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CPO 2004 Enquiry - Documents Submitted by Bath & North East Somerset Council

 Proof of Evidence of Brian P Raggett BA (Hons) PhD MRTPI MRICS on behalf of Bath and North East Somerset Council

Public Inquiry May 2005

Document No: BNES/4/2

Contents

  • Personal Particulars
  • Scope of Evidence
  • Background to the Council's Decision to use Compulsory Purchase Powers
  • Current Commercial/Retail 'Health' of Bath City Centre
  • The Case for Comprehensive Treatment
  •  The Qualitative Benefits which will be Secured for Bath City Centre if the Order is Confirmed
  • Conclusions

1. Personal Particulars

Brian Paul Raggett will say:

1.1 I hold a Bachelor of Arts Degree in Town Planning and I am a Doctor of Philosophy in Urban and Regional Studies.

1.2 I am a Member of the Royal Town Planning Institute and served as the Institute's President in 1999. I am a Member of the Royal Institution of Chartered Surveyors, a Committee Member of the Compulsory Purchase Association and one of the judges for the Annual British Council of Shopping Centres Town Centre Environment Award. I have also been Chairman of the Urban Design Alliance (during 2000) and have assisted CABE as on 'Enabler', helping to promote public sector regeneration projects.

1.3  I am an Executive Director with CB Richard Ellis (formerly CB Hillier Parker) and since the mid 1980's, I have been responsible for leading the Planning and Public Sector Group. I am now particularly responsible for advising public sector clients on development and regeneration projects nationwide.

1.4 CB Richard Ellis' Public Sector team specialises in odvising a wide range of clients on major development proposals. I hove personally directed many feasibility studies as well as given advice to well over 100 local authorities on a variety of planning and implementation issues. I am currently advising on major retail-led redevelopment proposals in about 20 locations across the UK, and my firm's advice on such projects invariably deals with all stages from their initial inception and design through to the selection of, and negotiations with, the Council's development partner; also as to issues relating to land assembly by both private treaty and through Compulsory Purchase; and, ultimately, the successful letting and completion of the scheme.

1.5 CB Richard Ellis also acts for many major retailers, for developers and for institutional clients. Accordingly, my advice to clients and the evidence which I present to this Inquiry is also based on a sound commercial understanding of the requirements and aspirations of a wide range of organisations such as those which will benefit if this Order and the related Road Closure Order are confirmed so that this project can proceed.

1.6 I have personally been involved with providing development consultancy advice to Bath and North East Somerset Council on matters relating to new retail floorspace in the Southgate area since 1996 although l have had some knowledge of retail proposals in the Bath area from a much earlier date. My initial involvement on development consultancy matters was to lead Hillier Parker's work in late 1996 and early 1997 on the assessment of the Council's strategic retail options for the area, and to advise on the options for scheme implementation, having regard to its planning and commercial property objectives.

1.7 I am very familiar with Bath and with the properties which ore the subject of this CPO Inquiry. I have witnessed the changing patterns of retailing in the city over the last 10-20 years, and in particular, my colleagues and I have advised the Council on the Southgate proposals since the mid/late 1990's. I am therefore also very familiar with the Council's objectives to secure a sustainable and deliverable solution for this area, through the early confirmation of the Compulsory Purchase Order and Rood Closure Order which are the subject of this Inquiry.

2. Scope of Evidence

2.1 My evidence deals with commercial property considerations relating to the proposed Southgate scheme, including evidence on the retail health of the City Centre and demand from potential occupiers of the new accommodation. It also deals with the Council's role in this project as property owner and with the part that it has already played in securing the implementation of the scheme. My evidence also addresses the reasons for the Council using compulsory purchase powers, having due regard to the relevant statutory guidance, as well as the benefits to the City Centre which will be derived by the early implementation of the scheme. l have adopted the abbreviations and definitions set out in the Glossary of Key Terms submitted as CD1 0.9.

2.2 Other witnesses will address in more detail:-

i) The strategic objectives of the Council in its position as land and property owner in Bath - Andy Nash;

i i) The development plan/planning policy context and the Council's consideration of the planning application - Roger Guy;

iii) The role of CGNU/Morley as the Council's partner, including evidence on scheme funding and implementation - Chris Paterson (CGNU/Morley);

i.v The site, the retail scheme proposals and the planning permissions which form the foundation for the Compulsory Purchase Order and the Road Closure Order - Rodney Carran (Chapman Taylor);

V) The proposals for the public transport interchange and public realm in the area to the south of Dorchester Street - Keith Brownlie (Wilkinson Eyre);

vi) Issues relating to quantitative retail need and capacity and retail policy - John Adams (Drivers Jonas);

vii) The position reached with individual objectors - Richard Herbert (Strutt and Parker);

viii) The highways and transportation issues, including the replacement car parking and bus station, and the scheme servicing arrangements - David Hunter-Yeats (WSP).

2.3 This evidence is presented from on independent commercial perspective, in order to show that the Order Land is both suitable for, and required, in order to secure the carrying out of the proposed development, redevelopment and improvement, in accordance with S226(1) (a) of the TCPA 1990 as amended prior to the Planning and Compulsory Purchase Act 2004 (2004 Act). While this Order was made before the 2004 Act came into force and the new requirements and the guidance in Circular 06/02004 are therefore not strictly applicable, I will demonstrate that in all material respects, the Order complies with both the old and new requirements of S226 of the TCPA 1990. In particular, the evidence which I and other witnesses present also makes clear the relevant provisions of the development plan, the planning permissions which are in place and other material matters, which together demonstrate that there is no planning or other impediment preventing the implementation of the Scheme if the Order is confirmed. My evidence focuses particularly on the reasons why these interests are 'required' and it also explains the ways in which the Scheme will secure significant benefits which will contribute to improving the economic, social and environmental well-being of the Bath area

2.4 More specifically, my evidence is primarily concerned with the following matters:-

(i) Background to the Council’s decision to support the Scheme using Compulsory Purchase powers (set out in Section 3 of my evidence);

(ii) The current commercial/retail 'health' of Bath City Centre (Section 4);

(iii) The commercial justification for the inclusion of all the interests within the Order - i.e. the 'case for comprehensive treatment' and the reasoning which underpins the case for acquiring the particular interests which are now the subject of this Order (Section 5). In this section of my evidence, I also explain how the Scheme will be 'delivered', based on the terms agreed between CGNU/Morley and the Council as landowner:

(iv) The qualitative benefits which will be secured for the City Centre, if the Order is confirmed (Section 6); and

(V) Conclusions as to the principal reasons justifying the confirmation of the Order and Rood Closure Order - (Section 7).

