Chichester District Council

Project Documentation

PROJECT INITIATION DOCUMENT

(PID)

Southern Gateway Implementation

Release: 6th Draft

Date: 29 August 2017

Author: Paul Over

Jane Hotchkiss
Amy Loaring
Approved by: Cabinet

Note: the completion of this document is required for medium and large projects as
defined by the Project Type Matrix. The final version should be saved in a sub folder
on the x drive under project management / project documentation.

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Document History

Revision Version Summary of Changes Reviewer(s)

Date
30/11/2016 1 First draft AL/PO
16/02/2017 2 Second draft Implementation
Sub-Group
06/03/2017 3 Third draft Commercial
Programme Board
07/03/2017 4 Fourth draft CPB; HCA and
WSCC
15/03/2017 5 Timescale updated PO/JH/AL
29/08/2017 6 Timescale and outcomes updated PO/JH/DS/AF
to reflect latest masterplan
position for OSC consideration

Consideration by the Corporate Improvement Team

Date Reviewing Comments for Consideration

Officer
01/03/17 Andy Minor amendments proposed and now included within
Buckley the report.

Approvals
This document requires the following approvals:

Name of person, group or committee

SLT
Commercial Programme Board (CDC)
Overview and Scrutiny Committee (CDC))
Cabinet (CDC)
Strategic Land Ownership Group
Council – in relation to any consideration of a Compulsory Purchase Order in
accordance with Article 4 of the Constitution

Distribution
A final copy of the approved document will be distributed to:

Name Job Title

Andrew Frost Head of Planning Services
Steve Carvell Executive Director
Cllr Susan Taylor Cabinet Member for Planning
Cllr Carol Purnell Cabinet Member for Housing
Tony Dignum Leader of the Council
Paul Over Executive Director
Nick Bennett Legal Services Manager
Jamie Dallen Highways West Sussex County, Council
Gerard Overton Homes & Communities Agency

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Jane Hotchkiss Head of Commercial Services

Alan Gregory Project Manager, Estates
Patrick Harrison Strategic Surveyor, Estates
SLT
Nick Smales Director of Economy & Place, WSCC
Steve Oates Economic Development Manager
Amy Loaring Partnership Officer
Mark Catlow Accountancy Services
Mark Regan Senior Estates Surveyor
Phil Pickard Procurement Manager
Sarah Parker Public Relations Manager

1. PURPOSE OF DOCUMENT

1.1 This Project Initiation Document builds on the Southern Gateway – Preparation
of Masterplan PID approved by Cabinet in June 2016. It sets out why and how
the implementation phase should proceed, who is involved and their
responsibilities. It will provide the baseline for the projects management and for
an assessment of its overall success.

2. PROJECT DESCRIPTION

2.1 The regeneration of an area of circa 12 hectares (30 acres) of brownfield land in
a mix of public and private ownership with potential housing, business, leisure
and commercial uses. The project will bring significant improvements to the,
public realm, transport infrastructure, enhancements to the quality of the
environment including improved pedestrian linkages to the city centre and the
regeneration of the only canal basin in West Sussex. The masterplan map
showing the key development sites is in the Appendix.

2.2 This 12 hectare/30 acre regeneration scheme will be operating at scale. The
largest regeneration project in Chichester city centre in living memory it will
facilitate missing elements of provision for young people (Chichester is the only
University city in West Sussex) and tourist facilities (Chichester is the strongest
tourism location in West Sussex (Source: Visit England website
(www.visitbritain.org).

3. BACKGROUND

3.1. The Southern Gateway area has long been seen as an opportunity to make
better use of the southern approach to Chichester city. In 2001 the Southern
Gateway Framework was adopted by the District Council and retains its status
as Supplementary Planning Guidance. Whilst much progress has been made
(e.g. with the former Osborne’s site, the Girls High School and the Southern
Sidings development) significant opportunities remain to regenerate the area.
These opportunities have not been realised as a result of the recent economic
downturn, the costs of relocating existing users and the extraordinary
development costs associated with some of the sites. These barriers are
considered to be surmountable with public sector support and investment.

