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DEVELOPMENT CONTROL COMMITTEE 7th DECEMBER 2011

DIRECTORATE OF COMMUNITY AND ENVIRONMENT

PLANNING REPORT NO.PLN1155 SECTION C

The information, recommendations and advice contained in this report are correct as at the date of preparation, which is more than two weeks in advance of the Committee meeting. Because of these time constraints some reports may have been prepared in advance of the final date given for consultee responses or neighbour comment. Any changes or necessary updates to the report will be made orally at the Committee meeting.

APPLICATION NO. 11/00365/OUT

DATE REGISTERED 9 June 2011

EXPIRY OF CONSULTATIONS

20 July 2011

PROPOSAL OUTLINE: Erection of a warehouse club including tyre sales/installation facility with associated parking and access from Templer Avenue (external appearance & landscaping reserved for future determination)

LOCATION Proposed Development Site IQ Farnborough Templer Avenue Farnborough

WARD Knellwood

APPLICANT Costco Wholesale UK Ltd

AGENT RPS Planning & Development Ltd

RECOMMENDATION GRANT subject to legal agreement

DESCRIPTION The site is some 3.9ha in area and lies on the western edge of Farnborough Business Park, known as IQ Farnborough. It is within Zone C of the Business Park at its southern end and is bounded by Elles Road to the north west and Templer Avenue to the south and east. It comprises a vacant plot of previously developed land with significant landscaped buffers on the perimeter, particularly on the Elles Road frontage. To the north, on the other side of Elles Road, are the Eelmoor Road Trading Estate and Farnborough Industrial Estate. To the north west are the nearest residential roads, Kempton Court and Brook Gardens. Immediately to the south & south west are existing office buildings within the Business Park off Meadow Gate Avenue. Further to the south west, south & east is the Farnborough Airport development including the Flight Simulator building opposite the site to the south of Meadow Gate Avenue. Immediately to the north east is a vacant plot of land comprising the remainder of Zone C of the Business Park. Further to the north east is the bulk of the IQ development (comprising offices, the Village Hotel, Barons car showroom and residential development under construction), together with existing dwellings in Pinehurst Avenue and the Council Offices. Farnborough town centre lies 1km to the north east. Outline planning permission (ref.99/00744/OUT) was granted in November 2000 for the wider IQ site, which was then known as the Factory Site, formerly occupied by the Defence Evaluation & Research Agency (DERA). This approved development of up to 155,350

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square metres of B1 floor space with up to 6000 square metres of ancillary development with parking, landscaping, access, distributor road, new junction at Elles Road and link to Government House Road. Planning permission (ref. 06/00362/FUL) was then granted in June 2006 for extension of the time for submission of reserved matters to November 2017. A number of reserved matters applications have been granted & implemented on the business park and works to the historic core have also been completed. Most recently, a reserved matters application (10/00707/REMPP) was approved for four office buildings on the north eastern part of Zone C adjacent to the application site. An outline planning application (ref. 10/00342/OUT) for a Costco warehouse club on the site with access from Templer Avenue was withdrawn in February 2011. The current application is a resubmission of that proposal for the erection of a building to comprise a warehouse club, associated car park with 616 spaces and two vehicle access points from Templer Avenue. A warehouse club (defined as a warehouse club where goods are sold or displayed for sale only to trade and individual members of that club) is identified in the Town & Country Planning (Use Classes)(Amendment) (England) Order 2005 as "sui generis" ie a land use that does not fall within any use class. As before, the application is in outline form with layout, access and scale to be determined at the outline stage. The building would have a total floorspace of 13,006 square metres and a maximum height of 10 metres. The application is accompanied by a considerable amount of supporting material, including a planning statement, design & access statement, flood risk assessment, transport assessment, sustainability & energy statements, biodiversity checklist and a tree report. There is also an extensive history of successful planning appeals to the Secretary of State relating to the applicants’ proposals for warehouse clubs elsewhere in the UK. The planning statement explains the Costco club concept as a membership warehouse club created to serve the needs of small to medium size business owners offering a limited selection of products (predominantly high quality branded goods) in a wide variety of categories at wholesale prices. The statement stresses that Costco outlets are not open to the public as membership is restricted to businesses and individuals falling within specified groups. Both trade and individual members pay an annual membership fee. It is stated that trade members account for at least 65% of the turnover in UK warehouses because the majority of products, being packaged in bulk, are orientated towards trade members and less attractive to individuals. It is said that this means Costco cannot be used as an alternative to the supermarket. The statement goes on to explain that Costco operate from traditional warehouse style buildings with a clear internal height of 7 metres. The operation typically includes members’ café, photo processing laboratory, opticians, bakery, and meat processing facility within the warehouse and an external tyre fitting bay. The current proposal would include all these elements, with the majority of the 13006sqm of floor space comprising sales area and storage of goods on racking; approximately 10% of the warehouse would be dedicated to receiving goods and staff facilities. The Council issued a screening opinion in June 2011 (ref. 11/00367/SCREEN), which concluded that there was no requirement under the Town and Country Planning (Environmental Impact Assessment) (England and Wales) Regulations 1999 for an EIA to be submitted in respect of the proposal.