3. BACKGROUND TO THE COUNCIL'S DECISION TO USE COMPULSORY PURCHASE POWERS

3.1 On 20 October 2004 the Council made the Order, which was submitted to the Deputy Prime Minister for confirmation on 29 October 2004. The Council's decision to use its Compulsory Purchase powers was one of its more recent steps, after many years' evidence of commitment to this project. . All of this has been focussed on securing, in the public interest, the redevelopment and improvement of the Southgate area via a comprehensive mixed-use scheme, comprising retail, leisure, housing, car parking, a new public transport interchange and the creation of a new public square. It is immediately clear from this description that there are many public benefits which flow from the implementation of the Scheme, and this Proof of Evidence, together with those prepared by others, therefore seeks to highlight and explain these public benefits in full.

3.2 The Council has been well aware of the deficiencies of the existing retail (and other) accommodation within the Southgate Centre and the adjoining land for many years. These were described in the 1988 Bath City Council (Southgate) Objectives, which are set out in full in CD1O.l. In essence, the key principles are:-

  • To provide a major new retail development in the southern part of the City Centre;
  • To include other uses within the development to ensure this part of the City Centre maintains a lively atmosphere beyond normal shopping hours;
  • To strengthen the links between the public transport interchanges and the city's core retail area;
  • To minimise the effect of traffic congestion and pollution within the City Centre by resisting any substantial increase in the provision within the development, thereby assisting the overall objective of discouraging the use of the private car and encouraging the use of public transport.

3.3 Since CB Richard Ellis (originally as Hiller Parker and latterly as CB Hillier Parker) was appointed by the Council in late 1996 as iIs property and development consultants in respect of the Southgate project, our analysis has also demonstrated that there are a wide range of reasons why this project should be pursued and completed. Some of these were highlighted in our original March 1997 Report:-

  • The lack of a modern, sizeable departmental store, (the only existing department store being the small Jollys store in Milsom Street);
  • The absence within the city of retail units of a size and shape to meet modern retailing needs;
  • The conflict between pedestrians and motor vehicles in some shopping streets;
  • Insufficient parking to meet shopper and retailer requirements;
  • A poor shopper environment around the existing Southgate Centre, with little of architectural quality in either the existing centre or the adjoining, somewhat unsightly and intrusive Ham Gardens multi-storey car park.

3.4 In the original (March 1997 ) Hillier Parker report we also suggested a range of 1 2 key objectives which we considered should be used to judge any major redevelopment scheme in the Southgate area. These objectives are still relevant today and are as follows:-

  • To secure an appropriate redevelopment of the Southgate Centre and surrounding area, as befitting a city with World Heritage Status;
  • To improve the retail and leisure facilities within the city, and secure, where appropriate, residential and office elements within the comprehensive scheme, so as to create a balanced, "mixed use" development;
  • To improve pedestrian routes and ensure full access and 'permeability' through the area, especially from Bath Spa Station to the city centre's retail core;
  • To provide a new bus station, as part of an improved public transport (bus/rail) interchange, which meets the standards likely to be needed for a bus station in the 2 1 " century;
  • To provide appropriate car parking facilities within the scheme, having regard to the Council's overall parking policies for the city;
  • To retain an appropriate legal title within the new scheme;
  • To maximise the Council's revenue stream from the new development having regard to its existing level;
  • To maintain the Council's current level of revenue from the Southgate area throughout the development period;
  • To create a scheme that brings maximum benefit to the Council's land and property interests elsewhere within the city centre.
  • To create a scheme that has potential in the future for partial redevelopment or comprehensive redevelopment, and which is not a monolithic structure that does not allow for this flexibility.
  • To ensure that appropriate contributions are secured from the development, in the form of planning gain, in order to promote the Council's actions in respect of improvements to car parking, transportation and traffic management in the city;
  • To minimise disruption to the city during the construction period in order to minimise the negative impacts on the city as a whole.

3.5 This initial report and advice was prepared for the Council shortly after CGNU (then known as General Accident) had acquired the leasehold interest in the existing Southgate Centre and the freehold of the bus station and other land to the south of Dorchester Street. As explained elsewhere, notably in Roger Guy's and Rodney Carran's evidence, between 1997 and 2002 a series of new designs, with alternative parking and bus station solutions, were devised, tested and extensively reviewed, each of these having due regard to the Council's requirements.

3.6 Accordingly, by the time that the September 2003 scheme had emerged and been tested, all reasonable scheme alternatives had been properly evaluated. The Scheme which the Council and CGNU chose to take forward in partnership, and which now underpins this Order, not only satisfies the original 1988 objectives, but also meets fully the Council's 12 'commercial ' objectives, as defined in our 1997 report and listed above. More significantly the Scheme also meets the Council's other requirements and it accords fully with the policies of the adopted development plan, as described In the evidence of Rodney Carran, Roger Guy and others.

Current Commercial/Retail 'Health' of Bath City Centre

4.1 In this Section of my Proof, I summarise a number of trends and indicators relating to the retail or commercial health of Bath city centre. In particular, I show how certain standard indicators illustrate not only Bath's relative attractiveness but also how, in other respects it has failed to adapt and is increasingly at risk for the future, in port due to the absence of major new redevelopments such as that proposed by the Scheme. The early implementation of the Scheme will therefore be crucial in addressing the deficiencies and weaknesses in !he City Centre, perceived by both shoppers and retailers alike.

4.2 In order to provide evidence as to the urgent need for the implementation of the Scheme - and to help to explain the relative deficiencies in the city's shopping which currently exist - l have examined standard industry sources, such as Experian, Retail PROMIS and the Focus Database. Some of this evidence shows how Bath's position, particularly relative to other centres in the region or other centres of a comparable size/population elsewhere in the UK, has strengthened or remained stable in recent years, but in other important respects - notably in regard to the creation of new city centre retail units - Bath has fallen behind most other centres in the UK over the last 20 years.

