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PLANNING OFFICER REPORT AND RECOMMENDATIONS Application No. : Applicant: Proposal: 14/00594/B Tesco Stores Limited Erection of detached building of 54 square metres floor space in car park area for seasonal retail sales Tesco Store Lake Road Douglas Isle Of Man IMl 5AF Site Address: Case Officer: Photo Taken : Site Visit: Expected Decision Level : Mr Edward Baker 10.06.2014 Planning Committee Officer's Report THIS APPLICATION IS REFERRED TO THE PLANNING COMMITTEE BECAUSE IT PREVIOUSLY CONSIDERED A SIMILAR PROPOSAL IN 2013. THE APPLICATION SITE The application site is the Tesco supermarket store, Douglas. The store is situated alongside Lake Road and adjacent the River Douglas. The application relates to part of the car park, opposite the main entrance to the store. 1. THE PROPOSAL The application seeks planning approval for the erection of a detached sales building (akin to a metal shed) in the car park. The building would measure 9 metres in length, by 6 metres in width and 4 metres in height, Its floor area would be 54 square metres, It would have a shallow pitched roof. The building was in place without planning approval last year and was the subject of a planning application seeking retrospective approval, which was refused (13/00687/B). 2. The applicant has confirmed that the building is to be used for the sale of seasonal goods, including: 3. Summer toys; Garden furniture and equipment; BBQ equipment and accessories; Plants and flowers; Camping equipment Picnic equipment including paperware/napkins etc. Beach towels; TT related merchandise; Summer/outdoor clothing i.e. wetsuits etc. Christmas related goods; and Other ancillary seasonal items to those identified above. PLANNING HISTORY 30 June 2014 14/00594/B Page 1 of 9

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The site has an extensive planning history. The following applications are considered most relevant to the current application: 13/91316/8 - application approved in January 2014 for erection of an extension and vehicle loading canopy, enlarge existing yard and alterations to existing car park layout. There has been a subsequent appeal which is currently outstanding. 13/00687/B - application refused in 2013 for erection of seasonal extension to retail store between 01 April and 30 September annually (the proposal was similar, but not identical, to what is now being proposed). The grounds for refusal were as follows: 'The site and supermarket store are outside Douglas town centre where there is a presumption against additional retail development according to the Isle of Man Strategic Plan 2007. The proposal conflicts with the Island's long standing and current policy of directing retail development to town centres. The proposal would conflict with Business Policy 10 of the Strategic Plan which states that retail development will be permitted only in established town and village centres, in the interests of safeguarding their vitality and viability. The Planning Authority is further concerned that to permit the development would set an unwelcome signal and precedent for further expansion of the supermarket site to the potential detriment of the vitality and viability of Douglas town centre, thus also undermining the implementation of Business Policy 9 of the Strategic Plan.' 09/00301/B - application refused in 2010 by the Council of Ministers for the erection of a store extension including mezzanine and bulk store extension, temporary store, decked car park and alterations to highway. The proposed gross floor space was 4,777 square metres (2,788 square metres net). 04/02320/B - approval granted in 2005 for the construction of a home shopping area and canopy (amendment to 04/00937/B). 04/00937/B - approval granted in 1994 for the construction of a home shopping area, canopy, link walkway and turning head. The proposal altered the scheme refused under 03/01646/B. 03/01646/B - application refused for the construction of a home shopping area, canopy and link walkway in existing service yard. 97/00418/B - approval granted for retail development comprising food supermarket with associated warehouse, offices, coffee shop, petrol station and car parking. PLANNING POLICY The Tesco store and its curtilage (including car parking and yard) are zoned as Retail Warehousing by the Douglas Local Plan 1998. It is also recognised as being within the Central Area Boundary. 5. 6. The following policies in the Isle of Man Strategic Plan 2007 are considered relevant: Strategic Policy 9: 'All new retail development (excepting neighbourhood shops and those instances identified in Business Policy 5) and all new office development (excepting corporate headquarters suitable for a business park(l) location) must be sited within the town and village centres on land zoned for these purposes in Area Plans, whilst taking into consideration Business Policies 7 and 8.' General Policy 2 of the Isle of Man Strategic Plan 2007 states: 30 June 2014 14/00594/B Page 2 of 9

