Change of use from office (use class B1) to Apart-Hotel (use class C1) with 52 apartments, and including fourth storey extension

Transcription

1 APP 03 Application Number: 14/01217/FUL Major Change of use from office (use class B1) to Apart-Hotel (use class C1) with 52 apartments, and including fourth storey extension AT Platinum House, 199 North Second Street, Central Milton Keynes FOR North Second Street Limited Target: 2nd September 2014 Ward: Central Milton Keynes Parish: Central Milton Keynes Town Council Report Author/Case Officer: Anna Holloway Contact Details: Team Leader: Nicola Wheatcroft Joint Team Leader Strategic Applications Team Contact Details: INTRODUCTION (A brief explanation of what the application is about) 1.1 The main section of the report set out below draws together the core issues in relation to the application including policy and other key material considerations. This is supplemented by an appendix which brings together, planning history, additional matters and summaries of consultees responses and public representations. Full details of the application, including plans, supplementary documents, consultee responses and public representations are available on the Council s Public Access system All matters have been taken into account in writing this report and recommendation. 1.2 The Site Platinum House is a four storey vacant office building within the Central Business District of Central Milton Keynes. The building is located within block B1 which contains a mix of office, residential, hotel and retail development. The property includes 12 parking spaces, which are accessed from North Third Street. Details of the location of the site and its relationship to surrounding properties can be seen in the plans attached to this report. 1.3 The Proposal The application is for the change of use of an office building (use class B1) to an apart-hotel (use class C1). The apart-hotel would include 52 apartments over four storeys and a 453sqm extension to the top floor of the building. The

2 proposal would result in the loss of 1778sqm (gross internal) office floorspace and the creation of a 2231sqm (gross internal) apart-hotel. Details of the proposal as described above can be seen in the plans appended to this report. 2.0 RELEVANT POLICIES (The most important policy considerations relating to this application) 2.1 National Policy National Planning Policy Framework paragraphs: 14: Presumption in favour of sustainable development 17: Core planning principles 22: Building and strong, competitive economy 23: Ensuring the vitality of town centres 30, and 39: Promoting sustainable transport 56 66: Requiring good design 69 70: Promoting healthy communities 93 and 96: Meeting the challenge of climate change : Determining applications : Planning conditions and obligations 2.2 Local Policy Core Strategy CSA: NPPF Presumption in favour of sustainable development CS1: Milton Keynes Development Strategy CS3: Employment Land Supply CS7: Central Milton Keynes CS11: A Well Connected Milton Keynes CS13: Ensuring High Quality, Well Designed Places CS15: Delivering Economic Prosperity 2.3 Adopted Milton Keynes Local Plan D1: Impact of Development Proposals on Locality D2A: Design of New Development D2: Design of Buildings D4: Sustainable Construction T1: The Transport Users Hierarchy T2: Access for those with Impaired Mobility T3: Pedestrians and Cyclists T10: Traffic T15: Parking Provision E1: Protection of Existing Employment Land CC5: Office Development CC7a: Key Transport Principles CC8: Design and Layout CC10: Planning Obligations in CMK CC11: Central Business District

3 L10: Visitor Accommodation 2.4 Supplementary Planning Documents / Guidance Planning Obligations for CMK SPG (2003) Parking Standards for Milton Keynes SPG (2005) and Addendum (2009) Sustainable Construction SPD (2007) CMK Development Framework SPD (2013) 2.5 Business Neighbourhood Plan CMK Alliance Plan 2026 (emerging policies) CMKAP S1: Strategic Objectives CMKAP G1: Public Realm Infrastructure CMKAP G6: Mixed Use CMKAP G9: Design of Buildings CMKAP SS4: Indicative Land Use Proposals CMKAP T1: Access and Design CMKAP T2: Public Transport CMKAP T3: Cycling CMKAP T4: Parking An emerging neighbourhood plan may be considered as a material consideration; this can depend on the stage the plan has reached and the level of consultation undertaken. In terms of the CMK Alliance Plan, an examination into retail matters was held on the 12th December The planning weight currently given to this draft document should be limited. Greater weight should be given to the saved local plan policies, the policies of the Core Strategy and the NPPF. 3.0 MAIN ISSUES (The issues which have the greatest bearing on the decision) 3.1 The main issues are the loss of the office floorspace, the principle of the proposed use and the impact on the character and appearance of the area, amenity and parking. 3.2 The loss of Platinum House from the office market would not have a significant impact on the availability of office floorspace within CMK given the levels of vacancy and the market for non-grade A office floorspace. The proposed use is compatible with the existing mix of uses within the area and would bring a long term vacant building back into use. The proposed extension would not have a significant impact on the character and appearance of the area and the proposed use and extension would not have a significant impact on residential amenity. Whilst the property does not meet the parking standards the shortfall would not warrant a refusal given the greater shortfall for the existing use and the availability of public parking within the area.

