Cwmbran” and traffic
                                                                              calming to facilitate ground level crossing of St David’s Road.
                                                                              Removal of landscaping to improve linkage and visibility to town
                                                                              centre.

                                                     Area 4                   Foodstore development.
                                                                              Surface car parking as shared facility for foodstore and town
                                                                              centre shoppers/leisure visitors.
                                                                              Link development to town centre comprising new food/drink units
                                                                              complementary to adjacent leisure complex.

                                                     Area 5                   Public and private sector offices together with the refurbishment
                                                                              of the Welsh Assembly Government offices.
                                                                              Small business units also to be provided.
                                                                              Surface and undercroft parking.
                                                                              Commercial     development       comprising    potentially   retail
                                                                              warehousing and health and fitness.

                                                     Infrastructure           Traffic calming measures to St David’s Road including potential
                                                                              tabling
                                                                              Works to Edlogan Way/St David’s Road roundabout to facilitate
                                                                              additional activity at northern end of Site.
                                                                              Grange Road is closed at northern end to form part of the
                                                                              development site but will continue to provide access to Alfa Laval




                                                                                                                                                            PAGE 59
                                                                              and Carillion Richardson.

                              Constraints            Redevelopment of the Site will be dependent on ArvinMeritor relocating off-site from




                                                                                                                                                                            OPTIONS
                                                                                                                                                    REVIEW OF PROPOSED DEVELOPMENT
                                                     the mid and southern parts of the Site and making the whole Site available for
                                                     redevelopment.

                                                     Remediation of ground contamination will be required to allow development to take
                                                     place. Uses will need to take account of positioning of contamination hot-spots on
                                                     site particularly residential. Any Japanese knotweed will need to be removed.

                                                     The implications of the flood risk and necessary flood alleviation measures will need
                                                     to be resolved as this will affect the uses on site including civic offices.

                                                     Utilities running across the site will need to be rerouted or mitigating measures will
                                                     need to be taken in terms of stand-off areas.

                                                     Agreement may need to be reached with Network Rail on the interface of third party
                                                     works in relation to any construction close to the railway line.

                                                     Stopping-up required of part of Grange Road.

                                                     Due to the provision of free parking across the town centre, any car parking will be
                                                     non-revenue producing and therefore multi-storey parking will not be cost effective.

                                                     Residential uses in particular will need to take account of positioning of any
                                                     contamination on site.

                              Phasing                The comprehensive development of the Site can be brought forward in stages that
                                                     are likely to be as follows:
                                                                    Confirmation of stopping up order (Grange Road)
                                                                    Ongoing site remediation
                                                                    Release of northern car park site for hotel / residential development
                                                                    and highways works
                                                                    Vacant possession given by ArvinMeritor and subsequent demolition
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Review of Proposed Development Options

                                                                      Release of remaining sites for foodstore, offices and commercial
                                                                      development

                              Strengths              The residential provision will allow some diversity in the range of tenures and house
                                                     styles and provide housing to meet demand. A care home is included comprising a
                                                     2 acre site. It may also offer the opportunity for relocations if the Council is
                                                     considering interventions to improve the housing stock as part of its Housing Renewal
                                                     programme.

                                                     The delivery of wider regeneration benefits including the creation of an integrated
                                                     mixed use scheme with enhanced linkages to the town centre. The development has
                                                     the opportunity to attract inward investment and bring new jobs and occupiers to the
                                                     town.

                                                     Potential to create a link to any eastwards expansion of Cwmbran Shopping Centre
                                                     in the longer term.

                                                     Opportunity to involve a more contemporary form of development to reduce lack of
                                                     diversity in design in both commercial and residential buildings for the town centre.

                                                     Sustainable design objectives can be met through improving pedestrian access
                                                     around the site and to and from the town centre, bus station and railway station,
                                                     encouraging greater use of public transport. New employment uses will increase
                                                     and promote public transport usage.

                                                     The private sector would need to lead the regeneration assuming the Site is disposed




                                                                                                                                                         PAGE 60
                                                     of by ArvinMeritor but could obtain support from the public sector in bringing the
                                                     development proposals forward. This should allow greater certainty of delivery and
                                                     create an opportunity to lever in grant monies and European funding.




                                                                                                                                                                         OPTIONS
                                                                                                                                                 REVIEW OF PROPOSED DEVELOPMENT
                                                     The new office core will strengthen activity levels in the town centre with office
                                                     workers contributing to the overall economic vitality of the town centre in enhancing
                                                     retail and leisure spending and use of facilities into the evening. Will provide
                                                     opportunity to accommodate any public sector office requirements such as TCBC’s
                                                     requirement and kick-start Cwmbran as an office destination. Effective pedestrian
                                                     linkages are needed to maximise the economic benefits.

                                                     Improved parking facilities on the Eastern Strip will strengthen activity in the area and
                                                     support Cwmbran Shopping Centre which currently suffers from parking issues at
                                                     peak times.

                              Issues                 The northern car park site within ArvinMeritor’s ownership is the only area of the Site
                                                     that could be considered for residential development due to contamination elsewhere
                                                     requiring unviable clean-up costs.

                                                     The lack of commercial/employment uses at the northern end of the Site will isolate
                                                     the railway station and the residential development located there will be incompatible
                                                     with adjacent town centre uses.

                                                     There will be a lack of connection between the office development site, the town
                                                     centre and the railway station. It will be segregated by the highways infrastructure
                                                     with poor connections to the town centre with St David’s Road in particular acting as
                                                     a barrier. It would therefore appear as stand-alone development that is reliant on
                                                     car-borne visitors.

                                                     Clean-up of the Site will need to be undertaken and this may deter third party
                                                     developers/investors. The presence of contamination on site and the risk of flooding
                                                     will impact on the mix of uses proposed and the positioning of the buildings on site.

                                                     There will be a loss of existing jobs if ArvinMeritor vacate.
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Review of Proposed Development Options


                                                     Residential use of the northern part of the site will lead to the loss of a commercial
                                                     site in a prime position.

                                                     The planning strategy will need to ensure that the Site is developed on a
                                                     comprehensive basis without the foodstore coming forward in isolation.

                                                     The early release of the mid-section of the Site would be necessary to cross-fund the
                                                     office development proposals.

                                                     Proper and effective linkages to the town centre are required to fulfil the planning
                                                     objectives of expanding the retail base yet ensuring that the Site integrates with the
                                                     town centre. Linkages between the town centre, rail station and the Site are also to
                                                     be promoted.

                                                     The car parking strategy should ensure that sufficient car parking is available both
                                                     for occupiers and town centre visitors. This may include some provision for shared
                                                     usage of office parking at weekends for shoppers and leisure visitors.

                                                     There will be a need to optimise the amount of active frontages and ensure that these
                                                     are orientated towards the town centre to ensure that the development is perceived
                                                     as an extension and not stand-alone development and provides integration with the
                                                     town centre.

                                                     Potential future development of the Alfa Laval and Carillion Richardson sites will need
                                                     to be taken into account in terms of access linkages.




                                                                                                                                                          PAGE 61
                                                     Any emerging PruPIM masterplan proposals should take the integration of the Site
                                                     into consideration with proper linkages between the areas to the east and west of




                                                                                                                                                                          OPTIONS
                                                                                                                                                  REVIEW OF PROPOSED DEVELOPMENT
                                                     David’s Road. It should not allow Cwmbran Shopping Centre to turn its back on the
                                                     eastern side by being an inward facing scheme. This includes an appropriate use of
                                                     levels to ensure that connections at ground level are achievable with an appropriate
                                                     massing around any linking development such as public realm.

                              Risks                  Dependent on ArvinMeritor vacating the Site and a third party bringing the
                                                     development forward. This may require use of compulsory powers that would be
                                                     costly and prolong the programme.

