Agenda item

To consider the attached report (C-025-2018/19).

(1)       That the Cabinet noted the failure to conclude the tri-partite agreement between the District and Town Council and their development partner, for the redevelopment of the St John’s Road site in Epping;

(2)       That the Cabinet agreed to proceed with an alternative scheme in accordance with the previously adopted Development and Design Brief in order to seek to deliver the community and economic benefits sought;

(3)       That the Cabinet formally seek to enter into a partnership with Epping Town Council as part of any new scheme to ensure a strategic approach to this important Town Centre site;

(4)       That in the event of a partnering arrangement not being possible with Epping Town Council, the District Council proceeds with the St John’s Road Redevelopment project, on land within its ownership;

(5)       That as a result of the assessment undertaken by independent consultants as required by Sport England, that the St John’s Road site becomes the preferred site for the re-provision of Epping Sports Centre, in a final form to best meet the future Leisure needs of the local community;

(6)       That, subject to recommendation (5) above, the new leisure centre was sought to be delivered through the existing contractual arrangements with the Council’s Leisure Management Partner Places for People;

(7)       That if the Cabinet elects to choose St John’s Road, Epping as its preferred site for a new Leisure Centre to replace Epping Sports Centre, then the North Weald Airfield Masterplan is amended accordingly within the Local Plan;

(8)       That, subject to recommendation (7) above, a full assessment of alternative community provision be undertaken as part of the wider North Weald Masterplan to ensure that the needs of current and future residents were met as part of the implementation of the Local Plan;

(9)       That in order to proceed with the completion of a full development appraisal and bring forward a planning application for the site, appropriate external consultancy expertise is procured, to be funded by the anticipated balance of £150,000 from the £400,000 the Council has previously agreed for the partial demolition of the site; and

(10)    That appropriate governance arrangements are put in place through the establishment of a multi-disciplinary project team and that regular reports were brought forward on progress and key decisions to both the Asset Management and Economic Development Cabinet Committee, the Cabinet and the Council.

The Commercial and Regulatory Services Portfolio Holder presented a report on the St John’s Road site in Epping. She made an amendment to paragraph 15 of report where it should have said 1,050 homes and not 1100 homes in North Weald.

The St John’s Road development was an important strategic project for the Council. A Development and Design Brief for a mixed-use scheme was approved by the Council in September 2012, after a period of stakeholder and public engagement.  After competitive expressions of interest, a development partner was appointed.  Negotiations on a tripartite agreement between the Council, Epping Town Council and the developer failed to reach a mutually acceptable agreement and terminated in October 2018.  This report considered future options for the site, to include the relocation of Epping Sports Centre.

An opportunity had also arisen to consider the option to replace Epping Sports Centre on the site by way of a new Leisure Centre to replace the Food Store component.  The St John’s Road site has been assessed as the preferred location in terms of sustainability, participation and viability.  Members were asked to consider if they wished to formally agree to take this vision forward.  On reflection, one of the causes of delay to the original scheme was the inability to achieve agreement with a private sector partner.  The scheme could proceed without the land ownership of the Town Council, but this would not achieve the best form of development and compromise the economic and community benefits.  If a partnership was to be formed, a legal agreement will need to be entered into with the Town Council which satisfies the needs and aspirations of both Councils.

In order to undertake the Development Appraisal, Masterplanning, Programme Management and Technical Assessments in support of any Planning Application, it would be necessary to engage some external specialist consultancy expertise in addition to the input of the in-house project team.  A budget allocation for Fees will be required.  At this stage, soft market testing indicates that demolition costs are likely to be in the region of £225,000-£250,000.  As such, it was proposed that the balance of the current budget allocated at £400,000 is used for the procurement of professional services subject to further reports.

In the long-term the Council would seek to achieve both revenue savings on the Leisure Management Contract, increased asset value, Capital Receipts and revenue returns on the commercial elements of the scheme i.e. house sales, restaurants and cinema. A capital receipt will also be generated by the sale of the current Epping Sports Centre site.  In the longer term the Council would also benefit through the retention of Business Rates.

