DD2235 Industrial Intensification Viability Study – Waltham Forest

There are approximately 7,000 hectares of industrial land in London. London’s industrial economy encompasses a diverse range of business in different sectors which collectively make a significant contribution to the city.

There are growing pressures on London’s industrial land, with faster than planned release and increasingly steady demand from businesses serving London’s growing population and economy.

• From 2010 - 2015, the rate of industrial land released (lost) for other uses almost 3 times that than planned in the Mayor's 2012 Land for Industry and Transport SPG
• In the last five years, over 525 hectares of industrial land has been released for other uses, against a London-wide benchmark of 185 hectares.
• Central London has already reached its 2031 land release target

Recommendations for the emerging London Plan suggest the release benchmark should be revised down to a very low level across London, and many boroughs may be directed to retain or provide industrial capacity. In line with this, and demand for housing capacity, the emerging London Plan is considering ways of encouraging industrial intensification, and co-location with residential uses.

The GLA has produced an Industrial Intensification Primer to summarise the range of forms industrial intensification can take, listed below. The Primer document draws heavily on the LLDC Employment Space Study, as well as other technical, design and typology studies.

While some of the options presented in the primer document are fairly straight-forward, and some are possible with greater attention to detail, others will be more challenging, in terms of economic viability and deliverability.

Existing research has tended to explore possible typologies with a degree of enthusiasm for “vertical mix”, which would appear to hold the greatest practical issues. Similarly, residential developers have tended to favour “vertical mix” solutions, whilst downgrading the specification and operational needs of the industrial space in favour of the residential units.

It is clear a more intelligent and careful approach to accommodating industrial uses is needed. OPDC’s Park Royal Intensification Study is one of the few studies which considers the viability of industrial intensification. The proposals did not include co-location with residential. There is also similar work considering viability and deliverability of industrial intensification and co-location with residential, underway in a few boroughs.

ADD2161 approved the expenditure of £40,000 to commission a study into industrial intensification. The study will help define design standards, provide typological and design guidance to the GLA, boroughs and other delivery partners, understand cost implications associated with particular typologies, and test their viability in different parts of London. The study has been procured via a competitive process and will be completed May 2018.

Following a competitive tender process, a consultant team has been commissioned to undertake the study.

Since then, GLA officers have engaged with counterparts in the London Borough of Waltham Forest about the potential for testing the industrial intensification and/or co-location of industrial with residential on a designated industrial site in Waltham Forest.

It was agreed that GLA Officers would seek authorisation to include an additional site appraisal for a designated industrial site in Waltham Forest in addition to the original commission. LB Waltham Forest confirmed that they would be prepared to contribute £13,200 towards the cost of having the appointed consultants for the Industrial Intensification Viability Study produce an additional site appraisal for a site in Waltham Forest.

This takes the total value of the commission to £53,200. There would be no additional cost to the GLA, and the commission would be overseen by GLA Regeneration officers already allocated to the existing Industrial Intensification Viability Study.

The additional site appraisal would make use of existing build costing work undertaken for the original Industrial Intensification Viability Study but will provide additional evidence for the London’s Plan Evidence Base on it Industrial Policies (Policies E4-E7). The research would be particularly relevant to Policy E7 which covers Intensification, co-location and substitution of land for industry, logistics and services to support London's economic function. As well as providing further evidence on viability issues relating to industrial intensification and/or co-location, it would also provide an important opportunity to test the policies approach to a “plan-led process of SIL intensification and consolidation”.

Under Section 149 of the Equality Act 2010, as a public authority, the Mayor of London must have ‘due regard’ of the need to eliminate unlawful discrimination, harassment and victimisation as well as to advance equality of opportunity and foster good relations between people who have a protected characteristic and those who do not.

The project will support the Mayor’s draft London Plan and it’s ‘Good Growth’ priorities. As well as providing guidance to boroughs and the wider property development sector

The work should help to encourage industrial intensification in a way which works for industrial businesses, and surrounding residents. The consultants undertaking the study will be required to consult with key players in the sector, including business occupiers, developers, and financiers to better understand deliverability. The GLA’s Industrial and Logistics Sounding Board will be a key body in this respect.

While study outputs for the industrial site in Waltham Forest will be informed by the physical, planning, and commercial realities of the site, they will be strictly hypothetical propositions, and in no way represent a decision by the GLA on the future of the chosen industrial site. Due to commercial and planning sensitivities, the study outputs will not be published unless agreed by both the GLA and LB Waltham Forest.

ADD2161 approved expenditure of up to £40,000 for an Industrial Intensification Study to be funded from the Development, Environment & Enterprise Minor Programme budget. As detailed within the main body of this report, the scope of the study has now widened to include a site appraisal for a designated industrial site in Waltham Forest, testing the scenarios for industrial intensification. Consequently, costs have increased by a further £13,200 and will be funded by way of grant income from the London Borough of Waltham Forest, which will be received in 2018-19.

It should be noted that, the additional expenditure on this study will increase the overall cost to £53,200 and it is expected the study will be completed in early 2018-19.

The foregoing sections of this report indicate that:

a. the decisions requested of the Director concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation, social development or the promotion of the improvement of the environment in Greater London; and

b. the decisions requested of the Director (in accordance with the GLA’s Contracts and Funding Code) concern the exercise of the GLA’s general powers, falling within the GLA’s statutory powers to do such things considered to further or which are facilitative of, conducive or incidental to the promotion of economic development and wealth creation, social development or the promotion of the improvement of the environment in Greater London; and in formulating the proposals in respect of which a decision is sought officers have complied with the Authority’s related statutory duties to:

i. pay due regard to the principle that there should be equality of opportunity for all people;

ii. consider how the proposals will promote the improvement of health of persons, health inequalities between persons and to contribute towards the achievement of sustainable development in the United Kingdom; and

iii. consult with appropriate bodies.

c. In taking the decisions requested, the Director must have due regard to the Public Sector Equality Duty; namely the need to eliminate discrimination, harassment, victimisation and any other conduct prohibited by the Equality Act 2010, and to advance equality of opportunity between persons who share a relevant protected characteristic (race, disability, gender, age, sexual orientation, religion or belief, pregnancy and maternity and gender reassignment) and foster good relations between persons who share a relevant protected characteristic and persons who do not share it (section 149 of the Equality Act 2010). To this end, the Director should have particular regard to section 3 (above) of this report.

d. The GLA are exercising an option under the current contract and, therefore, an exemption under the GLA’s Contracts and Funding Code is not required. Officers must ensure that the additional expenditure is recorded in accordance with the contract.