Major development recommended for refusal

Proposals for a major development on the site of a former bus station in the Isle of Man's capital should be refused, a planning report has said.

The plan for a 12-storey complex on the Lord Street site in Douglas include shops, a cinema, bus facilities and 85 apartments.

A planning officer said the absence of affordable housing and open public space in the scheme meant it should not be approved.

However, developers Lord Street Development SPV Limited said it fundamentally disagreed with the "sole reason for refusal", adding that it had outlined a plan to include those once profitability was known.

Plans for the development were formally resubmitted in April last year after the original plans by Wyyttavin – which Lord Street Development SPV Limited was working in partnership with – were withdrawn following a family bereavement.

Under the island's planning rules, developers must include a provision of 25% of affordable housing units if the projected profit margin of a project was above the set benchmark of 20%.

In some cases, a one-off financial payment - or commuted sum - could be calculated to compensate for the absence of that provision.

In his report, the planning officer acknowledged that the proposals had a number of benefits – such as "redeveloping a site which has remained undeveloped for a number of decades".

But, he said it was considered that the non-provision of affordable housing and public open space were "too great of a departure from established planning policies to approve".

The proposal was "a viable development" which could provide affordable housing or a commuted sum, and the proposed post-construction review was not considered appropriate, he added.

The developer said it had proposed a legally binding review, which would be assessed "when the actual outturn costs, revenues and returns are known".

So that if the project does generate surplus money it would see a commuted sum calculated.

It said figures in the report had shown the project "does not meet the stated 20% viability threshold" for profit, and it had sought "urgent clarification" from Department of Infrastructure and the planning authority.

It also warned that the project would be "highly sensitive" to delay and rising costs so its refusal, based on what it called "contradictory viability evidence" could mean it was "undeliverable".

The plans, along with the officer's report and recommendation are due to be considered by the planning committee on Monday.

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