Draft Economic Development, Employment Land and Premises SPG

Ended on the 1 December 2022

6. Proposals for Non-Employment Uses on Existing and Allocated Employment Sites and Premises

6.1.1. Local and National Planning policies provide a presumption in favour of retaining existing and allocated employment land for traditional employment uses, and recognises that such land and premises can face pressure for inappropriate redevelopment for other uses. When considering non-employment proposals on land identified for employment uses, TAN 23 (paragraph 4.6.9 refers) recommends that local planning authorities should only consider this where one or more of the following apply:

  • "they have poor prospects of being re-occupied for their previous use;
  • the particular market that the site is part of is oversupplied;
  • the existing employment use has unacceptable adverse impacts on amenity or the environment;
  • the proposed redevelopment does not compromise unduly neighbouring employment sites that are to be retained;
  • other priorities, such as housing need, override more narrowly focussed economic considerations; and/or
  • Land of equal or better quality is made available elsewhere, even if this is not within the local planning authority boundary."

6.1.2. The following section sets out how the Council will consider proposals for the development of ancillary and non-employment uses at existing employment premises and sites. In addition, it identifies the necessary supporting evidence required to support such proposals. It should be noted however that the type of evidence required may vary depending on individual circumstances and further advice is available from the Council through pre-application services.

6.1.3. For the purposes of LDP Policies MD15 and MD16, 'employment uses' are defined as those that fall within the 'B' Use Class as defined in the Town and Country Planning (Use Classes) Order 1987 (as amended) as follows:

  • B1 Business - Offices (other than those that fall within class A2 such as estate agents, banks, insurance brokers etc.), research and development of products and processes, light industry;
  • B2 General Industrial - industrial processes other than one falling within class B1 such as manufacturing and engineering (but exclude incineration purposes, chemical treatment or landfill or hazardous waste);
  • B8 Storage or distribution, such as wholesale warehousing, distribution centres, repositories, and also includes open air storage e.g. building merchants.

6.1.4. This section refers to other uses not falling within these 'B' uses.

6.2. Ancillary uses on Employment Sites

"At existing employment sites and premises proposals for non B1, B2 and B8 employment uses will only be permitted where: […] The proposal is for ancillary or sui generis uses that would not singularly or cumulatively lead to a material change in the nature of the employment site." (Policy MD16, Criterion 1)

6.2.1 On existing and allocated employment sites, LDP Policies MD14, MD15 and MD16 permit proposals for ancillary uses which fall outside the B use class, where they are either subordinate to an existing business or where the proposal would not materially affect the character and employment role of the site, either singularly or cumulatively. In this respect, new non-B use class proposals should be of an appropriate scale and should primarily meet the needs of workers in the vicinity, and not rely on additional passing trade that would attract significant levels of visitor traffic unrelated to the employment site / premises. Therefore, the scale of the ancillary use must be proportionate to the scale of the industrial estate.

6.2.2 Examples of complimentary ancillary uses include trade counters, cafes or food outlets, leisure facilities and childcare facilities where they primarily serve the employees and customers of the employment site. The type and size of the ancillary use will be assessed in relation to the scale and location of the proposal and its context.

6.2.3. In order to demonstrate that proposals are ancillary to the employment site / premises, developers will need to provide details of how the new business will operate. This could include a Business Plan showing where customers are expected to come from, the proportion of income generation from on-site customers relative to external trade, business hours, management arrangements, operational details such as staff numbers and internal floor plans. If necessary, the Council may consider limiting the opening hours of the ancillary use to coincide with the operation of the wider employment site.

6.2.4. On strategic and local employment allocations, Policy MD15 limits ancillary uses to those which are minor in nature and directly associated with the nature of the businesses for which the sites are identified. In the case of strategic employment sites, the need for ancillary and non-business facilities should be considered as part of the overall development scheme at the master-planning stage.

6.3. Other (Sui Generis) uses on Employment Sites

6.3.1. Sui generis (meaning 'of its own kind') are those uses that do not fall within a specific use class like B1, B2 or B8 and Policy MD 16 provides a general presumption against non B1, B2 and B8 uses. However, where they are of a scale or nature that is similar to a typical B use class it may be appropriate to allow them on an existing or allocated employment site as these are the most appropriate location for them.

