Detailed development proposals will be taken forward by both the private sector, the public sector, and, potentially, by both sectors under formal partnership arrangements.  Detailed scheme development proposals and financial appraisals will follow adoption of the Canal Quarter Strategic Regeneration Framework.  Where the city council is formally engaged in delivering and financing any proposals (for example new housing through its proposed and emerging Local Authority Housing trading company) the key principle is not to expose council taxpayers to an inappropriate level of financial risk.  The council has a structured approach to considering capital investment in projects, particularly difficult regeneration proposals, and will seek appropriate guidance and advice in respect of any funding decision.  Where possible, the council will seek to secure significant grant aid both to reduce the risks and burdens on its own project funding, and to enable and assist private investment being brought forward where appropriate.

We want residents and all stakeholders to be proud of their city and feel they have a role to play. There has been a significant commitment to structured and open consultations in the development of the Canal Quarter. There will be further opportunities to engage in the detail of development schemes as they are devised, particularly where proposals are promoted directly by the city council.   To be informed directly of any future consultations join the council’s mailing list.

The council recognises the importance of the Music Co-op, the role it plays for local musicians, and has committed significant capital funding to improve the building it occupies on Lodge Street.  The council has also supported the organisation to develop a new business plan to secure its long-term future.  The council is working closely the Music Co-op to ensure the works can be completed with as little disruption to the service as possible.  Discussions will also be undertaken with other major cultural organisations such as the Dukes Theatre and Grand theatre as proposals emerge in order to   ensure their aspirations and ambitions are accommodated and enhanced.

The Canal Quarter Strategic Regeneration Framework (Supplementary Planning Document) is a mix of uses across the area that will contain a variety of elements. There’s scope for a range of residential housing, exciting public spaces, retail, leisure and food and drink outlets.  In the wide-ranging consultation there was a clear balance of community opinion expressed against dominance of student accommodation and this is expressed clearly in the CQSRF final version. The CQSRF also stresses strategic Local Plan housing policy particularly around affordable and social housing.

However, attempting to place a ‘moratorium’ on a single type of development is not consistent with wider Local Plan policy (the Local Plan DM policy directs purpose built student accommodation into town centre locations), not consistent with the strategic policy for the site (Local Plan Policy SG5 is not precluding any single type of development) and extends beyond the boundaries of what an SPD can realistically do (i.e. make new policy). Proposals for student accommodation, more likely from the private sector rather than public sector, will only be considered in the context of evidenced need and pipeline supply assessment, taking into account the desire to create a balanced residential community.

Including more dwellings in a new scheme provides the potential to cater for all sectors of the housing market including an element of affordable housing and different tenures. More people living in the city supports our shops, services, cultural and leisure facilities. The Canal Quarter offers a genuine opportunity to provide sustainable housing in proximity to established city centre services and facilities.  The potential exists to create new housing that will meet a wide range of needs, for young people, families, key workers, housing which is suitable for our ageing population and people with disabilities, as well as those in need of social and affordable housing. 

The CQSRF consultation responses show that local people have a desire to see a residential component that can meet a genuine local need and which sensitively considers tenures, dwelling types and provides space/energy standards and sustainable infrastructure contributing towards mitigating climate change. Housing proposals that meet evidenced housing needs (set out in the council’s Strategic Housing Market Assessment) will be supported in appropriate locations across the site. The city council can use its own assets to deliver a significant contribution to meeting local needs, through direct delivery via its emerging Local authority Housing company if appropriate. 

However, in order to overcome significant site challenges it is likely there will need to be provision of significant numbers of market/private housing in order for proposals to be viable, particularly if grant aid is not available to help overcome any viability deficit created by the inclusion of significant numbers of affordable housing units.    

The issue of car parking within the Canal Quarter boundary is a key consideration on the future strategy for the site in terms of the role of the area in providing car parking for (i) wider users of the town centre (ii) provision for new uses developed in site.   Wider strategic planning policy does not “fix” numbers of spaces for Lancaster city centre.  Rather, the direction of strategic policy is to significantly reduce car penetration into the city (of which car parking is a key generator/attractor).  Ordinarily it would be expected new developments would also be provided with enough parking, although again, strategic policy leans towards reducing car provision in this context.

