**Document:** PBA Roger Tym Callows Yard Report **Application:** 14/00148/B — Alterations to provide ten apartments and domestic storage rooms **Decision:** Application Withdrawn **Decision Date:** 2014-03-14 **Parish:** Malew **Document Type:** report / planning_statement **Source:** https://planningportal.im/a/34432-malew-callows-yard/documents/1177074 --- # PBA Roger Tym Callows Yard Report 26 February 2014 Chris Corlett Chief Executive Department of Economic Development St George's Court, Upper Church Street, Douglas, Isle of Man, IM1 1EX 93 Candleriggs Glasgow G1 1NP tel: 0141 548 6570 email: glasgow@peterbrett.com www.peterbrett.com Dear Mr Corlett ## Proposals For Redevelopment Of Callow'S Yard, Castletown Following the firm's involvement in developing the 2013 Retail Sector Strategy and its previous work in the retail sector on the Isle of Man, PBA Roger Tym has been asked by the Department of Economic Development to set out the relevant facts and consider an appropriate response in relation to recent applications for development at Callow's Yard, Castletown. - PA 14/00007/B – Alteration and change of use of existing residential/commercial premises to provide additional residential accommodation, 6-26 Arbory Street, Callow's Yard, Castletown.(41) - 14/00148/B – Alterations to provide 10 apartments and domestic storage rooms – Callow's Yard 9 – 11 & 17-19 Malew Street and Fusion Bar occupying first, second and third floor unit located behind 17 – 19 Malew Street, Castletown.(15) - 13/91537/C – Additional use to allow tourist use of the nine mews houses within the Arena of the development, Callow's Yard, Castletown. Callow's Yard occupies a prominent position in the centre of Castletown. The 2013 Retail Sector Strategy describes Callow's Yard as the link between Castletown's two main shopping streets, Arbory Street and Malew Street. These streets house 90% of Castletown's retail units. Prior to its development as a retail, office and residential space, Callow's Yard was derelict for several years¹. Figure 1 below shows the existing concentration of retail units on Arbory Street and Malew Street (shaded in blue). Castletown Square, which is being remodelled as part of the Town and Village Centre Regeneration Scheme, is shaded in orange. ¹ http://news.bbc.co.uk/1/hi/world/europe/isle_of_man/6740539.stm T: +44 (0)118 950 0761 F: +44 (0)118 959 7498. Figure 1 Source: google maps The applications propose various changes of use within Callow's Yard which would increase the number of residential units and provision of accommodation for tourists while reducing the number of retail, leisure and commercial office units. This response examines the effects of the proposed changes in terms of their potential effect on: regeneration and other related objectives for Castletown; patterns of trading; and the expenditure effects of the residential population associated with the development. ### Regeneration Objectives ### Area Plan for the South The Area Plan for the South (adopted February 2013) identifies Castletown as one of two service centres for the South (the other being Port Erin). The Plan notes that both Castletown and Port Erin "should provide a range of employment opportunities and will be the main focus for retailing within the South". Callow's Yard is in the heart of the town centre in an area defined in the plan as a mixed use area. It can be considered as one of the main areas of retail, leisure, cultural and other employment generating activity. The town centre's continued role as an important retail, leisure and tourism centre forms the basis of the policies toward development in this area. Relevant policies include: - Mixed Use Proposal 1: "In order to maintain and enhance the vitality of the Mixed Use areas in Port Erin, Castletown and Ballasalla, there will be a presumption in favour of the retention of existing retail units on the ground floor although each case will be determined upon its circumstances and merits". - Mixed Use Proposal 5: "In Castletown, Port Erin and Ballasalla, office development may be acceptable on the ground floors of buildings although there will be a presumption in favour of retaining retail units subject to the circumstances and merits of any alternative ![An aerial site plan showing the application area highlighted in blue near Castletown Castle and Main Street, with surrounding streets labeled.](https://images.planningportal.im/2014/02/246460.jpg) scheme and provided it does not cause significant harm to the character and appearance of the area". While it is acknowledged that the units are presently vacant, the proposals remove ground floor retail and leisure uses from Castletown's main shopping streets. As the applications propose mainly residential use and a transfer from other uses, they are unlikely to contribute to the goals of Castletown's service centre role. This said, it is clear that Mixed Use Proposal 