QUEEN'S BENCH DIVISION
ADMINISTRATIVE COURT
Strand London WC2A 2LL |
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B e f o r e :
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FIELDER & FLADGATE LLP | Claimant | |
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WESTMINSTER CITY COUNCIL | Defendant |
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101 Finsbury Pavement London EC2A 1ER
Tel No: 020 7422 6131 Fax No: 020 7422 6134
Web: www.merrillcorp.com/mls Email: mlstape@merrillcorp.com
(Official Shorthand Writers to the Court)
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Crown Copyright ©
"(A) Where appropriate and practical, when increases in commercial floor space are proposed, the provision of self-contained residential accommodation with separate access, where physically possible, will be required. The residential accommodation should comprise an amount of floor space equivalent to the increase in commercial floor space in the CAZ [Central Activity Zone] and within the defined CAZ Frontages.
(B) Where it is clearly not practical to provide residential accommodation on site, the City Council will seek the provision of the required residential accommodation on another site in the vicinity (see also policy COM 3).
(C) Where it is clearly not appropriate or not practical to provide residential accommodation on site under (A) above, or clearly not practical to provide it off-site under (B) above, other uses which contribute to the character and function of that part of the CAZ or the CAZ Frontage should be provided as part of the same development.
(D) Where housing has not been achieved under (A) or (B) or appropriate alternative uses provided under (C) above an appropriate financial contribution to the City Council's affordable housing fund (see also policy H 4) is likely to be sought.
(E) In all cases the City Council will expect appropriate planning obligations and benefits to be provided as set out in policy STRA 7 [which I do not in fact need to consider because it is no part of the claim in this case]."
"1.55 The aim of policy CENT 3 is to promote mixed use development incorporating housing where appropriate and practical. This will contribute to the mix of uses on sites and will provide more housing in the city centre in accordance with the objectives of PPG 3. Where it is not possible to provide housing, then the Council will require the provision of other appropriate uses, either in additional floorspace or new uses, which contribute to the character and function of localities within the CAZ. If it is not possible to provide housing or other appropriate uses the City Council will expect appropriate payments to use towards the funding of affordable housing.
1.56 Policy CENT 3 sets out a clear hierarchy that indicates the priority the City Council attaches to the provision of housing in achieving mixed use commercial schemes in Central Westminster. It will be for applicants to demonstrate to the satisfaction of the City Council that it is not appropriate or practical to provide housing within the development site before the City Council will consider the appropriateness of alternative uses instead of the housing required under the policy. Applicants should also demonstrate to the satisfaction of the City Council that consideration has been given to the provision of the required housing on another site in the vicinity of the development site, if this is a practical option."
And then under the heading Housing as the Priority Use as Part of Mixed Use, there is this:
"1.58 In assessing whether the residential requirement is appropriate or practical and in assessing the proportion of residential floor space that will be required the following will be taken into account: (a) the size and nature of the development; (b) the physical constraints of the site and buildings; (c) the relationship of the site to adjoining properties; (d) the character and function of the locality."
Mr Lockhart-Mummery sought to rely on the use of the word "possible" in 1.55 and suggested that that indicated that the test was a particularly stringent one. I do not think that there is anything in that argument. The use of the word, "possible", is clearly there to indicate no more than that. It would not be appropriate or practical in terms, for example, of (A). It does not and could not vary the appropriate test that is set out in the policy itself. I therefore do not think that any argument based on the use of the word "possible" assists the claimant's case.
"(c) The City Council will require an appropriate form of affordable housing to be provided on-site as part of the development, except where the applicant can satisfactorily demonstrate that the affordable housing cannot be designed for transfer to, and management by, a registered social landlord (RSL) or other appropriate body. The amount of affordable housing required will be assessed in accordance with paragraphs 3.41 and 3.42 but the Council will take into account whether: (1) there will be particular costs associated with the development of the site or (2) the provision of affordable housing would make it difficult to meet other planning objectives that need to be given priority in developing the site."
(Quote unchecked)
"3.33 In accordance with Government policy guidelines the City Council will expect that, where affordable housing is appropriate, it should be provided as part of the proposed development itself. This will help the City Council to plan the provision of affordable housing throughout the City. In assessing the suitability of sites for on-site provision, the City Council will take account of the criteria set out below.
