Response and Objections to Planning Application 2014/0784/FUL - The New Inn Priddy for Mr & Mrs G Hatton.

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1 Priddy Parish Council Response and Objections to Planning Application 2014/0784/FUL - The New Inn Priddy for Mr & Mrs G Hatton. Renovation and change of use of public house to two self contained holiday lets and tea room, including re-organisation of existing residential accommodation from a flat to a dwelling house with two bed and breakfast letting rooms. At its meeting on 4 th June 2014, Priddy Parish Council unanimously voted against the above application. The Parish Council has significant and substantial objections to the application, which can be summarised as follows: 1) Planning Policy: there are compelling planning reasons not to allow change of use; the retention of the New Inn facilities will continue to support the local economy which is important for the future viability and welfare of the community. 2) Viability: the premise that the New Inn is unviable. There appears to have been a continuing and deliberate campaign by the owners, Mr and Mrs Hatton, to force down the profit level of the pub until the only outcome was closure. 3) Marketing: the property has not been robustly marketed or properly exposed to the market and has been offered at an unrealistic price compared to pubs for sale in the area that are still trading. The poor level of marketing by an agricultural agent was undertaken only after the pub had been stripped of its contents with the premises advertised as a commercial property or development opportunity rather than a pub. 4) Business Plan: the production of an unrealistic and unachievable business plan appears to have been designed to fail which is likely, in due course, to allow the creation of a development of residential properties on the site. 1) Planning Policy Reasons The property operated as a public house with associated B& B accommodation and operated successfully as such until relatively recently when it was closed by the owners. Priddy Parish Council and other interested parties firmly believe that this type of business is both viable and feasible and has made an offer to purchase the premises for this purpose, having drawn up a suitable business plan. As the applicant s own Design & Access statement says, the best use for a building is that for which it was intended. There are compelling planning reasons to resist a change in use and encourage the re-opening of a public house and associated facilities, which are described in the PC s plan. Some planning policies are also referred to by the applicant. The Parish Council s views on these and others are expressed below: Page 1 of 8

2 Mendip District Council Local Plan: 1. Previous conversations with Planning Officers at MDC resulted in an assurance from Carlton Langford (cc James U Dell, 22/11/13) that policy SN17 Retention of Village Shops, Neighbourhood Shops and Community Facilities clearly applies in this situation. This policy now features within the new NPPF, section 3, paragraph 28 (Supporting a prosperous regional economy - promoting the retention and development of local services and community facilities in villages, such as public houses). The Parish Council has consulted with the local community regarding the future of The New Inn premises and received overwhelming support in a vote regarding their bid to purchase and redevelopment plans. These are for a facility significantly different from The Queen Victoria, catering for a more expansive market and taking advantage of The New Inn s unique location. 2. Policy E6 Protecting Employment Land in a Village seeks to avoid the loss of business or buildings to other uses. As a public house with associated facilities, The New Inn is a much bigger business venture with more employment opportunities than the new application. 3. Policy 7 Re-use and Adaptation of Rural Buildings outside Development Limits to Employment or Income Generating Uses, which seeks to bring redundant buildings into use, is cited by the applicant but this building is simply closed not redundant. Emerging Mendip District Local Plan: The strategic objective to strengthen the local economy and promote greater vitality and viability in rural communities is reflected in the current use of the premises. Specifically the following policies are relevant: 1. CP3 Supporting Business Growth. The new application would reduce the amount of business taking place on the site. 2. CP4 Sustaining the Rural Economy. A public house with associated facilities (such as the 6 B&B rooms currently approved, the skittle alley, the restaurant, the meeting rooms, the garden and, of course, the bars) has much more scope to do this than the application. 3. DP20 Re-use of employment sites. Re-instatement of the public house facilities described above would provide significantly higher employment opportunities (e.g. bar staff, kitchen and waiting staff, cleaners, management roles etc) for local people in comparison with the possibility of only two part-time roles envisaged at some vague point in the future by the application. 4. DP22 Re-use and conversion of rural buildings. There is no need to change from current use; a major renovation, refurbishment and good management would rejuvenate the existing facility. Page 2 of 8