4.3 Since the mid 1990's, the ranking of Bath has, in a number of respects, been worsening. Around 10 years ago, in the (then 'industry standard') notional shopping centre classification, calculated by Hillier Parker using national multiple retailer representation as the indicator, Bath was ranked in the Top 30 centres in the UK (27Ih). Within the South West, Bristol has always been regarded as the strongest centre, while other major regional centres such as Exeter and Plymouth have also experienced relatively decline during this period, pending progress being mode on their new retail-led redevelopments or regeneration Schemes. In Bristol, the decision of the Secretary of State on the CPO for the Broadmead redevelopment is awaited, while in Exeter (at Princesshay) and Plymouth (at Drake Circus) the schemes ore now under construction, following CPO Inquiries held (in 2004 and 2003 respectively) and a positive decision by the Secretary of State, in each case.

4.4 However, Bath has failed to secure major retail redevelopments, throughout the boom period of the 1980's and 1990's. As a result, it has become less favoured as a retail destination, and no new retail space has been created close to the favoured prime area. As the retail demand indicators (see 4.9 below) show, the centre remains popular, with good representation from a wide range of smaller shops, enabling the city centre to maintain a 'Top 30' position purely based on overall retail provision. But the position is different with regard to anchor stores, where the Retail/PROMIS indicators ranks Bath 93rd nationally. Thus, it has to be said that Bath does not offer a sufficiently strong or dynamic focus for retail activity - particularly when compared with nationwide trends. This deficiency is particularly significant given the strong economic indicators and employment/population growth shown across much of the South West.

4.5 Over the last 10-15 years, the historic fabric of Bath has been both on attraction and a problem for retailers. I know Bath well and it is clear that sane new retailers and shoppers have been attracted to the City Centre but many hove failed to secure the space that they need because few properties have changed hands over this period. Nevertheless, the lack of large modern retail property within the City Centre has meant that there has been (and still is) considerable pressure to develop out of town floorspace. In a few cases, both 'bulky' and 'non-bulky' goods retailers have token space in out of centre locations outside Bath and in port this is a response to the lock of large modern accommodation in the City Centre which con meet fully the requirements of such traders. There remains the risk that the historic fabric of the City Centre will not be maintained adequately and appropriately if new retail investment is diverted instead to out of centre locations.

4.6  In addition to Southgate, there are a number of other city centre or edge of centre opportunities for further retail development on sites identified in the Draft Replacement Local Plan, which may be pursued in due course. These include sites around The Podium and Avon Street. Further afield, new retail development may also be pursued subsequently at Lower Bristol Road and at Bath Western Riverside, which I would expect to be focused primarily on bulky goods retailers, rather than 'high street' stores which would normally be expected to be guided towards 'sequentially locations closer to the heart of the historic city centre. All of these projects, once the Scheme has been secured through the confirmation of this Order, may potentially provide a good range of complementary retail facilities consistent with Bath's retail status.

4.7 There are three other Retail/PROMIS rankings which ore relevant to the consideration of the Order

These indicate that:-

i) Bath is ranked only 53rd out of 200 centres, in terms of total floorspace in the city centre. Bath also has less floorspace in the city centre - 11 5,000 sq m (1.24m sq h) - than is shown as the PMA 'average1 size for a regional centre, which is approximately 150,550 sq m (1.64m sq h);

i i) Bath is ranked only 124th in terms of the percentage of the floorspace within the City Centre which can be described as 'managed floorspace'; and

iii) Its ranking falls further, to 155th, when making a comparison nationwide of the percentage of the total floorspace that is 'managed'.

The practical impact of these indicators is that, arguably there is less floorspace in the City Centre than retailers (and shoppers) would expect, compared with other regional centres. It is also clear that the lock of space is especially marked in the managed  environment. Whilst many regional centres have around one-third of their total retail floorspace in a managed environment (540,000 sq ft out of the total of 1.62m sq ft is the average), Bath's managed floorspace represents only 18% of its (much lower) floorspace of 1.24m sq ft.

4.8 The two managed shopping centres which exist in Bath at present are the existing Southgate Centre and The Podium. The latter, in particular, fails to attract prime fashion multiples and mostly comprises a Waitrose store and some small units, so odds relatively little to the attraction of the City Centre. The existing Southgate Centre (with around 168,000 sq ft gross retail floorspace) opened in 1974, and it does have some multiple retailers. However, it is the subject of this Inquiry because for many years it has failed to attract new fashion multiples to the centre, and is a particularly poor environment when compared with that offered in shopping centres opened in the UK over the last ten years. Indeed, much of the City Centre's retail stock is now outmoded, and, with many historic buildings whose fabric needs to be maintained carefully, here are considerable difficulties in adapting existing floorspace so as to meet modern trading requirements in terms of unit size, depth, mezzanines, storage and other important considerations.

RETAILER DEMAND, VACANCIES AND RENTAL LEVELS

4.9 There are a number of published sources available, giving a broad indication of the extent of retailer requirements for Bath. PROMIS/Focus publish a ranking, listing those centres which have the strongest level of requirements. Since the early 1990's, retailer demand for Bath has been very strong, in comparison to other centres. Over the last five years, Bath City Centre has witnessed particularly strong retailer demand, and PROMIS estimates that as at January 2005, there were 143 published requirements from major retailers, thus ranking the city 6Ih among the 200 centres in its listing. This is a very strong, but fairly typical, finding for a city centre which has had no new retail floorspace created, to satisfy such demand, over the last 15 years.

4.10  A very large number of fashion multiples are reported as continuing to express an interest in taking new premises in Bath - including H&M, New Look, Zara, Viyella and Mexx, and there are also speciality retailers such as The Perfume Shop, La Senza, Stationery Box and Oil & Vinegar, keen to take new or additional space in the City Centre. Most of these requirements (and indeed many others) are, realistically, only going to be satisfied in Bath by the implementation of the Scheme.

4.11 Over the last three years, there have been very few changes in the prime area, which essentially comprises Stall Street. C&J Clark have relocated into a larger unit in Union Street, whilst Sunglass Hut hove also taken a small unit on Stall Street. Elsewhere, there has been little letting activity in the city centre close to the prime pitch in recent years, primarily due to the uncertainty surrounding the redevelopment of Southgate and the lack of availability of modern, suitably sized units in Stall Street, Union Street and the Southgate area. In my experience, once that uncertainty has been removed by the confirmation of the Orders which are the subject of this Inquiry, the projected 2008-10 phased opening dates for Southgate will become a reality and there will be a further rapid surge in retailer interest. In particular, it is the fashion retailers (both multiple and independent) that will be attracted to the new managed floorspace in Southgate, and most of these companies usually plan their new store openings and commitments around 12-24 months in advance. In terms of retailer demand, additional firm requirements (over and above the 143+ listed by PROMIS) will therefore probably be logged, once the main port of the Scheme is ready to start on site in 2006.