4 4.0 RECOMMENDATION (The decision that officers recommend to the Committee) 4.1 It is recommended that planning permission be granted subject to a condition listing the approved plans, the conditions set out at the end of this report and the completion of a s106 agreement. 5.0 CONSIDERATIONS (An explanation of the main issues that have led to the officer Recommendation) 5.1 Loss of office floorspace The application would result in the loss of 1778sqm of office floorspace within the Central Business District (CBD) in CMK. The loss of the employment land should be considered in relation to saved local plan policy E1 (Protection of Existing Employment Land) and paragraph 22 of the NPPF. Policy E1 states that permission will be refused for the change of use or redevelopment of any land identified for employment use on the Proposals map unless there would be no conflict with existing or potential neighbouring uses and the proposed use will not significantly reduce the provision of local employment opportunities. NPPF paragraph 22 states that planning policies should avoid the long term protection of sites allocated for employment use where there is no reasonable prospect of a site being used for that purpose. 5.2 The proposal should also be considered in terms of saved local plan policy CC5 which states that the Council will seek to maintain the role of Central Milton Keynes as the main office centre in the Borough. As well as CC11 which states that redevelopment within the Central Business District should consolidate the CBD as the main business centre in CMK; although CC11 also supports the provision of a mix of uses within the CBD including residential accommodation together with shops, business services and cafes/restaurants. 5.3 A Market Report has been submitted in support of the application; this provides a report on the Milton Keynes office market and the position of Platinum House within that market in comparison with competing stock currently available. The Report states that Platinum House, whilst within CMK, is not regarded as a prime business location being sandwiched between residential and non-food retail and with no frontage onto one of the three main boulevards. The core of the business area has gravitated towards properties located between Silbury Blvd and Midsummer Blvd in the area between the station and the shopping centre; therefore, the application site is in a fringe location. 5.4 The submitted Report states that the majority of office take up is now for new or Grade A space (generally more energy efficient) and that, faced with the acute shortage of Grade A supply now available in the town, occupiers are considering pre-lets rather than taking lower quality space. Also, that much of the current supply, which falls in the Grade B or lower categories, is likely to remain vacant until alternative uses for these buildings can be identified.