6.3.2. In this regard Policy MD 16 states:

"At existing employment sites and premises proposals for non B1, B2 and B8 employment uses will only be permitted where: The proposal is for […] sui generis uses that would not singularly or cumulatively lead to a material change in the nature of the employment site; […] and the proposal would not prejudice existing or neighbouring employment uses, have an unacceptable impact on amenity or the environment and would not lead to a material change in the nature of the employment site."

6.3.3. Each case will need to be considered on its own merits and having regard to matters such as:

  – the needs of the proposed use or business e.g. scale and location requirements and the availability of alternative sites in more suitable locations elsewhere to accommodate the use;

  – the compatibility with surrounding business uses and whether the development would lead to a material change in the nature of the employment site;

  – the impact on demand and supply of suitable available sites for identified employment needs, i.e. whether it would lead to an unacceptable loss of employment land which is in short supply to meet demand; and

  – the environmental, social, economic or other benefits of the development proposal having regard to wider LDP and policy objectives.

6.3.4. Examples of sui generis uses which are similar in nature to B1, B2 and B8 uses could include:

  • Amenity waste site
  • Construction waste deposit, treating, keeping, storage or disposal place
  • Demolition contractor's yard
  • Haulage yard
  • Industrial plant and equipment hire place or vehicle depot
  • Plumber's merchants' yard
  • Power station
  • Sand and gravel merchant's storage or distribution place
  • Scrap handling place (i.e. scrapyard)
  • Vehicle depot
  • Wholesale market (for meat, fish, flowers, vegetables etc.)

Policy MD16 criterion 5 states that proposals must "not lead to a material change in the nature of the employment site". Such changes may include increased levels of traffic and demand for parking that undermines the attractiveness and operational effectiveness of the employment site. Similarly, some uses could attract different employees or customers, including vulnerable groups like children or animals, which may not be compatible with existing uses in terms of noise, dust or heavy machinery and equipment being used in the vicinity including haulage vehicles. These issues need careful consideration having regard to the specific proposals and opportunities for mitigation.

Proposals for non-employment uses such as retail uses (other than trade counters and wholesale warehouses) are generally best suited to town centre locations and will therefore usually be resisted by the Council in line with national and local planning policy.

6.4. Justification for Other non-employment uses

6.4.1. Policy MD16 criteria 1, 2, 3 and 4 set out the circumstances where a change of use of an existing employment site or premises may be considered justifiable. The following sections provide further detail on the circumstances and the evidence that will be required from applicants in respect of proposals for the development of other non-employment uses that would not be considered to be 'ancillary' nor comparable 'sui generis' uses described in sections 6.3 above.

6.4.2. All proposals assessed under Policy MD16 must meet at least one of the criteria outlined in the following sections and criterion 5 which states:

AT EXISTING EMPLOYMENT SITES AND PREMISES PROPOSALS FOR NON B1, B2 AND B8 EMPLOYMENT USES WILL ONLY BE PERMITTED WHERE: […] THE PROPOSAL WOULD NOT PREJUDICE EXISTING OR NEIGHBOURING EMPLOYMENT USES, HAVE AN UNACCEPTABLE IMPACT ON AMENITY OR THE ENVIRONMENT AND WOULD NOT LEAD TO A MATERIAL CHANGE IN THE NATURE OF THE EMPLOYMENT SITE.

6.5. Environmental and Amenity Benefits

"AT EXISTING EMPLOYMENT SITES AND PREMISES PROPOSALS FOR NON B1, B2 AND B8 EMPLOYMENT USES WILL ONLY BE PERMITTED WHERE: […] The existing employment use has unacceptable adverse impacts on amenity or the environment." (Policy MD16, criterion 2)

6.5.1. Policy MD16 criteria 2 permits proposals for non-B uses on employment sites and premises where the existing employment use currently has unacceptable adverse impacts on amenity or the environment. Applicants need to demonstrate how the existing use causes harm that cannot be appropriately mitigated and how their proposals would improve the current situation.

6.5.2. In particular, applicants would need to demonstrate that the existing use causes an unacceptable impact on people, residential amenity or the natural environment from either:

  1. Pollution of land, surface water, ground water and the air;
  2. Land contamination;
  3. Hazardous substances;
  4. Noise, vibration, odour nuisance and light pollution;
  5. Flood risk and consequences;
  6. Coastal erosion or land stability;
  7. The loss of the best and most versatile agricultural land; or
  8. Any other identified risk to public health and safety.