1 provides the flexibility to determine proposals based on individual circumstances and merit. ### The Isle of Man Town and Village Centre Regeneration Scheme In 2009 the Government established the Isle of Man Town and Village Centre Regeneration Scheme with related funding of £8m. Its main purpose is to support the Government's overarching aim to "balance the budget, grow the economy and protect the vulnerable". This includes retail, leisure, cultural, commercial and other forms of activity. It promotes the physical regeneration of town and village centres across the Isle of Man. Included among its key aims are: - Facilitation of a dynamic, modern and diverse economy; - Improved town centre environments; and - To achieve strategic impact and long term sustainability. An appropriate balance of active uses – retail, leisure and cultural activity etc. – is essential to maintain and increase footfall in Castletown and the Island's other key centres. Uses which attract people and their custom to the centre will help maintain town centre viability and sustainability. While the proposed development may provide accommodation for an estimated 55 residents, and 9 units for visitors in the town centre, it would further limit opportunities for retail, leisure and other uses. By reducing the potential to attract such uses, it may also reduce footfall between the main shopping streets. ### Castletown Regeneration Scheme Arbory Street and Malew Street are in Castletown's Regeneration Zone. The majority of the objectives from the Castletown Regeneration Scheme are not specifically related to retail, leisure or other town centre uses. Rather, they are concerned with creating a more attractive town centre, enhancing its public realm, easing traffic issues and encouraging more activity in the town centre. The centrepiece of the Castletown Regeneration Scheme is the improvement of Castletown Square. This fronts directly onto the apex of Callow's Yard leading into Malew Street and Arbory Street. It provides an historical focus and acts to lead potential shoppers and other town centre users towards the towns retail offer. A recent article on Manx Radio noted that 28 businesses had moved to the centre of Ramsey following implementation of the public realm works. Were a similar experience to be anticipated in Castletown, once Castletown Square is completed, there would be a lack of retail leisure and other space to realise the potential impact of the regeneration scheme. Were the present applications to be implemented, the scope for further retail and leisure development in the town centre would therefore be pushed further away from the heart of Castletown towards more peripheral areas. In this scenario, the extent to which a concentration of sustainable town centre activity can be maintained and further developed may be questioned. ## Effects on Retail Provision The 2013 Retail Sector Strategy was informed by an extensive household survey which identified patterns of retail spending whether for groceries, clothing and other ‘comparison’ items as well as bulkier household goods (carpets, furniture, electrical items etc.) Over two thirds of Castletown residents do their main grocery shopping outside Castletown. More than half (57%) of residents do their clothes and shoes shopping on Strand Street in Douglas. Nearly a third said that they used Strand Street because of the variety and quality of shops, its convenient location and the absence of local alternatives. Despite Shoprite’s investment in store refurbishment, the retention of Castletown residents spending on groceries and other everyday items is lower now than it was in 2009, with a greater proportion of residents shopping in either Port Erin or Douglas. In the absence of opportunities for development or redevelopment of appropriate floorspace, these patterns will intensify. In 2011, 8 of the 12 units at Callow’s Yard were occupied and the flexible nature of lease and occupational arrangements was noted². It is acknowledged that this was a snapshot. At the time of the 2013 Retail Sector Strategy health check, all of the retail units were either closed or vacant. It was generally anticipated that the units would be combined to form a Tesco Express. As it is not clear that Tesco’s interest in the opportunity has ceased, this may discourage potential occupiers from hardening any interest they may have until there is more certainty over the development. Callow’s Yard represents potential retail sales floorspace of an estimated 5,000 sq. ft. out of a total of 28,837 sq.ft in Castletown, over 15% of the town’s retail area. The combined applications would have the effect of reducing available retail floorspace by an estimated 3,750 sq. ft., a 13% reduction. This could severely limit the centre of Castletown’s potential to respond to future retailing and leisure needs. By way of illustration, were this space occupied for convenience goods purposes it could generate annual turnover of between £2.1 m to £3.1m. Were it used for comparison goods, related turnover is estimated at £1.4 million per annum.