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CONSULTEES RESPONSES SEGRO Support the application

Crime Prevention Design Advisor

No objection

County Archaeologist No objection subject to conditions

Waverley Borough Council No response received

Environmental Health No objection subject to conditions

Aboricultural Officer No objection in principle

Ecologist Officer No objection subject to conditions

Hart District Council No objection

Surrey Heath Borough Council No objection

Guildford Borough Council No response received

Woking Borough Council No response received

FAST (Farnborough Air Science Trust)

No response received

Contracts Manager No comments

Natural England No objection

Hampshire Fire & Rescue Service

No response received

TAG No objection

Environment Agency No objection subject to condition to secure a surface water drainage scheme for the site

Rushmoor Access Group No response received

HCC Highways Development Control

No strategic highway/transport objection subject to conditions, implementation of a travel plan and a transport contribution of £655960 towards identified improvements to the local transport network to improve its efficiency and safety

Transportation Strategy Officer No objection

Planning Policy Team No objection subject to conditions and legal agreement

Thames Water No objection

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NEIGHBOURS NOTIFIED Notification letters were sent to 187 residential & commercial addresses in: Brook Gardens, Kempton Court, Elles Close, Pinehurst Avenue, IQ Farnborough Business Park, Eelmoor Road, Invincible Road, Farnborough Airport, Farnborough Town Centre & Southwood Centre. NEIGHBOUR COMMENTS A strong objection has been raised by St Modwen Properties, joint owners of Kingsmead & Queensmead shopping centres, on the grounds that Costco would divert expenditure away from Farnborough town centre, reducing demand for new retail floor space & adversely affecting the regeneration scheme. Concern is also expressed about additional traffic congestion on the Sulzer roundabout. Objection has been raised by consultants acting on behalf of Asda Stores Ltd on the grounds that the impact on Farnborough & other local town centres has been underestimated and that the proposal would damage the trade of existing retailers including Asda, adversely affecting the long term viability of one of Farnborough town centre's key anchor retailers. They also comment about Costco's reliance on out-dated evidence in their supporting statement. Concern is expressed about traffic implications, particularly congestion at Sulzer roundabout, which affects town centre parking facilities. A letter has been received from the Centre Director of Princes Mead Shopping Centre raising objection to the proposal on behalf of the Centre Management and Knight Frank Investors, who act as agents for Lancashire County Council, owners of Princes Mead. Objection is raised on grounds that the proposal will add to the retail floor space outside the town centre, which they believe will hamper efforts to attract key national retailers into Farnborough, further damaging its vitality and viability. Additional further objection letters have been received from the Princes Mead Centre Director, Knight Frank Investors and Mason Owen, joint letting agent to KPI the owner and developer of Kingsmead and the Farnborough Town Centre scheme. These reiterate earlier opposition to the proposal. The Princes Mead Director states: Regardless of the description as a warehouse club, Costco is a retail environment which would take from a town centre that is ‘…struggling to consolidate its role in the retail hierarchy; the current proposal differs from other Costco stores in its proximity to the town centre whereas those in Reading, Croydon and Watford are between two and a half and three and a half miles away; and that the implementation of Costco would impede and delay regeneration. Knight Frank investors draw attention to the relative ease with which Costco membership can be obtained, and parallels between the operation and an out of town supermarket, with particular regard to its budget clothing and food offers. This, it is suggested, could reduce town centre footfall and deter National Multiples and clothing retailers from locating in the town centre. It states the impact assessments in relation to other towns are not comparable because they are larger and more robust centres and that the presumption against out of town retail provision should be adhered to. Mason Owen also state that Costco offers goods that will compete with the high street; that demand from retailers in The Meads has suffered a weak period for the last two years and that comparison and convenience spend will be drawn to Costco and away from the town centre. It is therefore suggested the implementation of Costco will set back the town centre significantly.

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A letter of support for the proposal has been received from Segro, owners of the application site, who state that the proposal is in accordance with the Government's aim to encourage & facilitate sustainable economic development. Hampshire Chamber of Commerce have also written in support of the proposal, on the grounds that they believe that Costco would offer a valuable service to local businesses and attract investment, trade and customers into Farnborough town centre. Additional letters of support have been received from local residents and businesses at 1 Sidlaws Road; 10 Peabody Road; 28 Trafalgar Villas, Brownsover Road; Kingstons Property Consultants, Portsmouth Road, Guildford; 27 Forest Dean, Fleet; 20 Epsom Close, Camberley; 20 Clayton Drive, Guildford; and 14 Cliffe Road, Godalming. POLICY AND DETERMINING ISSUES The site lies in the built up area adjacent to Farnborough Airport and outside Farnborough town centre. It is also within a defined employment area, being in the south western corner of IQ Farnborough Business Park. Elles Road to the west is designated in the Local Plan Review as a green corridor that has landscape and amenity value. National Policy Guidance There is relevant Government advice in Planning Policy Statements (PPS's) and Planning Policy Guidance Notes (PPG's) including PPS1 - Delivering Sustainable Development, PPS4 - Planning for Sustainable Economic Growth and PPG13 - Transport. PPS4 is of particular relevance to the determination of the application. It sets out that applications for town centre uses, the definition of which specifically refers to "retail development including warehouse clubs and factory outlet centres" are to be determined on the basis of the sequential approach and an impact assessment. Guidance on need, impact and the sequential approach is set out in accompanying Town Centre Practice Guidance. PPS4 reinforces the plan led approach and "town centre first" principle for retail and other town centre uses. The Ministerial Statement of 23 March 2011 by Greg Clark "Planning for Growth", which promotes sustainable economic development, confirms that significant weight should be attached to the need to secure economic growth and employment. The consultation draft National Planning Policy Framework (NPPF) includes a presumption in favour of sustainable development and aims to give greater weight to economic factors in making planning decisions. These elements of national policy are material considerations for the current application. South East Plan The Secretary of State published on 6 May 2009 the Regional Spatial Strategy (RSS) for the South East of England. It provides a spatial context within which the Local Development Framework needs to be prepared. The South East Plan has development plan status and the policies in the plan carry weight in decisions made on planning applications and appeals for development, however, the Government has indicated the intention to abolish Regional Strategies.