4.12 In Bath at present, the problem of uncertainty for retailers is further compounded, as indicated above, by the lack of quality space available in or near to the prime pitch. Vacancies in Bath are at a level well below the UK average. The latest PROMIS report estimates that the average vacancy level in all regional centres which it records is 5.6% of total floorspace as at January 2004, whereas in Bath, the vacancy rate is only 4.5% for the city centre OS a whole. Perhaps more significantly, according to the January 2004 PROMIS data, and also based on my more recent (March 2005) inspection, so far as I can judge there are currently no vacant 'standard' shop units within the prime pitch, although there are one or two very small units vacant, perhaps more suited to mobile phone operators or similar traders.

4.13 Over the entire period from 1987 to 2004 Bath has matched the PROMIS 'centre average' for rental growth (at 5% per annum). During the late 1990's prime rental growth in Bath was stronger than the average, although, more recently rental growth has been somewhat less, despite low vacancy and increasing demand, and more in line with the national picture. The slightly lower rental growth rates over recent years is likely in part to be explained by a lack of transactions and an absence of suitable units in the prime retail area which suit modern retailing requirements.

4.14 The PROMIS report notes that Bath's top Zone A rent at the end of 2004 was £245 per sq ft Zone A. This compares with a PROMIS 'regional centres average  of £241 per sq ft Zone A. Over recent years there has been little retailer movement in the prime pitch in part because of the imminent Southgate development and most lettings that have taken place have been on short term, flexible leases. Such evidence as does exist suggests that levels of rent of around £250 Zone A will be exceeded over the coming years, possibly during the main letting period for the Scheme.

4.15 Bath is, therefore, a retail centre 'under pressure', with the Scheme providing the solution which will meet trader demand and remove much of that pressure. The need for new floorspace partly arises from traders (such as those listed in 4.10) who have so far been unable to obtain any space in the City Centre. There ore also many examples of retail companies whose existing accommodation in Bath falls for below their current 'ideal' requirement. This applies to department store groups such as Jollys, whose store in Bath is approximately half the ideal House of Fraser size, and less than half the ground floor footprint, of their present needs. It also applies to a number of fashion retailers, some of which trade from the existing, constrained accommodation within Stall Street or elsewhere. In a centre like Bath, companies such as Next would normally be seeking units of at least up to five times the size of their existing Bath units, in order to stock the full range of goods expected to be found by shoppers in a store in a top quality regional destination. International fashion retailers, such as Zara and H&M, have stated requirements for between 1,350 sq m and 1,950 sq m of accommodation.

4.16 Thus, Bath's future retail offer - without the Scheme -would be severely constrained, and the City's retail health would be at risk. Most of the units along Stall Street and Union Street cannot be readily adopted or extended and the some is true along Milsom Street, Southgate and in various more secondary locations. As currently configured the existing Southgate Centre is even less suited to multiple retailer requirements. The Scheme has therefore been designed to meet this wide range of retail needs, incorporating components such as the department store and the other large stores which will make the city centre as a whole far more attractive to shoppers and visitors than is presently the case. Negotiations are proceeding very positively for the new department store and I am confident that an occupier will be secured shortly. Terms are also close to being finalised with Boots for both the temporary and permanent relocation (into the new Scheme) of its store. This 'second motor anchor' for the new Scheme will further strengthen the City Centre as a whole - as well as giving continuity of trading and a much enhanced store to Boots, while helping to provide a full range of 'local needs shopping'.

Concluding Comments on Commercial/Retail Health of Bath City Centre

4.17 The Scheme is therefore needed in order to satisfy more fully the needs of shoppers from all parts of Bath's extensive catchment area. The analysis contained in earlier shopping studies and in recent work reinforces the conclusion that there is both an economic justification for the project and a strong demand from retailers to take space in the scheme. Bath City Centre cannot afford to 'punch below its weight' in a competitive retail environment.

4.18 At a time when the city is facing a very substantial level of change, through the implementation of a number of major projects over the next 10 years, it is particularly vital that the Scheme, which has for many years been the cornerstone of the Council's policy to improve the retail health of the City Centre, now has the opportunity to proceed. In turn this will bring wider benefits to other parts of the City Centre, and these are described more fully in Section 6 of my evidence.

5 THE CASE FOR COMPREHENSIVE TREATMENT

5.1 As I have already explained, all of the Order Land is required so as to ensure that the Scheme as a whole can be implemented successfully. In my experience of CPOs over many years, I have found thaf it is very important for the Council and its development partner to explain clearly why all the interests comprised in the CPO have to be brought together under one ownership.

5.2 The 'Case for Comprehensive Treatment' of the Southgate area can be divided into a number of components. Each of these is addressed, in turn, in {his section of my evidence, having regard to the normal commercial considerations which developers and local authorities will use to judge proposals of this type:-

5.3 A successful retail scheme, of the requisite scale and quality can become part of the fabric of Bath and meet the Council's wider objectives, as well as meeting at least four key criteria (as set out below). In essence, such a scheme:-

i) must be well related and directly connected by strong shopping routes for the prime and secondary retail areas, especially the prime area of Stall Street  and, to a lesser extent, the secondary locations such as Southgate Street, or other key destinations like the city's rail and bus stations;

ii)must be sufficiently large to provide adequate space and depth for on anchor department store, for other major shop units or stores (MSU's), sufficient replacement car parking, and a modern servicing solution;

iii) must have pedestrian/retail routes which build on natural and/or established routes;

iv) must have adequate 'critical mass' to ensure 'viability' and 'presence' to attract both retailers and shoppers alike.

SITE BOUNDARY

5.4 The land-take proposed here is determined by the need to include all the properties directly affected by the Planning Consents which underpin this Order. In practice, the properties affected by both the Planning Consents and the Order have a direct potential effect on scheme viability and deliverability, but their inclusion has, in each case, been carefully assessed. As with many projects, the practicalities of the proposal also mean that the Order boundary is defined partly by road alignments and, because these, in turn, define a limited site area, the Scheme therefore has to be an imaginative multi-level solution.