                                                     The delay in the foodstore site becoming available due to ArvinMeritor vacating the
                                                     Site and removal of contamination could be a commercial risk that a foodstore
                                                     operator may look for alternative, more quickly deliverable sites.

                                                     The resolution of flood risk and ground remediation issues will potentially add cost to
                                                     the development appraisal but also protract the development programme. The
                                                     implications of the risk of flooding will need to be resolved to establish where
                                                     buildings can be sited and whether certain uses are excluded, including civic offices.

                                                     The foodstore use will need to be fully justified in planning terms as it is currently not
                                                     within the Town Centre Boundary. This will include demonstrating linkages to and
                                                     integration with the town centre
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Viability of Proposed Development Options

                                9.1         The context of the viability review has been to test commercial alternatives for the
                                            Site to establish the most appropriate uses that can be delivered long-term over a
                                            likely 10 to 15-year period. The programme for the development of the site is
                                            realistically over this period to allow a return of confidence to the property market
                                            and an element of recovery.

                                9.2         The financial commentary below reviews the development proposals and the range
                                            of costs and values associated with the three development options and appraises
                                            the overall viability taking into account current market conditions. The challenge
                                            has been to establish a comprehensive project which has the potential to be as self-
                                            funding as possible both in terms of the component sites and the overall scheme.
                                            The role of the development appraisals has been to inform the selection of land
                                            uses rather than to define land values at this stage.

                                9.3         Unfortunately due to current market conditions, site values are depressed to reflect
                                            the significant drop in capital values since 2007; the potential lack of availability of
                                            finance; and the requirement from developers to increase their profit margins in
                                            line with their increased perception of risk.

                                9.4         The basis of this preliminary indicative appraisal of the various development
                                            options is the “residual development model”. This method of land valuation is
                                            accepted by the development market as an indicator of possible land values subject
                                            to a number of key variables and it is widely accepted as the recognised appraisal
                                            method. It is not however intended to be a formal valuation but provides an




                                                                                                                                                PAGE 62
                                            indication of the viability of the proposed options and takes account of general
                                            assumptions as stated below.




                                                                                                                                                                  OPTIONS
                                                                                                                                       VIABILITY OF PROPOSED DEVELOPMENT
                                9.5         We would recommend that a more detailed appraisal is undertaken, to include
                                            costing by quantity surveyors, should any subsequent masterplanning exercise be
                                            undertaken of the Site and adjacent developable areas.

                                9.6         With regard to S106 obligations, we have not yet addressed any specific
                                            requirements of the planning department on the appropriate S106 contributions to
                                            include within the indicative appraisal process. We have however allowed for
                                            affordable housing and provisional estimates for the completion of the bridge link
                                            over St David’s Road.

                                9.7         In respect of contamination, we are assuming that the landowners will themselves
                                            be responsible for clean up (the “polluter pays”) and therefore any land value
                                            assumptions do not allow for additional costs.

                                9.8         We have adopted costs and values at today’s prices and not allowed for any rent
                                            inflation/deflation or build cost inflation/deflation due to the ongoing volatility of
                                            the current property market conditions.
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Viability of Proposed Development Options


                                General Assumptions
                                The Site                       The maximum total developable area is circa 13.08 ha (32.32 acres)
                                                               excluding land to the north of Edlogan Way and including Grange Road.

                                Offices                        New build offices are designed efficiently to allow a net to gross ratio of 85%
                                                               Maximum height of 3 to 4 storeys
                                                               Welsh Assembly Government’s offices are refurbished to a good quality
                                                               The offices are to achieve BREEAM “very good” standard
                                                               Any public sector pre-lets are secured while the sites are assembled for
                                                               development
                                                               Intention for majority of space to be pre-let

                                Retail                         The foodstore option assumes a store of approximately 80,000 sq ft gross
                                                               with a petrol filling station and surface parking
                                                               Retail warehousing assumes bulky goods to the southern end of the Site
                                                               The link units in Options 1 and 2 would comprise a limited number of small
                                                               food/drink units complementary to the leisure complex

                                Hotel                          Disposal by site sale at nominal value
                                                               Budget hotel of 70/80 beds
                                                               Approximate land take of 1.5 acres

                                Residential                    Mix of uses and tenures to include flats, terraced, semi-detached and




                                                                                                                                                          PAGE 63
                                                               detached houses
                                                               The density comprises an average of 50 units per hectare with an average
                                                               unit size of 900 sq ft




                                                                                                                                                                            OPTIONS
                                                                                                                                                 VIABILITY OF PROPOSED DEVELOPMENT
                                                               Affordable housing comprises 30% of the housing in accordance with TCBC’s
                                                               Adopted Affordable Housing Delivery Statement, Supplementary Planning
                                                               Guidance dated February 2010
                                                               The affordable housing units are at a discounted value and it is assumed that
                                                               grant will meet any cost shortfall

                                Public realm                   an allowance has been made for hard and soft landscaping to enhance
                                                               public spaces and improve the linkage with the town centre.

                                Car parking                    Not income producing

                                Highways                       All Options retain St David’s Road but assume the closure of Grange Road

                                Railway                        All Options assume the railway station remains in its current location.
                                Station


                                Build Costs
                                9.9         The build costs used are based on BCIS figures current as at January 2011 together
                                            with the views and experience of our building consultancy team.

                                Professional Fees
                                9.10        Design team fees include architect, quantity surveyor, project management,
                                            structural engineer, CDM and highways.
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Viability of Proposed Development Options

                                Interest
                                9.11        The interest costs have been calculated with a margin to the current bank rate to
                                            reflect the risk profile of the development options. At present however it remains
                                            difficult to obtain some development funding, due to the lending policies of the
                                            banks, particularly where there is perceived exposure to risk. This includes funding
                                            of speculative development, residential and hotel development.

                                Phasing
                                9.12        Where appropriate, the development appraisals assume that the sites are acquired
                                            immediately prior to development in that there are no holding costs relating to land
                                            acquisition costs.

                                Profit
                                9.13        A return is allowed to reflect current market anticipated returns for developers. As
                                            the market is currently risk averse, the required profit margins, depending on the
                                            content and risk profile of the proposals, range from 20% to 30% return on cost
                                            with the higher profit margin on residential-based development.

                                Exclusions
                                9.14        A number of costs may have to be potentially deducted from the site values to
                                            facilitate development comprising




                                                                                                                                               PAGE 64
                                                 Abnormal ground conditions, for example requiring piling




                                                                                                                                                                 OPTIONS
                                                                                                                                      VIABILITY OF PROPOSED DEVELOPMENT
                                                 Archaeology
                                                 Asbestos removal
                                                 CPO costs and related advisor costs should these be required
                                                 Demolition costs relating to existing buildings on site
                                                 Flood alleviation measures
                                                 Internal estate and service roads
                                                 Off site highway improvements
                                                 Planning and building regulation fees
                                                 Removal of japanese knotweed
                                                 Service diversions
                                                 Site management
                                                 Site remediation costs and any specialist de-contamination
                                                 Third party issues and land acquisitions
                                                 Utilities - new supplies/diversions

                                Market value
                                9.15        The appraisals adopt market values current as at January 2011 when the market
                                            conditions remain challenging. The yields and rents have been sourced through
                                            CB Richard Ellis Research and the views of our valuers and commercial and
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Viability of Proposed Development Options

                                            residential agents. We have included incentives to be paid to ingoing occupiers to
                                            achieve the rents.

                                9.16        In terms of office rents used in the development appraisals, the rents for new office
                                            accommodation are above prevailing rental levels in Cwmbran town centre but will
                                            need to be at this level as a minimum to justify new development of a good quality
                                            building. Where it is anticipated that the public sector will take space, there is an
                                            improved yield (enhanced capital value) as the investment is considered to be more
                                            secure, particularly if fixed rental increases can be agreed.

                                Residual Site Value
                                9.17        All of the component parts of the development assume that a residual land value is
                                            derived from the costs and values relating to the development proposals taking into
                                            account a profit allowance to the developer.