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Rushmoor Local Plan Review (1996-2011) The plan was adopted in August 2000 and its current status is as follows: a Direction dated 21 September 2007 under paragraph 1(3) of Schedule 8 to the Planning and Compulsory Purchase Act 2004 in respect of policies in the Rushmoor Local Plan Review (1996-2011) saved all the policies in the Plan with the exception of S2, H7, H7.1 and H12. On adoption of the Core Strategy a number of these saved policies have been replaced. Full details are set out in Appendix C (Replacement of Saved Local Plan Policies) of the Core Strategy. The adopted Local Plan Saved Rushmoor Local Plan Review policies most relevant to consideration of the current proposal include:

1. ENV5: Green Corridors 2. ENV13: Trees and Landscaping 3. ENV16: Major Sites 4. ENV19 & 20: Landscaping 5. ENV 21 & 22: Access 6. ENV41- 44: Flooding 7. ENV48: Environmental Impacts 8. TR10 & 12 Transport 9. TC1: Town Centres

10. FA3: Factory Site Note: Several transport policies are no longer saved and are replaced by Core Strategy Policies CP16 and CP17; several employment policies and the contributions policy are no longer saved and are replaced by Core Strategy policies on employment uses (SS1 and CP8) and infrastructure (CP10) Rushmoor Core Strategy, adopted October 2011 This sets out important policies relating to the location, scale and timing of future development in the Borough up to 2027. It includes a number of policies relevant to the determination of the application: SS1: The Spatial Strategy – (inter alia), this identifies and protects a number of key employment sites and sets out how much employment will be provided, the principles of town centre uses in Aldershot and Farnborough including the focus for retail uses and the sequential approach for retail development SP4: Farnborough town centre – this sets out the strategy for maintaining the vitality and viability of Farnborough town centre and includes criteria on promoting town centres uses; supporting offices & housing; encouraging completion of Northern Queensmead redevelopment; achieving good design by implementing the Farnborough Town Centre SPD; creating a robust retail core and accommodating retail growth to improve the centre; occupation of vacant units and diversification outside retail core; investment in Kingsmead Shopping Centre; developing the evening economy; improving accessibility; and enhancing environmental quality and public spaces. SP3: Aldershot town centre - sets out the strategy for maintaining the vitality and viability of Aldershot town centre and includes criteria on: promoting town centres uses; supporting offices and housing;

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1. facilitating Westgate; achieving good design, linked to Aldershot Town Centre SPD; creating a robust retail core and accommodating retail growth to improve the centre; improving the evening economy; 2. enhancing environmental quality; improving accessibility and supporting town centre management initiatives. SP5: North Camp District Centre - protects the role of North Camp as a District Centre; preserves the specialist retail function and vibrant evening economy; gives stronger protection to resist the loss of retail units and restaurants and car parking facilities. CP1: Sustainable Development Principles - sets out criteria relating to issues such as efficient use of resources, promoting development in accessible locations, protecting biodiversity, heritage assets and natural resources. CP2: Design and Heritage - sets out criteria including the need for good quality design, the protection of heritage assets, the provision of cycle routes and accessible environments, the provision of ‘greening’ opportunities and protecting amenity. CP3: Renewable energy and sustainable construction – (inter alia) requires development that includes new buildings to look for opportunities to connect to locally generated renewable energy (eg Combined Heat and Power); requires all development to demonstrate that it incorporates sustainable construction standards & techniques; and (subject to technical feasibility & financial viability) requires all major development that includes the construction of new buildings to should reach BREEAM Very Good standard. CP4: Surface water flooding - requires all development that includes new buildings or hard standing to provide information to demonstrate that it would include Sustainable Drainage Systems (SuDS) and to show how those SuDS would be maintained in the future. Applications that require Flood Risk Assessments (assessed by the Environment Agency) should aim to return runoff rates and volumes back to their original greenfield discharge. This is a more onerous standard than national policy due to the high water table. CP8: Supporting Economic Development - provides more information on the uses permitted on Key Employment Sites identified in SS1 to provide a site-appropriate mix of units to meet a range of business needs; in office areas, to permit other B-class uses where they would be small-scale and sympathetic to the character of the area; and to permit non-B-class uses where they would support, or not be detrimental to the ‘function’ and ‘operation’ of the site. The judgement of ‘function’ considers the role that the site plays in the supply of that type of land in the Borough. Typically this would protect industrial land, where there is expected to be a shortfall in the future, and be more permissive on office land, where there is likely to be an oversupply. The judgement about ‘operation’ considers how the proposed use would affect surrounding businesses. CP10: Infrastructure Provision - sets out the requirement for new development to provide, or contribute to the delivery of appropriate infrastructure. CP11: Green Infrastructure Network - requires all applications to ensure that there is no adverse impact on the green infrastructure network and makes appropriate provision for improvements.

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CP15: Biodiversity - Seeks to ensure that new development has no adverse impact on features of biological and geological interest and aims to secure biodiversity improvements through new development. CP16: Reducing and Managing Travel Demand - focuses on reducing and managing travel demand in association with new development, such that development proposals are permitted provided they: mitigate any adverse effects of the development on the transport network; achieve secure & safe access to the highway network; ensure alternative modes of transport are identified; enable appropriate rail/road/public transport improvements; enable appropriate footway/cycleway improvements; secure travel plans where appropriate; seek measures to avoid adverse impact on air quality; and reflect the objectives and support the delivery of other transport strategies: LTP/Implementation Plan and Farnborough and Aldershot TAPs CP17: Investing in Transport - supports cross-boundary and partnership working to support investment in the transport network. It gives weight to the proposals set out in the LTP, RIP and TAPs for Aldershot and Farnborough. It also contains a list of strategic priorities for improvement, and provides the hook from which to secure improvements to bus, cycle and pedestrian routes and links between key trip attractors. Other Policy Documents: The Farnborough Airport Area Action Plan, Preferred Approach draft, is also relevant, specifically policy AAP9 on IQ Farnborough, however as this is at an early stage in its preparation, it should be attributed minimal material weight. Supplementary Planning Documents (SPD's): There are a number of relevant SPDs including:

Aldershot Town Centre SPD and Farnborough Town Centre SPD, which set out the strategy of regeneration of each town centre;

Car & cycle parking standards and Planning Contributions: transport; and

Sustainable Design & Construction SPD, which seeks to encourage development to minimize its impact on the environment.

