Scottish Government

9 CONCLUSIONS & RECOMMENDATIONS

Overview: Conclusions

9.1 This research set out to identify factors that act as barriers to the delivery of mixed use development in Scotland and explore how the indentified barriers can be addressed and what those interventions should be. In this context planning reform presents an ideal opportunity. A reformed, ambitious, visionary development planning system can assist in putting in place appropriate interventions to help deliver mixed use development. The emphasis on ' translating policy into action' and implementing this to deliver more and better quality mixed use development will require appropriate skills. In the current economic downturn there are likely to be very significant opportunities to stimulate and deliver appropriate mixed use development using new kinds of 'delivery models'.

9.2 There are also likely to be very specific opportunities for local planning authorities in Scotland to adopt a more proactive role to sponsor, pilot, promote and deliver mixed use development projects that act as a catalyst to accelerate the wider regeneration of Scotland's cities and towns. Scotland could at this time use this research as an opportunity to start to lead the way in demonstrating how to deliver high quality mixed use development.

9.3 On the basis of the findings in Chapter 8, the Research Team has developed a series of recommendations and suggestions in the form of interventions to overcome the indentified barriers. These are set out below.

Recommendation 1: Scottish Government to Enable Provision of More Proactive Advice on How to Deliver Mixed Use Development & Improve Skills

9.4 Suggestion 1: There is a pressing need to refine the working definition of what we mean by mixed use development. The definition of mixed use development that emerged from this research includes the following three principles:

• Two or more revenue producing uses / activities;
• Significant physical and functional integration including real physical connections between uses within a five minute walk; and
• A higher density, multi functional environment with vitality and attractiveness (see paragraph 4.8).

9.5 It would not be appropriate however toadopt a standard national definition of mixed use development in Scotland because of the need to reflect the local contexts and circumstances. In particular the scale of the opportunity: plot, street block and neighbourhood are all very different. Reviewing the working definition above could be led by Architecture & Design Scotland.

9.6Suggestion 2: Using an agreed clearer definition would also allow for more robust and accurate statistics to be collected as part of the regular Planning Performance Statistics evidence base. This would also allow the implementation of mixed use development across all the Scottish local planning authorities to be monitored.

9.7Suggestion 3: Establish a Scottish mixed use development web site with best practice case studies, relevant images and advice material structured around barriers, possibly linked to the Scottish Government's Learning Network and the recently launched Mixed and Sustainable Communities Learning Network. Overall planning policies on mixed use development need to be more precise and firmly founded on an understanding of realistic market opportunities for uses and policies should require rather than just encourage mixed use. Robust capacity and market studies are required to help justify mixed use masterplans, set their context and specific location.

Recommendation 2: Initiative To Promote Delivery Of Mixed Use Development

9.8 The overall aim should be to be proactive and advocate mixed use development to local government officers and members, community councils, residents and business groups, to collect and share good practice and invest in resources, tools and research. This would help to overcome some of the concerns raised in the questionnaire responses, by house builders and commercial developers.

9.9Suggestion 4: Local authorities should be clear and robust in their local definition of mixed use based on Suggestion 1 above and identify opportunities based on capacity and market studies and so confirm the mixed use proposals and locations in their emerging development plans.

9.10Suggestion 5: Local authorities should audit their skills base and identify their particular training and recruitment needs so as to deliver effective mixed use development. They could then put in place appropriate arrangements to ensure a more 'joined-up' approach to deliver mixed use development across different departments and disciplines like Planning, Urban Design, Transport, Estates and Environmental Health.

9.11Suggestion 6: Ensure that the Improvement Service and professional institutes like the Royal Incorporation of Architects in Scotland ( RIAS), Royal Institution of Chartered Surveyors ( RICS) and Royal Town Planning Institute ( RTPI), through CPD, to deliver relevant skills development and training at the appropriate levels to secure more and higher quality mixed use development. This should include development economics, markets and delivery topics.

9.12Suggestion 7: Encourage local planning authorities, as good practice to establish cross disciplinary/department/service teams both to promote and help deliver mixed use development and to negotiate on mixed use developments that have reached the stage of a planning application. This could include temporary secondments into 'developer teams' and vice versa.

9.13Suggestions 8: Explore how to establish a small team of independent experts possibly in conjunction with the Improvement Service or Scottish Property Federation, who could provide specific advice to local planning authorities on structuring joint ventures to deliver mixed use development.

Recommendation 3: Enhanced Advocacy Role for Architecture & Design Scotland ( A+DS)

9.14Suggestion 9:A+DS's remit includes 'translate policy ambitions into action'; hence it may be possible for A+DS to naturally take on an enhanced advocacy role in promoting the delivery of mixed use development particularly in the context of planning reform and the economic downturn. A+DS should be involved in researching, publishing and disseminating best practice advice on delivering mixed use development. This suggestion could be considered as part of response to the recent review to refine the responsibilities of A+DS. (see 8.10)

9.15 Other opportunities for A+DS to work to overcome barriers to mixed use may exist through engagement with forthcoming A+DS initiatives including: housing charettes; future Scotland debate series and possibly town centre regeneration.

Recommendation 4: Encourage & Pilot New Approaches to Deal Structure: Funding & Managing Mixed Use Developments

9.16Suggestion 10: Explore different models to deliver mixed use development and disseminate best practice. The joint venture/ non profit company route based on an 'open book' approach may offer an alternative model but it would be for the parties involved to identify what is best for them. There could also be opportunities resulting from the current economic climate and alongside local planning authorities' prudential borrowing to proactively pilot a 'live' mixed use project.

9.17Suggestion 11: Explore the possibilities of using Outline Planning Permission (Planning Permission in Principle from August 2009) with a Parameters Plan and then Area Planning Briefs to smooth the path through planning/development management for well conceived mixed use development with a researched and robust masterplan that covers market justification and design issues equally.

9.18Suggestion 12: As a more radical intervention, the Scottish Sustainable Communities Initiative could in the appropriate circumstances work in a pilot project with a local planning authority and a promoter/developer. The aim would be to deliver mixed use development using a 'flexible' planning permission within certain parameters that allows the proportions of different uses to change depending on market conditions but within an agreed masterplan.

9.19Suggestion 13: Consider new models for funding 'up front' major infrastructure for larger more complex mixed use developments: e.g. Tax Increment Financing

9.20Suggestion 14: Amend business rates liability for new non-domestic properties within mixed use developments in order that new build mixed use subjects do not enter the valuation roll until they are occupied or void relief is extended to 100% indefinitely for new build non domestic properties in mixed use developments that remain vacant.

9.21Suggestion 15: Aim to better promote the use and benefits of the legislation that affects multiple residential ownerships and this could be undertaken by a range of professional bodies including RICS and be part of CPD training programmes.

9.22 More details on timing, responsibility, value for money and risks relating to these recommendations and suggestions are summarised in Table 9.1.

Table 9.1: Implementing the Recommendations & Suggestions

SSCI: Scottish Sustainable Communities Initiative
RIAS: Royal Incorporation of Architects in Scotland
RTPI: Royal Town Planning Institute
RICS: Royal Institution of Chartered Surveyors
SPF: Scottish Property Federation
A+DS: Architecture + Design Scotland
VFM: Value for Money