3 The following National Planning Policy Framework paragraphs are also of some significance: Achieving sustainable development is the overarching principle. The presumption in favour of sustainable development means that planning authorities should actively seek opportunities to meet the development needs of the area. The Parish Council believes the re-establishment and expansion of The New Inn as a public house would meet a need both for the local community and for the large number of visitors to the AONB throughout the year far better than the proposal. They have taken into account the requirements of paragraph 173 with regard to the viability and costs of the refurbishment of The New Inn as a public house and are confident such a business would provide competitive returns as a deliverable development. Section 3 Supporting a prosperous regional economy. Paragraph 28 regarding supporting economic growth and sustainable rural tourism also refers to promoting the retention and development of local services and community facilities in villages, such as public houses. There is greater potential for new enterprise as a public house under the current approval, as the associated activities provide wider opportunities for creating employment and supporting the tourist industry generally not simply with accommodation. The holiday let potential is unproven, given applications elsewhere in the village. Local Plans. Paragraph 157. Priddy does not yet have a Local or Neighbourhood Plan (paragraph 183 on) but is in the process of consultation. The current Village Design Statement is therefore taken as a guideline and makes reference to the significance of The New Inn. Historic and landscape character assessments, paragraph 170, are currently being undertaken ad include the Green and surrounding area. Business needs and barriers to investment paragraph 160. The Parish Council is well aware of the viability of the other pubs in the greater parish, their particular business models, customer base and catchment areas, which are significantly different from at The New Inn. The tourist trade and number of visitors to the Mendip Hills AONB throughout the year are not well served by any of these, nor are they all within walking distance of the majority of residents. The New Inn occupies the prime location to serve needs of both these groups, since it is at the heart of Priddy. 2 Viability In several places throughout the documents the applicants contend that the pub business is not viable. Before Mr and Mrs Hatton purchased the premises in 2001 The New Inn was a thriving business frequented by the local community and visitors alike for both food and drink. Almost immediately after their purchase there was a rapid decline in trade due to the unfriendly and unwelcoming atmosphere in the pub fostered by the new owners. With the pub being let to tenants, business was partially revived and in particular the tenants who managed the pub from 2006 to 2011 ran a successful business attracting back many locals and turning over 360,000 in the year ending September However, they were eventually forced out of business apparently by ever increasing rents imposed by the owners. With the pub again under the stewardship of Mr and Mrs Hatton trade once again diminished until the pub was closed in early Page 3 of 8

4 Shortly after the closure, an auction of the contents took place leaving the pub empty with no kitchen, toilets or furniture and no longer able to function as a pub. The Parish Council considers that the pub is viable and has produced a robust business plan with the help and advice from a successful publican and businessman who operates locally. A copy of the business plan is included in the appendices (2) The Parish Council arranged for a valuation of the New Inn to be made by Messrs Shattock. A copy of the valuation report is included in the appendices (3). Priddy Parish Council, supported by the community (that support being shown through open meetings) has made an offer on behalf of the community to purchase the pub based on the valuation prepared by Messrs Shattock. Priddy Parish Council contends that this is a serious offer based on a sound business plan and the ability of the Parish Council to secure funding for the purchase. The response to the offer from Mr Hatton was that as a planning application for change of use had been submitted no offers were being considered, even though an advertisement remains on David James web site and a board is still displayed outside The New Inn. Throughout the document the contention is made that the pub is not viable, Shattocks valuer is quoted as saying a valuation as a viable pub could not be made; however, such a valuation was made and formed the basis of the Parish Council offer. The assertion that interested parties have not wished to continue the pub business is clearly wrong when a formal offer has been made by the Parish Council for the pub premises and the owner s claim that without turnover and planning consent the premises can only be valued as a non-trading pub deemed not viable is clearly as a result of his own actions in stripping the pub of its contents and not marketing it as a going concern. 3. Marketing The contents auction on 27 th April 2013 gave an indication that the applicant had no intention of selling the premises as a public house. A copy of the David James auction sale catalogue is included in the appendices (4) The premises were not then marketed as a public house for sale or rent but as Offices/Storage/Workshop/Holiday Let/ Leisure Units. The David James sales / rent particulars are included in the appendices (5) The Parish Council considers that the New Inn has not been robustly marketed or properly exposed to the market. A comparison can be made to the current marketing of The Horse and Jockey at Binegar by specialist agents, Smithstone. The Horse & Jockey is currently still trading and is a similar premises and occupying a similar rural position to the New Inn. This pub had a turnover of 328,000 in 2013 (less than the New Inn in 2011) with a profit margin of 60,000. As a profitable trading business it has a higher market value but is being offered at a lower market price ( 465,000) than the New Inn. Page 4 of 8