DETERMINING ISSUES Determining issues - these are considered to be the principle of the loss of employment land, the impact on the character and amenity of the area, impact on trees, landscape & nature conservation, flooding, drainage & contamination issues, highway considerations and the implications for the vitality and viability of town centres in the area,. COMMENTARY Principle of loss of employment land for B Class uses - The application seeks permission for a warehouse club, which is a sui generis use that has been found to have some of the characteristics of a retail outlet and some of a wholesale warehouse. The submission indicates that the proposal would provide a minimum of 160 jobs and that this number could rise to 250 as the business matured. The positions offered would range from unskilled bakery assistants, stockers etc, through clerical/secretarial, sales &

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security staff to more skilled jobs such as butchers & bakers for which specialist training would be given. Although this demonstrates that the nature of the proposed use has some employment characteristics, it is nevertheless a non- B Class use. In order to maximise the contribution to local employment provision, the applicants have offered a series of measures, to be secured through a S.106 agreement to include a target of 40% of staff from the locality; work experience for young people; a training programme for local people, guaranteed interviews for local unemployed and presentations to local community groups. The application site is on IQ Farnborough (referred to as the Main Factory Site in the Rushmoor Local Plan Review (1996 - 2011)(RLPR), where RLPR policy FA3 forms part of the current development plan and is applicable to the proposal. This allocates the site for employment development and specifically states that retail facilities should be ancillary to the redevelopment of the employment area. The Rushmoor Core Strategy (CS) was adopted in October 2011 and includes Policy SS1 (Spatial Strategy) that identifies IQ Farnborough as a ‘Key Employment Site’, and Policy CP8 that sets out how development proposals on Key Employment Sites should be assessed. This also forms part of the current development plan. The Core Strategy is very up-to-date and takes account of Government guidance and ministerial statements. The latter include the Minister for Decentralisation’s statement on 23 March 2011 setting out the Plan for Growth, which states (para 2) that: ‘the Government’s top priority in reforming the planning system is to promote sustainable economic growth and jobs. Government’s clear expectation is that the answer to development and growth should wherever possible be ‘yes’ except where this would compromise the key sustainable development principles set out in national policy.’ Similarly, the consultation draft National Planning Policy Framework (NPPF) sets out a presumption in favour of sustainable development and economic growth. These are recurrent themes throughout the document. The draft NPPF recognises that there may be a requirement to safeguard employment land, but advocates a flexible approach to its use. It states (paragraph. 24) that Local Plans should ‘allocate sites to promote development’ and ‘identify areas where it might be necessary to limit freedom to change the uses of buildings’. Para 73 goes on to state that in drawing up Local Plans, LPAs should, ‘set criteria, or identify strategic sites, for local or inward investment to match the strategy and to meet anticipated requirements over the plan period’. Para 75 states that ‘planning policies should avoid the long term protection of employment land or floorspace and applications for alternative uses of designated land or buildings should be treated on their merits having regard to market signals and the relative need for different land uses’. The Core Strategy also had to take account of PPS4 (which will ultimately be superseded by the NPPF). This states that Councils should identify a range of sites for economic development where it is necessary to safeguard the land from other uses (EC2.h). However, PPS4 cautions that allocations should not be carried forward in the development plan without a reasonable prospect of their take up during the plan period and that in such instances, ‘wider economic uses or alternative uses should be considered’. Policy CP8 supports the retention of Key Employment Sites to meet identified business needs (as per draft NPPF paragraph 25 and 73), but also sets out a positive approach to

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allowing other uses judged upon their specific characteristics (as draft NPPF paragraph 75). This approach uses the requirements of PPS4 as a starting point, but reflects the greater flexibility and emphasis on jobs and growth advocated by the Ministerial Statement and the Plan for Growth. Policy CP8 frames a positive approach to non B-class uses on Key Employment Sites where they would support or not be detrimental to the function and operation of the site. The test of function would consider the role that the site plays within the supply of such uses in the borough. The test of operation would consider how the proposed use would affect the operation of existing or potential future B-class neighbouring uses.

The proposal would be a sui-generis (non B-class) use, for which the Core Strategy provides an over-arching positive framework, provided it would support or not be detrimental to the site’s function and operation.

The function of the IQ Farnborough site in Rushmoor is as a high quality office park. The quality of the site is particularly identified by the HEP report, ‘Employment Land in Hampshire, Large Site Assessment Study 2009’. This assesses (from the market perspective) whether employment land is of the right type and in the right place to meet modern business needs, and whether it is capable of being viably developed. It identifies IQ Farnborough as a cluster site that is ‘strategic in nature to the Hampshire economy’. The Council's Employment Land Review (ELR) also recognises the site’s high quality.

However, the key indicator for the function test is whether there would be sufficient land of this type to serve the local area’s future needs. The Council’s most recent floorspace estimates (in the ELR, 2009) indicate that there is likely to be an oversupply of office floorspace in the Rushmoor (and the study sub-area, that included Hart District Council and Surrey Heath Borough Council), of which a large proportion is on IQ Farnborough.

Given the high level of vacant land and floorspace of this type, the slow historic take-up of land, and the predicted future oversupply, it is considered that the retention of the application site is not vital to meeting the wider employment needs of the Borough as sufficient other high quality office space (or land for office space) would be available elsewhere. It would therefore meet the test of function. It is also considered that subject to appropriate transport mitigation and high quality design, the proposal would not adversely affect the operation of the neighbouring businesses (or potential businesses), so would not undermine the operation of the site in that way.

Having regard to the supportive emerging national and adopted local policy, the Planning Policy Team consider that the proposed use would not result in a shortage of employment floorspace for office uses or harm the quality of the site as a location for B-class uses and therefore raise no objection to the loss of the employment land for B class uses in principle.

