Infrastructure improvements

• New junction from Cherry Orchard Way into Saxon Business Park

• Initial section of the new estate road & green corridor

• Public open space to north and east of Saxon Business Park

• Walking & cycling provision including linking to Hall Road to the north & Nestuda Way to the south along Cherry Orchard Way

• Public transport improvements

• Spur Road from new junction off Cherry Orchard Way into Cherry Orchard Jubilee Country Park

• Cherry Orchard Park Environment & Visitor Centre

• Freight and network management systems and network capacity improvements

Risks & Mitigation

See also summary risks table in Conclusion

Risk & Impact

Initial Risk Score

Suggested Mitigation

Residual Risk Score

Probability

Impact

Probability

Impact

The land is in two different ownerships and is subject to tenancies which could cause complexities for bringing forward the development in the short term.

Medium

High

Ensure early and effective engagement with the landowners to ensure willingness to bring the site forward in the short term and for employment use as per JAAP

Low

Medium

Potential contamination, archaeology and environmental issues may lead to significant remediation costs affecting scheme viability and ability to pay onerous S106 contributions.

It is suggested an environmental and geo-technical assessment is carried out in due course to determine extent of any residual environmental works required alongside likely remediation costs. Cherry Orchard Homes & Villages plc has stated that should they progress with sale of the land from Hanson, they will cover the costs of any remediation required. Whilst they are willing to accept these environmental costs, any significant or unreasonable S106 costs on top of these may affect the overall scheme viability and there is a risk the developer may not proceed with the site.

High

High

Whilst developer contributions can help provide important benefits to the wider area, it is important to ensure the collective S106/CIL monies and commitments required are not so onerous as to render schemes unviable; particularly on complex brownfield sites which may be costly to remediate. Once all costs are known across the JAAP area a developer contribution assessment will be undertaken to determine reasonable developer contributions or each infrastructure theme whilst considering site-specific issues such as contamination, infrastructure and remediation, and that a pragmatic approach is taken to archaeology.

Low

Low

Lack of demand for increased employment provision within the JAAP area. Although this is more likely to be a risk as subsequent phases come forward, it is a risk for the provision of any new floorspace that comes onto the market.

Evidence suggests that demand for new employment provision is likely to match supply as the Airport increases its capacity, although it is important that the demand for space is at a pricing level which will encourage and facilitate development.

Medium

High

It is suggested that SBC and RDC monitor employment demand through updates to their Monitoring Reports (see below for suggested indicator) and ensure that Employment Land reviews are updated when necessary. If it becomes apparent there is an oversupply of employment land, a decision may need to be made to stagger or reduce the amount of land that goes on the market at any one time. It will also be important to ensure a strong Marketing Strategy is prepared for Saxon Business Park and implemented.

Low

High

Delivery Mechanism & Delivery Bodies

The brickworks site may be brought forward by a private developer. Currently Cherry Orchard Homes & Villages plc has an option on the land.

An effective S106 agreement will ensure infrastructure is delivered to the requirements of the JAAP, however It is yet to be determined whether the estate road will be provided by SBC or will be a requirement on the developer.

It is proposed a partnership-led steering group is tasked with preparing a masterplan in the short term along with a number of assessments to inform future direction, including potentially transport and flood-risk/ surface water to enable a strategic, site-wide masterplan for the entire Saxon Way Business Park. This will be supported by a design brief to ensure an appropriately high quality, sustainable scheme is brought forward along with guidance for developers outlining planning application and S106 requirements. Whilst the public sector i.e. SBC & RDC will lead this masterplan and assessment work, the buy-in and support of private sector interests and statutory undertakers will be vital.

Essex County Council and Southend-on-Sea Borough Council will work jointly to undertake further transport modelling and assessment work across the JAAP area.

Suggested Monitoring Indicators

JAAP Policy

Infrastructure improvements

• New junction from Cherry Orchard Way into Saxon Business Park

• Initial section of the new estate road & green corridor

• Public open space to north and east of Saxon Business Park

• Walking & cycling provision including linking to Hall Road to the north & Nestuda Way to the south along Cherry Orchard Way , and diversion of Footpath 36 to improve airport safety and facilitate the Saxon Business Park development.

• Public transport improvements

• Spur Road from new junction off Cherry Orchard Way into Cherry Orchard Jubilee Country Park

• Cherry Orchard Park Environment & Visitor Centre

• Freight and network management systems and network capacity improvements

Risks & Mitigation

See also summary table in conclusion

Risk & Impact

Initial Risk Score

Suggested Mitigation

Residual Risk Score

Probability

Impact

Probability

Impact

IPECO decides to relocate elsewhere and does not proceed with development at Saxon Business Park.

IPECO’s interest is a boost to the deliverability of Saxon Business Park in the short term. IPECO has indicated they are keen to remain in the vicinity of London Southend Airport if possible.