3.34 The City Council will require applicants to provide on-site affordable housing unless they can satisfactorily show that: (a) it would not be reasonably practical to do so because the affordable housing cannot be designed for transfer and management to an RSL or other appropriate body or (b) providing on-site affordable housing would reduce the viability of the whole development proposal to such an extent that it would not proceed, or that the site would be developed for non-residential purposes."
(Quote unchecked)
The approach, therefore, is that affordable housing will be required unless the developer can show that in the particular circumstances, it would not be practical or, to use the word in 3.33, "appropriate", to provide it within that development. Although in 3.34(a), practicality relates, on the face of it, to the inability for it to be designed for transfer of management to an RSL or other appropriate body, the reality is that if it is not practical for it to be provided at all, it clearly would not be practical to say that it was able to be designed for transfer of management to an RSL. It may be that the limitation, or the apparent limitation in 3.34(a), is not a very satisfactory way of describing the matter. But it is obvious that the greater includes the lesser in the circumstances of any particular case.
"1.2 This Report reviews the options available for the development of the Park House site.
It then demonstrates how an off-site option for affordable housing is the only viable scheme for the developer. It does this by reviewing the following: whether it would be economically viable to provide affordable housing on site; what level of affordable housing, if any, could be accommodated in a viable scheme and the viability of benefits of the off-site solution.
In fact there had been an application for the off-site option which had been lodged in February 2006 but that had fallen by the wayside because it was challenged. The application was, in due course, withdrawn. However, it is clear that although the report was designed to indicate that an off-site option was the only viable scheme, it is implicit that the report would consider whether an on-site provision was practical; indeed, it concluded that it was not. That conclusion is set out in chapter 4 of the report, which is headed, Key Issues For Consideration. 4.1 reads:
"Various studies to maximise the residential element and incorporate the affordable housing on-site have been undertaken by Hamilton Architects. The challenge has been to find a suitable location for the accommodation that can be provided in a self-contained block, enabling maintenance expenditure of communal space security to be separately controlled. This section looks at the inherent problems of achieving such a scheme that was both practical and viable."
"The advantage of the central location is it allows the creation of a self-contained block with a separate core. This minimises the impact on the scheme as a whole and creates a block that can be managed separately. However, the introduction of the core and isolation of the uses does reduce the lettable retail space, which has a significant impact on the financial viability of the development."
It is incidentally to be noted that in 4.3, the report says this:
"Locating the affordable housing at the west end will have an impact on the office entrance location and the office floor plates above, but more importantly the western end is very deep due to the progressive expanding shape of the site and would be considered less appropriate for residential use of any type."
"In order to be able to accommodate the balanced mix of units for the affordable housing within what is a deep building footprint and to keep the core to an acceptable size and efficiency ratio, it is necessary to incorporate light wells. Due to the deep plan and the amount of façade available to habitable rooms, bedrooms had to be located in the dark space towards the centre of the building requiring light wells to provide natural light and ventilation to these rooms. This is not desirable from a "living experience" point of view and in nearly all areas does not achieve the ADF [the ADF being a test of appropriate light to render rooms properly habitable]."
"The Report reviews the options available for the development of the Park House site. It then demonstrates how it is not practical or viable to provide all of the residential accommodation within the development. It will do this by reviewing the requirements of policy around four key areas: whether it would be practical and economically viable to provide all of the housing on-site; the viability of an off-site provision; what level of market of affordable housing if any can be accommodated in a viable scheme and what other contributions are being made; and if a financial contribution in lieu is the only viable option and satisfies the policy requirements.
1.4 LS Park House Limited's (hereinafter referred to as LS Park House) desire is to develop the Park House for mixed use; providing new retail, office and residential space. The requirement of Policy CENT 3 to match any increase in commercial floor space with residential accommodation is more than satisfied by the provision of 39 on-site residential units and the provision of alternative uses beneficial to that part of the Central Activities Zone (CAZ) in addition to a financial contribution.
1.10 The policy outlined in 1.2 above for the development of the Park House scheme is examined in this report.
1.11 The findings support the conclusion that the development of Park House with on-site affordable housing is not a viable proposition and that a financial contribution in lieu, in addition to the on-site provision of alternative beneficial uses to this part of the CAZ, in the form of quality retail and office floorspace is the only practical alternative to deliver the redevelopment within the timescale of the 2012 Olympic Games and to meet the aspirations of the new West End Company (NEWC), and the vision laid down in the draft Oxford Street, Regent Street and Bond Street Action Plan (ORB)."