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'Development which is in accordance with the land-use zoning and proposals in the appropriate Area Plan and with other policies of this Strategic Plan will normally be permitted, provided that the development: (a) is in accordance with the design brief in the Area Plan where there is such a brief; respects the site and surroundings in terms of the siting, layout, scale, form, design and landscaping of buildings and the spaces around them; does not affect adversely the character of the surrounding landscape or townscape; does not adversely affect the protected wildlife or locally important habitats on the site or adjacent land, including water courses; does not affect adversely public views of the sea; incorporates where possible existing topography and landscape features, particularly trees and sod banks; does not affect adversely the amenity of local residents or the character of the locality; provides satisfactory amenity standards in itself, including where appropriate safe and convenient access for all highway users, together with adequate parking, servicing and (b) (c) (d) (e) (f) (g) (h) manoeuvring space; does not have an unacceptable effect on road safety or traffic flows on the local (i) highways; (j) can be provided with all necessary services; (k) does not prejudice the use or development of adjoining land in accordance with the appropriate Area Plan; (l) is not on contaminated land or subject to unreasonable risk of erosion or flooding; (m) takes account of community and personal safety and security in the design of buildings and the spaces around them; and (n) is designed having due regard to best practice in reducing energy consumption.' 7. Business Policy 9 of the Isle of Man Strategic Plan 2007 states: The Department will support new retail provision in existing retail areas at a scale appropriate to the existing area and which will not have an adverse effect on adjacent retail areas. Major retail development proposals will require to be supported by a Retail Impact Assessment(l).' 8. Business Policy 10 of the Isle of Man Strategic Plan 2007 states: 'Retail development will be permitted only in established town and village centres, with the exceptions of neighbourhood shops in large residential areas and those instances identified in Business Policy 5.' REPRESENTATIONS 9. Douglas Borough Council - no response to date. 10. Highways Service - no response to date. 11. Isle of Man Chamber of Commerce - objection: The application is substantially the same as the previous application, 13/00687/B, which was refused by the planning committee in 2013; The application should either be declined or refused in accordance with the provisions of Section 10(6) (c) of the Town & Country Planning Act 1999, or Section 4(4) of the Development Procedure Order 2013 respectively; It recognises that the Planning Authority may consider the application to be sufficiently different to the previous application by virtue of the proposal to trade all-year around; The proposal is contrary to Business Policies 9 and 10 of the Strategic Plan; 14/00594/B 30 June 2014 Page 3 of 9

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The application should be considered by the planning committee like the last one; The proposal will create comparison retail space outside of the town centre contrary to the Strategic Plan, this will affect the vitality and viability of ail of the town centres on the Isle of Man, directly and in terms of setting a precedent; Tesco has already increased the retail floor space with Douglas by 462 square metres by making internal alterations that do not require planning approval. The cumulative increase in retail floor space, should the current application be approved, would be 516 square metres; The current application includes a retail impact assessment based on the 54 square metres proposed but does not take into account the impact of the previous increase. Douglas Development Partnership - objection: 12. The application is substantially the same as the previous application, 13/00687/B, which was refused by the planning committee in 2013; The application should either be declined or refused in accordance with the provisions of Section 10(6) (c) of the Town & Country Planning Act 1999, or Section 4(4) of the Development Procedure Order 2013 respectively; It recognises that the Planning Authority may consider the application to be sufficiently different to the previous application by virtue of the proposal to trade all-year around; The proposal is contrary to Business Policies 9 and 10 of the Strategic Plan; The application should be considered by the planning committee like the last one; Since the previous application, Tesco also submitted application 13/91316/B, which is currently at appeal. This proposal involves the loss of 10 parking spaces. If both applications are approved then the cumulative total loss of spaces would be 14. Tesco has already increased the retail floor space with Douglas by 462 square metres by making internal alterations that do not require planning approval. The cumulative increase in retail floor space, should the current application be approved, would be 516 square metres; The current application includes a retail impact assessment based on the 54 square metres proposed but does not take into account the impact of the previous increase. ASSESSMENT Background The planning committee refused a previous application for the same floor space building in 2013. The previous application (13/00687/B) sought approval for the sale of seasonal goods between April and September (inclusive) only. The grounds for refusal were as follows: 13. The site and supermarket store are outside Douglas town centre where there is a presumption against additional retail development according to the Isle of Man Strategic Plan 2007. The proposal conflicts with the Island's long standing and current policy of directing retail development to town centres, The proposal would conflict with Business Policy 10 of the Strategic Plan which states that retail development will be permitted only in established town and village centres, in the interests of safeguarding their vitality and viability. The Planning Authority is further concerned that to permit the development would set an unwelcome signal and precedent for further expansion of the supermarket site to the potential detriment of the vitality and viability of Douglas town centre, thus also undermining the implementation of Business Policy 9 of the Strategic Plan,' The main difference between the current proposal and previous application is that that the proposed sales building would be erected all year around and would include the sale of seasonal winter items and not just summer seasonal goods. 14. Policy context 30 June 2014 14/00594/B Page 4 of 9