6.5.3. The benefits of alternative development can include both environmental and amenity benefits, as well as the regeneration of an area. Such benefits could include improvements in the physical and visual appearance of an area or in the amenity of existing neighbouring employment, recreational or residential areas.

6.5.4. The applicant should set out these benefits to support their proposal. However, applicants should note that whilst the existing occupier of a site may be regarded as a 'bad neighbour', this does not in itself justify the loss of an employment use, particularly where it is likely that a site can be reused or redeveloped for an alternative employment use. Furthermore, the environmental and amenity impacts of the existing use would not be considered in isolation of other relevant planning matters. For example, the benefit of removing a 'bad neighbour' employment use alone would not justify allowing a development that was otherwise contrary to planning policy such as retail development outside recognised retail centres, or residential development outside a sustainable settlement. As noted above, such proposals must not lead to a material change in the nature of the employment site.

6.6. Supply of Alternative Land and Premises

"AT EXISTING EMPLOYMENT SITES AND PREMISES PROPOSALS FOR NON B1, B2 AND B8 EMPLOYMENT USES WILL ONLY BE PERMITTED WHERE: […] Land of equal or better quality is made available for employment uses elsewhere." (Policy MD 16, criterion 3)

6.6.1. Policy MD16 criterion 3 indicates that the Council may allow the redevelopment of local employment sites and premises for alternative uses where it can be evidenced that alternative land or premises of equal or better quality is available for employment uses elsewhere. Applicants will therefore be required to demonstrate evidence of such availability, whilst also having regard to the suitability of the alternative sites/premises to accommodate the type of use for which the land is used or allocated.

6.6.2. When compiling a list of alternatives, applicants should ensure that these are:

  • Genuinely available for development within a reasonable time frame;
  • Free from constraints that would impact on the site's development prospects; and
  • At least of an equal quality to the application site (e.g. location, accessibility to local labour markets and customer base, green credentials, broad band connection, site constraints).

6.6.3. The Council is unlikely to favour the loss of serviced employment sites and premises unless it can be shown that sites or premises of equal quality are readily available with the Vale of Glamorgan. Applicants should therefore provide robust evidence to demonstrate that alternative sites are readily available and likely to come forward.

6.7. Market Demand and Viability of Existing and Allocated Employment Sites

AT EXISTING EMPLOYMENT SITES AND PREMISES PROPOSALS FOR NON B1, B2 AND B8 EMPLOYMENT USES WILL ONLY BE PERMITTED WHERE: […] It is demonstrated that the site or premises is no longer suitable or viable for employment purposes." (Policy MD 16 criterion 4)

6.7.1. The Council's starting point is to retain all employment sites and premises that are considered suitable, in land use terms, for continued employment use. Criterion 4 of Policy MD16 requires applicants to evidence that there is either a lack of market demand or viability affecting the site or premises which means it is unlikely to come forward for employment use.

6.7.2. Accordingly, consideration will only be given to alternative uses where applicants can clearly demonstrate there is no demand or that it is unviable to retain it for employment use in the longer term. It will not be acceptable to demonstrate only a short term / immediate lack of market interest in a site, which may be as a result of sudden or short-lived market issues. Developers will be expected to show that a site has no realistic prospect of being occupied for employment uses in the medium to long term, with reliable and credible evidence.

6.7.3. Applicants will need to demonstrate that they have made reasonable efforts to market the site and adapt it to respond to modern employment needs. This includes considering the potential to refurbish existing premises or redevelop it for new employment uses. The Council expects applicants to adopt a flexible approach to promoting sites and premises according to the circumstances that prevail, including the subdivision or amalgamation of units or partial demolition in order to improve access and servicing, where appropriate.

6.7.4. Where a developer is trying to demonstrate that an employment site is surplus to demand, the site should be currently vacant and have been vacant for some time. Where the site is fully or partially occupied, this will normally be deemed by the Council to constitute evidence of demand for the site/premises, unless clear evidence is provided which outlines an occupier's intention to vacate the site, their reasons for doing do, and why they would be unlikely to be replaced by an appropriate employment use.

6.7.5. Employment land may be released for alternative appropriate uses if:

  • there is little prospect of it being re-occupied by its previous use;
  • the market that the particular site is part of is oversupplied;
  • the existing use has unacceptable impacts on the amenity or environment and/or;
  • other policy priorities (such as acute housing need) are judged more pressing than economic considerations.