                                9.18        The purpose of reviewing the development appraisals now is to assess which,
                                            comparatively, are the most viable uses rather than to establish precise site values.
                                            This is before any exclusions as detailed above such as third party acquisitions, site
                                            remediation costs etc.

                                9.19        A summary of the headline development content for the three options is as follows:




                                                                                                                                                                       PAGE 65
                                Option 1                        Proposed Mix                                                 Comments

                                Area 1                          Retention of station                                         No change




                                                                                                                                                                                         OPTIONS
                                                                                                                                                              VIABILITY OF PROPOSED DEVELOPMENT
                                Area 2 & 3                      Foodstore 78,000 sq ft gross with petrol                     Positive land value due to
                                ArvinMeritor north car          filling station                                              foodstore.
                                park and linking area
                                   include
                                to include Grange
                                Road and open area

                                       mid-
                                Area 4 mid-section,             New offices with car parking - 75,000 sq                     Marginal land value due to
                                former                          ft net of which circa 50,000 sq ft net                       build cost exceeding capital
                                ArvinMeritor factory            public sector and 25,000 sq ft net private                   value that is affected by
                                                                sector developed in phases.                                  current yield/rent profile.
                                                                Hotel with car parking                                       Yield is improved for public
                                                                                                                             sector investment.

                                Area 5 southern area            Refurbishment/redevelopment of                               Will be retained by current
                                                                ArvinMeritor factory                                         owners. Positive land value
                                                                Refurbishment of WAG offices                                 due to existing use.

                                Option 2                        Proposed Mix                                                 Comments

                                Area 1                          Retention of station                                         No change

                                Area 2 & 3
                                Area                            Foodstore 78,000 sq ft gross with petrol                     Positive land value due to
                                ArvinMeritor north car          filling station                                              foodstore for this part of the
                                park and linking area                                                                        Site.
                                to include Grange
                                Road and open area
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                                       mid-
                                Area 4 mid-section,             New offices with car parking - 75,000 sq                     Marginal land value due to
                                former                          ft net of which 50,000 sq ft net public                      build cost exceeding capital
                                ArvinMeritor factory            sector and 25,000 sq ft net private sector                   value that is affected by
                                                                developed in phases.                                         current yield/rent profile.
                                                                Hotel with car parking                                       Yield is improved for public
                                                                                                                             sector lettings.
                                Area 5 southern area            Small business units – 10,000 sq ft
                                                                Retail warehousing – 100,000 sq ft
                                                                Refurbishment of Welsh Assembly
                                                                Government offices

                                Option 3                        Proposed Mix                                                 Comments

                                Area 1                          Retention of station                                         No change

                                Area 2 & 3                      Budget hotel site sale                                       Positive land value
                                ArvinMeritor north car          Residential – 115 units
                                park and linking area           (private 80 units and affordable 35 units)
                                to include Grange               60 bed care home site sale
                                Road and open area
                                leading to St David’s
                                Road

                                       mid-
                                Area 4 mid-section,             Foodstore 78,000 sq ft gross                                 Positive land value due to
                                former                                                                                       foodstore for this part of the
                                ArvinMeritor factory                                                                         Site.




                                                                                                                                                                       PAGE 66
                                Area 5 southern area,           Foodstore petrol filling station                             Marginal land value due to
                                mixed use                       Small business units – 10,000 sq ft                          build cost exceeding capital




                                                                                                                                                                                         OPTIONS
                                                                                                                                                              VIABILITY OF PROPOSED DEVELOPMENT
                                                                New offices with car parking - 75,000 sq                     value that is affected by
                                                                ft net of which 50,000 sq ft net public                      current yield/rent profile.
                                                                sector and 25,000 sq ft net private sector                   Yield is improved for public
                                                                developed in phases.                                         sector investment.
                                                                Refurbishment of Welsh Assembly                              Positive land value for retail
                                                                Government offices                                           warehousing and petrol
                                                                Retail warehousing – 50,000 sq ft                            filling station.



                                POTENTIAL SOURCES OF PUBLIC FUNDING

                                9.20        Public funding of various forms and within the regulations governing State Aid may
                                            be required to fuel certain elements of this regeneration project, particularly as
                                            there are potential negative land values for some elements. Various commercial
                                            uses proposed for the Site are constrained by low values whereby the cost of
                                            development exceeds the value created, therefore needing some form of cross-
                                            subsidy or grant to make the use viable.

                                9.21        We set out below a summary of the various funding sources potentially available:

                                Convergence Funding
                                9.22        The West Wales and the Valleys region has been awarded Convergence funding
                                            from the European Union for the Structural Funds programming round for the
                                            period 2007 – 2013. This includes TCBC as one of 15 local authority areas
                                            covered. A consultation process is now underway on the EU Budget Review on the
                                            principles and options for the period post 2013. In response to the economic
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Viability of Proposed Development Options

                                            downturn the European Commission has agreed to changes to the ERDF
                                            Convergence programme.

                                9.23        We understand there are no current live bids for Convergence funding from TCBC
                                            in respect of the Site.

                                WISP (Welsh Investment Strategic Partnership)
                                9.24        The Welsh Assembly Government’s WISP (Welsh Investment Strategic Partnership)
                                            vehicle has been established to facilitate speculative office development. It is
                                            acknowledged that Cwmbran town centre will struggle to position itself as an office
                                            location unless it has available new accommodation as a catalyst for further
                                            demand and development.

                                9.25        WISP is a 10-year strategic agreement between the Welsh Assembly Government
                                            and Amber Infrastructure Group to deliver high quality office space in the regional
                                            centres of Wales with the aim of delivering a minimum of 375,000 sq ft. net of new
                                            office buildings. The locations are to be those which would not normally attract
                                            speculative, quality buildings and the Welsh Assembly Government is prepared to
                                            provide an overriding lease to underwrite the development risk.

                                9.26        Using the WISP model, the Welsh Assembly Government’s private sector developer
                                            partners (Amber Infrastructure) would bear the full cost of developing the new
                                            property and a new 25-year public sector lease will be taken on the completed




                                                                                                                                               PAGE 67
                                            building and then let to business occupiers which can include the public sector. The
                                            structure of the vehicle is also designed to promote high quality design.




                                                                                                                                                                 OPTIONS
                                                                                                                                      VIABILITY OF PROPOSED DEVELOPMENT
                                9.27        To date this scheme has supported office development in Swansea, Newport,
                                            Treforest and Caerphilly. Newport City Homes has recently taken a 15 year lease
                                            of 24,300 sq ft at WISP’s Orb development in Newport. However there are now
                                            funding constraints imposed affecting future investment and revenue commitments.

                                9.28        Consideration should therefore be given to undertaking consultations with the
                                            Welsh Assembly Government to confirm their interest in Cwmbran as a location for
                                            a new WISP project in the longer term but WISP should not be seen as being
                                            available to enable new office development in the short to medium-term.


                                JESSICA (Joint European Support for Sustainable Investment in City Areas)
                                9.29        In partnership with the private sector and using European Regional Development
                                            Fund (ERDF) Convergence funding, the Welsh Assembly Government has
                                            established an all-Wales Urban Development Fund (UDF) known as the
                                            Regeneration Investment Fund for Wales (RIFW). It is based on the JESSICA
                                            initiative. It will allow for the contribution of publicly owned land and building
                                            assets to match European funding with returns being reinvested together with
                                            engaging private sector investment.

                                9.30        Investment by the fund is designed to act as a catalyst for the construction of a
                                            diverse range of projects throughout Wales, many of which have been curtailed by
                                            the economic conditions.