5 5.5 The Market Report assesses vacancy levels in Milton Keynes and finds them currently standing at circa 20% of total stock much of which has been available for in excess of 3 years and that based on take up in 2013 the current supply of 1.4 million sqft represents almost five years supply. Occupiers favour new or comprehensively refurbished accommodation with 30% of the space let in 2013 being in new or fully refurbished buildings. In addition, demand for units of between 10,000 and 20,000sqft (the application property is approx. 19,000sqft) represents less than 20% of total demand. 5.6 The submitted Market Report considers that demand for the quality of office accommodation offered by Platinum House is, at best, weak and if continued to be offered as office space it is likely that the building is unlikely to be fully occupied for a considerable period. The Report concludes that Platinum House no longer presents an economically viable option for the provision of office accommodation in CMK owing to its age, location and the demand profile for offices in this locale. 5.7 Platinum House has been vacant for four years and the findings of the submitted Market Report reflect the assessment within the recent Employment Topic Paper prepared as part of the Plan:MK process. There is evidence of a mismatch between the type of property being demanded and the supply of building available. Figures on local property trends by the firm Bidwells highlight that almost 80% of the take up of office floorspace in Milton Keynes within the past two years has been in new or prime Grade A office floorspaces. There is growing demand for new office premises and shortages in the supply of new property; this coexists with a significant amount of vacant office floorspace within the Borough. The majority of all vacant office floorspace within the Borough is within CMK, much of this property dates from the 1970s and 1980s and in some cases properties have been on the market for years and not been occupied. Whilst some vacant office buildings in CMK have the potential to be reused either for office use (after refurbishment) or for residential use (under permitted development rights), for some office buildings, which are obsolete and incapable of conversion, demolition and redevelopment of the site may be the only practical option. However, redevelopment is only going to occur if it is profitable and feasible to do so. 5.8 Recently a Development Brief SPD has been adopted for CMK site B3.1S & B3.2S and a Development Brief SPD for CMK site B3.3N is currently out for consultation. Both sites are suitable for mixed use development with office as the predominant use and are available for development. 5.9 Taking into account the level of available office floorspace within CMK and the availability of development sites suitable and available to accommodate new Grade A office accommodation as well as the location and quality of the office floorspace at Platinum House it is considered that the loss of Platinum House from the office market would not have a significant impact on the availability of office floorspace within CMK.

6 5.10 Principle of the proposed use Core Strategy policy CS7 states that Central Milton Keynes will retain and enhance its role as a regional centre and the city s focus for retail, office, hotel, leisure and cultural development. Saved local plan policy CC11 supports the provision of a mix of uses within the Central Business District including residential accommodation together with shops, business services and cafes/restaurants. Saved local plan policy L10 states that permission will normally be granted for new hotel and other visitor accommodation in CMK The surrounding properties include a mix of office, residential, hotel and retail. The proposed use as an apart-hotel is considered compatible with the existing mix of uses within the area. The type of accommodation provided within an apart-hotel (the short term letting of apartments) is likely to complement the primary purpose of the Central Business District Parking Platinum House is located within parking standards zone 1. Therefore, the parking standard for the existing B1 use is one space per 70sqm and for the proposed C1 use the parking standard is one space per 3 bedrooms. The existing building has a floorspace of 1778sqm and therefore the existing use has a requirement for 26 parking spaces. The proposed apart-hotel would include 52 apartments and therefore has a requirement for 18 spaces. The proposed use therefore has a lower parking requirement than the existing use The application property is currently served by 12 parking spaces. In addition, there public pay & display spaces to the front of the building on North 2 nd Street and nearby on North Row. The public pay & display bays have an early morning restriction on them between 07:00 to 08:30 but are available for holders of H1 (Hotel & Conference) scratch-cards, which residents of an apart-hotel would be eligible to use The parking occupancy maps from June and December 2013 and June 2014 show low levels of occupancy within block B1 during evenings and weekends with higher levels during the weekday. The June 2014 parking occupancy maps for block B1 show an average occupancy of 79% for standard pay & display bays during weekdays and 2% on a Sunday with similar figures for June and December Whilst the proposed use is likely to have a greater demand during the evenings and weekends than the existing office use, this is when the pay & display bays show a high level of spare capacity The proposal has also been considered in terms of the policies within the emerging CMK Business Neighbourhood Plan. The emerging plan includes a parking standard of one space per 50sqm for B1 use and one space per 3 bedrooms for C1 use. Therefore, under parking standards within the emerging plan the existing use would require 36 parking spaces and the proposed use would require 18 spaces. Therefore, the emerging plan is neutral in terms of the proposed use but would result in a greater shortfall of