Character and amenity -

The detailed design of the warehouse building has been reserved for future determination. However, the scale of the proposal is to be determined at this stage and the submission includes a drawing indicating that the maximum height of the building would be 10 metres. The layout plan shows a rectangular footprint 127m wide and 100m deep positioned in the north west corner of the site.

The lies in a prominent position at the gateway to the business park and close to prestigious architect designed buildings including those just to the south at Farnborough Airport. Having

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regard to this prominent position, there were initial concerns that it would be difficult to design a building of the scale proposed that would be in keeping with the surroundings. The applicants have previously provided photographs of their warehouse building at Green Park, Reading, which is located on a similar prestigious business park. This building was designed specifically for the site and it is considered that it fits in well with the surroundings. Indeed the design and materials reflect some elements of the airport buildings just to the south of the Farnborough application site. In the circumstances it is considered that the applicants have demonstrated that it would be possible to design a building that would be in keeping with the business park location. Subject to submission of satisfactory details of the external appearance of the building at the reserved matters stage it is therefore considered that the proposal would have no material adverse impact on the visual character of the area. Trees, landscape & nature conservation - Elles Road, which runs along the western boundary of the site, is designated in the Local Plan Review as a green corridor, one of a number of linear routes providing important landscape and amenity corridors. Saved Policy ENV5 of the RLPR states that the Council will seek to conserve & enhance green corridors and will expect any adjoining development to include proposals to enhance their landscape value. Additionally, Policy CP11 of the CS highlights the importance of the diverse network of multi-functional green infrastructure across the Borough and requires all applications to ensure that there is no adverse impact on the green infrastructure network and makes appropriate provision for improvements. Policy CP15 of the CS seeks to maintain and enhance the Borough 's biodiversity. It states that new development will be required to protect and enhance features of biological interest and improve biodiversity by designing in provisions for wildlife, ensuring that any adverse impacts or are mitigated for if unavoidable. The siting of the warehouse would involve some loss of trees and vegetation along the Elles Road boundary. However, although landscaping is not to be determined at this stage, an indicative structural landscaping plan has been submitted, which illustrates a landscape strategy incorporating enhancements to the scheme. These include introduction of a native hedgerow on the eastern boundary and rows of semi-mature trees linking the warehouse building with the established landscape infrastructure along Templer Avenue and increasing tree cover in the parking area. The Arboricultural Officer considers that the above measures would mitigate the loss of trees & vegetation that the proposal would involve and has raised no objection in principle to the proposal, subject to conditions to secure a tree protection method statement, trench tree planting and underground water collection tanks for irrigation of landscaping in summer. These matters have been agreed with the applicant’s landscape architect. The Council’s Ecologist has reviewed the reptile survey submitted by the applicant and is satisfied that it demonstrates that the proposal would have no adverse implications for reptiles. Having inspected the site, he notes that it has developed into grassland that is suitable for ground nesting birds, including skylarks that are known to breed within the adjacent airfield. a condition should be imposed to ensure that no site clearance takes place during the breeding season between February & August. He has also suggested the final design of the building incorporates a green or brown roof and the Environment Agency have also recommended that this is considered as part of a comprehensive range of sustainable drainage solutions. The applicants have however indicated this may not be achievable.

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Flooding, drainage & contamination - The Environment Agency have reviewed the flood risk assessment (FRA) and additional information submitted by the applicant’s consultants on flood risk and groundwater protection. They conclude that the information is acceptable and raise no objection subject to conditions to secure a sustainable surface water drainage scheme for the site, and a remediation strategy to deal with any risk of contamination to protect groundwater quality. Subject to these conditions the proposal is considered acceptable in this respect. Highway & transport issues - The applicant has submitted transport assessment and draft site travel plan. The Council’s Transportation Strategy Officer has looked at the access, parking, servicing and circulation arrangements within the site. He considers that the proposed level of parking provision at 616 spaces meets the Council’s adopted standards and the layout and servicing arrangements meet the standard requirements. He therefore raises no highway objection to the proposal subject to monitoring of the level of disabled & cycle parking provision through the site travel plan. Because of the scale of the proposal, the strategic highway issues including traffic generation and impact on the proposal on the highway network have been considered by the County Highway Authority. Hampshire County Council have raised no highway & transport objection in principle subject to conditions, together with a legal agreement with the County Council to secure: a transport contribution to mitigate the impact of the proposal on the transport network; implementation and monitoring of a travel plan for the site; and removal of 22284sqm from the overall level of B1 floor space approved under the outline planning permission. The applicant has agreed in principle to the terms of the legal agreement. and subject to satisfactory completion of the obligation the proposal is considered acceptable in highway terms. Impact on town centres - The impact of the proposal on the revitalisation and regeneration of Farnborough and Aldershot town centres is a key determining issue. The health of Farnborough and Aldershot town centres, together with the strategies for their regeneration, are crucial to the assessment of this issue. PPS4 is particularly relevant to consideration of the proposal, especially policies, EC10, EC15, EC16 and EC17, which seek to protect investment in town centres and the vitality and viability of town centres from significant adverse impacts. In particular, it states that the impact assessment should cover a range of criteria including the impact of the proposal on existing, committed and planned public and private investment in a centre or centres; the impact on vitality and viability; the impact on in-centre trade / turnover and on trade in the wider area; and any locally important impacts on centres. The Consultation Draft NPPF includes the town centre first approach, with sequential and impact assessments, and emphasis on protection of town centre vitality and viability.