                                9.31        The Welsh Assembly Government has now appointed Amber Infrastructure with
                                            Lambert Smith Hampton as the fund and investment managers. The fund is to be
                                            used for the following:
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                                                 financing projects
                                                 regenerating the built environment
                                                 creating value added through the long-term partnership
                                                 to produce investment returns

                                9.32        The UDF will be based on the principle of public/private partnership with the public
                                            sector having no more than 50% equity. The projects will be required to generate
                                            positive returns to all investors including ERDF, allowing European funding to be
                                            recycled back into future projects. The UDF will invest with a local project partner
                                            which could be the local authority or a private sector developer. The aim is to
                                            leverage in private sector investment into major regeneration projects resulting in
                                            significant environmental, economic and social improvement of urban areas of
                                            Wales.

                                9.33        In practice JESSICA has been set up to help bring forward large physical
                                            regeneration schemes to include contaminated or derelict brownfield land; the
                                            creation of new premises; delivery of infrastructure and job creation. Projects within
                                            the fund can include any activity that would qualify for ERDF support such as sites
                                            and premises, site remediation and urban infrastructure. The investments can also
                                            include expenditure not eligible for ERDF support such as housing, retail and leisure
                                            which can be useful value generators.




                                                                                                                                               PAGE 68
                                9.34        Initial discussions with the Welsh Assembly Government have indicated that
                                            Cwmbran Town Centre could be one of the projects considered for inclusion in the




                                                                                                                                                                 OPTIONS
                                                                                                                                      VIABILITY OF PROPOSED DEVELOPMENT
                                            fund. The fund could work alongside Convergence funding that will be available
                                            until 2013.

                                Other available grants
                                9.35        There are various grant vehicles provided by the Welsh Assembly Government to
                                            give a range of support and advice for businesses in Wales together with
                                            developers and investors. The following below are a selection of the current
                                            programmes that could benefit Cwmbran Town Centre:
                                                 Property Development Grant – this is available to private sector companies and
                                                 financial institutions undertaking new development or the upgrading /
                                                 extension of existing business sites and premises including speculative or
                                                 bespoke schemes. The grant is available to fund the deficit between the costs
                                                 of the project and the value of the completed development. The use of the land
                                                 is to be for business purposes including industrial, warehouse, office, retail and
                                                 the commercial element of mixed – use development but not residential. In
                                                 Cwmbran the grant would be available to small, medium and large sized
                                                 enterprises. The applicant would need an interest in the land of either freehold
                                                 or a lease of a minimum of 10 years.
                                                 Regional Selective Assistance (RSA) & Assembly Investment Grant (AIG) are
                                                 discretionary grants for businesses requiring financial assistance towards capital
                                                 investment projects. Eligible expenditure can include new investment in capital
                                                 assets such as buildings and machinery.
                                                 The Single Investment Fund – this provides financial support to help businesses
                                                 in Assisted Areas to undertake good quality new projects including costs
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                                                 relating to starting up, expansion, modernisation and restructuring. Cwmbran
                                                 sits within the West Wales and The Valleys Tier One Area. It is the first Tier One
                                                 area on the north side of the M4.




                                                                                                                                               PAGE 69
                                                                                                                                                                 OPTIONS
                                                                                                                                      VIABILITY OF PROPOSED DEVELOPMENT
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Mechanisms for Delivery

                                10.1        There are a number of considerations to be taken into account when identifying the
                                            most appropriate vehicle or mechanism to bring forward the comprehensive
                                            development of the Site:
                                                 The role of the local authority as both planning authority and landowner in
                                                 helping to facilitate development and exert influence over a regeneration
                                                 scheme and its successful delivery.
                                                 The extent to which the landowners will be pro-active in bringing any
                                                 development forward and securing an appropriate planning consent.
                                                 The role of the private sector in providing finance, expertise in delivering
                                                 complex projects and commitment to deliver within programme and budget
                                                 where a third party is brought in to deliver any elements of the development.
                                                 End users – who will be occupying the completed development that may include
                                                 owner occupiers who have developed out parts of the site themselves.
                                                 Risk profile – all of the potential end users or owners will have a view on the
                                                 extent of risk that they are prepared to take. The amount of risk is likely to
                                                 impact on the amount of return that would be generated by the proposals.
                                                 Intervention – the extent to which the public sector will participate in or facilitate
                                                 the development either by voluntary or compulsory means.
                                                 Funding – the vehicle or financial institution that would provide funding for any




                                                                                                                                          PAGE 70
                                                 aspect of the project or individual components.
                                                 Programme – to what extent the development process will be affected by




                                                                                                                                          MECHANISMS FOR DELIVERY
                                                 timescales related to public procurement processes, intervention such as
                                                 compulsory purchase to deliver site assembly and the vagaries of the property
                                                 market.

                                PLANNING STRATEGY TO ASSIST DELIVERY
                                10.2        The planning system itself can be a powerful tool in helping to facilitate
                                            regeneration projects. Mechanisms within the planning system include the role of
                                            the Local Development Plan to promote sites; Supplementary Planning Guidance
                                            (SPG); S106 obligations and CIL to use land value for the delivery of infrastructure;
                                            and CPO powers for land assembly.

                                Masterplanning the Site/Development Framework
                                10.3        The Deposit LDP will state that Development Frameworks are to be prepared for the
                                            various Action Areas (including the Eastern Strip Central) to the satisfaction of the
                                            TCBC in advance of any planning application being submitted. The Development
                                            Frameworks produced will be used as guidance and will then be adopted by TCBC.

                                10.4        There are various advantages in preparing a Development Framework for the
                                            Eastern Strip Central as it will inform the subsequent planning application whilst
                                            ensuring that all proposed uses can be fully integrated across the Site with
                                            appropriate linkages to the town centre. It can also allow for different community-
                                            led services and activities to be co-ordinated within the development and inform the
                                            siting of buildings in respect of existing site constraints such as contamination or
                                            flooding.
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                                10.5        It will be important that the consensus of all of the landowners is achieved in
                                            agreeing the form of the masterplan/Development Framework.

                                10.6        A commercial assessment would be undertaken to ensure that any development
                                            strategy is supported by sound development economics, including an update on
                                            current provision, occupier demand and values. The Development Framework
                                            would need to be underpinned by commercial market realism to determine the
                                            extent of development form and the nature of accommodation, supported by
                                            financial analysis. Outputs would include:
                                                 a preferred development option that has been fully tested for viability;
                                                 spatial design comprising a 3-dimensional plan which presents proposals for
                                                 massing, scale, public realm, broad identification of uses, car parking and
                                                 access (but does not go as far as designing buildings). It would be presented in
                                                 written text and through plans, images and models;
                                                 a detailed implementation plan to address key aspects of delivery to include
                                                 programming, phasing, analysis of risk and likely investment from the private
                                                 sector.

                                Supplementary Planning Guidance
                                10.7        SPG can be produced to provide guidance for the specific Development
                                            Frameworks for each of the Action Areas adjacent to Cwmbran town centre. The




                                                                                                                                      PAGE 71
                                            SPG document would be consulted upon and adopted by the Council. It would
                                            serve as a means to set out more detailed thematic or site specific guidance on LDP




                                                                                                                                      MECHANISMS FOR DELIVERY
                                            policies for the Action Areas e.g. Eastern Strip Central.

                                10.8        In addition, the SPG could assist with the following:
                                                 To provide more detailed guidance on the mix of land uses, form, layout and
                                                 nature of the proposals and design guidance for the proposed Development
                                                 Framework.
                                                 To provide a robust platform for the use of CPO powers if these are required.
                                                 To provide a planning basis for any necessary road closure orders as these
                                                 would require planning consent.
                                                 Define the planning contributions that would be required.
                                                 Emphasise the need for linkage of the Eastern Strip Central to the town centre.
                                10.9        Whilst any SPG would remain a non-statutory document, it may be taken into
                                            account as a material consideration. The Assembly Government and Planning
                                            Inspectorate will give substantial weight to approved SPG which derives out of and
                                            is consistent with the LDP. It would also give the opportunity for other planning
                                            applications within the town centre to take account of a clearer statement as to the
                                            emerging preferred development form for the Eastern Strip Central.

