CD145 Preliminary Infrastructure Design and Cost Study

In autumn 2019, the Planning Inspector, in his interim findings on the OPDC's draft Local Plan, supported the removal of the Strategic Industrial Location (SIL) designation on the Cargiant site in Old Oak North. AT the same time, the inspector also concluded that residential-led development in Old Oak North would not be commercially viable in the Plan period. OPDC subsequently decided to revise its approach to delivery and to not progress delivery if its proposed HIF-funded scheme at Old Oak North.

In response to the inspectors' interim report and following the decision to not progress development in Old Oak North, OPDC has revised its delivery to focus on the Western Land area. OPDC is now progressing modifications to its draft Local Plan incorporating revisions to site allocations on several sites in line with the revised delivery strategy. These modifications must also be in general conformity with the Mayor's London Plan in respect of its housing targets.

The modifications to the Local Plan will include an updated Infrastructure Delivery Plan (IDP) that sets out the items of infrastructure critical to delivery of the site allocations and the costs of that infrastructure. Viability testing of key strategic within the modified draft Local Plan is also part of the process.

Preliminary analysis has been undertaken by OPDC officers to identify the infrastructure projects which are no longer necessary to support the revised approach as well as any additional infrastructure that may be needed to enable development to come forward on new sites identified for mixed use development.

In June 2020, the OPDC Chairman approved a delegation to the Chief Executive Officer to authorise expenditure of up to £150,000 to support the development of the Corporation's revised delivery strategy and Western Land preparatory work. In October 2020, the OPDC Board approved a further expenditure of £257,000 for preliminary technical work required to prepare a Single Housing Infrastructure Fund (SHIF) bid and business case, and a delegation to the Chief Executive Officer to authorise detailed expenditure within this.

This decision seeks to gain the Chief Executive Officer's authorisation for expenditure on a Preliminary Infrastructure Design and Cost Study commission. This study will provide greater detail on the design and cost of the infrastructure requirements to prepare a SHIF bid and business case, and to support OPDC's emerging proposed modifications as part of the Local Plan examination process.

The proposal and how it will be delivered

The study will develop a preliminary design and engineering solutions for the key infrastructure necessary to support the revised approach. This will include a level of detail that allows the identification of land and/or rights required to deliver that infrastructure, and provides a basis from which costs of delivery may be estimated. In so doing it will:

• support a SHIF bid and business case by providing robust evidence for infrastructure costs and potential land requirements to deliver the revised approach
• form an important part of the evidence base for the draft Local Plan, supporting the final stages of its examination and adoption
• help us to test the development viability of strategic sites within the modified draft Local Plan
• feed into the updated Infrastructure Delivery Plan (IDP)

While OPDC officers have undertaken a preliminary assessment of infrastructure needs, the design and engineering expertise does not exist within the organisation to undertake this work. As such, suitably qualified consultancy services to deliver the study will be sourced through a competitive procurement process in accordance with the TfL Professional Services Framework for Multi-Disciplinary Services, and officers have confirmed OPDC may call off that framework.

The output of the study will provide OPDC with a clear and robust understanding of the cost and extent of key infrastructure requirements to support OPDC's proposed modifications to the draft Local Plan. The study will help OPDC demonstrate the soundness of its proposed modifications to the Inspector and support the adoption of the Local Plan.

Furthermore, this work will support OPDC in preparing a business case to secure external funding towards delivery of key infrastructure projects which cannot be funded from planning contributions alone.

The outputs of this study will support OPDC's delivery workstreams by providing greater certainty on the cost of infrastructure required to unlock and optimise development and regeneration. Ultimately, the study will help to support the outcome of delivering successful regeneration in Old Oak and Park Royal.

Strategic fit

At its meeting on 13 October 2020, OPDC Board unanimously endorsed the proposed delivery strategy and the direction of the proposed modifications to the draft Local Plan. This study forms a key role in supporting this direction from Board.

Once the Local Plan Examination has been completed, and approval for the Local Plan has been obtained from the Planning Inspector, it will be considered by OPDC Board for adoption. This is envisaged to be in Autumn 2021.

The Local Plan has been drafted to be in general conformity with the Mayor's London Plan. It will help to deliver the Mayor's aspirations set out in the London Plan and supporting strategies. These strategies include the Mayor's Transport Strategy, London Environmental Strategy and the Equality, Diversity and Inclusion Strategy.

OPDC must have 'due regard' to the need to eliminate unlawful discrimination, harassment and victimisation as well as to the need to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not.

The Local Plan has been subject to an Integrated Impact Assessment (IIA) which has been published on OPDC's website. This includes an Equalities Impact Assessment. The IIA concludes that the implementation of the Local Plan will deliver benefits to people of all protected characteristics as defined by the Equality Act 2010. This study will form a crucial role in implementing of the Local Plan, therefore supports its overarching aims.

Project governance and assurance

The study's overall scope and direction will be overseen by Head of Planning Policy, who will:

• agree the client brief
• oversee progress, ensuring that the scope of the study meets expectations
• provide a forum for discussion and challenge of emerging conclusions
• review and provide comments on draft report

Officers from OPDC's Planning and Development Directorates, including subject experts in transport, design, planning policy, viability appraisal and development will also be involved in reviewing the study.

Risks and issues

There is a risk that this study will identify major challenges in delivering the infrastructure necessary to support the revised approach, which may need to be addressed before the further modifications are submitted to the Inspector. This would result in a further extension to the programme and the likely need for additional expenditure. Until the study commences and such challenges are identified this risk will need to be tolerated.

Other considerations

Consultations and impact assessments

The Local Plan has been subject to an Integrated Impact Assessment (IIA), which is published on OPDC's website. This includes an Equalities Impact Assessment. The submission version of the IIA concludes that the implementation of the Local Plan policies will deliver positive benefits overall.

Conflict of interest

No one involved in the preparation or clearance of this Form, or its substantive proposal, has any conflict of interest.

Expenditure of up to £150,000 for the procurement and appointment of external consultants, to deliver the study detailed in this report, will be funded by the 2020/21 Western Land budget. Further expenditure is subject to the Corporation's decision making process.

The report above indicates that the decision requested of the Chief Executive Officer falls within the OPDC's object of securing the regeneration of the Old Oak and Park Royal area and its powers to do anything it consider appropriate for the purpose of its objects or purposes incidental to those purposes, as set out in the Localism Act 2011.

Officers have indicated in paragraph 2.2 of this report that the:

• framework under which it is proposed the services required are to be "called-off" can be used by the OPDC by virtue of its procurement by Transport for London in accordance with relevant procurement law; and
• the services required will be procured fully in accordance with the requirements of that framework.

Officers must ensure that appropriate "call-off" documentation is put in place and executed by the consultant and the OPDC before the commencement of the services.