"Various studies to maximise the residential element and incorporate the affordable housing on-site have been undertaken by Hamilton Architects. The challenge has been to find a suitable location for the accommodation that can be provided in a self-contained block, enabling maintenance expenditure of communal space security to be separately controlled. This section looks at the inherent problems of achieving such a scheme that was both practical and viable."
It seems to me that that makes clear beyond any doubt that the purpose behind the consideration was directed both at residential accommodation generally and at affordable housing as an element in that residential accommodation.
"... and would be considered less appropriate for residential use of any type."
"You requested information regarding the justification for not fully providing the 50% residential matched floor space on- or off-site. As you surmised, the information is contained within the Report."
Paragraph 5.14 of the report is the key section. It succinctly demonstrates that the developers have followed policy tests A, B, C and D set out in policy CENT 3 and COM 2 which is, as I understand it, in identical terms. The paragraph relates the justification for not providing a full 50 per cent residential match on-site or off-site to that given in the previous parts of the report but more specifically refers to the inability of LS Park House Limited to provide the affordable housing requirement on-or off-site. Then it reiterates the points which it says are set out in more detail in the report and in the third bullet point this is said:
"In providing additional on-site residential floorspace to meet the 50% target, the Report demonstrates that there are substantial costs associated with creating additional suitable residential units at Park House, for example in including longer cores, deep lightwells (which in any case produce compromised habitable rooms) and other 'inefficiencies'. It is therefore not practical or appropriate to include additional residential floorspace at Park House."
"As demonstrated above it is not practical to provide any additional residential floor space on-site and there is no appropriate alternative site; alternative additional benefits to this part of the CAZ in the form of increased quality retail and office floorspace are proposed as well as a financial contribution in lieu."
And then there is a reference to how that financial contribution can be quantified and it is, indeed, substantial.
"An objection has been received on the grounds that the proposal fails to comply with Policy CENT 3 on the grounds that the increase in commercial floorspace is not matched by an equivalent amount of residential floorspace. This objection is one of the grounds of the Judicial Review and given this, it is considered that the Committee should consider the issues raised by this policy afresh, and give no weight to their previous deliberations on these issues. [So far, as Mr Lockhart-Mummery accepts, so good.]
The applicants have put forward an argument under Part (A) of policy CENT 3 as to why is it is not practical or appropriate to provide the full on-site residential requirement in this instance. In particular the applicants make reference to: (I) the provision of increased residential floorspace on-site would involve substantial costs to the requirement for longer cores and deep lightwells; (II) the provision of additional residential units, due to the depth of the building would require central lightwells, which would reduce the quality of the accommodation. In particular, habitable rooms would have to be located adjacent to central deep lightwells and could not be designed to achieve minimum internal light standards.
Given the above constraints identified by the applicants, it is accepted that there are difficulties in providing additional residential onsite. In particular, with regard to the applicants' comment regarding the inability to achieve internal light standards, the applicants have based their assessments on the Average Daylight Factor (ADF) which is a less rigorous test than the Vertical Sky Component (VSC) test that the City Council normally requires to be satisfied. In this regard, it can be argued that the standard of accommodation would be far lower in terms of provision of daylight than that which the City Council would ordinarily find acceptable. The applicants' arguments regarding the appropriateness and practicality of additional residential accommodation are therefore persuasive."
"It is considered that the applicants have satisfactorily demonstrated that it is not practical or appropriate to provide additional residential either on or off site. As alternative uses have not been achieved, the applicants have agreed to address the shortfall in residential by a financial contribution to the City Council's affordable housing fund, in accordance with the formula set out in Policy CENT 3. This would amount to £2,955,000. It is considered that a financial contribution is acceptable and would comply with the requirements of Policy CENT 3."
"MP [that is one of the members of the committee; there were, fact four] queried certain distances on the plans and, following the carrying out of his own calculation, queried whether the residential accommodation could be moved around to overcome the problems of practicality identified by the Applicant.