                                10.10 Local Development Plans Wales (2005) states that any SPG should be clearly cross-
                                      referenced to the relevant adopted plan policy. The SPG would then be subject to
                                      regular reviews alongside the annual monitoring review of the LDP.
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                                S 106 Agreements/Community Infrastructure Levy (CIL)
                                10.11 These can have a role in delivering infrastructure, remediation and other wider
                                      benefits for the Site including linkages to the town centre. As a matter of policy,
                                      they will need to relate to the individual planning application in question and
                                      on/off-site works related to that development.

                                10.12 The relevant Welsh Office Circular, 13/97, states that any S106 must be, amongst
                                      other things, relevant to planning; necessary to make the proposed development
                                      acceptable in planning terms; directly related to the proposed development; and
                                      fairly and reasonably related in scale and kind to the proposed development.

                                10.13 CIL was brought in under recent legislation (April 2010) that allows councils to
                                      charge a levy to developers to help fund improvements to local infrastructure which
                                      is based on the size of the development. In Wales it can be implemented by county
                                      borough councils. The government has now amended the legislation to fit in with
                                      the “localism agenda” giving councils more control over how much to levy and also
                                      allowing developers more scope to build infrastructure themselves.

                                10.14 CIL would not be a delivery mechanism of the project itself but would generate
                                      revenues that could fund upfront infrastructure costs and therefore assist
                                      development coming forward.

                                Grampian Conditions




                                                                                                                                      PAGE 72
                                10.15 “Grampian” conditions for individual planning permissions can also be used to
                                      secure the benefit of environmental and infrastructure improvements and control




                                                                                                                                      MECHANISMS FOR DELIVERY
                                      development under a planning permission where works are to be carried out off-
                                      site. It is lawful for a local planning authority to grant planning permission, subject
                                      to a negative condition restricting its implementation, in whole or in part, until some
                                      event has occurred.

                                10.16 Here Grampian conditions could be used as a mechanism to facilitate
                                      comprehensive rather than piecemeal development where development of parts of
                                      the site such as the foodstore could not be implemented unless wider benefits are
                                      first delivered.

                                DELIVERY MODELS
                                10.17 In terms of the delivery of the development, the main options that exist are:
                                                 ArvinMeritor leads the development process as an owner occupier whereby the
                                                 foodstore development cross-funds the refurbishment of its factory with the
                                                 release of the central site for employment uses.
                                                 ArvinMeritor vacates the Site with disposal to a third party or third parties to
                                                 bring forward the comprehensive scheme for which planning permission may
                                                 have been granted at that stage.
                                                 TCBC assumes control by compulsory acquisition (TCBC will in any event have
                                                 powers through its planning role).


                                10.18 In the event that ArvinMeritor vacates (Development Options 2 and 3 in Section 8)
                                      or TCBC assumes control, a strategy for procurement of the development will need
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                                            to be established. Potential mechanisms that are used for the delivery of
                                            regeneration projects that could be relevant here include:
                                                 Traditional development agreement structure – this could comprise a
                                                 development agreement with the strategic partner with the flexibility to allow
                                                 individual projects to be covered by individual contracts if required. The private
                                                 sector partner would need to be able to demonstrate expertise and experience
                                                 in delivering complex projects and a thorough procurement process would
                                                 need to be undertaken to ensure that the partner has the appropriate
                                                 capabilities to enter into a long-term contractual arrangement. Potential
                                                 development partners could include contractor/developers where the appeal of
                                                 the project to them will comprise a large build contract as well as the
                                                 opportunity to realise development profit.
                                                 Public private partnership vehicles – these include Local Asset Backed Vehicles.
                                                 whereby the participating public sector bodies enter into a long-term
                                                 partnership with a private sector partner by contributing assets on a 50/50
                                                 basis and subsequently can influence development and allow sites to come
                                                 forward that may not otherwise happen at that point in time.

                                10.19 Issues that would need to be addressed where there is more than one delivery
                                      partner include:
                                                 there may need to be some equalisation of land values across the site to fund




                                                                                                                                      PAGE 73
                                                 infrastructure improvements etc.




                                                                                                                                      MECHANISMS FOR DELIVERY
                                                 there will need to be an agreed process for approving detailed planning
                                                 applications which would need to be in accordance with the Development
                                                 Framework.
                                                 timescales would need to be set for an action plan and implementation strategy
                                                 to ensure momentum is maintained.

                                10.20 To enhance viability, consideration could be given within development partnership
                                      structures that can improve land values by “de-risking” the development. As an
                                      example this could be where the development of public sector elements could be
                                      structured to allow the developer a project management fee rather than a profit
                                      based on development cost. This would serve to improve viability and reduce
                                      negative land values in particular relating to the delivery of public sector offices.

                                Role of TCBC
                                10.21 In respect of the Eastern Strip Central, TCBC has a role as planning authority and
                                      will have controls through its planning powers.

                                10.22 TCBC also has a position as landowner in respect of its landholding of the
                                      landscaping strip alongside St David’s Road that is key in providing a linkage to the
                                      town centre.

                                10.23 The role of TCBC in bringing forward the development proposals will need to be
                                      ascertained at an early stage and this will partly be determined by whether
                                      consensus is achieved between the key landowners comprising ArvinMeritor, TCBC
                                      and Welsh Assembly Government, as to the future development of the Site within
                                      an agreed and prescriptive Development Framework.
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                                10.24 TCBC may need to decide the extent to which it will seek to intervene if consensus is
                                      not achieved with ArvinMeritor and it chooses to instigate compulsory processes to
                                      deliver the Site. In the event that the site is acquired by compulsory means, this will
                                      allow TCBC to have greater control as a facilitator in terms of delivery of the
                                      appropriate planning framework and ensuring that infrastructure and community
                                      facilities are provided.

                                10.25 If a third party developer partner is required to bring the scheme forward,
                                      procurement including the structuring of any joint venture and the delivery of public
                                      sector elements all have the potential to involve EU competitive processes if led by
                                      the public sector. The complexity around procurement means that it will need to be
                                      addressed at the beginning of a project with clear legal advice about how the
                                      project and procurement processes should be structured. This has implications in
                                      terms of programming and cost to TCBC.

                                Role of a Lead Developer Partner
                                10.26 The lead developer partner could include a key landowner such as ArvinMeritor.

                                10.27 The lead developer partner’s role would include:
                                                 development of a detailed masterplan/Development Framework for a
                                                 comprehensive development solution for the whole development area including
                                                 an agreed phasing plan.




                                                                                                                                      PAGE 74
                                                 submission of a detailed planning application




                                                                                                                                      MECHANISMS FOR DELIVERY
                                                 negotiation of any Section 106 / 278 agreements or CIL requirements.
                                                 promotion of the opportunity to the market including tenants and funders and
                                                 negotiating with all potential pre-lets.
                                                 underwriting the cost of any compulsory purchase where relevant.
                                                 designing the infrastructure for the development site and securing the funding
                                                 for this together with any public realm.
                                                 delivering a comprehensive development that will meet the design and
                                                 sustainability requirements of TCBC and Welsh Assembly Government.

                                Local Asset Backed Vehicles
                                10.28 The public sector can bring a number of resources into the relationship including
                                      exclusive access to development sites that provides an asset base upon which
                                      private finance can be raised. The basic principle is that both the public and
                                      private sectors are equal equity holders with the local authority’s interest
                                      represented by the value of assets it puts in. The private sector may itself also input
                                      assets but importantly it would provide financial ability together with development
                                      expertise and capacity to take risk.

