Medway Local Plan (Regulation 18, 2024)

Dear Sir/Madam

THE MEDWAY LOCAL PLAN (REGULATION 18, 2024)
WRITTEN REPRESENTATIONS ON BEHALF OF TELEREAL SECURITISED PROPERTY GP LIMITED

We write on behalf of our client, Telereal Securitised Property GP Limited (hereafter: “our client”), with respect to the Council’s Reg. 18 Public Consultation on the emerging Medway Local Plan (2024) [hereafter: “Draft Local Plan”] and specifically regarding Medway Telephone Exchange, Best Street, Chatham, ME4 4AB (Indicative Site Allocation CCB49). This submission follows previous representations made in relation to the earlier Reg. 18 consultation in October 2023 (see Appendix 1).

Introduction & Background
Our client is the landowner of the Medway Telephone Exchange, Best Street, Chatham, ME4 4AB (“the site”). As set out in our previous submission, the site constitutes brownfield land in a sustainable development location, is under single ownership and expected to be surplus to operational requirements by 2031 (or earlier). As such, it will become available for redevelopment over the Draft Local Plan period.

The Draft Local Plan is of significant importance to our client who has a strong interest in ensuring that it creates a strong, flexible and ambitious planning framework to facilitate the sustainable growth the Council requires and maximises the development potential of suitable sites and areas as set out in its preferred spatial growth option (‘SGO3’).
As the Council will be aware, for Local Plans to be found sound, we note that in line with Paragraph 35 of the National Planning Policy Framework (“NPPF”, 2023) it is important that they are:

- Positively prepared: Providing a strategy which, as a minimum, seeks to meet the area’s objectively assessed needs; and is informed by agreements with other authorities, so that unmet need from neighbouring areas is accommodated where it is practical to do so and is consistent with achieving sustainable development;
- Justified: Based on an appropriate strategy, taking into account the reasonable alternatives, and proportionate evidence;
- Effective: Be deliverable over the plan period, and based on effective joint working on cross-boundary strategic matters that have been dealt with rather than deferred, as evidenced by the statement of common ground; and
- Consistent with national policy: To enable to delivery of sustainable development in accordance with the policies in this Framework and other statements of national planning policy, where relevant.

3.2 Spatial Growth Options, Sustainability Appraisal Appendix E & Emerging Policies Map (Site CCB49)

The Council identified a series of Spatial Growth Options in Section 3 of the Draft Local Plan setting out that its preferred option is SGO3 comprising a blended urban regeneration and greenfield approach. In light of the evidenced need for housing (and the Government’s proposed revised standard method to determining such need set out in the consultation on modifications on the NPPF in July 2024), it is considered that SGO3 is the only realistic option to achieve the required growth and housing numbers.

It is positively noted that, following the previous Local Plan consultation, the site has been identified as preferred indicative site allocation ref. CCB49. Our client wishes to reiterate that it is the sole landowner of the site which is deemed deliverable, suitable, available and economically viable (in line with the definition of deliverable housing sites set out in NPPF Paragraph 69 and its Glossary). Whilst currently operational as a telephone exchange (sui generis), it is anticipated to become surplus to BT’s operational requirements by 2031 or earlier which requires a forward-thinking strategy to ensure this brownfield site is effectively used once vacated by the current occupier and therefore avoids a long-term period of vacancy. This should be awarded significant weight in line with NPPF Paragraph 121.

The site is considered to be capable of making a significant contribution towards the Council’s housing target, particularly as the site constitutes previously developed, brownfield land to which Chapter 11 of the NPPF seeks to direct future development (and intensification) with a view of making as much use as possible of previously developed land (Paragraph 123) and giving substantial weight to the value of using suitable brownfield land within settlements for homes and other identified needs (Paragraph 124). This is further emphasised in the consultation on changes to the NPPF published on 30th July 2024.

To demonstrate its commitment to bringing the site forward once its current operation ceases (either directly or via a development partner/developer), our client has undertaken initial feasibility and viability studies to assess likely development capacities and scenarios. This study has considered the site’s main constraints/surroundings (including its topography and proximity to surrounding heritage assets likely necessitating a heritage- and design-led approach) and developed high-level development scenarios ranging from demolition and redevelopment (Option 1) to conversion and, where appropriate, extension alongside new build elements within the wider site (Option 2).

Realistically, and taking into account current sales values and development viability considerations, it is considered that the site may either come forward as a conversion/extension or full-scale redevelopment, as set out above. However, it is too early at this stage to determine the most realistic and viable development option.

Therefore, to avoid an overly prescriptive site allocation (i.e. targeting a capacity which may neither be deliverable nor viable) which may undermine the viability of one of the future development options, it is strongly recommended to consider safeguarding both options at this stage alongside revised capacity assumptions of circa 50 (conversion/extension) to 100 (full-scale redevelopment) new homes.

Having reviewed Appendix E: Reasonable Alternative Site Assessments of the Sustainability Appraisal (June 2024; “the SA”) accompanying the Medway Local Plan, our client considers that carrying forward an indicative development capacity of 50-100 new homes should be maintained to take into account both development options for the site as well as development viability at the time of a planning application coming forward (i.e. there may be changes in build costs, sales values, etc. which will have an impact on the overall approach).