3.2. Recent developments make this an opportune time to resurrect this opportunity.
Those developments include:
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I. The announcement that the Law Courts are to be closed;

II. The approval of the District Council led Chichester Vision;
III. The anticipated adoption of a new Masterplan for the area; and
IV. The Government’s emphasis on growth and jobs (with new funding
streams to assist).
V. The closure of the Kingsham First and Middle school

3.3. The regeneration area within the Southern Gateway includes the Bus Station
and Depot, the Basin Road Car Park, the Courts Buildings, the Police Station,
former Kingsham school and the Royal Mail depot

3.4. A Masterplan is in the process of being developed by appointed consultants

and is expected to be adopted by Council following public consultation in
November 2017.

4. PROJECT OBJECTIVES AND SUCCESS CRITERIA

4.1. Outputs
 Successful Local Growth Fund (LGF) and other funding secured which will
lever in an estimated £83m of private sector investment (excluding relocation
and acquisition costs).
 Purchase of any privately owned property required to deliver the project.
 Successful relocation of existing uses
 Creation of the strategic implementation group.
 Approval of a Compulsory Purchase Order (CPO) if required.
 Securing a development partner.

4.2. Outcomes
The project is estimated to deliver:

 New jobs;
 Existing jobs protected(Stagecoach and Royal Mail);
 New homes/student accommodation delivered;
 Business/retail and leisure floorspace created (onsite)
 New community health facility (subject to funding and specification)
 Possible return on investment for any capital funding provided by CDC
(subject to separate reports)
 Improvements to the public realm, the transport system and the appearance
of the townscape and buildings in the area.

These proposals, once delivered, will make a significant contribution to and directly
support the Community Strategy and Corporate Plan especially in relation to
housing, jobs and infrastructure by unlocking brownfield sites. The redevelopment of
much of this area has stalled for decades due to lack of public funding available to
unlock the sites. This project will include investment in infrastructure (Waste Water
Treatment, bus/rail interchange, improved access for pedestrians and cyclists)
together with enhancements to the public realm.

This project will build on current economic success in an area where performance is
already good and where the private sector, by their previous involvement in nearby

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developments, have demonstrated that they are eager to be involved. Public funding
will ensure that these final opportunities are realised.

By directly marketing the new employment space to high growth, high value sectors
such as high end finance; digital; pharmaceutical and creative industries will ensure
that this regeneration contributes to ensuring that the Chichester area performs well
above the UK average. (GVA per head across Chichester, Arun, Adur and Worthing
was £21,274 - below both the regional (£27,012) and national (£25,367) figures.
Source ONS December 2015)

4.3. Outcome Measures

Based on a viable Masterplan and making reasonable assumptions on the mix of

proposals:
 1434 new jobs;
 protect at least 200 existing jobs (Stagecoach and Royal Mail);
 335-365 new homes/student accommodation;
 21,600-22950 sqm of business/retail and leisure floorspace (onsite)
 Successful relocation of existing uses comprising of 4,000 sqm of off-site
relocation space.
 Return on investment on the basis of CDC “Investment protocol”
 Public satisfaction survey – at least 80% of respondents confirm they are
either satisfied or very satisfied with the development
 Improved air quality
 Improved travel times

NB. These outcome measures will be adjusted to be consistent with the adopted
masterplan.

