STONE HILL

PARK

LIVE WORK PLAY

SHP1-12

Initial s.106
Heads of Terms and
Viability Appraisal

A brighter future for

Thanet and East Kent

Stone Hill Park

S.106 Initial Heads of Terms

Contents
1.

Introduction ...................................................................................................................................................1

2.

Core Obligations ..........................................................................................................................................2

3.

Viability Appraisal and Affordable Housing ............................................................................................6

Contact:
Nick Alston
Director
020 7911 2056
Nick.alston@gva.co.uk
For and on behalf of GVA Grimley Limited

April 2016 gva.co.uk

Stone Hill Park

S.106 Initial Heads of Terms

1.

Introduction

1.1

This paper has been prepared in support of an application for planning permission for the mixed
use redevelopment of the former Manston Airport site.

1.2

The applicants intend to enter into a legal agreement with the Local Planning Authority (LPA)
under s.106 of the Town and Country Planning Act 1990 to secure a number of planning
obligations. The purpose of this statement is to set out initial details of the terms of the proposed
obligations.

1.3

For the purposes of this paper, s.106 obligations have been split into 2 groups:
-

Core Obligations effectively fixed obligations necessary to mitigate the impacts of the
proposed development and/or otherwise necessary to make it acceptable in planning terms.
Refer to Section 2.

Affordable Housing which is subject to economic viability (and is therefore a variable). Refer
to Section 3.

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S.106 Initial Heads of Terms

2.

Core Obligations

2.1

The purpose of this section is to set out initial heads of terms for the core obligations. The intention
is that the detail of these obligations will be worked up and agreed with the LPA as an initial
priority following the submission of the application. Once fixed, details will be fed into the viability
appraisal to determine the proportion of affordable housing that the scheme is able to support.

2.2

Proposed obligations are set out below:

Social Infrastructure
Primary Education
-

2 x serviced development plots (specification to be defined) extending to 2.05ha to be

transferred to Kent County Council (KCC) at nil cost, alongside 2 x financial payments of 6m.
Land transfers/payments to me made in 2 equal tranches:

Prior to the occupation of the 1st residential unit; and

Prior to the occupation of the 1,000th residential unit.

KCC to be responsible for securing an education provider (or providers) and delivering 2 x 2
form entry (420 pupil) primary schools to a specification to be agreed with the developer.

Secondary Education
-

A financial contribution equal to 11,799 per secondary school pupil to be paid to Kent
County Council. This is to be calculated and paid on a phase-by-phase basis using a rooftax formula to be defined in the s.106 agreement.

Libraries
-

A financial contribution equal to 48 per dwelling to be paid to Kent County Council. This is to
be calculated and paid on a phase-by-phase basis using a roof-tax formula to be defined in
the s.106 agreement.

GP Surgery
-

600sqm of floorspace to be provided to shell and core (specification to be defined) shall be

made available prior to the occupation of the 1,000th residential unit to primary healthcare
providers to provide a GP surgery (primary healthcare facility). The space shall be made
available at market rates. If the space is not taken up within a period of 3 years, then the
obligation will be deemed to have been satisfied and will fall away.

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S.106 Initial Heads of Terms

Community Centre
-

A fully fitted out community centre (specification to be defined) extending to a minimum

200sqm to be provided prior to the occupation of the 1,000th residential unit.

Transport
Highway Works
-

A financial contribution (to be defined) to fund a scheme of highway mitigation works to be

delivered by KCC. The scheme of works will be defined in the s.106 agreement and will
comprise either:
Package A:

A299 Hengist Way/B2190 Minster Road

Haine Rod / A256 (Toby Carvery)

A256 / Sainsburys Access

A256 / Haine Road (at Spratling Street)

Manston Road / A256 Haine Road

Canterbury Road West / A256 / A299

A299 / A255 / Canterbury Road East

A255 / Chilton Lane / London Road

A256 / A257 / Ash Road

Link Rd/Manston Rd (New Junction proposed as part of Manston Green planning

consent (OL/TH/13/0050)

Or a suitable alternative package of mitigation measures as agreed between KCC and

the applicant following the completion of the strategic transport model and testing of the
proposed development within this model.
Or,
Package B:

A contribution towards the Thanet Transport Strategy to fund suitable alternative

mitigation measures to those identified under Package A as agreed between the
Applicant and KCC.

A financial contribution (to be defined) to fund warning signage on Manston Road at the
junction with Flete Road.

Provision of a new highway connecting the A299 Hengist Way with the B2050 Manston Road
to a standard to be agreed with KCC to facilitate the first phase of a connection between the
A299 Hengist Way and Westwood Cross.

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S.106 Initial Heads of Terms

Public Transport
-

A financial contribution (to be defined) towards the implementation of the Public Transport
Strategy as agreed between the Applicant and KCC and outlined within the Transport
Assessment that accompanies the planning application (ref: SHP 7-1). The Public Transport
Strategy contribution would be paid annually in instalments to TDC at agreed triggers based
upon the following phasing:
Phase 1

Provision of new bus stops on Spitfire Way to serve the Phase 1 Proposed Development

Phase 2

A contribution towards the extension of an existing bus route that currently terminates
at Westwood Cross to terminate within the site. Route to operate once per hour in
Phase 2. This would be flexible to allow connection with Parkway Station if depending
upon delivery; and

Provision of new bus stops on Spitfire Way to serve the Phase 2 employment space
(served by routes 11 and 38) and on Canterbury Road West for the residential (served
by route 9).