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The planning policies considered relevant to the application are set out in paragraphs 6 to 10 of this report. In explaining the Island's approach to retail development, the Strategic Plan sets out three reasons why retail development should be directed to existing centres: 15. i) Such centres are accessible to all members of the community, staff and visitors; ii) The activity and range of services contribute to the vitality and viability and success of centres; and iii) Investment in property can be used to renew the ageing fabric of the Island's town centre buildings. In addition, there is the need for there to be a sufficient range and choice of goods available in the one shopping trip, without the need to travel between sites. The Strategic Plan goes onto say: 'Experience in the UK illustrates the impact which out of town retail development has on the traditional town centre high street and on small village shops, and it is pertinent to note the reversal of policy by the UK Government. The Department therefore proposes to adhere to the established policy which was embodied in the Tynwald resolution of 1987...' (par. 9.4.2) 16. Following the development of the large-span "do it yourself retail facility by B&Q in the Spring Valley industrial estate in the mid 1980s, the 1987 'Tynwald resolution" stated that 'Positive steps should now be taken to revitalise existing town and village centres for the benefit of the whole community...and not further major out of town retailing developments should be permitted.' (par. 9.2.5 of the Strategic Plan). 17. Whether this is a suitable location in principle for the proposed use It is considered that the acceptability of this application turns on whether this is a suitable location, in principle, for additional retail sales of the type and amount proposed. 18. The Inspector presiding over the appeal for the large store extension under application 09/00301/B took the view that the Tesco site is out-of-centre; its customer entrance being some 800 metres from the prime part of Douglas' shopping centre. The Douglas Local Plan 1998 does not specifically define the town centre. It shows an area where there is predominantly shopping (principally around Strand Street, Market Street, Duke Street and Market Hill; however, it is not entirely clear as to whether this would be the 'centre' referred to in Strategic Policy 9 and Business Policy 10. The applicant argues that the centre could be construed as including other uses within the central area, including predominantly office areas, and also points out that the site is zoned for retail warehousing by the Douglas Local Plan. However, taking the previous Inspector's comments on board, the site would appear to be outside the 'centre'. 19. The proposal is therefore contrary to policies contained in the Strategic Plan that steer retail development to town and village centres only. The key question is whether there are any other material considerations that indicate that approval should be granted despite this contravention of policy. The applicant has provided a Retail Impact Assessment ("RIA") with the application, although they are not required to do so since the threshold for an RIA is 500 square metres and the proposal is for only 54 square metres of floor space. A RIA was not submitted with the previous application. 20. The applicant estimates that the total turnover for the proposed building would be £444,852 based on a UK (2012) non-food sales density of £8,238 per square metre. In reality, they say that the turnover is likely to be lower because the proposal relates to a marque structure and not part of a main store. Furthermore, the per capita expenditure on the Isle of Man is lower than in the UK. An alternative sales benchmark would be a turnover of £145,314, which reflects that the initial figure is likely to be an over estimate. 21. 14/00594/B Page 5 of 9 30 June 2014

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The applicant makes reference to the Government's Retail Sector Strategy (published December 2013) and its accompanying evidence base (Peter Brett Associates, June 2013). For bulky goods sales this indicates that there would be growth in expenditure between 2013 and 2017 of £26.22 million. As such, the anticipated turnover equates to just 1.7% of the growth in non-bulky goods comparison expenditure between 2013 and 2017. This means that even following the introduction of the marquee, there would be 98.3% of the growth in expenditure, equivalent of £25.8 million available to support further new floor space or to support the growth of existing retail provision. 22. The report concludes that by 2017 there will be a need for a further 1,858 square metres of comparison goods floor space. If claw back from internet sales is taken into account then this rises to 3,732 square metres. Therefore, the proposed building would equate to between 1,5% and 3% of the comparison goods floor space required by 2017. The applicant contends that the resulting impact on existing stores in the town centre will be zero. The proposal would contribute to the growth of comparison good retail sales. If the proposal does not go ahead then the turnover it would have absorbed will not go to an existing store, but it will be lost. In addition, the vast majority of turnover generated by the new building will be from people already visiting the Tesco store. The applicant feels that given the nature of goods to be sold from the building it is unlikely that customers will make a special trip to Tesco just to buy those goods. 23. The applicant further suggests that Douglas town centre currently has a turnover of some £65,6 million, If it were to be assumed that the proposed building would draw trade totally away from Douglas centre (which is unlikely considering internet sales) then the impact would be just 0.68%, or 0.59% using 2017 figures. The applicant states that the level of impact would be so small that it would in no way affect the vitality and viability of Douglas. The impact on the town centre would in this regard not be material. 24. Furthermore, officers note that the proposal is for a relatively tiny proportion of additional retail floor compared with the scheme for 2,788 net square metres approved in 2010 (09/00301/B). This means that the proposed floor space equates to only 1.9% of the net retail floor space applied for under the 09/00301/B application which was found to be unacceptable. The Inspector commented on that proposal as follows: 25. '...[it] would probably divert up to about 14% of trade on comparison goods from Douglas Town Centre, This trade would obviously not help to enhance the vitality and viability of Douglas. Inevitably a predicted loss of trade would reduce footfall in the centre and could deter future retail investment. Precise impacts were not predicted. The most that can be said is that the trade attracted to Tesco would be likely to damage existing stores in Douglas Town Centre and might hinder future chances for new retail investment. This outcome would be unwelcome. But on its own, this uncertain level of impact would not amount to a compelling reason for refusal.' (par. 408) Having regard to the Inspector's findings on the actual impact of the proposed store extension, it seems extremely unlikely that the current proposal for 54 square metres would have a negative impact on the vitality and viability of Douglas town centre. 26. In view of the detailed analysis of impact provided by the applicant in the RIA and in the light of the comments of the Inspector above, it is considered very unlikely that the proposed seasonal sales building would have an adverse impact on the vitality and viability of Douglas town centre. In this regard, it is considered that the grounds for refusal of the previous application have been addressed. It should be remembered that planning applications should only be refused where harm in real terms has been identified. The proposed use is therefore considered acceptable in principle. 27. The effect of the proposal on the character and appearance of the area 30 June 2014 14/00594/B Page 6 of 9