5 According to the Smithstone agents a turn over in excess of the 300,000 mark is indicative of a viable pub business. The Horse and Jockey Sales particulars are included in the appendices (6) The Parish Council business plan prepared in conjunction with the offer, which is attached to this document, considers a number of thoroughly researched and costed propositions, and gives a worst case turnover for the New Inn of 321, Proposals within the application and the business plan. A summary of the proposed development indicates that there will be 2 high quality self contained holiday lets, a tea room open to the public and two bed and breakfast rooms. a) Holiday Lets The proposed holiday lets are described as high quality and 5 star in the documents. The Parish Council considers that relevant market research suggests that this type of accommodation is inappropriate for the type of visitor to the Mendip Hills area. The lets are of large scale, perhaps larger than would normally be expected and a review of similar accommodation gives an average rental of perhaps 700 per week which translates, from the business plan, to 30 weeks occupancy in the first year and 44 weeks in the third year. This does not equate to the suggested 22% occupancy in the first year (or twelve weeks) as this would give a rental cost of 1700 per week per unit, clearly unrealistic. Reliance for the success of the entire business appears to be based on an unrealistic proposed income from the holiday lets. Year 2015 Year 2016 Year 2017 Cottages projected let income 40,886 46,516 61,710 Total business projected income 46,886 54,266 72,860 In support of the application, the documents suggest that there is only limited holiday letting accommodation in Priddy. However, within the recent past a total of twelve holiday lets have been applied for or are proposed and, to date, none have proceeded. These include applications for holiday lets at Lower Pitts farm, Upper Eastwater Farm and the Old Hunt kennels all granted by Mendip District Council along with a proposal to convert old farm houses and cottages at Dale Farm. Particulars for these are included in the appendices (7, 8, 9, 10) The Lower Pitts Farm holiday lets have been marketed by agent David James with little interest since 2011 suggesting a lack of confidence in this market. Page 5 of 8

6 A David James & Partners marketing report dated February 10 th 2014 attached to the recent planning application for residential development in place of holiday lets for Lower Pitts Farm concludes that there is very little prospect of these buildings being let for employment or holiday let purposes.. bearing in mind the current significant surplus of immediately available accommodation elsewhere in rural Mendip. Hence the new applications for residential use. b) Bed & Breakfast The documents suggest that there are only two bed and breakfast rooms in Priddy and that this represents a business opportunity. The Parish Council agrees with this statement and would therefore prefer The New Inn to retain the provision of six letting rooms, as under its current approval. Although these were of a standard below what visitors might expect, they did reasonable business right up until the closure. The new proposals and low occupancy suggest that this part of the proposal has not been given serious consideration. A projected occupancy of 11 weeks for only 2 rooms is very low when such accommodation is in short supply. c) Tea Room The tea room situated on the ground floor at one corner of the building is described as being open to the public. However at 24m2 the room is very small allowing perhaps 12 covers, with a very low projected income by 2017 of 8,000. It is suggested that there is no similar facility in the immediate area, however, there is a café available at the local Farm Shop. There is no commercial catering facility associated with the tea room indicated on the plan. There is no parking associated with the tea room on the site and, indeed, the amount of parking provided for an application producing eleven bedrooms and a public tea room seems very inadequate. A suggestion that the cottages are available to groups of up to twelve people means that six cars could require parking if both cottages are occupied at the same time. d) Employment The Parish Council disputes the statement following on from this summary: The development will provide a continued commercial use in the site that will benefit the economy, support local business. The plan projects staff costs to service the holiday cottages and tea room of 3,000 by 2017, with perhaps 2 part time staff. This is of very limited value compared to the employment of four full time staff and up to 8 part time staff which would be generated by the pub business (Parish Council Business Plan), a significant reduction on the levels of employment within the local community available to young people and hardly offering significant opportunities for local employment since the business plan envisages only a modest income of 30 per day, given a six month opening period for the tea room. Page 6 of 8