7 on-plot parking for the existing use. The proposal would therefore reduce the shortfall in on-plot parking spaces when assessed against both the adopted parking standards and the standards within the emerging business neighbourhood plan Therefore, whilst the application property has a shortfall of 6 spaces against the parking standards, this would not warrant a refusal as the shortfall is lower than the existing use and there are public pay & display bays available in the immediate vicinity to the property Conclusion The loss of Platinum House from the office market would not have a significant impact on the availability of office floorspace within CMK given the levels of vacancy and the market for non-grade A office floorspace. The proposed use is compatible with the existing mix of uses within the area and would bring a long term vacant building back into use. The proposed extension would not have a significant impact on the character and appearance of the area and the proposed use and extension would not have a significant impact on residential amenity. Whilst the property does not meet the parking standards the shortfall would not warrant a refusal given the greater shortfall for the existing use and the availability of public parking within the area. Therefore, it is recommended that permission is granted subject to a condition listing the approved plans and the conditions listed below as well as the completion of a s106 agreement with the planning obligations as outlined below. 6.0 CONDITIONS (The conditions that need to be imposed on any planning permission for this development to ensure that the development is satisfactory. To meet legal requirements all conditions must be Necessary, Relevant, Enforceable, Precise and Reasonable ) The development hereby permitted shall be begun before the expiration of three years from the date of this permission. Reason: To prevent the accumulation of planning permissions; to enable the Local Planning Authority to review the suitability of the development in the light of altered circumstances; and to comply with section 51 of the Planning and Compulsory Purchase Act (D11) 2. The external materials to be used in the development shall be in accordance with details to be submitted to and approved in writing by the local planning authority before any work is commenced. Reason: To ensure that the development does not detract from the appearance of the locality. 3. The development hereby permitted shall be carried out in accordance with the Energy Efficiency measures contained within the submitted sustainability report and shall achieve at least a 50% Improvement on the building regulations. The measures included within the submitted information

8 include using a high specification fabric for the new top floor, a high efficiency air source hear pump (VRF) system for heating and cooling, the use of high efficiency lighting and a passive approach to ventilation. The Energy Efficiency measures shall be implemented prior to initial occupation of the building as an apart-hotel and shall thereafter be permanently retained and maintained. Reason: To ensure that the development complies with the Council's objective for Sustainable Development in accordance with Policy D4 of the Adopted Local Plan: Full details of the design, size, number and location of the proposed solar photovoltaic arrays (PVs) to produce a minimum 10% reduction of the total CO2 emissions shall be submitted to and approved in writing by the Local Planning Authority before any part of the development is commenced. The approved scheme shall be implemented prior to initial occupation of the building as an apart-hotel. The PVs shall thereafter be permanently retained and maintained. Reason: To ensure that the development complies with the Council's objective for Sustainable Development in accordance with Policy D4 of the Adopted Local Plan: and to ensure that the development does not detract from the appearance of the locality. 5. Prior to commencement of development, a report detailing the water efficiency measures to be included in the development shall be submitted to and approved in writing by the Local Planning Authority. Using the Code for Sustainable Homes water calculator, the report shall detail how the water efficiency measures will ensure a limit of 105 litres per person per day. The water efficiency measures within the approved report shall be installed prior to initial occupation of the building as an apart-hotel. Reason: To ensure that the development complies with the Council's objective for Sustainable Development in accordance with Policy D4 of the Adopted Local Plan: Prior to the commencement of development, details of the cycle parking for 10 bicycles, in the location as shown within the approved Site Plan (drawing number 3760-PL-02 A), shall be submitted to and agreed in writing by the local planning authority. The submitted details shall include the design, material and dimensions of the proposed stands and the spacing between stands. The approved cycle parking shall be implemented prior to initial occupation of the building as an apart-hotel and shall thereafter be permanently retained. Reason: To ensure that there is adequate cycle parking provision. 7. The building shall operate as an apart-hotel falling within use class C1 'Hotels' only and for no other use whatsoever. The building shall operate as a single planning unit and the individual units shall not be sub-divided or sold off