5.5 CGNU have applied normal commercial criteria to this project and these are outlined in Section 4.1.1 of Mr Paterson's evidence. In addition, he has endorsed the criteria, listed in 5.3 above, which have been highly significant in determining the final scheme design and footprint. This has, in turn, shaped the planning permission and hence the Order boundary. Evidence presented by Mr Corrar sets out the process through which the Planning Consents were obtained, thus determining the site boundary.

5.6 Much of the site boundary for the Scheme has remained fixed since 1997, although since that time scheme design and layout has altered considerably especially around Dorchester Street. In other words, these long established proposals for the Southgate area have focused on much the same area for nearly 10 years, and when the Main Scheme Planning Permission, was granted on 25 September 2003, this essentially required the same 'core' area of land around the existing Southgate shopping centre which had been under consideration for almost a decade. With a consistent planning strategy, established over many years since decisions 'in principle' were first taken to support Southgate's redevelopment in 1988, planning permission also in place since September 2003 and a consistent requirement as to land take for the chosen scheme over an even longer period, there is no doubt in my view that the need for 'comprehensive treatment', and for the inclusion of all the relevant property interests within a confirmed CPO, are both clearly established.

5.7 l consider that it is also a considerable achievement that the implementation of this Scheme now depends on the acquisition of a fairly small number of outstanding interests, yet as a result there will be very substantial and wide-ranging benefits derived for Bath. These benefits are described more fully in the next section of my Proof.

5.8 Another characteristic of the Scheme is that much of the site is already in use, albeit that some of it is underused or used at a lower intensity than would be expected close to the prime area of a city such as Bath. Thus, the proposals, for which this Order is needed, are consistent with support for higher density mixed use schemes, contained in the most recent government planning guidance - and endorsed by other bodies such as CABE. For example, PPS6 paragraph 2.20 states that "Local planning authorities should formulate planning policies which encourage well-designed and, where appropriate, higher density multi-storey development within and around existing centres, including the promotion of mixed use development and mixed use areas". Later, in the some guidance, at 2.52, local authorities are encouraged to "consider the scope for effective site assembly using their Compulsory Purchase powers to ensure that suitable sites within or on the edge of centres are brought forward for development, including sites that are under utilised, such as car parks and single storey buildings, which could be redeveloped for multi-storey, mixed use development". It is also self evident that this Scheme complies with this new guidance in all other material respects.

5.9 The Scheme, which also has a significant residential content (91 units), within the main Southgate site at upper levels on several of the individual 'blocks', will provide a range of improvements that will also enhance the mixed use nature of the City Centre as a whole, in a form which is entirely consistent with the guidance. Moreover, these improvements will also be achieved in a way which is consistent with other government policy guidance (e.g. securing city centre 'affordable' housing), as well as securing the redevelopment of some areas of underused land such as along Dorchester Street.

5.10 In a city centre such as Bath, where underused land is in very short supply, it is, in my judgement also a significant achievement to have devised a mixed use, high density scheme which meets the relevant commercial criteria (including those of a major department store operator) as well as satisfying the Council's objectives on a relatively constrained site such as this. The Scheme, for which this Order is needed, is nonetheless of sufficient size and 'critical mass' to attract effectively both retailers and shoppers, while successfully satisfying the Council's design and other planning criteria.

ISSUES RELATING TO THE EXISTING PREMISES ON THE SITE

5.11 As indicated above, the Scheme addresses the generally poor quality and the outmoded nature of the existing retail accommodation, as well as the underused nature of other existing floorspace within the Order Land. Other witnesses address these matters in greater detail. The Order boundary has been determined, as indicated above, by reference to the scheme which has secured planning approval.  Confirmation of the Order would mean that:-

  • The opportunity exists to replace a range of uses which includes outmoded (and generally fairly small) shops, a poor quality multi-storey car park, an outdated bus station and a number of other rundown or vacant properties. These are all functioning in an environment which is severely constrained by the dated nature of the existing building fabric as well as by the limitations of the location. Instead, there will be attractive open areas, a new public square, a modern bus station and car park, together with a new department store and other modern retail premises, which will all be on a scale and at a density which matches customer expectations and retailers' needs for a 21" century trading environment;
  • Although certain properties (e.g. first phase of the redevelopment to create the Proposed Bus Station to the south of Dorchester Street, so as to provide continuity of bus facilities) are planned to be progressed in advance of the main scheme, the properties within the Southgate area are generally not suitable for piecemeal redevelopment or improvement (for retail or other use). Only the comprehensive treatment of the entire site enables a wide range of new accommodation and servicing facilities to be created and delivered effectively;
  • The opportunity exists to create new, efficient and well managed car parking, a new bus station, an enhanced and attractive public realm and modern, servicing arrangements which will all be of benefit both to the tenants of the new Southgate scheme and to other nearby businesses. Again, these public areas and the Proposed Bus Station, car parking and servicing arrangements are all designed to modern standards, and will contrast very favourably with the present arrangements which ore mostly unattractive, outdated or difficult to use. In particular, the public realm, the Proposed Bus Station and replacement facilities in the new car pork and the service area will together provide a significant overall uplift in for those using this port of the City Centre.
  • The redevelopment also facilitates the creation of a new public realm area between the Railway Station and the Proposed Bus Station on Dorchester Street. This (along with a number of other significant improvements to the station's fabric, described by others) also creates the opportunity for several of the Victorian railway vaults to be opened up for commercial and other uses, thus generating indirect benefits for Network Roil (as landowner and rail operator), as well as an enhancement of the historic fabric at a key 'entry point' to the City Centre.

ISSUES RELATING TO RETAINED ADJOINING PROPERTIES AFFECTED BY THE ORDER

5.12 I have also assessed whether owners and/or occupiers of adjoining properties may benefit from - or be materially disadvantaged by - the proposals which form the basis for this Order. In my view, there are no owners or occupiers of adjoining (retained) properties whose interests will be significantly adversely affected by the Scheme, either during construction or following completion. As other witnesses will explain in greater detail, there will be some changes to servicing, car parking, means of escape or other arrangements for a very limited number of parties, but none of these changes could be described by any of the objectors as being significantly less satisfactory than their present arrangements. I believe that this demonstrates both the creativity and the effectiveness of the design solutions evolved by the CGNU's design team led by Chaprnan Tqlor, Wilkinson Eyre and WSP, working in conjunction with the Local Planning Authority and its consultants.