6.7.6. However, redevelopment of an existing or allocated employment site should not provide a precedent that will compromise the retention of other (more viable) employment sites in the area.

6.7.7. The Council collects annual employment premises information on existing employment sites identified under Policy MD16 which identifies the economic health of the sites based upon vacancy rates.

6.8. Marketing Evidence

6.8.1. A Marketing Statement and other appropriate supporting evidence will be required in order to demonstrate that the site or premises has been appropriately marketed and there is no current demand for employment use. The marketing strategy should be prepared by a suitable professional person such as a Chartered Surveyor, who has a sound knowledge of the sale/lease of commercial properties in the area and has the relevant certification. The statement must demonstrate that the site has been recently marketed for an appropriate value reflecting the market conditions as well as the condition of the site.

6.8.2. Marketing must as a minimum be undertaken continuously in line with Table 2 below before an application for a change of use is submitted to the Council. However, the marketing period should reflect the specifics of each individual case and any prevailing economic conditions, for example a longer period may be required if the market is slow or the site/premises are large or complex. Conversely, a shorter period may be appropriate if site-specific issues can be identified that set the site apart for the general supply and evidence clearly indicates that demand would not be forthcoming. Applicants are encouraged to use the Council's pre-application services so that such matters can be discussed at an early stage. Details of this service are available on the Council's website.

6.8.3. The table below sets out the various marketing tools that should be used to market the site/premises and to evidence the marketing strategy undertaken.

Table 1: Marketing Requirements

Type/Scale

Premises

Site <2 ha

Site > 2ha

Marketing Period

12-18 months

12-24 months

Minimum 24 months

On-site Marketing Board in prominent location

Yes

Yes

Yes

Local Property Agent

Yes

Yes

Yes

Regional Property Agent

Yes

Yes

Yes

Produce Marketing Particulars

Yes

Yes

Yes

Targeted mailing to Local/ Sub- Regional/Welsh property Agents

Yes

Yes

Yes

Targeted mailing to Local/Sub-Regional/Welsh Property Developers/Investors

Yes

Yes

Yes

Targeted mailing to UK National Property Agents/Developer/Investors

Yes

No

No

Targeted mailing to selected potential occupiers

Yes

Yes

Yes

Advertise in Sub-Regional/Welsh Business Press

Yes

Yes

No

Advertise in UK National Property Press

Yes

No

No

Website

Yes

Yes

Yes

Internet Mailing to Targeted Business

Yes

Yes

Yes


6.8.4. In addition to the above, the Marketing Statement should include as a minimum the following evidence:

  1. Copies of advertisements placed;
  2. The type of use which the property/site has been marketed for, what the marketing strategy involved and its duration;
  3. The market price, which should reflect the current market value of such a property based on its current condition and use status. If the building or site requires extensive conversion/repairs, the price should be based on the unconverted state unless the works are to be undertaken prior to completion. The price should not include any potential residential or other non-employment use values.
  4. Any variations in terms/conditions on which the site is made available, including tenures. Applicants should be prepared to offer the property or site on both a leasehold and freehold basis in order to widen appeal and help ascertain the level of interest;
  5. Types of client advised of its availability together with associated contact details;
  6. The amount of interest in the site during the marketing period - this should detail the number of queries, the type of use sought, and if known, the reason for not pursuing the initial query;
  7. Where relevant the relocation of existing occupiers to other suitable accommodation will be facilitated.

6.8.5. In instances where the Council considers that the marketing strategy has not been adequately undertaken it is likely that the planning application will be refused.

6.9. Development Viability

6.9.1. In certain cases, lack of market demand may be as a result of factors such as physical configuration, state of repair or infrastructure needs which may render a site/premises unviable for employment purposes.

6.9.2. Where this is the case, applicants are required to demonstrate that the retention of a site/premises for employment use is unviable through a development appraisal prepared by a suitably qualified surveyor. This should also include the consideration of alternative options such as refurbishment, partial or full demolition and rebuild, and demonstrate that the associated costs are greater than the projected financial return.