KO, [that is to say, the senior officer in the planning department] however, stated that the same problems would be faced regardless of how the accommodation was configured. KO stated that the need for corridors and logical office floorplates was one of the constraints on alternative configurations.
Following this discussion, MP confirmed that he was satisfied with the Applicant's contention that additional residential accommodation was impractical on-site.
3.17 AM [the chairman] took the Committee through the four steps of the CENT 3 Policy. With regard to Part A, he stated that he was convinced by the Applicant's arguments. He stated that the residential accommodation would be of poor quality if pushed into the middle of the building and that he did not believe that the Committee would approve an application which included residential units lit only by an internal light well. He also stated that the Applicant could not be expected to provide large unused cores in the proposed building. He recognised that large unlet areas would affect viability. On this basis, AM considered that the provision of on-site residential accommodation which matched the commercial uplift would be impractical."
Thus it is apparent that the committee members did consider for themselves the question of practicality in relation to the provision of the equivalent amount of residential accommodation and decided that it would not, indeed, have been practical. In reaching that conclusion, they did, of course, take account of the Harris report and no doubt were, to an extent, swayed by what was there set out. Mr Lockhart-Mummery accepts that he can only succeed on this ground if he can show that it was not reasonable for the committee to have placed any weight upon, or relied upon, the report to produce the result which they found to have been produced by it. I have gone through the report, so far as material. It seems to me that it is quite impossible to suggest that the committee were not entitled, as a matter of judgment, to conclude as they did. I say as a matter of judgment because it is apparent that the question of practicality or appropriateness does involve an exercise of judgment. It is not a question of black and white. It is not a policy which, for example, provides that such and such must be contained in a particular area. There is for example a policy that requires that a building in Oxford Street providing retail accommodation must have retail available in basement, ground floor and first floor. That is a sort of provision which is in absolute terms. CENT 3 is not such a provision. This was, in my view, a perfectly proper exercise, by the committee, of a planning judgment. In those circumstances, he has failed to discharge the burden upon him of showing that what they did was perverse.
"With regard to the provision of alternative uses (Part C), the applicants assert that the enhanced retail and office floorspace contribute to the character of this part of the CAZ. The increase of retail floorspace within this part of the West End International Shopping Centre is welcomed and would also meet one of the main aims of the Oxford Street, Regent Street and Bond Street Action Plan which seeks the creation of high quality retail space. Despite this, given that the increase in retail accommodation is only part of the overall uplift of commercial floorspace on this site, it is not considered to off-set the policy requirement to provide additional residential accommodation."
"With regard to part C he [that is the chairman] noted that while the retail space is welcome, it would be impractical and inappropriate to provide alternative additional uses on site such as a hotel or leisure use in addition to retail in order to satisfy this criterion within the policy."
Mr Lockhart-Mummery says he does not mention all the possible other additional uses that might be considered. That, with respect, is not a good argument. It is plain that the committee did consider the possibility of alternative uses (those are given as examples) and decided as they were, in my view, entitled to decide as a matter of planning judgment, that no other uses were suitable. There is nothing in that ground.
"It is recognised, given the design of this building, that it would be both difficult and impractical to provide a separate residential core and reception area without compromising the retail floorplates on this site. In considering the previous application on this site, the Committee considered that the practical arguments put forward by the applicant were persuasive. The provision of affordable housing on-site has not been subject to Judicial Review and it is considered that substantial weight can be given to the Committee's previous resolution on this issue.
The applicants have undertaken an assessment of the viability of the scheme using the GLA Toolkit which concludes that it is not economically viable to provide on site affordable housing at even 10% provision. This assessment, however, has not been submitted as part of this application, as it contains commercially sensitive information. Neither has it been verified by the GLA. In this regard, Members should bear in mind that only limited weight can be attached to the applicants' assertion that the provision of affordable housing would not be viable without that further information being submitted and without this information being assessed by the Council's independent consultants."
That is an entirely appropriate direction to the committee. Mr Lockhart-Mummery quarrels with the reference to limited weight, submitting, as I understand it, that no weight should have been attached but that is an impossible argument and in the end he accepted that it was a relevant consideration although he suggested, as indeed the officer has recommended, that little weight should be attached to it; but the extent to which it was appropriate to apply weight is essentially a matter for the judgment of the committee and there are umpteen authorities which make in plain that weight is not a matter which can be taken into account in establishing an error of law as a general proposition. The officer's report continues:
"The applicants' Affordable Housing Strategy has also been reviewed by the City Council's Housing Supply Manager who concludes that without the full viability assessment being provided, then it cannot be demonstrated that it would not be financially viable for the development to proceed with the provision of on-site affordable housing."