5.13 In reality, there are several subsidiary benefits associated with the Scheme, which can only be secured or delivered for adjoining owners/occupiers, if the Order is confirmed and the whole project proceeds. These include:.

i) A greatly enhanced environment for pedestrians, not only in the heart of the new scheme and along Southgate itself, but also around the Railway Station and in other locations such as New Orchard Street.

ii) Improved servicing arrangements for retained properties between Kingston Road and Manvers Street, which will benefit from better security/management arrangements, with much less disruption from extensive parked cars.

iii)The consequential improvement in property values which will follow for those whose properties adjoin or are close to a successful and high quality retail-led regeneration scheme.

CONCLUDING COMMENTS ON THE CASE FOR COMPREHENSIVE TREATMENT:

5.14 Taking these factors together, I conclude that the site boundary for the Order has been determined, not only based on scheme design principles which have secured full and proper planning support in Bath in 2003, but also, where possible, to reduce the potential impact on retained/adjoining properties such as the Argyll Hotel.

5.15 The case for comprehensive treatment of the Southgate area, and the need for the inclusion of all of the plots within the Order, have been summarised in this section of my Proof and in the evidence of others. In my opinion, it is particularly significant that:-

i) The design of the Scheme clearly requires all properties and interests to be included in the confirmed Order. If any interests or properties ore omitted from a confirmed Order this would, in my judgement, mean that the site area would be reduced, the new anchor stores could not be accommodated within the available area and the Scheme would not proceed. The consequence of this would be that the achievement of the policies set out both in the Adopted Local Plan (June 1997) - CD2.2, and those in the Revised Deposit Draft Local Bath Replacement Local Plan (October 2003) - CD2.3, examined at the recent (Spring 2005) Local Plan Inquiry, would be put at risk.

ii) The Scheme will generate a range of benefits for shoppers, visitors, adjoining owners and others affected by it.

iii) Given the extensive gestation period for the Scheme (already around 10 years), it would have a materially damaging effect on the achievement of Bath's planning and investment policies, set out in the Adopted Local Plan and elsewhere, if this case for comprehensive treatment were not supported.

5.16 In my judgement, there is therefore a compelling case in the public interest for the assembly of the remaining interests through a confirmed CPO. More than 15 years after it was first decided that the (previous) Council should support a redevelopment based on objectives which recognised the inadequacies of the existing Southgate Centre, it is crucial that the land assembly process does not now hold up this project any further. This is especially so as, potentially, the Scheme can make such a positive difference to Bath, through the benefits which it will bring.

5.17 Finally, it is important to emphasise that CGNU and its team have made all reasonable efforts to acquire all the interests within the Order by agreement. Richard Herbert's evidence confirms that, over many months, both prior to the making of the Order in October 2004 and subsequently, his clients and his colleagues hove held detailed negotiations with the retail tenants and others affected by the Scheme.  CGNU remain willing to acquire the remaining interests through negotiation and they have also agreed to underwrite all the Council's costs associated with the Order. This means that, irrespective of whether the outstanding interests are ultimately compulsorily acquired or acquired by private treaty, the implementation of the project will not be delayed.

5.18 It is however impractical and unrealistic to assume that all interests will definitely be acquired by private treaty negotiation. If such a route were to be relied upon, there would be no certainty that the overall site - and hence the Scheme - would be delivered within the foreseeable future.

5.19 It would however clearly be wrong for any local authority to seek to proceed indefinitely towards its stated aims on implementing new city centre shopping without making a full commitment to taking positive action to secure such developments. Indeed, for some considerable time, the Council has made it clear that it would if necessary use its Compulsory Purchase powers to assemble the 100 or so separate freehold and leasehold interests needed to ensure that the Scheme will be delivered. In March 2003, the Council's Executive noted the circumstances in which the making of a CPO may be recommended cind confirmed its "in principle" support for the making of this Order. More recently on 30 June 2004, the Council Executive resolved to make the Order (conditional upon a satisfactory indemnity being put in place) and authorised the Head of Property and Legal Services to (inter alia) finalise the form of the Order, Order Schedule and maps. The Order was mode in October 2004, as explained in paragraph 3.1 of this evidence.

5.20 Given the passage of time since September 2003, when the Planning Agreement was signed and the Main Scheme Planning Permission was granted, and, more particularly the 15 years prior to that, since the first support for a project at Southgate was endorsed by the (previous) Council, via the 1988 objectives, it is entirely appropriate that this Order should now be confirmed. The Council has however not only taken positive steps to ensure the Scheme's implementation by means of promoting the Order. It has also agreed financial terms with CGNU and these terms and the key elements of the development documentation hove recently been reported to, and approved by, the Council. CB Richard Ellis has also advised the Council on the terms of this transaction, and our advice, together with the Council's own in-house report from its Valuation Manager, has resulted in the formal endorsement of the basis for this transaction. The Building Agreement will be completed shortly. Thus, if the Order is confirmed without delay, the mechanisms are very likely to be in place to secure the rapid implementation of the Scheme

6. THE QUALITATIVE BENEFITS WHICH WILL BE SECURED FOR BATH CITY CENTRE IF THE ORDER IS CONFIRMED

Key Commercial Issues

Introduction

6.1 The Council and its development partner (CGNU), together with the wider retailer/investor community, must have certainty in order to take decisions about how - and where - new commercial investment should proceed in Bath City Centre. Over 15 years have passed since preliminary proposals first emerged for the redevelopment of the Southgate area, and for nearly 10 years the Council and CGNU (previously known as General Accident) have been reviewing how best to secure a substantial retail-led regeneration scheme in a form which meets both parties' objectives.

6.2 Uncertainty for existing tenants and property owners in and around Southgate is clearly causing damage to investment decisions affecting this part of the City Centre. It is also likely to be adversely affecting the retail shopping environment in the wider area, as works to individual properties nearby are in some cases probably being held back, pending greater certainty as to the timescale for implementing the Scheme. Conversely, once this uncertainty is removed, there will undoubtedly be a positive 'prompt' to activity on adjoining and nearby properties, following the confirmation of the Order.