Clarifications, where necessary, on the SA’s assessment of the site in its Appendix E are however provided below:
‒ Climate Change Adaption: Subject to an appropriate flood risk and drainage strategy which ensures that surface flooding is not increased outside the site’s boundary it is not considered that this should affect the future redevelopment potential of the site.
‒ Biodiversity & geodiversity: The site is sufficiently distant from European sites and SSSI with any impact likely to be mitigated at application stage.
‒ Landscape & townscape: It is agreed that there are no significant townscape or landscape constraints affecting a future redevelopment of the site.
‒ Pollution & waste: It is noted that all sites capable of delivering 100+ new homes are shown as having a potential adverse impact on air quality/pollution. However, it is considered that air quality impacts can be fully considered and mitigated through an air quality (neutral) assessment at application stage. In addition, based on our commentary above, it is considered that a more realistic development capacity of 50-100 new homes may mitigate this risk further and allows the Council to assume that no potentially adverse impact on air quality/pollution will be caused by this site.
‒ Health & wellbeing: The site is identified as being >1.5km from the nearest leisure centre. This is noted, however, it should be recognised that Medway Park Sports Centre is only marginally (+600m) further away than the identified threshold and easily reachable by foot and bicycle. The pedestrian route to the leisure centre leads through open space (Great Lines Heritage Park) and therefore constitutes a welcoming access route with limited exposure to road traffic. It is considered that the site should be assessed as having a minor positive impact in this regard.
‒ Cultural heritage: The site is assessed as potentially altering the setting of and/or having a minor negative impact on nearby heritage assets (Conservation Area; Grade II listed building). It is considered that this risk is not significant and can be adequately mitigated through a heritage- and design-led approach to redevelopment or, even more so, in a conversion scenario (including potential extensions and/or lower scale new build elements within the wider site). Cultural heritage is therefore not considered to have a significant impact on the acceptability of a redevelopment of the site.
‒ Transport and accessibility / Education: As noted by the Council, the site is in a very sustainable development location having excellent access to public transport and education provision.
‒ Economy and employment: The site is identified as having a potentially adverse impact on employment floorspace provision (assumed due to the perceived loss of such floorspace). However, it should be noted that the site provides limited on-site employment currently. Whilst most telephone exchanges (including this site) are a key part of the UK’s communication infrastructure via their copper and fibre networks and have historically provided ancillary offices and related accommodation (such as catering facilities), the ancillary office elements have not been (or only been in limited) active use. This is also the case for the Medway Telephone Exchange. Openreach engineers and other Communication Providers who have equipment located at site simply attend the property to maintain, upgrade or install their equipment (in irregular or regular intervals).

Any office-based staff are located in separate fit-for-purpose office buildings. The site is therefore much more similar to a data centre accommodating communication equipment (racks, cable chambers, plant, etc.). With Openreach withdrawing copper-based technology in favour of fibre in the coming years, it will result in a consolidation of BT’s Exchange portfolio, including the decommissioning and closure of Medway Telephone Exchange.

As such, the site has been underutilised and mostly empty in terms of (ancillary) office use for a significant amount of time, not accommodating any regular on-site employment. Any redevelopment of the site, due to the reasons set out above, will therefore not result in a loss of active or existing employment floorspace.

Given the wider assessment of the site in the SA, the information provided in Appendix 1 in October 2023 and clarifications set out above, it is therefore considered that the site should be allocated in the next iteration of the Draft Local Plan for residential-led conversion or redevelopment with a site capacity of at least 50-100 new homes. A site allocation not only demonstrates that the site is capable to make a significant contribution towards meeting, or indeed exceeding, the Council’s minimum housing target, but also to provide comfort to our client and/or a future developer that a conversion/redevelopment of the site is supported in-principle once its operation as a telephone exchange ceases in 2031.

A short description of development and design principles to be secured in a future draft site allocation is set out below:

Proposed Site Allocation Design and Development Principles
‒ CCB49: Telephone Exchange, Best Street, Chatham, ME4 4AB
(i) Description: Comprehensive Residential-led conversion (with extension/new build elements) or redevelopment of the site once its current use a telephone exchange ceases (in 2031 or earlier)
(ii) Justification for option: The conversion or redevelopment of the site could help to meet the need for new homes and/or other non-residential uses (subject to need/demand) in the borough.
(iii) Anticipated phasing of development: Post-2031
(iv) Evidence of deliverability: Site surplus to operational requirements from 2031 (or earlier).
(v) Indicative number of homes: 50-100
(vi) Design Principles:
‒ Any conversion or redevelopment of the site should take into account the setting of surrounding heritage assets and consider a heritage-led approach to design, height and massing to protect and enhance their setting. Taller elements should be set back from the Lord Duncan Public House.
‒ Subject to a redevelopment being the most viable and desirable option, the site is considered suitable for tall building elements with final building heights to be confirmed at planning application stage and subject to robust heritage, townscape and environmental testing. Impacts on local townscape should be mitigated through high quality architecture.
‒ A conversion or redevelopment should take into account the level difference between Best Street and New Road and work with the site’s topography to ensure both primary frontages are positively addressed and activated.
‒ Opportunities to improve the pedestrian connectivity between New Road and Best Street should be explored.

Conclusion
Overall, it is therefore considered that the site offers an ideal opportunity to facilitate a sustainable future development proposal in an appropriate, brownfield site, particularly when considering that the fall-back position constitutes a vacant telephone exchange once its existing operation ceases.

The site is considered to be suitable, available, deliverable and economically viable to deliver new housing during the Draft Local Plan period. As such, it is recommended to include the site in the emerging Draft Local Plan in the form of a Draft Site Allocation for residential-led conversion or redevelopment, maintaining flexibility to consider the most viable approach to development as and when a planning application will come forward.

Our client and we are willing to engage in positive and pro-active discussions with Medway Council where this would assist in preparing a justified, sound, and deliverable new Local Plan.