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The building would be quite functional and ordinary in appearance; however, it would be viewed in the context of the existing store and its large car park. The proposed building is of a modest size and is considered in keeping with the functional character of the wider site. The character and appearance of the area would be preserved. 28. Parking and highway safety The building is situated within the existing car park and would result in the loss of only four car park spaces. The impact of this loss is considered negligible In view of the very large overall size of the car park and its central location with good access to public transport, The comments of the Highways Service are awaited and it is expected that these will be reported to the planning committee at the meeting. 29. Power to decline a planning application Under the provisions of Section 4(4) of the Development Procedure Order 2013, the Planning Authority has the power to decline to determine an application which is substantially the same as an application that has been refused within the last five years. In this case, it is considered that the fact that proposed building is for permanent around the year seasonal sales rather than temporary over the summer means that it is sufficiently different. Moreover, the applicant has provided a detailed RIA which was not available in relation to the previous application and provides a more robust assessment of the likely impacts of the proposal. 30. RECOMMENDATION 31. It is recommended that approval is granted. PARTY STATUS The following parties should be afforded interested person status: 32. The local authority, Douglas Borough Council Is, by virtue of the Town and Country Planning (Development Procedure) Order 2013, paragraph 6 (4) (e), considered "interested persons" and as such should be afforded party status. The Highway Service is granted interested party status under the Town and Country Planning (Development Procedure) Order 2013 paragraph 6 (4) d. Isle of Man Chamber of Commerce - given their interest in the vitality and viability of the town Douglas Development Partnership - given their interest in the vitality and viability of the town Recommendation Recommended Decision: Permitted Date of Recommendation: 30.06.2014 Conditions and Notes for Approval / Reasons and Notes for Refusal 30 June 2014 14/00594/B Page 7 of 9

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C : Conditions for approval N : Notes attached to conditions R : Reasons for refusal O : Notes attached to refusals C 1. The development hereby approved shall be begun before the expiration of four years from the date of this decision notice. Reason: Procedure) (No2) Order 2013 and to avoid the accumulation of unimplemented planning approvals. To comply with article 14 of the Town and Country Planning (Development <2$k C 2. The building hereby shall not be used other than for the sale of the following seasonal goods: Summer toys; Garden furniture and equipment; BBQ equipment and accessories; Plants and flowers; Camping equipment; Picnic equipment including paperware/napkins etc. Beach towels; TT related merchandise; Summer/outdoor clothing i.e. wetsuits etc. Christmas related goods; and Other ancillary seasonal items to those identified above. The building shall not be used for the sale of food or other convenience goods. Reason: The application has only be assessed and found to be acceptable on the basis that the building is to be used for season^al retail sales. The sale of a wider range of goods from the building will require further consideration. This approval relates to Site location plans. Drawing Numbers AC108 100 (survey layout), AC108 200 1 (proposed layout), 1001 (details of ramp) and indicative 3D impressions received on 16 May 2014. I confirm that this decision has been made by the Planning Committee in accordance with the authority afforded to it under the appropriate delegated authority. Committee Meeting Date : ^ . Decision Made: Signed : Presenting Officer Further to the decision of the Committee an additional report/condition reason is required, signing officer to delete as appropriate 30 June 2014 14/00594/B Page 8 of 9

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