4.4. Dis-benefits

 Disturbance during construction

 Impact on business viability to existing retail offer
 Behavioural change required if traffic movements are reconfigured
 Potential loss of locally listed/listed buildings
 Potential loss of trees
 Loss of public car park capacity

4.5. Out of Scope

The project will not include:

 Master planning and associated traffic studies – it is assumed this
dependency is already signed off.
 Any regulatory processes (other than those associated with a CPO) or
obtaining of necessary permissions and consents. This would be done by
developers.
 Relocation of the railway line which dissects the southern gateway area
 Excludes management of the building contract

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5. PROJECT CONSTRAINTS

 Approval and timescales of delivery of Masterplan

 Approval and timescales of any required CPO
 Strategic Partner Agreements
 Timing and expenditure constraints of certain funding streams
 Planning constraints
 Contaminated land
 Fragmented land ownership
 Government and local planning policy.
 Waste water treatment capacity
 Availability of suitable relocation sites

6. PROJECT ASSUMPTIONS

The delivery of the project assumes:

 A viable Masterplan, including traffic implications, adopted by November

2017.
 Public and Private funding can be raised to fund development costs and
funding gaps relating to relocations.
 On-going political and public support for the project
 Willingness of partners to engage in the strategic implementation process
 The Law courts to be closed and handed to the HCA by February 2018.
 Waste water capacity for development can be provided.
 Road space reconfiguration is implementable.

7. PROJECT COSTS

7.1. Project Delivery Costs

The cost of the project comprises staff costs of the Project Team which are
included within the existing base budget and consultancy/professional
services costs which are currently estimated at up to £155,000.

Description Cost (£) Comments

1 Development/marketing This funding is already
surveyor consultant approved via CDC
2 CPO surveyor consultant Cabinet (January 2017)
3 Legal CPO consultant and West Sussex One
4 Legal Property Consultant Public Estate. Some of
5 Waste water these costs might be
treatment/flooding/contamination 155,000 recoverable from the
surveys developer once selected.
Additional strategic
partnership funding will be
sought. This excludes
disposal commission at
present.
6 Property relocation and 13,500,000 These costs will be
acquisition costs funded from the capital

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receipt of the site being

released plus
external/partnership
funding yet to be secured
to fund abnormal
development costs and
relocation costs. The
costs estimates exclude
fees, VAT, contingency
and SDLT. This excludes
any value attributable to
Sussex Police land. They
assume a developable
site with no abnormal
costs.
7 CDC capital investment TBC and
subject to
separate
report
Total 13,655,000

CDC has allocated Executive Director, estates, legal, finance, PR,

procurement and project management support for the project. The
development costs, which are not included above, will be borne by the
appointed developer.

7.2. On-going Costs Following Project Completion

The only ongoing cost to the council would relate to the management function
associated with any development share that the council retained. This would
be subsumed into the existing role of the estates service.

It is also assumed that what is built is commercially viable and does not
require any further public financial support in terms of ongoing operational
revenue.

The Council will be forgoing the income from the bus depot, bus station and
Basin Rd car park (circa £75,500 per year), although some of the car park
income will deflect to the nearby Council owned Avenue de Chartres car park,
where there is currently spare capacity. This lost income could be
compensated for by the Council taking a share of the development proceeds
(capital and/or revenue).

8. OPTIONS SUMMARY

The Council could allow the future development of the Southern Gateway
area to be market-led. This option has been discounted since experience
over the past few decades has indicated without public sector support the
development opportunities that remain are unlikely to come forward. Whilst
some of the sites might be capable of independent development proceeding
in such a piecemeal fashion weakens the case for public funding and risks the
disjointed funding of infrastructure.

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There are several alternative ways in which this project could be implemented
including:

 Self-Promote – CDC & partners assemble the land, obtain planning

permission and undertake the development themselves
 Grant an Option – this will allow a third party to draw down the land at
an agreed price during a fixed period of time
 Conditional Sale – this allows a third party to purchase the site once
certain conditions e.g. an acceptable planning permission, has been
obtained
 Unconditional Sale – following site assembly the site is sold at an
agreed sum with no conditions
 Unconditional Contract with Planning Overage – as unconditional sale
but with a clause that allows an additional payment to be made to
CDC/partners if a more favourable development is achieved
 Public-Private Partnerships – the formation of a new legal entity to
deliver the development. The partnership could include landowners
and would define the various contributions to costs and benefit sharing
arrangements.