Medium

Medium

SBC continue to engage with IPECO to help facilitate purchase and transition to new premises in Saxon Business Park. The balance of the land should also be marketed effectively to other potential investors.

Evidence suggests that there is likely to be sufficient demand for employment provision within the JAAP area – it is likely that other companies will locate to Saxon Business Park in due course.

Low

Medium (short term only)

Lack of demand for increased employment provision within the JAAP area. Whilst it is apparent IPECO are keen to relocate, market interest is yet to be determined for any balance of land.

Medium

High

It is suggested that SBC and RDC monitor employment demand through updates to their Monitoring Reports (see below for suggested indicator) and regular updates to their Employment Land reviews. If it becomes apparent there is an oversupply of employment land, a decision may need to be made to stagger or reduce the amount of land that goes on the market at any one time. It will also be important to ensure a strong Marketing Strategy is prepared for Saxon Business Park and implemented.

Low

High

Onerous S106 agreements may affect the viability of proposals possibly preventing developers from progressing with development on site.

Whilst developer contributions can help provide important benefits to the wider area, it is important to ensure the collective S106 monies required are not so onerous as to render schemes unviable.

Medium

High

Once all costs are known across the JAAP area a developer contribution assessment should be undertaken to determine reasonable developer contributions for each infrastructure theme whilst considering site-specific issues such as contamination.

Low

Low

Delivery Mechanism & Delivery Bodies

SBC as owners of the land are likely (to be finally determined) to put in the necessary enabling works including the new estate road and then sell Area 1B off in a number of land parcels. IPECO currently have an interest in approximately 8ha (2/3rds) of the site. Other interests are expected to come forward once SBC market the site.

An effective S106 agreement will ensure infrastructure is delivered to the requirements of the JAAP. It is proposed a partnership-led steering group is tasked with preparing a masterplan in the short term along with a number of assessments to inform future direction, including potentially transport and flood-risk/ surface water to enable a strategic, site-wide masterplan for the entire Saxon Way Business Park. This will be supported by a design brief to ensure a high quality, sustainable scheme is brought forward along with guidance for developers outlining planning application and S106 requirements. Whilst the public sector i.e. SBC and RDC could lead this masterplan and assessment work, the buy-in and support of private sector interests and statutory undertakers will be vital. Essex CC and SBC will need to work jointly to undertake further transport modelling and assessment work.

Suggested Monitoring Indicators

JAAP Policy

Infrastructure improvements requiring funding

• Relocation of Westcliff Rugby Club

• Walking & cycling provision including linking to Hall Road to the north & Nestuda Way to the south along Cherry Orchard Way

• Public open space to north and east of Saxon Way Business Park

• Spur Road from new junction off Cherry Orchard Way into Cherry Orchard Jubilee Country Park and access to new Environment & Visitor Centre

Cherry Orchard Jubilee Country Park Environment & Visitor Centre

• Freight and network management systems and network capacity improvements

NB: whilst policy E3 states that contributions to the above will be required for all phases of the business park, it is likely that post 2021 most of the infrastructure elements will be in place, the key infrastructure requirement is therefore the relocation of the rugby club to an appropriate standard.

Risks & Mitigation

See also summary risks table in conclusion

Risk & Impact

Initial Risk Score

Suggested Mitigation

Residual Risk Score

Probability

Impact

Probability

Impact

Lack of demand for increased employment provision within the JAAP area.

As the site will be brought forward post-2021 it is not possible to predict likely market demand for employment provision at Area 1B at this stage, however, it is expected that with key infrastructure in place, a number of new businesses already established in Saxon Business Park, and the airport reaching 2million passengers per annum, demand will be sufficient and values suitable to ensure viability and encourage investment..

Medium

Medium (by 2021)

It is suggested that SBC and RDC monitor employment demand through updates to their Monitoring Reports (see below for suggested indicator) and regular updates to their Employment Land reviews. If it becomes apparent there is an oversupply of employment land, a decision may need to be made to stagger or reduce the amount of land that goes on the market at any one time. It will also be important to ensure a strong Marketing Strategy is prepared for Saxon Business Park and implemented.

Low

Medium (by 2021)

Onerous S106 agreements may affect the viability of proposals possibly preventing developers from progressing with development on site.

Whilst developer contributions can help provide important benefits to the wider area, it is important to ensure the collective S106 monies required are not so onerous as to render schemes unviable.

Medium

High

Once all costs are known across the JAAP area a developer contribution assessment should be undertaken to determine reasonable developer contributions for each infrastructure theme whilst considering site-specific issues

Low

Low

Delivery Mechanism & Delivery Bodies

One option is for SBC as owners of the land to put in the necessary enabling works including the new estate road, and then sell Area 2 off in a number of land parcels once the rugby club has been relocated. Developer interests are expected to come forward once SBC market the site.