6.3 As I have explained, the Scheme must be implemented on a comprehensive basis. The existing retail floorspace within the Order Land is generally not capable of being adapted to meet modern retailing or shopping needs. This is equally true for many of the properties with the existing Southgate Centre, as well as for those in Railway Street (beneath the Council's Ham Gardens car park), in Dorchester Street and within other parts of the Order Land.

A CHANGE OF IMAGE FOR BATH CITY CENTRE

6.4 Once construction starts at Southgate, there will be a significant positive impact on the City Centre's image OS a result of the new Scheme being carried through. This will have an even greater positive effect once the Scheme is complete, i e. from around 2010 onwards. Earlier in my Proof, there is reference to the position which Bath holds in the national and regional retail hierarchy. My experience across the UK on similar projects to Southgate leads me to conclude that other comparable towns and cities have adapted positively to change especially over the past 10-15 years, by accommodating new floorspace (including large modern retail stores) and hence such city centres have seen their status change in the riat~onol and regional hierarchy following the implementation of similar schemes. Bath has, thus far, failed to do so - and the Scheme is now seen by many retailers and shoppers as being 'long overdue', and the foundation from which the city can gradually regain the position it held in the retail rankings some 10-15 years ago.

6.5 The new accommodation provided within Southgate will reinforce and help to sustain Bath's retail function for many decades to come. It is likely that other retail and commercial investment will be attracted to the City Centre once change at Southgate is under way. This will, in my judgement, not only be of benefit to the retail sector, but also bring positive results for the leisure and business sectors.

6.6 Some changes are already occurring, for example, with improvements in the leisure sector, e.g. at Kingsmead Square. Elsewhere, there are other 'sequentially preferable' retail-led redevelopment opportunities available (and partly in the Council's ownership) at Avon Street/Bath Quays and at The Podium and Cattle Market on the edge of the City Centre. Further afield, at Bath Western Riverside, there may be longer term opportunities for large scale mixed use regeneration, but before this non city-centre site can be developed, the city first needs to secure the improvement of areas (such as Southgate) which will enhance its historic heart. This, above all, will bring about a change of image, via the positive endorsements that a confirmed CPO will bring.

THE WIDER SOCIAL, ECONOMIC AND ENVIRONMENTAL BENEFITS

6.7 The steps that the Council has taken to support the CGNU proposals for Southgate, through the exercise of its compulsory purchase powers, will also help to address positively the image of the City Centre, so as to ensure that it is regarded as a location which increasingly sees significant new large scale projects proceed to fruition. In contrast, there have been no major new city centre developments completed in Bath within the last 10-15 years. This 'gap' has been particularly marked in the retail sector and in the heart of the 'prime' shopping area. The last city centre retail scheme, completed in 1990 was The Podium, but this small project is on the edge of the prime area, and is anchored by a Waitrose foodstore. The only other city centre retail development in recent years was the (failed) Colonnades scheme, which in the late 1990s was replaced by a BhS store.

6.8 More than this there are also likely to be a much wider range of positive social, economic and environmental consequences which will follow, once the Scheme has been completed. These will be spread across the wider city centre area and beyond, bringing jobs and other opportunities; spin-off benefits for a wide range of 'related businesses' well beyond the Southgate area; and significant environmental improvements to pedestrians and shoppers, at the heart of a highly visible part of the City Centre.

6.9 It is, in summary, a rebuilding project on a scale that will generate a series of effects, both planned and unexpected, over many decades to come. These impacts are, in my judgement, entirely consistent with the Council's strategy, goals and aspirations - as set out in the original 1988 Bath City Council Objectives, our 1997 Southgate Redevelopment Objectives, the original Policy R3 aspirations from the Adopted Local Plan and the more detailed 'development control' tests which were applied when the Main Scheme Planning Permission was granted. The benefits of such a massive investment in the built fabric of a heritage city such as Bath will be of great importance to its future prosperity, and accordingly they should not be underestimated.

THE BENEFITS OF CREATING A SUCCESSFUL NEW RETAIL DESTINATION

6.10 In summary, the main retail-related benefits which now will flow from the Scheme, if the Order is confirmed are:-

i. Bath will have a new retail destination, with over 37,500 sq m of new retail floorspace plus nearly 6,000 sq m of additional space for leisure and restaurant uses. Taken together, this will provide 'depth' to Bath's linear shopping layout and offer 'critical mass' and be a true 'focus' for both retailers and shoppers who are seeking on enhanced retail experience in the City Centre.

ii. Bath will have a new department store, creating a significant attraction which will be dramatically different from any of the existing major retail stores in Bath, in terms of format, convenience for shoppers and general attractiveness. Bath has never benefited from the drawing power of a modern department store, although the extended Marks and Spencer (now with well over 10,000 sq m (1 07,000 sq ff) of retail space) offers some of the qualities of such a store It is particularly important to create a 'deliverable' opportunity now, for a new department store in Bath, which will have a retail floorspace of around 1 1,000 sq m. Where new department stores have opened in other towns and cities (e.g.  asingstoke, Solihull and Southampton) considerable benefits have followed for the local retail economy, with evidence being found (e.g. from the National Survey of Local Shopping Patterns) in such cases of significant increases in total retail expenditure in the centres, and for less 'leakage' of durable expenditure to other, more distant locations; and also of increased demand from other retail businesses, keen to open new stores and shore in the success generated by a major new department store nearby.

iii There will be new purpose-built retail accommodation in the heart of the City Centre, on a scale not previously experienced in Bath since the opening of the original Southgate Centre. In practice, this will be the greatest change Bath has experienced at any time since the Second World War. This is partly because the new development will physically integrate with Southgate/New Orchard Street and thus also link to established and familiar retail shoppers routes, as well as to the Proposed Bus Station, the Railway Station, retained/relocated bus stops and taxi ranks. The integration with the city's existing fabric of such a large scale improvement to the shopping facilities, is unquestionably a key benefit of the Scheme, the importance of which must also be highly valued.

iv. There will be a wide range of modern, well proportioned and attractive new retail accommodation. Boots will be relocated into a new larger store potentially offering up to around 25% more retail accommodation than the existing premises in the Southgate Centre. Continuity of trade for this major 'anchor' trader has also been secured. There will also be a good range of other shop units of all sizes, with about 12 retail/restaurant units exceeding 400 sq m, and, in addition, there is scope to create many more 'double' units elsewhere in the scheme by combining adjoining premises.

v. The scheme will include around 724 car parking spaces in the replacement car park, including 32 spaces for disabled people and including some other spaces for rail commuters displaced from the ramp adjacent to the Railway Station. As others describe, this new improved car park will, in contrast to the existing Ham Gardens car park and some other City Centre car parks, be provided in a modern, well-lit and well managed environment. In addition to the new car parking spaces, there will also be a shopmobility facility and cycle parking.

vi. The servicing arrangements, created as part of a purpose-built solution, partly in the basement, will be specifically designed to meet the current and future requirements of leading retailers. These facilities, described more fully by Mr Corran and Mr Hunter-Yeats, will be in contrast to the generally outdated arrangements which exist today for the properties which lie within and adjacent to the Order land.