³ In the absence of comparative evidence from recent commercial retail and leisure property transactions it is not appropriate to comment on the extent to which the marketing approach towards the various opportunities at Callow’s Yard has been pitched above or below expected rentals. The 2009 Isle of Man Retail Strategy concluded that, “southern and western areas have the greatest requirement for additional convenience supermarket provision as Douglas attracts a significant share of local retail expenditure”. It notes the role of redevelopment of existing premises in meeting this need before recommending such activity should be focussed in main settlements, including Castletown. --- ² Retail Impact Assessment of proposed mixed commercial and business development, land at Ronaldsway IE, Nicholson Group, May 2011. ³ Sales densities applied are consistent with the Retail Sector Strategy 2013. Page 5 It also seems clear there is latent demand for retail floorspace in Castletown, providing appropriate property opportunities are available. - In its submissions to the Area Plan for the South in respect of land at Ronaldsway Industrial estate, the Nicholson Group proposed supermarket floorspace of 35,000 sq.ft (gross) to serve the South. The bulk of its custom was anticipated to come from residents of Castletown and surrounding areas, many of whom do their main food and other shopping in Douglas. The submission notes that "Castletown has attracted significant developer and occupier interest over the last few years". It also comments on the refurbishment of its store on Arbory Street and its effect in increasing sales. - Tesco had committed to opening one of its Express format stores at Callow's Yard pending an alcohol license. In its absence, the proposed development has not been taken forward (a 3rd application having been refused in October 2013). The enabling of key retail, leisure or other uses which attract people and expenditure to the centre of Castletown would be of mutual benefit to the development itself and, through increasing footfall and shopping and other trips, to most existing businesses. Conversely, the removal of centrally located retail and leisure units significantly reduces this potential. ### Residential Composition A large proportion of the proposed apartments are 1 bed properties. While comparable Isle of Man data are not yet available, household expenditure figures from the UK Office of National Statistics (2012) show that one person households have the highest average weekly per capita expenditure of any household group (£305.70, 60% higher than the average across all household groups). The related expenditure benefits associated with single person households may be considerably greater than for larger households for a variety of reasons; the pattern identified above is likely to be replicated in the Isle of Man; single person households are likely to make smaller but more frequent shopping trips, which favour local rather than more extended shopping trips. Moreover, younger single person households are likely to make greater use of evening leisure facilities relative to other households. However, while the potential spending power of residents in the proposed development may be higher than that of other groups, this requires to be balanced against the loss of potential facilities which serve the town as a whole and beyond. Furthermore, in the absence of retail and leisure provision it is likely that the bulk of related benefit will be directed outside Castletown. Callow's Yard represents a substantial investment in the heart of Castletown's retail, leisure and commercial area. It is acknowledged that the developer has made proposals for several different retail and other formats in attempting to see the space effectively occupied. These have not been able to be implemented for a variety of reasons (timing relative to general economic conditions, inability to gain an alcohol license etc.). In this context, the desire to promote change of use can be understood. However, the removal of potentially active frontages needs to be seen in a wider context i.e. the future of the town centre as an effective economic space. Its redevelopment for predominantly residential use would limit the potential for retail, leisure and other uses in the heart of Castletown, potentially diminishing its service centre role in the process. Yours sincerely, Nick Skelton LLP Director For and on behalf of Peter Brett Associates LLP --- *Data sourced from the Isle of Man public planning register under the [Isle of Man Open Government Licence](https://www.gov.im/about-this-site/open-government-licence/).* *Canonical page: https://planningportal.im/a/34432-malew-callows-yard/documents/1177074*