Councillor Philip was pleased to see the recommendations around the local plan; it made sense to cover the changing circumstances. As the sports centre had moved to Epping, there was a requirement to cover the future needs of the residents of North Weald, making places better for people to live.

Councillor Jon Whitehouse was glad to see this report. He asked for clarification on assumptions made on access to the site and the assumptions on the commercial aspects of the site as it seem vague on this. Councillor Grigg responded that in regard to the commercial aspects they have tried to keep to the same commercial ventures that they had with the previous plan. With regard to access it was down to agreement with the Town Council.

Councillor Holly Whitbread said that she welcomed this project and was keen to see it get moving as soon as possible.

Councillor Brookes said that she looked forward to the full report from the consultants but had concerns about parking on that site. Councillor Gregg said they had an allocation of 200 spaces for the food store and it may similar. Councillor Brookes continued saying that her residents in Loughton were very keen that we kept the crèche in Epping. Councillor C Whitbread said that would be given due consideration at the appropriate time.

Decision:

(1)       That the Cabinet noted the failure to conclude the tri-partite agreement between the District and Town Council and their development partner, for the redevelopment of the St John’s Road site in Epping;

(2)       That the Cabinet agreed to proceed with an alternative scheme in accordance with the previously adopted Development and Design Brief in order to seek to deliver the community and economic benefits sought;

(3)       That the Cabinet formally seek to enter into a partnership with Epping Town Council as part of any new scheme to ensure a strategic approach to this important Town Centre site;

(4)       That in the event of a partnering arrangement not being possible with Epping Town Council, the District Council proceeds with the St John’s Road Redevelopment project, on land within its ownership;

(5)       That as a result of the assessment undertaken by independent consultants as required by Sport England, that the St John’s Road site becomes the preferred site for the re-provision of Epping Sports Centre, in a final form to best meet the future Leisure needs of the local community;

(6)       That, subject to recommendation (5) above, the new leisure centre was sought to be delivered through the existing contractual arrangements with the Council’s Leisure Management Partner Places for People;

(7)       That if the Cabinet elects to choose St John’s Road, Epping as its preferred site for a new Leisure Centre to replace Epping Sports Centre, then the North Weald Airfield Masterplan is amended accordingly within the Local Plan;

(8)       That, subject to recommendation (7) above, a full assessment of alternative community provision be undertaken as part of the wider North Weald Masterplan to ensure that the needs of current and future residents were met as part of the implementation of the Local Plan;

(9)       That in order to proceed with the completion of a full development appraisal and bring forward a planning application for the site, appropriate external consultancy expertise was procured, to be funded by the anticipated balance of £150,000 from the £400,000 the Council had previously agreed for the partial demolition of the site; and

(10)    That appropriate governance arrangements were put in place through the establishment of a multi-disciplinary project team and that regular reports were brought forward on progress and key decisions to the Asset Management and Economic Development Cabinet Committee, the Cabinet and the Council.

Reasons for Proposed Decision:

The St John’s Road development site in Epping comprises of the former Junior School, Town Council Offices and Hall and the District Council’s housing repairs depot. Located in an important town centre location, redevelopment could deliver considerable community and economic benefits for residents, businesses and visitors to Epping.  As the former school buildings have not been utilised for a considerable number of years, it was imperative that the Council, as owners, now determine the future of the asset, in the wider public interest.

Other Options for Action:

There are a number of potential alternative options available to the Council to include the sale of the core site on the open market, to potentially include the Town Council’s premises and the adjacent depot.  Alternatively, the Council could seek another private sector development partner.  Although the site does have an adopted Design and Development Brief and an allocation in the Submission Version of the Local Plan, these marketing approaches would see a loss of direct control, potentially incurring further delay, and the risk that any new owner/partner would not produce a scheme, which fully realises the community benefits sought.