Any of these options could proceed with or without a CPO. The major
landowners the Homes and Communities Agency, WSCC and CDC have
discussed the matter with external consultancy support and the conditional
sale to a developer is the agreed preferred route. This minimises financial
exposure/risk to the landowners, retains a degree of control over the content
of the eventual development and provides an opportunity to participate in the
investment if any of the partners chooses so to do.

9. PROJECT APPROACH

The Southern Gateway implementation will involve a mix of in-house,

partnership and external consultancy resources. It will proceed via the
formation of a Strategic Land Ownership Group that will manage the disposal
programme, timescale and selection of development partner. It will also
agree the way in which costs and benefits are shared.

10. PROJECT PLAN

Task Task / milestone Completion Responsible Dependency

No. Date Owner
Stage 1- Funding Applications/ approvals
1a HCA November Steve Carvell
2017
1b LEP November Paul Over
2017
1c WSCC September Jane
2017 Hotchkiss
1d One Public Estate grant September Paul Over
2017
1e DCLG housing bid July 2017 Linda Grange
1f Housing Infrastructure Fund September Paul Over
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(HIF) 2017
1g Other funding streams December Amy Loaring
2017
Stage 1a – Communications Strategy
1a.1 Complete Communications December Sarah Parker Phase 1
Strategy 2017 Masterplan
Stage 2 – Appointment of Consultants
2a Funding For Consultants February Paul Over 1d
2017
2b Procurement process to April 2017 Patrick 2a
begin Harrison
2c Appointment of Consultants August Paul Over 2b
2017
2d Commission studies: WWT; November tbc 2c
Contamination and Flooding 2017
Stage 3 – Development of Partnership
3a Engagement with Partners Jan 2017 Paul Over
3b Agree development Delivery April 2017 Paul Over
vehicle
3d Enter into development Sept 2017 Paul Over Phase 1
partnership/MOU Masterplan
3e Agree strategic approach to Sept 2017 Paul Over
CIL
3c Agree partner investment December Paul Over Phase 1
approach 2017 Masterplan
Stage 4 – Relocation and Acquisition of strategic partner sites1
4a Identification of relocation December Patrick
sites 2017 Harrison &
Mark Regan
4b Completion of acquisition of February Gerard MoJ decision
Law Courts by HCA 2018 Overton on release
(HCA)
4c Completion of acquisition of March 2018 Mark Masterplan
Police station site Regan/HCA
4d Enter into development March 2018 Nick Smales Masterplan
partnership on High School (WSCC)
site Kingsham
4e Closure of Basin Road Car tbc Paul Over Appointment
Park of
development
partner and
planning
consent
4f Completion of Royal Mail October Mark Regan 1b & c
relocation and acquisition 2019
4g Completion of Bus October Patrick 1b, c and 4a
station/Depot relocation and 2019 Harrison
acquisition
4h Engage with Network Rail Sept 2018 Policy Masterplan
Planning

1 Timeline assumes no CPO is required.

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Stage 5 - CPO resolution

5a Council Resolution Tbc Nick Bennet
5b CPO confirmed Tbc Nick Bennet
Stage 6 – Selection of Developer
6a Soft market test February Alan Gregory Stage 4
2018
6b Invite to tender (OJEU) April 2018 Alan Gregory Stage 4

6c Select developer August Alan Gregory 6b

2018
6d Conclude conditional November Alan Gregory 6c
contract to appoint 2018
developer
Stage 7 – Development Delivery

7a Design development December Alan Gregory 6d

2018 (prov)
7b Obtain planning permission May 2019 Alan Gregory 7a
(prov)
7c Deliver development June 2019 Alan Gregory 7b/Stage 4
onwards
(prov)