9 separately. The units hereby permitted shall operate as short term lets only. Reason: To clarify the terms of the permission and to ensure the building is not sub-divided without the permission of the Local Planning Authority. 6.2 Planning Obligations Public Transport: 9 x 453sqm = 4, Highway Network: 3 x 453sqm = 1, Public Art, Social and Cultural: 0.25% of the gross development cost (excluding land) Carbon offset: 200 per tonne (estimated at 29,242, plus an allowance for equipment use)

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22 Appendix to 14/01217/FUL A1.0 RELEVANT PLANNING HISTORY (A brief outline of previous planning decisions affecting the site this may not include every planning application relating to this site, only those that have a bearing on this particular case) A1.1 None A2.0 ADDITIONAL MATTERS (Matters which were also considered in producing the Recommendation) A2.1 Extension to Top Floor (fourth storey) Platinum House (the first three storeys) is a mix of buff-coloured brickwork and blue-framed glazed curtain walling whilst the top floor (fourth storey) is set back from the edge of the building with white-framed curtain walling below a glazed pyramid roof. The proposal includes a 453sqm extension to the top floor of the building. The extension would be constructed of aluminium framed glazed curtain walling with a brise-soleil to the southerly facing elevations and a mid-grey coloured frame. The proposed fourth floor extension will make the top floor more visible within the street scene; however, the scale and design of the proposed extension is considered acceptable in terms of the mix of architectural styles within the area and the relationship to the surrounding buildings. A2.2 Amenity The surrounding properties to Platinum House include a mix of office, residential, hotel and retail uses. The principle of the proposed use is considered acceptable in terms of the impact on the amenity of existing neighbouring occupiers and the proposed customers of the apart-hotel. The proposal is likely to result in an increased use of the building in the evenings and weekends compared to the existing use. However, the property is located within CMK where a higher level of activity is to be expected. Consideration has also been given to the potential impact on privacy and overlooking; the proposed top floor extension would not have a significant impact when considering the existing relationship between the properties. Taking into account the nature and scale of the proposal and the location of the property, it is considered that it would not have a significant impact on amenity. A2.3 Planning Obligations In accordance with the adopted Planning Obligations for CMK SPG and Sustainable Construction SPD the following contributions have been sought: public transport; highway network; public art, social and cultural; and carbon offset. Given the scale of the development and the existing use it is considered appropriate that the contributions are calculated based on the floorspace added over the original B1 use. Therefore, the following contributions have been agreed with the applicant:

23 Public Transport: 9 x 453sqm = 4, Highway Network: 3 x 453sqm = 1, Public Art, Social and Cultural: 0.25% of the gross development cost (excluding land) Carbon offset: 200 per tonne (estimated at 29,242, plus an allowance for equipment use)

24 A3.0 CONSULTATIONS AND REPRESENTATIONS (Who has been consulted on the application and the responses received. The following are a brief description of the comments made. The full comments can be read via the Council s web site) Comments Officer Response A3.1 Highways Development Management Car parking Parking standards in Zone 1 recommends for C1 use a provision of 1 car parking space per 3 bedrooms to be provided, this equates to 18 car parking spaces. A3.2 The applicant has provided 12 car parking spaces reserved for the application site. The applicant has stated 11 shared car parking spaces (pay and display), which include 2 disabled parking spaces, would also be available for the guests; located opposite the proposed development. This equates to 23 car parking spaces in total. A3.3 An under provision of 6 car parking spaces has been provided by the applicant, this is acceptable in this instance since pay & display parking spaces are available in very close vicinity of the proposed development. Please see paragraphs 5.12 to Please see paragraphs 5.12 to Please see paragraphs 5.12 to A3.4 Traffic It should be noted there is a reduction in the number of trips due to a change of use from B1 to C1. Noted.