An effective S106 agreement will ensure infrastructure is delivered to the requirements of the JAAP. Realistic contributions post 2021 are likely to include: public open space, contributions to footpaths and cycleways, and public transport provision

It is proposed a partnership-led steering group is tasked with preparing a masterplan in the short term along with a number of assessments to inform future direction, including potentially transport and flood-risk/ surface water to enable a strategic, site-wide masterplan for the entire Saxon Business Park. This will be supported by a design brief to ensure a high quality, sustainable scheme is brought forward along with guidance for developers outlining planning application and S106 requirements. Whilst the public sector i.e. SBC & RDC could lead this masterplan and assessment work, the buy-in and support of private sector interests will be vital.

Essex CC and SBC will need to work jointly to undertake further transport modelling and assessment work.

Suggested Monitoring Indicators

Rugby Club relocation
Sq. m of employment floorspace provided
Number of months new units are on the market before take up (will assist in monitoring demand for new employment provision)
Number of jobs provided
Number of metres of footpaths and cyclepaths
Number of employees travelling by means other than the car
Travel Plan(s) in place.

JAAP Policy

Infrastructure improvements requiring funding

• Walking & cycling provision including linking to Hall Road to the north & Nestuda Way to the south along Cherry Orchard Way

• Public transport contribution

• Contribution to freight and network management and network capacity improvements

Risks & mitigation

See also summary risks table in conclusion

Risk & Impact

Initial Risk Score

Suggested Mitigation

Residual Impact

Lack of demand for increased employment provision within the JAAP area.

As the site is programmed to be brought forward post-2021 it is not possible to predict likely market demand for employment provision at Nestuda Way at this stage, however, it is to be hoped that with key infrastructure in place, a number of new businesses already established in Saxon Business Park, and the airport reaching 2million passengers per annum, demand will be achieved. The site is also in an excellent location at the junction of the A127 and B1031.

Medium

Medium (by 2021)

It is suggested that SBC and RDC monitor employment demand through updates to their Monitoring Reports (see below for suggested indicator) and regular updates to their Employment Land reviews. If it becomes apparent there is an oversupply of employment land, a decision may need to be made to stagger or reduce the amount of new land that goes on the market at any one time.

Low

Medium (by 2021)

Onerous S106 agreements may affect the viability of proposals possibly preventing developers from progressing with development on site.

Whilst developer contributions can help provide important benefits to the wider area, it is important to ensure the collective S106 monies required are not so onerous as to render schemes unviable.

Medium

High

Once all costs are known across the JAAP area a developer contribution assessment may be undertaken to determine reasonable developer contributions for each infrastructure theme whilst considering site-specific issues such as contamination.

Low

Low

Delivery Mechanism & Delivery Bodies

The site is owned by SBC. SBC anticipate enabling works being put in place prior to marketing the site to a developer.

Suggested Monitoring Indicators

JAAP Policy

Infrastructure improvements requiring funding

• Upgrade to the junction at the southern end of Aviation Way

• Upgrade of Aviation Way road, including lighting and footpaths and the diversion of Footpath 36

• Public realm improvements

• Provision of improved walking and cycling facilities within the JAAP area

• MRO Northside extension to contribute to new public open space to the west of the site

• Public transport

• Freight and network management systems and network capacity improvements

Potential Risks & Mitigation

Risk & Impact

Initial Risk Score

Suggested Mitigation

Residual Risk Score

Probability

Impact

Probability

Impact

Lack of demand for new and increased employment provision within Aviation Way.

Although the employment area is already established, there are current vacant land plots and a number of units have yet to be taken up by the market. Whilst it is anticipated the market will improve in the medium to long term, Aviation Way may struggle to attract new tenants with higher profile business space provided in very close proximity at Saxon Business Park.

Medium

High

SBC and RDC will monitor employment demand through their Monitoring Reports (see below for suggested indicator) and regular updates to their Employment Land reviews. If it becomes apparent there is an oversupply of employment land, a decision may need to be made to stagger or reduce the amount of new land that goes on the market at any one time. It will also be important to ensure Aviation Way has its own Marketing Strategy to attract its target tenants/ investors. This could potentially be an early action of a Business Improvement District (see below).

Low

Medium

As Aviation Way is an established employment area with only a limited number of sites likely to be redeveloped, S106 contributions may be limited creating funding difficulties for estate wide improvements and road/ junction upgrade. In turn, this may impact on the marketability of new employment provision.

High

High

Obtain funds from existing leaseholders/ freeholders under current covenant agreement or investigate other means of delivery such as establishment of a BID. Funds may also be available from Essex County Council who may progress with the adoption of the road.