                                10.29 The benefits of any LABV structure include the following:
                                                 there can be a transfer of the private sector’s expertise and ability to resource
                                                 projects with the public sector’s knowledge of local issues, opportunities and the
                                                 assets themselves.
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                                                 a range of public sector stakeholders can be involved who can contribute assets
                                                 such as Health Trusts, Welsh Assembly Government, housing associations, etc.
                                                 Funding streams might include CIL, TIFs etc.
                                                 the creation of a long term business plan and asset management strategy. It
                                                 offers the potential to realise long term value growth with a sharing of risk and
                                                 reward with the private sector.
                                10.30 Here TCBC’s land ownership is key to the comprehensive development of the site
                                      as it can facilitate linkages to and integration with the town centre. It would
                                      therefore be possible for this land together with other TCBC land interests to be
                                      placed into such a vehicle. However in terms of timeframe it could take a
                                      considerable period of time to procure the relevant vehicle that could lead to a
                                      commercial risk that, for example, the foodstore requirement is developed
                                      elsewhere and the value driver is lost.

                                10.31 LABVs are not always the right solution and the following matters would need to be
                                      taken into consideration:
                                                 TCBC and other public sector bodies would need to identify a portfolio of assets
                                                 to provide a pipeline of regeneration projects.
                                                 setting up the vehicle and its terms of reference could take a long time with
                                                 extensive decision making and procurement processes
                                                 consensus would be required amongst the parties as to the overall business




                                                                                                                                      PAGE 75
                                                 plan




                                                                                                                                      MECHANISMS FOR DELIVERY
                                                 barriers to the implementation of LABV’s include long term political support,
                                                 investor interest and stakeholder engagement and these would need to be
                                                 clarified to allow for successful implementation.

                                10.32 There would need to be an evaluation of TCBC’s land holdings alongside strategic
                                      development priorities to assess whether there would be benefits in leveraging
                                      additional investment through such a vehicle or whether the town centre would be
                                      better served by sites coming forward individually with different
                                      investors/developers involved.

                                JESSICA / Regeneration Investment Fund for Wales
                                10.33 The development of the Eastern Strip (Central) could potentially fit with JESSICA’s
                                      remit and in effect JESSICA monies could be used as a contributor to de-risk and
                                      help fund the project. The JESSICA monies could be combined with other funding
                                      streams including Prudential Borrowing, private sector investment or cross-subsidy
                                      from elements within the development project. In addition JESSICA could include
                                      any Convergence funding allocated to the site that will be available until 2013.

                                10.34 The JESSICA monies maybe used for forward funding development to open up the
                                      Site. the regeneration issues in which it could participate could potentially include:
                                                 Contribution to upfront infrastructure including access to the Site and within the
                                                 Site
                                                 Site remediation
                                                 Flood remediation measures
                                                 Site assembly
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                                                 Public realm
                                                 Delivery of new offices

                                10.35 Consideration should be given to undertaking further detailed discussions with the
                                      Welsh Assembly Government now to establish whether Cwmbran Town Centre
                                      could be a feasible project for RIFW. It will then be necessary to clarify the stage of
                                      readiness that the project should have reached to be a qualifying candidate.

                                Tax Increment Financing
                                10.36 The introduction of Tax Increment Financing (TIF) has now been approved in
                                      principle by the National Assembly. It is to be used for funding the infrastructure
                                      needed to support major regeneration projects working on the principle that the
                                      supply of new or improved infrastructure usually leads both to new development
                                      and to an increase in the value of surrounding property. These both serve to
                                      increase the level of property taxation in the area. Within a designated TIF district,
                                      this anticipated increased taxation (the ‘tax increment’) is captured and used to
                                      fund the infrastructure that has been provided.

                                10.37 The key criteria for allowing the creation of a TIF should be that it supports a
                                      project that promotes regeneration and that the project would be unviable without
                                      the use of TIF. It is likely that the focus for TIF initiatives will initially be on large-
                                      scale schemes in major centres.




                                                                                                                                      PAGE 76
                                                                                                                                      MECHANISMS FOR DELIVERY
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                11.1        The purpose of this report has been to develop a series of options for the future
                                            regeneration and redevelopment of the Eastern Strip Central. This is to inform the
                                            long-term development objectives for the Site to be allocated in the Deposit Local
                                            Development Plan (to 2021).

                                11.2        We have therefore reviewed the Site with the purpose of investigating commercially
                                            viable land uses that include offices, residential, leisure, convenience retailing and
                                            retail warehousing.     The Site is owned by a number of parties including
                                            ArvinMeritor as the majority landowner, TCBC, the Assembly Government and
                                            Network Rail. We have suggested three development options to allow for
                                            ArvinMeritor remaining on site in redeveloped premises or else to vacate the Site.

                                The Vision
                                11.3        TCBC’s vision for the Site is for a commercial and employment-led comprehensive
                                            redevelopment that properly integrates and links with the town centre and provides
                                            a quality and distinctive location. The long term redevelopment of the Site offers
                                            the only real opportunity for the commercial expansion of the town centre.

                                11.4        TCBC is seeking to maximise employment opportunities with the potential to create
                                            a new office focus for the town centre. Cwmbran currently performs very
                                            successfully as a Sub-Regional shopping centre but has no current role as a
                                            location for offices even though there have been a number of public sector
                                            requirements around in recent years.




                                                                                                                                      PAGE 77
                                11.5        If the Site is brought forward for redevelopment it also offers the opportunity to
                                            regenerate and remediate land previously used for industrial uses. It will bring into




                                                                                                                                      CONCLUSION AND NEXT STEPS
                                            commercial use a “brownfield” location in a sustainable development form.

                                Supportive planning policy
                                11.6        The existing planning policy context recognises the potential of the Site and
                                            provides a firm endorsement of the principle of redevelopment of the site. The
                                            Planning Policy Options Paper of January 2005 refers to the expansion of the town
                                            centre with significant mixed use development and environmental improvements.

                                11.7        More recently the Consultation Draft Plan for Cwmbran Town Centre (LDP Draft)
                                            highlighted the opportunity for a comprehensive redevelopment of the Site with the
                                            relocation of industrial uses out of the town centre. Proposals that would be
                                            appropriate for the Site were identified as comprising a commercial/employment
                                            led mixed-use scheme with the potential for office, leisure, retail, residential and
                                            hotel uses. The Consultation Draft Plan also emphasised the need for improving
                                            accessibility including the linkages to the town centre and to the railway station.

                                11.8        The Consultation Draft Plan set out the principle of Development Frameworks to be
                                            prepared for any Zone in advance of any planning application being submitted.

                                11.9        The uses for the Site suggested in this commercial assessment report are
                                            compatible with those cited in the Consultation Draft Plan. The proposed foodstore
                                            use will require “full justification for the location of such uses” as the Site is not
                                            currently within the Town Centre Boundary. If the foodstore use can be integrated
                                            with the town centre, then it offers the opportunity to contribute to the vitality and
                                            viability of Cwmbran and introduce wider regeneration benefits.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                11.10 It will be essential for any Site allocation within the Deposit LDP to highlight the
                                      need for comprehensive development across the Site and not permit piecemeal
                                      development of the higher value uses. This should subsequently be addressed in
                                      any planning consent granted.

                                Constraints
                                11.11 Any redevelopment will need to address the issues of land contamination and
                                      flooding. The Phase I Environmental Assessment undertaken by CB Richard Ellis
                                      Geo-Environmental demonstrated a number of potential sources for contamination
                                      related to the current and previous industrial uses of the Site.

                                11.12 As part of the Phase I EA we suggested that a Phase II intrusive instigation is
                                      undertaken and this is likely to be required as a condition of planning. This has
                                      since been commissioned by ArvinMeritor.

                                11.13 The European Directive 2004/35/EC Environmental Liability confirms the “polluter
                                      pays” principle so that operators whose activities have caused environmental
                                      damage will be held financially liable for remedying this. The responsibility for
                                      clean up of the Site therefore will remain with the landowners with the assumption
                                      that sufficient clean-up is undertaken to ensure that it does not prejudice the form
                                      of development on the Site.