11. PROJECT TEAM

Name Role
Paul Over Project Sponsor
Jane Hotchkiss Project lead/Shadow Project Sponsor
Alan Gregory Project manager (Estates)
Amy Loaring Project Coordinator/Technical Support
Nick Bennett Legal
Mark Catlow Finance
Patrick Harrison Estates (workstream lead)
Mark Regan Estates (workstream lead)
John Ward Governance
Steve Oates Economic Development
Mike Allgrove Policy Planning
Gerard Overton Strategic Landowner (HCA)
Nick Smales Strategic Landowner (WSCC)
Sarah Parker Public relations & Communication Strategy
(as required)
Phil Pickard Procurement (as required)

The Project Team will report to a Steering Group, or the proposed Growth Board,
whose membership will comprise senior political and officer representation from
CDC and WSCC together with the Project Sponsor providing the link between the
Project Team and Steering Group. The Steering Group/Growth Board will provide
strategic direction to the project and resolve resource issues that cannot be resolved
within the resources delegated to the project team.

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12. COMMUNICATION

Elected CDC members will be kept informed through the monthly Members’ Bulletin,
bespoke email communication, as necessary, workshops and reports, on an
exception basis, to the Commercial Programme Board and Steering Group/Growth
Board. CDC officers will be kept informed through reports to Corporate Management
Team.

Key stakeholders who are not strategic partners i.e. not landowners, will be keep
closely appraised of progress and be offered the opportunity to feed into the process
at key stages. Such groups would include the Chichester BID, City Council and Visit
Chichester.

Consultation material will be made available on the website and in hard copy at
Council offices and public libraries. All public consultation will be carried out in
accordance with the Council’s Statement of Community Involvement. A
Communication Strategy will be developed.

Strategic Partners will utilise their own communications channels to publicise and
inform their stakeholders in accordance with the collectively agreed Communication
Strategy.

The normal regulatory communication and consultation process will be followed i.e.
Development Plan and Infrastructure Panel and Planning Committee when planning
related aspects e.g. pre-application and planning application, require consideration. .

13. RISK LOG

The following risks have been identified together with an assessment of their severity
and actions that can be taken to mitigate/reduce the risk. Details of all project risks
will be recorded as and when they are identified.

Risk Risk Description Likelihood Impact Planned Actions to Responsible

No Unlikely Minor Reduce Risk Officer
Possible Significant
Probable Serious
Certain Major
1 Masterplan not adopted 2 4 Member briefing Andrew
by November 2017 before Frost
DPIP/Cabinet
2 Law Courts not handed 2 2 Close liaison with Gerard
over to HCA by HCA & contingency Overton
February 2017 built into (HCA)
Masterplan.
3 Disengagement of 2 3 Steering group to Paul Over
Strategic Landowner sign off draft
organisations documents and on-
going liaison with
other partners.
Completion of MOU.
4 Consultants don’t 2 2 Contract to ensure Legal
deliver to deadline delivery

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5 Demand in certain 2 3 Constant updating Alan

market sectors changes of viability advice as Gregory
so as to render the implementation
Masterplan proceeds.
commercially unviable.

6 CPO if required, is not 2 4 Consultancy support Nick

approved to ensure well Bennett
founded grounds for
CPO
7 Lack of funding to cover 2 4 Timely reapplication Paul Over
relocation costs to LEP/HCA and and Amy
exploration of Loaring
alternative funding
routes
8 Demands for 1 3 Steering group input Paul Over
community/public realm and regular re-
type uses make the appraisal of the
scheme overall unviable scheme as it
progresses
9 Unforeseen abnormal 2 2 Key studies Alan
costs undertaken in Gregory
advance e.g.
contamination;
flooding and
drainage
10 Failure to agree terms 2 3 CPO and Patrick
and complete independent Harrison
acquisitions valuations and Mark
Regan
11 Road space 1 4 WSCC Highways Nick Smales
reconfiguration is not input to project team (WSCC)
implementable
12 Availability of 1 2 Use tried and tested Patrick
consultancy advice framework Harrison
agreement to
source expertise;
test knowledge via
tendering process

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