Medium

Medium

High flood risk designation may prevent MRO Northern Extension coming forward in the short to medium term

As an area of high flood risk, the MRO Northern Extension will be subject to sequential testing prior to any application approval. The Environment Agency as a statutory consultee may object and recommend refusal for any proposals within the MRO Northern Extension area whilst vacant sites exist within Aviation Way. This may reduce the likelihood of the Airport extending their MRO operations in the short term.

In turn, as the MRO extension area is likely to be the subject of the largest single planning application and S106 agreement, funds for extension and upgrade of Aviation Way estate road and the public open space to the west may be stalled until existing smaller sites are developed out within Aviation Way.

Medium

High

The Airport should engage early and effectively with the Environment Agency to ensure appropriate flood management solutions and compensatory floodplain storage is provided as part of any future planning application(s). RDC and SBC should support the Airport through this process as required.

NB: In December 2009 Atkins was commissioned to undertake a sequential test of the JAAP, the report confirmed that there are no alternative sites at less risk of flooding that can reasonably considered, however individual applicants will be required to demonstrate appropriate measures are put in place to further reduce flood risk.

Low

High

Delivery Mechanism & Delivery Bodies

A Business Improvement District (BID) could be established. BIDs are defined areas within which businesses pay an additional tax or fee in order to fund improvements within the set boundaries. BIDs are democratic bodies established through a formal ballot which must achieve a majority in terms of number of ratepayers and percentage of rateable value. Once voted in, BIDs work on the principle of an additional mandatory levy on all defined ratepayers, collected in the same way as the Business Rate. This provides a ring-fenced budget for exclusive use in the immediate environment. Further funds can be leveraged against this core funding for added value. The BID, working closely with SBC and RDC, could jointly prepare an Aviation Way Improvement Scheme which would outline all measures required to improve the area and maximise development potential within the estate. Once all costs have been defined, a fund could be set up to deliver the improvements over time.

Collation of S106 monies for upgrade where possible.

Potential to utilise maintenance fee from covenants.

Suggested Monitoring Indicators

JAAP Policy

Infrastructure improvements requiring funding

• Link road for long term safeguarded route east west from Nestuda Way including relocation and provision of public open space and recreation facilities

• Public transport contribution

• Improve walking and cycling to the airport to improve accessibility and safety

• Noise Compensation & Purchase Scheme

• MRO applications to contribute to towards the upgrade of the junction at the southern end of Aviation Way and the improvement of Aviation Way

• Northern MRO Northern Extension to fund Public Open Space North

• Freight and network management systems and network capacity improvements

Potential Risks & Mitigation

Risk & Impact

Initial Risk Score

Suggested Mitigation

Residual Risk Score

Probability

Impact

Probability

Impact

High flood risk designation may prevent MRO Northern Extension coming forward in the short to medium term

As an area of high flood risk, the MRO Northern Extension will be subject to sequential testing prior to any application approval. The Environment Agency as a statutory consultee may object and recommend refusal for any proposals within the MRO Northern Extension area whilst vacant sites exist within Aviation Way. This may reduce the likelihood of the Airport extending their MRO operations in the short term.

In turn, as the MRO extension area is likely to be the subject of the largest single planning application and S106 agreement, funds for extension and upgrade of Aviation Way estate road and the public open space to the west may be stalled until existing smaller sites are developed out within Aviation Way.

Medium

High

The Airport should engage early and effectively with the Environment Agency to ensure appropriate flood management solutions and compensatory floodplain storage is provided as part of any future planning application(s). RDC and SBC should support the Airport through this process as required.

NB: In December 2009 Atkins was commissioned to undertake a sequential test of the JAAP, the report confirmed that there are no alternative sites at less risk of flooding that can reasonably considered, however individual applicants will be required to demonstrate appropriate measures are put in place to further reduce flood risk.

Low

High

Issue: The MRO Northern Extension is an area of high flood risk and will be subject to sequential testing prior to any application approval. The Environment Agency as a statutory consultee may object and recommend refusal for any proposals within the MRO Northern Extension area whilst vacant sites exist within Aviation Way. This may reduce the likelihood of the Airport extending their MRO operations in the short term.

In turn, as the MRO extension area is likely to be the subject of the largest single planning application and S106 agreement, funds for extension and upgrade of Aviation Way estate road and the public open space to the west may be stalled until existing smaller sites are developed out with Aviation Way. By this stage, the road is likely to be stretched beyond capacity.

Medium to High Risk

Delivery Mechanism & Delivery Bodies

London Southend Airport Ltd will deliver all airport-related works and associated infrastructure including requirements through S106 which will benefit the JAAP area as a whole.

MRO northern extension area to potentially form part of a BID as obvious links through Aviation Way. (See Chapter 5 - Key JAAP Project 3 for more information).

Suggested Monitoring Indicators