                                11.14 The findings of the Phase II EA are that the extent of remediation required would




                                                                                                                                       PAGE 78
                                      make residential development unviable on any part of the Site other than the
                                      northern car park area.




                                                                                                                                       CONCLUSION AND NEXT STEPS
                                11.15 The latest Development Advice Maps, updated in November 2009, categorises
                                      much of the mid and southern sections of the Site as Zone C2 (at significant risk of
                                      flooding) with part of the mid and southern sections as Zone B (lower risk of
                                      flooding). Flood Zone C2 limits the form of development permitted including
                                      excluding residential and emergency services. Flood alleviation measures are
                                      however being considered by ArvinMeritor’s consultants.

                                11.16 A further key constraint in respect of bringing forward comprehensive development
                                      of the Site is the current land ownership and occupation. In the event that
                                      ArvinMeritor does not bring forward proposals for the refurbishment and
                                      redevelopment to create a new modern factory headquarters, then some
                                      intervention may be required to allow redevelopment to happen. A planning
                                      application has already been submitted in respect of the ArvinMeritor northern car
                                      park site for a new Morrison’s foodstore.

                                Emerging proposals in Cwmbran
                                11.17 Due to the difficult market conditions a number of the key development schemes
                                      have not progressed:
                                                 Canalside is on hold and there is currently no private sector interest to deliver
                                                 this
                                                 Eastern Strip North Strategic Opportunity Area is not being progressed by the
                                                 Assembly Government at this stage
                                                 Eastern Strip South Strategic Opportunity Area has an extant planning consent
                                                 on the Carillion Richardson site for retail warehousing that is not currently being
                                                 implemented and Cranes are remaining in occupation of the Alfa Laval land
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps


                                11.18 There are currently no significant proposals for new development that would
                                      directly compete with the Site for a foodstore operator although Sainsbury’s should
                                      shortly commence their extension works when the S106 is signed.

                                11.19 In the longer term the eastern side of the town centre may come forward for an
                                      outward looking expansion but this is likely to be for a comparison-led retail mixed
                                      use scheme.

                                11.20 In respect of the current planning application for a foodstore on the ArvinMeritor
                                      northern car park site, GVA’s independent commentary states concerns over lack of
                                      integration with the town centre and that it is likely to act as a stand-alone retail
                                      destination. GVA therefore suggests that the land is integrated with the landscaped
                                      area to the west, including Grange Road, to create a close relationship with the
                                      town centre and link the town centre with the rail station whilst delivering
                                      regeneration benefits.

                                Viability
                                11.21 It is unfortunate that the timing of this commercial assessment is when current
                                      market conditions remain difficult and have led to significant falls in land values.
                                      This reflects the fall in capital values (rising yields and lowering rents), the lack of
                                      available development funding, the “mothballing” of some development sites and
                                      the withdrawal of a substantial number of developers from acquiring and




                                                                                                                                      PAGE 79
                                      developing sites.

                                11.22 Our commercial assessment is focussed on deliverability and is assuming a 10 to




                                                                                                                                      CONCLUSION AND NEXT STEPS
                                      15-year programme to bring the development to completion. This is due to the
                                      complexities in preparing the site for development including remediation, obtaining
                                      vacant possession and the need for the occupational and funding market to
                                      improve.

                                11.23 To achieve a comprehensive development, there needs to be an “economic driver”
                                      to allow the overall development proposals to be self-funding. The inclusion of a
                                      foodstore within the proposals would allow a substantial land value to be realised
                                      and therefore used as leverage to cross-fund other development uses across the
                                      Site as part of the comprehensive strategy.

                                11.24 There is interest from Morrison’s foodstore on the northern car park area. The
                                      inclusion of a foodstore would act as a necessary “value driver”, even if other
                                      property values generally improve. If a foodstore is not a component of the
                                      development, on the basis of current market values and demand the Site would not
                                      be able to generate an overall positive site value.

                                11.25 A recent negative impact on the property market has been the reduction in public
                                      sector demand that has sequentially followed on from the problems within the
                                      private sector. The Comprehensive Spending Review has lead to a contraction of
                                      the public sector and a need for greater efficiencies. This is having a direct impact
                                      on the number of office requirements that had previously existed for the Cwmbran
                                      area.

                                11.26 The residual land value exercise, adopting today’s costs and values, demonstrates
                                      that some of the preferred uses such as offices, even with the benefit of a public
                                      sector covenant, are unlikely to generate a positive land value at an affordable
                                      rent. In addition the take-up of office development sites is likely to be over a long
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                            period and will need the catalytic effect of say the development of civic offices for
                                            TCBC to kick-start activity.

                                The Options
                                11.27 Option 1 assumes the following:
                                                 ArvinMeritor remains on site but relocates to the southern end into modernised
                                                 premises
                                                 a foodstore on the northern car park area where the high high development
                                                 land value can help cross-subsidise remediation, the redevelopment of the
                                                 southern end and lower value uses such as the introduction of new office
                                                 development into the town centre
                                                 the mid-section of the Site becomes an office quarter together with a branded
                                                 hotel
                                                 the Assembly Government’s offices on the southern section are refurbished
                                                 the upper level walkway beside the leisure complex is completed and Grange
                                                 Road is removed to improve linkages and integration with the town centre and
                                                 extend the developable area. St David’s Road is traffic calmed.
                                                 the redevelopment is delivered by ArvinMeritor in a comprehensive scheme that
                                                 allows early development of the foodstore and the later release of the mid-




                                                                                                                                              PAGE 80
                                                 section for office and hotel development
                                                 requires the agreement and long-term commitment of ArvinMeritor to facilitate




                                                                                                                                              CONCLUSION AND NEXT STEPS
                                                 the development.

                                11.28 Option 2 assumes the following:
                                                 ArvinMeritor vacates and disposes of the Site with a third                           party
                                                 investor/developer bringing forward the comprehensive proposals
                                                 a foodstore on the northern car park area where the high development land
                                                 value can help cross-subsidise remediation, the redevelopment of the southern
                                                 end and lower value uses such as the introduction of new office development
                                                 into the town centre
                                                 the mid-section of the Site becomes an office quarter together with a branded
                                                 hotel
                                                 the southern section of the Site is developed for small business units; retail
                                                 warehousing; and the Assembly Government’s offices are refurbished
                                                 the upper level walkway beside the leisure complex is completed and Grange
                                                 Road is removed to improve linkages to the town centre and extend the
                                                 developable area. St David’s Road is traffic calmed.

                                11.29 Option 3 assumes the following:
                                                 ArvinMeritor vacates and disposes of the Site with a third                           party
                                                 investor/developer bringing forward the comprehensive proposals
                                                 the northern car park area comes forward for residential development with a
                                                 care home and hotel
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                                 the foodstore is situated on the mid section and therefore would not be
                                                 available for development as early as the foodstore site in Options 1 and 2
                                                 above
                                                 the southern section of the Site is developed for the foodstore petrol filling
                                                 station; small business units; new offices; retail warehousing; and the Assembly
                                                 Government’s offices are refurbished
                                                 the upper level walkway beside the leisure complex is completed and Grange
                                                 Road is removed to improve linkages and integration with the town centre and
                                                 extend the developable area. St David’s Road is traffic calmed.

                                11.30 Option 1 presents the most viable scheme both in terms of land value and viable
                                      uses together with ArvinMeritor being available as a delivery partner.

                                11.31 The creation of a new office quarter, which features in all options, would also
                                      provide an opportunity for TCBC to relocate from County Hall into a bespoke
                                      building in a prominent town centre location close to public transport links.

                                11.32 The Council is keen to promote the delivery of new homes as part of its housing
                                      strategy and to introduce a greater diversity in the housing stock both in terms of
                                      size, design and tenure. However constraints attaching to the Site in terms of flood
                                      risk and contamination would only permit residential development on the
                                      ArvinMeritor northern car park area.