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RLPR Policy TC1 focuses upon the importance of the vitality and viability of Farnborough and Aldershot town centres and is therefore particularly relevant. Significantly, the Core Strategy (CS) sets out one of the key challenges as the regeneration and revitalisation of Farnborough and Aldershot town centres. The CS seeks to encourage a mix of town centre uses, requires a high quality environment and to promote accessibility and transport improvements. Policy SS1 of the CS sets out that town centre uses, including, retail development will be located within Aldershot and Farnborough town centres to support regeneration. This policy also states the hierarchy of centres will be maintained and enhanced by encouraging a range of facilities and uses, consistent with the scale and function of the centre, to meet people’s day to day needs. Reflecting the importance attached to the regeneration of the town centres the CS includes individual policies for Farnborough and Aldershot town centres. Policy SP4 (Farnborough Town Centre) states the objective of promoting a thriving, accessible and revitalized town centre by permitting development which is of good design, encourages vibrancy, supports the retail core, enhances the quality of the retail offer and improves leisure, cultural and entertainment facilities. Policy SP3 for Aldershot town centre sets out a similar approach to regenerate the town centre. In recognition of the need to improve the town centres the Council has also adopted supplementary planning documents for both Farnborough and Aldershot, which set out more detailed guidance, including site specific development opportunities. In addition and highlighting its high corporate priority the Council has set up a corporate town centre group led by the Council’s Chief Executive to proactively support the regeneration and improvement of Farnborough and Aldershot town centres. This work includes a review of development opportunities and environmental improvements in the town centres. The application is accompanied by a planning statement and significant amounts of supporting information. This includes a sequential assessment, retail impact assessment, health checks for local town centres and numerous appeal decisions where the Costco operation has been found acceptable in terms of retail impact and the sequential test. The Council has sought advice on the approach to be taken on these issues from a specialist retail consultant with DPP Planning Consultants as well as legal advice from Counsel. Having reviewed the applicant’s submission, the retail consultant has made the following key points on the likely retail impact of the proposal:

the proposal is unlikely to jeopardise development or investment in convenience goods but will direct footfall away from stores in town centre and edge of centre locations where linked trips are likely to occur, to an out of centre location;

the current weakness of Farnborough and Aldershot town centres indicates that it would be a mistake to encourage further out of centre development until town centre opportunities have been taken up;

having regard to the current vulnerability of Farnborough and Aldershot town centres, the projected diversion of comparison expenditure from the catchment area for the proposed Costco to an out of centre destination may result in harm to existing centres; nevertheless, he acknowledges that diversion of some £2.3m of comparison goods expenditure from Farnborough by 2016 and some £1.1m from Aldershot out of total potential comparison goods expenditure of about £216m in Farnborough and £165m in Aldershot would represent a relatively small impact;

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any diversion of footfall away from the town centres could lead to a decline in trade at underperforming retail outlets, further weakening the centres overall; he points out that the applicant’s own conclusions about the retail market and the delays in development coming forward in Farnborough should be sufficient to tell us that this is the wrong time for further out of centre space to be permitted;

the personal spend of trade customers is identified as a key issue and it was suggested that a completely independent survey was necessary to ensure that the Council had robust information to inform their assessment of the proposal’s impact.

By way of rebuttal Costco claim strongly that their operation is primarily wholesale and not retail. The Council requested permission from Costco to undertake or collaborate in such a survey but the request was declined. Due to changes in planning legislation the Council is not in a position to direct the applicant to carry out or permit such a survey, and Counsel has confirmed that this is the position. The application therefore has to be determined on the basis of the submitted information on the personal spend of trade customers. In response to the Council's concerns the applicant has submitted a sensitivity analysis, which models different percentages of personal spend. The town centre impacts identified by DPP are difficult to quantify or provide specific evidence on. Furthermore, the impacts that are easily quantifiable are at a level that has previously been found acceptable in appeal proceedings relating to other Costco stores. Costco’s business model of 65% trade sales and 35% retail sales, as generally accepted in these proceedings, is critical to the level of town centre impact identified. The Council does not have access to empirical evidence to confirm or analyse this conclusion in detail. The applicants offer to include a provision in a section 106 agreement to control the balance of sales from the Costco operation. Such agreements have been accepted by Inspectors and the Secretary of State as a robust way of controlling the use as a warehouse club. The application is also required to satisfy the sequential approach to site selection. The applicant’s submission concludes that there are no sequentially preferable sites for the proposal. The Council has approached adjacent Local Authorities who have been unable to identify any suitable sites in their areas. Conclusion The extent and significance of any likely impact on the vitality and viability of the town centre is a matter on which there remains some difference between the views of the applicants, the Council’s officers and the objectors who have made representations on this proposal. In coming to a recommendation on this proposal it has therefore been necessary to consider and balance the negative consequences demonstrated by the available objective evidence, against the benefits offered by the development including the package of measures offered by way of a S.106 agreement. It is considered that the scale of the impact identified balanced against the economic and employment benefits and other mitigation offered supports a recommendation to grant planning permission.

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The applicant's submissions and offer to enter into a S.106 agreement amounts to a range of economic benefits which constitute significant positive material considerations, particularly in the light of recent and up to date strong Government policy support for economic development. It is considered that the employment benefits would be enhanced by Costco’s undertaking to focus training and recruitment to the local job market. This arrangement would be similar to that put in place for the similar proposal recently approved in Southampton. It is considered that any specific negative town centre impact could be mitigated via a package of measures aimed at promoting links to Farnborough town centre in particular, and by an appropriate financial contribution to relevant environmental improvements. The applicants have undertaken to include in a Section.106 agreement provisions to promote the town centre through its marketing material and make a financial contribution towards enhancement of signage, links and the public realm between the railway station, the town centre and IQ Farnborough. Subject to satisfactory completion of a S106 legal agreement in this respect, it is therefore considered that the benefits of the scheme outweigh the level of negative impact on local town centres that has been identified. FULL RECOMMENDATION It is recommended that: A. the Solicitor to the Council be authorised to enter into a Planning Obligation under Section 106 of the Town and Country Planning Act 1990 with the applicant and the County Council on terms to be agreed with the Head of Planning to secure: 1. The implementation by Costco of a programme designed to inform customers about, and promote links to, Farnborough Town Centre to include the following measures:

All Costco marketing information relating to the new warehouse containing a map showing the location of the new warehouse in relation to the town centre.