The document in question is a memorandum from the Housing Association supply manager to the planning committee. It concludes thus:
"As the applicants have raised a number of key arguments against the provision of on-site affordable housing, the housing department makes the following recommendations: (a) that full details of Land Securities' financial appraisal be released to officers of the City Council so that any financial justification supporting the non-provision of affordable housing on site can be clearly understood; (b) that the applicant provide written evidence from a minimum of two registered social landlords nominated by the City Council demonstrating that it would not be practical for an RSL to take handover of affordable housing units at Park House with any design features or service charges associated with the scheme which contribute to the non-viability of affordable housing at Park House could not be designed out."
(Quote unchecked)
That recommendation, (b), is one which it would be pointless to pursue if the view was properly taken that affordable housing was not practical in this site for the reasons that have been set out in the Harris report. That view was formed. Accordingly, as I say, it was quite unnecessary and would have taken the matter no further to have referred it to an RSL.
"However, given the previous resolution on this site, it is considered that sufficient justification has been provided to demonstrate that it would be difficult to provide affordable housing on site. In such circumstances, the payment of a financial contribution of £3,414,000 would be in accordance with Policy H 4 and is therefore considered acceptable. The objection on grounds that the affordable housing should be provided on site is not, therefore, considered to be sustainable."
"BG [that is the committee member in question] queried why no affordable housing was being provided. KO clarified that the issue of affordable housing was different from CENT 3. He reminded members that in the original Park House application they had accepted the Applicant's viability arguments without seeing the figures for themselves. KO noted that viability figures had been shown to Officers, although the applicant had not left copies of these figures with Officers. KO queried whether on this occasion, as with the original application, BG was happy not to view the viability figures. She confirmed that she did not require sight of the figures."
"BG stated that she was not happy with regard to affordable housing. She said that she recalled that when the application for the original scheme was made, affordable housing was offered at Wilton Plaza. KO explained that following the Wilton Plaza Judicial Review in relation to that, the Committee had agreed that a commuted sum was acceptable. KO said that the Committee could not say that a commuted was unacceptable now, since this had been accepted last time.
3.26 AM [that is the chairman] concluded by stating that the rest of the Committee disagreed with BG on the above issue. He then reaffirmed that the scheme was approved."
Of course, the committee's decision is that of a majority. Accordingly my judgment is that there is nothing in the complaint made in relation to affordable housing. Thus I reject the complaints made against the second planning permission and dismiss that claim.
"Policy CENT 3 states that where appropriate and practical, when increases in commercial floor space are proposed, the provision of self-contained residential accommodation will be required. Residential floor space should comprise an amount of floor space equivalent to the increase in commercial. According to the floor space figures ... [then he goes into the mistake and miscalculation that was made] the applicants have agreed to address this shortfall of residential by a financial contribution to the City Council's affordable housing fund in accordance with the formula set out in policy CENT 3. This will amount to £2,667,000 [it had gone up to £2,299,000 by the time of the second application]. Given that this commercial floor space relates to plant only, it is considered that the combination of the provision of 39 off-site residential units and the financial contribution is acceptable and would comply with the requirements of policy CENT 3."
(Quote unchecked)
Mr Lockhart-Mummery submits that this fails to direct his attention to the need to consider the hierarchical approach in CENT 3 and he says that it was for the committee itself to consider that and to direct its attention to the precise requirements of the policy. Again, one must not forget that the committee is an expert committee in the sense that it is a committee of members who are well versed in applying the council's policies and although I have no evidence as to what was actually said before the committee, it would be, to say the least, strange if the committee had not had in mind what actually were the requirements of the policy. It is said that this was a pragmatic and reasonable judgment; that the need for the development meant that payment in lieu in the circumstances was the right solution. It may be argued that this is to an extent a borderline decision and that it would have been better had the report referred specifically to the requirements of the policy. Nonetheless, I am not persuaded in all the circumstances that the approach adopted by the officer, combined with what one knows about the experience of the committee, gives any validity to this particular ground.