7 e) Tourism and the local economy It is stated by the applicant that The New Inn suffered from poor trade over the winter months. There are, however, increasing opportunities for a diverse business as proposed by the Parish Council business plan. There are an estimated 3.6 million visitors to the Mendip Hills AONB per annum (South West tourism). Many visitors coming to the area are partaking in outdoor pursuits connected to the landscape that are non seasonal caving, climbing, walking, running, horse riding, cycling. The New Inn occupies a prominent position on the village green directly adjacent to the long distance footpath, the West Mendip Way, and to the Sustrans National Cycle Route 3. Both are increasingly popular. f) Failure of the Business Plan The Parish Council believes that the applicant s whole business plan relies heavily on the proposed holiday lets, is widely optimistic and appears designed to fail, paving the way for a further application to allow residential use of the lets. The layout of the proposed lets would suggest this could be the ultimate intention. 5 Summary The Parish Council and community consider that there are strong reasons to refuse this application. The loss of the community facility which they seek to protect and preserve is reason enough for refusal and it is unfortunate that, having designated The New Inn as an Asset of Community Value on the basis of compelling reasons submitted by the community Mendip District Council allowed an appeal on purely legal grounds. Members of the community, local organisations, tourists and visitors passing through the village all tried to support The New Inn, despite an often inhospitable atmosphere and unwarranted exclusions. The Parish Council held regular meetings there, as did several other parish groups, and four skittles team were apparently banned for various reasons. All of these have had to find alternative, less convenient venues. Even after its sudden closure people were turning up on the Village Green daily expecting to find somewhere to eat or drink. Priddy Parish Council has shown that: The change of use application is contrary to Mendip District Council policy in both the out going and emerging Local Plans. The pub is viable as indicated by recent turnover figures, comparison to the Horse & Jockey and the proposed Parish Council business plan. The pub has not been properly or robustly marketed as required by policy prior to applying for change of use. The applicant s business plan is flawed, economically unsustainable, unsupported by relevant research and likely to fail. The likelihood that allowing this application and the ultimate failure of the business plan will inevitably lead to a substantial residential development on the site, which whilst not a direct consideration, is of great concern to the community. Page 7 of 8

8 The Parish Council seeks to protect The New Inn for the future, to revive it on behalf of the community and visitors and to protect our historic environment from excessive residential development. We therefore request that Mendip District Council refuse this application. Alan Butcher Priddy Parish Clerk 11 th June 2014 Appendices The following documents attached 1) Priddy Village Design Statement. 2) Priddy Parish Council New Inn Business Plan 3) Shattock Valuation report. 4) David James New Inn Auction catalogue 5) David James New Inn sales particulars. 6) Smithstone Horse & Jockey sale particulars 7) David James Lower Pitts Farm sale particulars 8) David James Lower Pitts Farm Marketing report 9) Dale Farm Design and Access statement 10) David James Higher Eastwater Farm sale particulars Page 8 of 8