Costco including a leaflet marketing the town centre and identifying it within initial marketing material sent to potential members within the proposed Costco catchment.

Distributing such leaflets at the warehouse exit during the first month after opening.

A notice board in a prominent position within the warehouse which will seek to encourage linked trips to Farnborough Town Centre, identify pedestrian links to the Town Centre/station, provide public transport information on links to the Town Centre and the railway station and identifying the location of Town Centre car parks, shops and services.

Costco joining the local Chamber of Commerce and undertaking to host events and trade fairs at the warehouse so that local businesses can promote themselves.

2. Costco making a financial contribution of up to £150,000 towards enhancement of signage, links and the public realm between the railway station, the town centre and IQ Farnborough in line with the identified objectives of the Farnborough Town Centre SPD, to be carried out within the first five years following implementation of the planning permission.

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3. Costco developing a phased Employment and Skills Plan with its local employment partners to cover both construction and business operation. This will include:

During the construction phase, Costco and their contractor providing work experience for 10 young people. In relation to the business operation:

A bespoke pre-employment training programme to up-skill local people

Sponsorship of a local venue for training within the Mayfield and Grange wards

Guaranteed interviews to any local residents currently unemployed or facing barriers to work

Targeting the employment of a minimum of 65 vacancies (40% of staff) from local residents

Offering all necessary training to employed staff in accordance with the details in the submitted Employment Opportunities Report

Offering presentations to any community groups who wish to be informed about the recruitment process.

4. Measures to mitigate the highway and transport impact of the proposal, including: -

A transport contribution of £655960;

The agreement and implementation of a travel plan for the site;

Payment of travel plan approval and monitoring fees; and

Removal of 22284 sqm of the originally approved B1 floor space. 5. Costco standard clauses relating to operation and membership of warehouse club including acceptance that retail use of the site would constitute development requiring planning permission. B. Subject to the satisfactory completion of the Planning Obligation within three months, the Head of Planning in consultation with the Chairman be authorised to GRANT permission subject to the following conditions: 1 The development hereby permitted shall be begun either before the expiration of three

years from the date of this permission or before the expiration of two years from the date of approval of the last of the reserved matters to be approved, whichever is the later.

Reason - As required by Section 91 of the Town and Country Planning Act 1990 as amended by Section 51 of the Planning and Compulsory Purchase Act 2004.

2 Application for approval of the following reserved matters shall be submitted to and

approved in writing by the local planning authority before any development begins and the development shall be carried out in accordance with the details so approved

(a) Appearance (b) Landscaping Reason - As required by Section 91 of the Town and Country Planning Act 1990 as

amended by Section 51 of the Planning and Compulsory Purchase Act 2004.*

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3 No works shall start on site until a scheme detailing the provision to be made on site

for a shared cycleway/footway linking Templer Avenue and the warehouse club have been submitted to and approved in writing by the Local Planning Authority. The approved scheme shall be fully implemented before the warehouse club commences trading.

Reason - To encourage sustainable travel.* 4 No works shall start on site until a scheme detailing the provision to be made on site

for cycle parking, including the specification and siting, have been submitted to and approved in writing by the Local Planning Authority. The approved cycle parking facilities shall be provided before the warehouse club commences trading.

Reason - To ensure that adequate cycle parking facilities are provided and to

encourage sustainable travel.* 5 The access arrangements detailed on drawing no. 83576/A/2 shall be fully

implemented before the building is occupied. Reason - In order to ensure adequate vehicular access 6 Development shall not begin on site until a surface water drainage scheme for the

site, based on sustainable drainage principles and an assessment of the hydrological and hydro geological context of the development, has been submitted to and approved in writing by the Local Planning Authority. The scheme shall subsequently be implemented in accordance with the approved details before the development is complete.

The scheme shall include the following:

details of the existing, proposed and Greenfield run-off rates and volumes, where applicable;

demonstration that runoff rates and volumes have been restricted as much as is feasible on site;

demonstration that a practicable range of SUDs have been considered for the development;

demonstration that the system is able to cope with up to the 1 in 100 year plus suitable allowance for climate change storm event without increasing flood risk off site;

demonstration that the total runoff from site will not exceed the 25l/s stated within the FRA.

Reason - To prevent the increased risk of flooding to the site and to ensure the

protection of groundwater. 7 Prior to the commencement of development hereby approved (or such other date or

stage in development as may be agreed in writing with the Local Planning Authority), the following components of a scheme to deal with the risks associated with contamination of the site shall each be submitted to and approved, in writing, by the local planning authority:

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1. Additional site investigation scheme, based on previous findings to provide information for a detailed assessment of the risk to all receptors that may be affected, including those off site.

2. The site investigation results and the detailed risk assessment (1) and, based on

these, an options appraisal and remediation strategy giving full details of the remediation measures required and how they are to be undertaken.

3. A verification plan providing details of the data that will be collected in order to

demonstrate that the works set out in (2) are complete and identifying any requirements for longer-term monitoring of pollutant linkages, maintenance and arrangements for contingency action.

Any changes to these components require the express consent of the local planning

authority. The scheme shall be implemented as approved. Reason - The site is situated on a Secondary Aquifer relating to the underlying

Camberley Sand Formation and Windlesham Formation. Marrow Brook is located approximately 120m north of the site. Thus, we consider that the site is located in an area of moderate risk to controlled waters.

The Phase 2 Environmental Site Investigation has identified potentially contaminative

historical uses. Some exceedances of generic assessment criteria for TPH and PAH were encountered in soil samples from TP4, TP32 and TP46. These trial pits are located in the area that will be used as a car park. Soil samples from TP29, TP32 and TP35 showed elevated levels of Zinc, Copper and Lead. If infiltration is proposed leachated test will be required.