                                                                                                                                      PAGE 81
                                11.33 The development of the northern part of the Site for residential use will lead to the




                                                                                                                                      CONCLUSION AND NEXT STEPS
                                      loss of a commercial development opportunity in a prime position.

                                The Preferred Option
                                11.34 All of the three options include a foodstore in a form that is integrated with and
                                      linking to the town centre to enhance vitality and viability. If a foodstore is not
                                      deliverable, on the basis of current market values and demand the Site will not be
                                      able to generate a positive site value.

                                11.35 Option 1 is the preferred scheme as the scheme is viable and the proposed mix of
                                      uses would provide a comprehensive, employment-led solution that is self-funding.
                                      It would allow the town centre to expand eastwards; remediate contaminated land;
                                      and retain a local employer and local jobs.

                                11.36 Importantly it is the most deliverable of the three options because it would not
                                      require intervention in that it could be brought forward by ArvinMeritor, subject to
                                      agreement with TCBC as landowner, who would remain on the Site in refurbished
                                      flagship premises.

                                11.37 The deliverability of Option 1 and the lack of intervention required will also ensure
                                      that it can be progressed in the shortest timeframe.

                                11.38 The delivery and development content of the emerging scheme will need to be
                                      controlled and optimised by TCBC both as planning authority and as joint
                                      landowner.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                Delivery
                                11.39 We would suggest that discussions including pre-application planning discussions
                                      are progressed with ArvinMeritor to establish a mutually acceptable development
                                      solution.

                                11.40 Justification will be required in planning terms for the inclusion of a foodstore on
                                      the northern car park area. This will include the regeneration benefits of the
                                      remediation of other parts of the Site; creation of a new office quarter; and the
                                      retention of jobs on Site.

                                11.41 In particular the planning strategy must ensure that the Site is developed
                                      comprehensively and that receipts from the foodstore development site are
                                      reinvested into bringing forward the refurbished facility for ArvinMeritor and the
                                      release of the mid-section of the Site for office and hotel development.

                                11.42 Consideration will need to be given to the extent to which the public sector and
                                      TCBC in particular will want to get involved in the project. This could include
                                      recycling its receipts from any land disposal or participation in the project into
                                      further regeneration initiatives; using its own office requirement to kick-start the
                                      office quarter, or optimising the benefit of its covenant in terms of leasing
                                      accommodation to assist in any subsequent funding.

                                11.43 It will also be worthwhile investigating optimising public sector involvement both in




                                                                                                                                        PAGE 82
                                      terms of maximising any grant revenues or other funding sources or alternatively
                                      exploring whether the JESSICA RIFW could make a valuable contribution. The
                                      involvement of JESSICA RIFW could facilitate wider regeneration projects across the




                                                                                                                                        CONCLUSION AND NEXT STEPS
                                      town centre.

                                11.44 The Council will need to adopt a pro-active stance to bring forward any
                                      development. This will include the following:
                                                 an agreed Development Framework to determine uses across the Site and a
                                                 scheme of appropriate quality
                                                 a planning strategy to allow for a comprehensive development solution for the
                                                 Site without allowing piecemeal development
                                                 ensuring integration and links with the town centre and indicating the direction
                                                 of extension of the town centre eastwards



                                NEXT STEPS AND IMPLEMENTATION
                                11.45 We set out below our thoughts on how matters can be taken forward from this
                                      initial commercial assessment:

                                Delivery of the Site
                                                 Further discussions are to be held with ArvinMeritor to work towards a
                                                 development proposal that is acceptable in planning terms and delivers a
                                                 comprehensive solution
                                                 Consultations to be held with Welsh Assembly Government in terms of a
                                                 strategy and timetable for the refurbishment of their offices and how this is to tie
                                                 in with ArvinMeritor’s works
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                                 In the event that agreement is not reached with ArvinMeritor or a decision is
                                                 made for them to vacate the Site then TCBC to consider a contingency position
                                                 in relation to the development proposals by facilitating site assembly and the
                                                 extent to which it may consider using compulsory powers to deliver the Site.

                                Further site investigations
                                                 TCBC to work with ArvinMeritor to establish a development strategy for the Site
                                                 that incorporates flood alleviation measures and optimises the site layout and
                                                 development content in response to the flood risk issues
                                                 TCBC to agree a remediation strategy for the Site with ArvinMeritor and the
                                                 Environment Agency

                                Planning and design
                                                 Consider an explicit site specific policy for the LDP to allocate the Site as an
                                                 Action Area indicating the proposed uses for the Site, the vision for its
                                                 redevelopment potential and that a comprehensive regeneration scheme must
                                                 come forward and not piecemeal development. This will include the foodstore
                                                 use as a value driver to deliver other regeneration benefits.
                                                  The LDP to also promote the direction of growth and extension of the town
                                                 centre eastwards to incorporate the Eastern Strip.




                                                                                                                                       PAGE 83
                                                 Development Framework – once the principles of a development proposal are
                                                 agreed, a Development Framework should be prepared for the Site prior to the




                                                                                                                                       CONCLUSION AND NEXT STEPS
                                                 submission of any planning application. This would be adopted by TCBC.
                                                 The Council to consider bringing forward SPG as guidance for Development
                                                 Frameworks for the Action Areas adjacent to Cwmbran Town Centre.

                                Other landowners
                                                 Promote discussions with PruPIM to establish whether there is an opportunity for
                                                 a joint venture approach to link the Site with the eastern side of the town centre.

                                Reducing risk
                                                 Co-ordinate discussions with potential public sector occupiers to confirm
                                                 occupational requirements and to establish whether there is any opportunity for
                                                 shared facilities including reception, meeting rooms etc.
                                                 Establish the likely availability of grants including Convergence funding that
                                                 could forward fund primary infrastructure or site assembly to kick-start the
                                                 development
                                                 Ongoing monitoring of property market to see if rents, yields and costs are
                                                 changing as this will impact on land values

                                Delivery vehicles
                                                 Pursue discussions with the Welsh Assembly Government team to establish if
                                                 JESSICA RIFW is a suitable and viable vehicle to facilitate development and if
                                                 the timescales are workable.
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Conclusion and Next Steps

                                                 Consider a longer-term marketing strategy and the programme for the
                                                 involvement of a third party developer/joint venture partner should ArvinMeritor
                                                 not be available as a development partner.




                                                                                                                                      PAGE 84
                                                                                                                                      CONCLUSION AND NEXT STEPS
CB RICHARD ELLIS | TORFAEN COUNTY BOROUGH COUNCIL - LOCAL DEVELOPMENT PLAN – COMMERCIAL ASSESSMENT OF CWMBRAN TOWN CENTRE EXPANSION
EASTERN STRIP CENTRAL


Recommendations

                                12.1        It is recognised at this stage that the concept proposals for the Eastern Strip Central
                                            are at a preliminary stage. We consider that the issues that TCBC should now
                                            address in the short-term comprise:
                                                 Establish a planning framework underpinned by an explicit site specific policy in
                                                 the LDP to include commissioning of a Development Framework that will be
                                                 adopted by TCBC.
                                                 Work with ArvinMeritor to establish an acceptable comprehensive regeneration
                                                 proposal.
                                                 Pursue discussions with the Welsh Assembly Government’s JESSICA team to
                                                 establish whether additional regeneration benefits for the town centre can be
                                                 delivered through their involvement.
                                                 Pursue discussions with relevant grant bodies to receive maximum grant
                                                 assistance to facilitate development.

                                12.2        We would also recommend that the Council implements additional points in the
                                            action plan detailed in Section 11 to take positive steps to move the project
                                            forward.




                                                                                                                                        PAGE 85
                                                                                                                                        RECOMMENDATIONS
                               Prepared & Edited By:
                                                                                        Caroline Mitchell-Sanders
                                                                                        Director – Development and Regeneration
                                                                                        For and on behalf of CB Richard Ellis Limited
                               Date of Issue: February 2011                             Status: Final

								
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