The CQSRF proposes a reduction in parking numbers, located to minimise the need to drive through the city centre and managed to incentivise more use of the park and ride site at junction 34. Car parking will need to be in-keeping with the scale of development and not dominate the scheme.

The final approach to car parking in detailed development proposals will be led by the city council (as owner of the major surface car parks in the city centre).   

While there are many individual land interests, the Canal Quarter area can be broken down into three major land-holding interests / areas.   

• Stonewell Courtyards and Brewery Complex:  British Land disposed of its assets in this area to an entity called Lanmara Developments Ltd.  Originally this company vehicle was under the joint control of directors associated with the Preston based Worthington Property Group and Revcap Ltd, a London based investment firm.  Since the demise of the Worthington Property Group in late 2019, directors of Revcap Ltd. are in sole control of the assets.  Revcap Ltd have engaged their partner Riverstone Developments to progress their interests.  Positive discussions have been held between the council and Riverstone which focussed on the CQSRF, the company’s likely approach to the site, and their aspirations.  Officers are anticipating the submission of initial proposal options for their discrete land interests and have recommended consideration / consultation through the council’s planning pre-application process.  There are no current plans for the council to buy out this interest and the focus is on enabling the investment and securing the right development result from any proposed private investment.
   
• Heron Works: The developer Maple Grove / Eric Wright has a long-standing interest in the site and has made an initial approach to working with the council as an investment partner on a regeneration/development scheme. This could also involve an extended scheme taking in part of the council’s neighbouring land interests.   Eric Wright are a long-standing public sector partner, being the Lancashire Regeneration Property Partnership preferred partner for surplus public estate assets in the boroughs of Blackpool, Chorley, Fylde, Preston, South Ribble, Wyre and West Lancashire.
   
• Lancaster City Council assets and surface car parking:  The council has yet to consider detailed options on the preferred approach to progressing development proposals on its own land / assets.  A variety of approaches can be considered to best deliver a viable mixed-use development However, it is clear the way the council’s own land is used will provide critical framing and supporting context for all development activity across the Canal Quarter.  The council’s approach will however set the direction on key issues raised in CQSRF consultation, particularly car parking and traffic movement.   To ensure this is managed for the benefit of all interests, the council should retain a high degree of control in the future design and development of its own land.

Although we are not near this level of detail yet, the CQSRF envisages a balanced mix of uses. Retail may play a part in this, but to nowhere near the extent that was envisaged in previous schemes. It could be argued that previous schemes proposed a shifting of the centre of gravity of the city’s retail heart.  This is not the case in the CQSRF vision.  We want the new scheme to be a mixed and complementary part of a wider thriving city centre and give certainty to existing business and potential investors to encourage continual improvement and robustness of the core city centre commercial offer for locals and visitors.

Embedding sustainability into the design will be a guiding principle for the regeneration. The city council has recently declared a Climate Emergency and the overall parameters and contribution of any proposed development scheme to contribute towards mitigating the effects of climate change are important.  Any development scheme proposed by or engaged in by the city council should provide a framework to demonstrate practical and achievable of sustainable energy efficiency and renewable energy targets.  However, it is important to note that the council is commencing a review of the new Local Plan which will concentrate specifically on matters of Climate Change.

Regeneration schemes, particularly where any proposals need to overcome significant challenges and constraints are difficult and can take time.  This is particularly the case when attempting to adapt to a “new start” after many decades of false starts.  The Canal Quarter Strategic Regeneration Framework sets the foundations for detailed proposals to emerge and be accommodated over the next 15 to 20 years.  The council is also encouraging interim or “meantime” uses alongside work on individual building and larger scheme proposals. Having said this, there are potential early phase development opportunities around the main areas of private land interest.  The council is anticipating significant proposals for Heron Works, and progress on the Stonewell/Brewery complex in 2021.  In early 2021 the council also approved funding to develop masterplan and feasibility work for its own major land holdings, and this will include for a significant housing element.