Groundwater samples from BH1 and BH5 exceeded Environmental Quality Standards

for PCE and TCE by one order of magnitude. We require clarification of the location of the supposed source of contamination and try to define the contaminant plume. A Quantitative Groundwater Risk Assessment should be included in the report.

8 Prior to occupation of any part of the development hereby approved, a verification

report demonstrating completion of the works set out in the approved remediation strategy and the effectiveness of the remediation shall be submitted to and approved, in writing, by the local planning authority. The report shall include results of sampling and monitoring carried out in accordance with the approved verification plan to demonstrate that the site remediation criteria have been met. It shall also include any plan (a long-term monitoring and maintenance plan) for longer-term monitoring of pollutant linkages, maintenance and arrangements for contingency action, as identified in the verification plan, and for the reporting of this to the local planning authority.

Reason - Depending on the outcome of any ground investigation and subsequent risk

assessment, it may be necessary for remediation to be carried out, to protect groundwater quality. If this is the case, it will be necessary to demonstrate that any work has been carried out effectively and the environmental risks have been satisfactorily managed. One of the recommendation of the Phase 2 Report mentioned additional groundwater monitoring of the eight monitoring wells prior to construction, during and after. This recommendation should be implemented.

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9 If, during development, contamination not previously identified is found to be present at the site, no further development (unless otherwise agreed in writing with the Local Planning Authority) shall be carried out until the developer has submitted, and obtained written approval from the Local Planning Authority for, an amendment to the remediation strategy detailing how this unsuspected contamination shall be dealt with.

Reason - The site is underlain by a Secondary aquifer and groundwater quality needs

to be protected. Any visibly contaminated or odorous material encountered on the site during the

development work, must be investigated. The Planning Authority must be informed immediately of the nature and degree of contamination present.

10 No development shall take place until a programme of archaeological monitoring and

recording (watching brief) has been submitted to and approved in writing by the Planning Authority. The development shall then be implemented in accordance with the approved programme.

Reason - To ensure that any archaeological features are recorded. 11 Construction or demolition work of any sort within the area covered by the application

shall only take place between the hours of 0800-1800 on Monday to Fridays and 0800-1300 on Saturdays. No work at all shall take place on Sundays and Bank or Statutory Holidays.

Reason - To protect the amenities of neighbouring residential properties and to

prevent adverse impact on traffic and parking conditions in the vicinity. 12 Notwithstanding any indication given in the application, or in the absence of such

information, the design of the scheme shall include provision for installation of a receptacle for the harvesting and storage of rainwater to be recycled for the irrigation of new trees and soft landscaping.

Reason - To ensure sustainable drainage and landscaping maintenance. 13 With the exception of any trees specifically shown on the approved plans to be felled,

or as may be otherwise agreed in writing by the Local Planning Authority, no tree, or hedge within the application site shall be lopped, topped, felled, destroyed or damaged.

Reason - To preserve the amenity value of the tree(s)and shrubs. 14 Unless otherwise agreed in writing, no development, including demolition works, shall

start on site until an Arboricultural Method Statement (AMS)/and scheme of arboricultural supervision detailing low impact methods of construction and other tree protection measures within any tree protection area has been submitted to and approved in writing by The Local Planning Authority. The development shall be carried out strictly in accordance with the details so approved.

Reason - To ensure the amenity value of the tree(s) and shrubs in the vicinity of the

development is maintained.*

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15 The design of the scheme shall incorporate ecological enhancement measures, that

have first been submitted to and approved in writing by the Local Planning Authority. Reason - To protect and enhance the ecological value of the site in the interests of

biodiversity. 16 Unless otherwise agreed in writing, no works shall start on site until details of all

screen and boundary walls, fences, hedges or other means of enclosure have been submitted to and approved in writing by the Local Planning Authority. The development shall be completed and retained in accordance with the details so approved.

Reason - To safeguard the amenities of neighbouring property.* 17 Prior to occupation or use of any part of the development hereby approved, details of

satisfactory provision for the storage and removal of refuse from the premises shall be submitted to and approved in writing by the Local Planning Authority. The development shall be carried out and retained in accordance with the details so approved.

Reason - To safeguard the amenities of the area.* 18 No display or storage of goods, materials, plant, or equipment shall take place other

than within the buildings. Reason - To protect the amenities of neighbouring property. 20 The development hereby approved shall not be brought into use until the parking

spaces shown on the approved plans have been completed and made ready for use. The parking facilities shall be thereafter retained solely for parking purposes.

Reason - To ensure the provision and availability of adequate off-street parking. *

INFORMATIVES 1 INFORMATIVE - REASONS FOR APPROVAL - The Council has granted permission

because the proposal represents an appropriate use of the land which will provide a range of employment and other economic benefits consistent with the objectives of local and national policy without significant adverse consequential impact. It is therefore considered that subject to compliance with the attached conditions, and taking into account all other material planning considerations, including the provisions of the development plan, the proposal would be acceptable. This also includes a consideration of whether the decision to grant permission is compatible with the Human Rights Act 1998.

2 INFORMATIVE - This permission is subject to a planning obligation under Section 106

of the Town and Country Planning Act 1990 (as amended).

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3 INFORMATIVE - The applicant is recommended to achieve maximum energy efficiency and reduction of Carbon Dioxide emissions by: a) ensuring the design and materials to be used in the construction of the building

are consistent with these aims; and b) using renewable energy sources for the production of electricity and heat using

efficient and technologically advanced equipment for the production of electricity and heat.

4 INFORMATIVE - The applicant is reminded that under the provisions of the Food Safety Act 1990 there is a requirement to register all food premises with the Local Authority at least 28 days before the commencement of any business operations. The applicant must therefore contact the Head of Environmental Health for advice.

5 INFORMATIVE - The applicant is requested to bring the conditions attached to this

permission to the attention of all contractors working or delivering to the site, in particular any relating to the permitted hours of construction and demolition; and where practicable to have these conditions on display at the site entrance(s) for the duration of the works.

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