Phase 3

A contribution towards increasing the frequency of extended route to every 30minutes

throughout the day (Monday to Friday); and

A contribution towards diversion of route 11 through the site to serve the local centre.

Phase 4

A contribution towards diversion of route 38 through the site to serve the new local
centre; and

A contribution towards diversion of route 9 through the site to serve the new local
centre.

Phase 5

A contribution towards the introduction of a new bus service to link the Local Plan sites,
Westwood Cross, Stone Hill Park, Parkway Station and Discovery Park.

Walking and Cycling

-

A financial contribution (to be defined) towards the upgrading of pubic bridleway TR10
between the site boundary and the A256 Haine Road. Trigger to be agreed between the
Applicant and KCC.

Provision of a controlled pedestrian and cycle crossing point on Minster Road to the
immediate west of the Proposed Development. Trigger to be agreed between the Applicant
and KCC.

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S.106 Initial Heads of Terms

Provision of a pedestrian crossing point on Manston Road to the west of the former airport
access road. Trigger to be agreed between the Applicant and KCC.

Provision of a Public Right of Way (PROW) between Canterbury Road West and High Street
(Manston Village). Trigger to be agreed between the Applicant and KCC.

Provision of a permissive right of way across the Proposed Development between Minster
Road in the west and the north-south PROW connecting Canterbury Road West and High
Street. Trigger to be agreed between the Applicant and KCC.

Provision of a permissive right of way across the Proposed Development between the B2050
Manston Road in the south and Manston Road in the north-west.

Trigger to be agreed

between the Applicant and KCC.

-

A financial contribution (to be defined) towards the widening of the existing footway on
Canterbury Road West to link Cliff View Road and the Proposed Development prior to the
opening of the Parkway Station.

Travel Planning
-

A Travel Plan will be submitted to the LPA for approval prior to the commencement of
development which will detail:

A series of measures to be implemented across the site in order to encourage

sustainable travel as detailed within the Framework Travel Plan that accompanies the
Planning Application (ref: SHP 7-1.1)

A series of targets to measure the success of the measures to be implemented.

The identification of a Travel Plan Co-ordinator for the development to implement, manage
and monitor the agreed Travel Plan

Employment and Training

-

An employment and training scheme will be submitted to the LPA for approval prior to the
commencement of development which will detail:

A commitment for the master-developer and all phase developers to advertise all onsite construction job and training opportunities to the local community.

A commitment for the master-developer and each phase-developer to take on board

a minimum number of apprentices, with a site-wide target of 100 new apprenticeships
to be created over the life of the development.

Indexing
-

All financial contributions to be subject to indexing using BCIS All-in Tender Index. Formula to
be defined in the agreement.

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S.106 Initial Heads of Terms

3.

Viability Appraisal and Affordable Housing

3.1

Policy H14 of the Thanet Local Plan (2006) establishes the policy basis for the LPA to seek to secure
a proportion of dwellings to be provided as affordable housing. The policy stipulates that the
scale of affordable housing should be reasonable and appropriate and be a matter for
negotiation between the developer and the Council, however 30% is stated as a starting point
for negotiations.

Viability Appraisal
3.2

The planning application proposals include the provision of up to 2,500 residential units. The
applicant intends to make efforts to provide up to 30% of these units as affordable housing onsite, however indications are at present that this may not be possible on viability grounds, and
that the appropriate proportion to be provided should be determined via a viability appraisal
exercise. This can only be completed once the full extent of other contributions required have
been confirmed (i.e. the core obligations set out in Section 2).

3.3

Notwithstanding this, initial viability testing suggests that an element of affordable housing can be
supported. We set out details of initial heads of terms below:

Initial Heads of Terms

-

15% of total C3 residential units to be provided as affordable tenures.

Affordable units to comprise 60% intermediate tenures and 40% Affordable Rent:

Intermediate tenures to comprise Shared Ownership and Discount Market Sale/Starter

Homes

Affordable Rent units to be capped at 80% of market rental value

Each residential phase of development to include an element of affordable housing, with a

target of 15% on each phase. A defined housing unit size (defined as no. of bedrooms) and
tenure mix is to be defined in a Housing Scheme to be submitted to the LPA for approval
and secured by obligation.

An indicative affordable tenure unit size mix is set out below:

Affordable Rent: 40% (one bed), 35% (two bed), 20% (three bed), and 5% (four bed)

Intermediate: 50% (one bed) and 50% (two bed)

The appropriate proportion of affordable housing will be re-tested up to 2 times during the
course of the implementation of the development via a review of the viability appraisal. This
will be prior to the occupation of the 1,000th unit and prior to the occupation of the 2,000th
unit. A process/procedure for this will be defined.

April 2016 gva.co.uk