6.9.3. The following evidence will need to be provided in the form of a viability appraisal of the site in order to demonstrate that the site/premises is unviable for current or future employment uses:

  1. A survey of the site/premises from an operational point of view indicating any exceptional or site-specific costs such as necessary site infrastructure and services or land remediation costs;
  2. Land value or purchase price and transactional details;
  3. A structural survey of the existing premises to highlight the extent of any refurbishments required are incapable of proceeding;
  4. Detailed costs of the works required to refurbish/redevelop the site/premises;
  5. In the case of a prospective landlord that the anticipated rate of return from the premises would not cover the costs of refurbishment / redevelopment; or
  6. In the case of a prospective owner occupier the level of income needed to cover both the costs of refurbishment / redevelopment and other necessary overheads.

6.9.4. Costs and values should be set at prevailing market rates at the time of the submission and a clear justification should be provided for any prices paid that exceed the market value. However, to take account of changing economic circumstances consideration should be given to any likely changes in market conditions within a 3-5-year period which could impact upon development viability.

6.9.5. Comparisons with other similar employment schemes in the local area should be provided to justify the site-specific issues that set the site apart from the general supply, in particular the presence of any identified abnormal costs. The Council will assess viability either in-house or through a chosen independent consultant, such as the District Valuer. Where other professional advice is required, for example highways or ecological advice, other specialist consultants may be involved. All costs associated with these assessments will need to be met by the applicant. Applicants will be required to highlight any abnormal development costs at the earliest possible stage, in order that their impact on the viability of a scheme may be assessed.

6.10. Enabling Development

6.10.1. Where it can be demonstrated that redevelopment for employment purposes alone cannot be achieved on financial grounds, the Council expect applicants to consider alternative mixed uses that can enable the delivery of employment facilities. The amount of enabling development must be proportionate to the investment required to facilitate investment in employment provision and should be fully evidenced through the development viability appraisal as explained in section 6.9 above. Furthermore, where alternative uses are being promoted, applicants must have full regard to other relevant LDP policies.

6.10.2. Where mixed-use developments are proposed, the site layout should be designed to minimise the possibility of conflicts between the different uses proposed, and existing neighbouring uses. New employment uses should also be designed to be flexible and adaptable where possible to enable use by a range of businesses and operators.

6.10.3. The Council will use planning conditions and / or planning obligations to ensure that such developments are phased appropriately to ensure the employment uses are delivered, and the enabling development is not provided in isolation.

6.11. Safeguarding Existing and Future Potential Employment Uses

"The proposal would not prejudice existing or neighbouring employment uses, have an unacceptable impact on amenity or the environment and would not lead to a material change in the nature of the employment site." (Policy MD16, criterion 5)

6.11.1. LDP Policy MD16 (criteria 5) seeks to project the amenity of existing and neighbouring business uses from non-employment uses that could potentially impact on their ability to operate. When considering the criteria under Policy MD16 applicants must demonstrate how a proposal meets at least one of the criteria 1 to 4 (referred to above) as well as evidencing compliance with criterion 5.

6.11.2. Proposals for the reuse or redevelopment of sites or buildings for non-B Class employment uses should be accompanied by evidence to demonstrate that the proposed development would not compromise the operating conditions of other remaining employment users (including vacant or underused sites and premises) or the potential future use of neighbouring sites for employment purposes.

6.11.3. Without careful consideration of the potential impacts on existing industrial or other employment operations or their future amenity, prior to the development being permitted, there is a risk that the development would give rise to increased levels of complaints, requiring restrictions to be placed on those operations, which might undermine their future viability.

6.11.4. In order to justify their proposal on these grounds, applicants will need to include within the Supporting Statement the following information:

  1. Details of any adjacent employment uses and the types of activities that are currently taking place or are likely to take place in the future;
  2. An analysis of any potential conflicts between those remaining uses/facilities and the proposed non-employment use, including an assessment of issues such as:
    • Noise, odour, dust or other emissions;
    • Hours of operation;
    • Vibration;
    • Light;
    • Vehicular access, parking and servicing; and
    • Safety and security.

6.11.5. The analysis should include details of any measures that could be put in place to mitigate these issues. This consideration will be particularly important where sensitive land uses are proposed to be introduced into identified Employment Areas.

6.11.6. When considering proposals for non-employment uses, the Council may also take account of the presence of existing non B uses in order to safeguard employment sites from an over concentration of non B uses on existing and allocated employment sites, which singularly or cumulatively lead to a material change in the nature of the employment site. In this regard, the annual employment land and premises survey will inform the Council's consideration of proposals for non-employment uses.

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