OTHER BENEFITS ARISING FROM THE COMPLETION OF THE SOUTHGATE SCHEME

6.11 The Scheme will also help to prompt or facilitate other improvements which will bring wider benefits to the City Centre. The terms of the agreements with the Council mean that this covers a variety of benefits, including those described in Section 5 above.

6.12 Other wider benefits will flow from the implementation of the Scheme. These are set out in more detail in the summary of the Planning Agreement, but in broad terms, these should help to meet a number of the Council's other policy aspirations by:-

  • Securing an enhanced pedestrian environment across a wide area from Stall Street/New Orchard Street in the north to Dorchester Street and the new bus/railway stations in the south; and from Manvers Street in the east to Southgate in the west;
  • Delivering a significant improvement in urban design quality throughout a major part of the city centre in part via public art;
  • Delivering a range of transport enhancements and helping to fund other long term changes to assist bus movements in the City Centre;
  • Enhancing safety and security for pedestrians via C C N and other measures;
  • Promoting sustainable solutions and implementation methods;
  • Facilitating the restoration of unused parts of the Railway Station fabric and vaults, while enhancing the use and accessibility of the Railway Station to all customers;
  • Creating the potential for increased tourist expenditure in the City Centre; and
  • Ensuring that the City Centre as a whole functions as a true regional retail destination

6.13 Many of these benefits respond very successful to the original policy aspirations set out many years ago, and described in Section 3 of my evidence. All of them are very clearly in the public interest.

6.14 All of the benefits outlined above will help to drive forward the positive perception of Bath as a thriving dynamic city within a buoyant environment for new business growth. None of these hove been achievable at any time within the lost two decades - and only the failed attempts by on earlier owner to deliver a much less environmentally-sensitive solution at Southgate more than 10 years ago, offered any prospect of a real change in the City Centre's retail role.

6.15 Now, of last, a 'deliverable' project is within the city's grasp, and the City Centre has a real opportunity to secure a substantial range of benefits which can improve its 'retail offer', to traders and shoppers alike, in a location which is fully integrated with the 'prime' retail pitch. In describing these benefits in this section of my Proof, I hove sought to show that if this Order is confirmed, there will be significant long term benefits to the City Centre in social, economic and environmental terms. The scale of new retail floorspace is also justified and fully supportable having regard to the available retail expenditure, and the Scheme will be entirely consistent with the policies set out in the Adopted Local Plan, the Structure Plan and the Draft Replacement Local Plan.

7 Conclusions

7.1 Retailing makes a major contribution to the economy and vitality of the city, and the Council considers it essential that Bath remains competitive and regains ifs lost status, compared with other regional centres. The Adopted Local Plan policies seek to protect and enhance this position and the redevelopment of the Southgate area is a key foundation stone of the Council's retail strategy.  The Scheme will secure the future vitality of the City Centre and accords with the retail strategy in the Adopted Local Plan. It will provide quantitative and qualitative improvements in the provision of shopping in the City Centre, as well as other benefits such as residential and other uses.

7.2 Forecasts for the growth in population and in per capita expenditure on durable goods in Bath's catchment area demonstrate that considerable additional durable goods floorspace can be readily supported by the time that the Scheme is due to open. However, without the development of Southgate, the City Centre's penetration into its catchment area is likely to continue to reduce and its relative ranking will continue to fall as it has over the last decade, as a greater proportion of the available expenditure has increasingly been leaking to other centres in the region such as Bristol, Swindon and elsewhere. This decline could potentially accelerate, especially as Bristol (in particular) is proposing a major redevelopment scheme [now with Home of Fraser as the confirmed anchor tenant).

7.3 There is strong unmet demand by retailers seeking space in Bath and the size and configuration of space required by modern retailers cannot be met within the existing accommodation in the City Centre. Retail capacity assessments show that there is a strong quantitative and qualitative need for a new prime city centre shopping development as well as demand from a range of retail groups seeking new space in the City Centre.

7.4 Since the mid 1990's, the Council has supported the existing hierarchy of the City Centre, district centres and local centres. As a consequence it has promoted redevelopment opportunities in the City Centre, focusing as its first priority on the Southgate area, which it identified as being the key to the future prosperity of the City Centre. This area is considered to have the greatest scope for redevelopment, to be potentially the most commercially attractive and, in view of its central location close to Stall Street and its established retail 'presence', to provide an opportunity to add depth and better quality to the prime shopping area without adversely affecting pedestrian flows.

7.5 The Scheme will therefore address all these issues and will provide a wide range of public benefits, secured through the implementation of a public/private partnership between the Council and the head lessee of the existing Southgate Centre, CGNU. Taken together, these benefits, derived from the proposals which have planning permission, make a compelling case in the public interest for the confirmation of this Order.

7.6 Importantly, as this evidence explains, the time is now right for the implementation of this Scheme. This means that the Order needs to be confirmed now, so as to facilitate an early construction start and phased completion 2008-1 0. Much of the land assembly required for the Scheme has been put in place by CGNU by agreement, but the remaining uncertainties over delivery now need to be removed through the confirmation of this Order.

7.7 With a highly experienced and well-resourced development partner in place, with whom all the necessary development documentation has been exchanged, the Council is rightly confident that the Scheme con be delivered without further delay. In turn, the Secretary of State can be equally certain that confirmation of the Order is fully justified having regard to the advice set out in Appendix A to Circular 02/03. 1 believe that this evidence also amply demonstrates that, had the Order been mode under the new provisions of the 2004 Act (and the wording from Circular 06/2004 Appendix A had instead been applicable), the Scheme is also highly likely to contribute to improving the economic, social and environmental well being of the Council's area.

7.8 I therefore have no hesitation in recommending that this Order is confirmed without delay.