25 A3.5 Cycle parking Details of the location of cycle parking (10 cycle parking spaces) should be submitted. The location should be secure with natural surveillance to encourage use. Amended plans have been submitted that show the provision of 10 cycle parking spaces under the colonnade to the front of the building on North 2 nd Street. The amount and location is considered acceptable and a condition is proposed requiring the installation of cycle parking prior to initial occupation (please see condition 6). A3.6 Servicing Within the Transport Statement the servicing vehicles that would be required have been outlined and include linen deliveries once per week, refuse collection twice per week and apartment consumables once per fortnight. The refuse collection vehicles would stop along North 2 nd Street and would serve the site from the main entrance of the building. The servicing strategy (refuse and linen) outlined within the Transport Statement is acceptable. Noted. A3.7 Development Plans Policy D4 There is nothing in the submitted information covering water, waste and material as per the D4 checklist. This information will need to be provided. The additional information has been requested but not yet received. Whilst this information would ideally be provided prior to determination, it is considered that a condition requiring water saving devices (please see condition 5) would be acceptable in this instance. Given the scale of the proposed extension (453sqm) and the nature of the application it is considered that conditions for a waste management plan during construction and the sustainability rating of construction materials would not be necessary in this instance.

26 A3.8 From the submitted information it appears that the proposals will see the current regulated emissions from the building cut by over 50%. For conversion projects, the reduction from the existing emissions level tends to be the figure we work from and this is a good saving, above the 44% good standard in the checklist. A3.9 This saving includes an allowance for renewable energy in the form of PV panels. The calculation should normally include an allowance for unregulated emissions, but as the good standard has been achieved we allow an element of flexibility so this is acceptable. A3.10 The assumption with the sustainability report that a carbon offset payment is not needed is incorrect. A payment is only not required when a zero carbon development is achieved. In this case the remaining emissions are noted as tonnes. This does not include an allowance for equipment use which needs to be added to the figure. The payment is 200 per tonne, meaning the estimate of the required carbon offset payment is 29,242, plus an allowance for equipment use. This will need to be secured via a s106 agreement. Noted; a condition requiring the development to be carried out in accordance with the submitted details is proposed (condition 3). Noted; a condition regarding the installation of PV panels is proposed (condition 4). A carbon offset payment has been agreed with the applicant; please see paragraph A2.3. A3.11 Urban Design The fourth floor extension is the only change to the external appearance of the building. This change will have a limited impact on the elevations and therefore I have no objections from an urban design point of view. Noted. Please see paragraph A2.1.

27 A3.12 Economic Development This one does not need an Economic Development report. Noted. A3.13 Central Milton Keynes Town Council The Town Council objects to the application. The parking provision is inadequate and does not conform to the current (2005) SPG Parking Standards for Milton Keynes, nor to the parking standard adopted for the CMK Alliance Plan (which is the same for Use Class C1). The Town Council notes that: 1. The Parking Standards require that the requisite number of parking spaces (1 space per 3 bedrooms) is to be accommodated within the development site boundary. 2. The Transport Statement inaccurately states that the number of bedroom units is 55, generating a demand for 18 spaces. In fact, the proposal is for 52 bedroom units generating a demand for 17 spaces. 3. The site contains 12 parking spaces, representing a shortfall of 5 spaces, which is almost 30% less than the number required; the applicant proposes to use public parking on the adjacent highway to satisfy the shortfall. 4. The spaces the applicant has identified in the public highway are eligible for E1 parking permits for employees. 5. The use of Pay & Display parking tickets between am is prohibited in this area as a result of issues from out-commuters. The Town Council submits that car parking in the area around the site is already under significant pressure for workers (largely due to Network Rail), resulting in the E1 permits. In addition, it will be Please see paragraphs 5.12 to 5.16.

28 unworkable for guests to have to vacate the restricted spaces between 7:00-8:30 am every day. Therefore, it is not acceptable to lose any public parking spaces to this development. 6. The Town Council finds the proposed change of use acceptable; however, the proposed addition of an extra floor for further accommodation over-develops the site for the amount of parking within the site. A3.14 Public Representations The occupiers of the following properties were notified of the application: Technology House, 151 Silbury Boulevard Chancery House, 199 Silbury Boulevard 1 Grafton Gate 151 Grafton Gate 1-20 Clarence House, 152 North Row 206 (I, K, M and O) North Row 208 (C-E and I-L) North Row Noted. A3.15 No public representations have been received. Noted.