Project delivery and funding

What’s the viability of the proposed development?

The Pydar area is located in the heart of Truro’s City Centre and is amongst the 30% most deprived areas in England.  Many attempts have been made by private property developers to develop the site but have failed, due to the complex topography on the site and the lack of infrastructure to support the development. This leads to substantial issues with viability.  The viability of this scheme is currently at 0.1%. The Pydar scheme is driven by local housing and community needs rather than profit led. Despite the low profit levels, the scheme is committed to bringing high quality housing and a target of zero carbon emissions (once built).

Who are Treveth?

Treveth are a Cornwall Council Owned partnership delivering new homes and commercial development for the benefit of people who live and work in Cornwall. They are a Cornish company that puts Cornwall and its people first.  Any profit they make is returned to their partner, Cornwall Council.  Find out more:- https://www.treveth.co.uk/

 

Developer Contributions - Section 106

Will there be a S106 Agreement?

Whilst technically, the Council are unable to enter into a Section 106 agreement with themselves (Cornwall Council are the applicant for this development), there will be a similar document that will be secured through a planning condition.  This will agree all the things covered in a standard S106 agreement such as dwelling locations, lettings, sales, local connection criteria, phasing etc. 


A Heads of Terms have been prepared to control the securing of infrastructure in either a scenario whereby the Council or a private developer builds out the planning permission.

What’s covered in the Heads of Terms?

  • Requirements of the Affordable Housing Officer

  • Financial contribution towards off site public open space provision/improvement

  • Financial contribution towards the Special Areas of Conservation

  • Financial contribution towards education infrastructure provision

  • Financial contribution for air quality measures and monitoring

  • An obligation to restrict occupants applying for street parking permits

  • An obligation for a local employment scheme

How will the development be funded?

It is envisaged that Cornwall Council will not financially contribute to the construction of the scheme. We have a shortlist of potential funders and are in advanced discussions to secure the full £170m development costs through private investment and funding.

 

Programme timescales and phasing

What’s the overall programme for the development?

Any development will only take place if the Council's Planning Committee approves the project. If the project is approved, the scheme will be delivered in phases with the first phase scheduled to begin in early 2022.  It is anticipated this scheme will be completed within 10 years. More specific and detailed timeline information will be shared following planning approval.

What will be built first?

  • Phase 1 (Phase 1A & B) design consists of Blocks A, B, C, D and public realm to reach a fully coordinated design. 

  • Phase 1 includes the development of:

    • Residential – a mix of affordable rent, shared ownership, discounted PRS and private sales;

    • Student accommodation 

    • Non-residential includes food and beverage, the bowling alley and the Hive;

    • Extensive public realm including amphitheatre/public square, significant tree planting, river corridor and ecology and accessible pedestrian focused environment; and

    • Substantial highways works to Pydar Street and St Clement Street to create a low-speed environment.

 

What are the next steps?

The Outline Planning application will be considered by the Council’s Strategic Planning Committee on the 23rd September 2021.  Subject to receiving Outline Planning consent, a report will be prepared for consideration by Cabinet in November.


The Cabinet report will seek approval to take the project forward to the next phase of the project which includes progressing the next stage of design, RMA submission, demolition and site clearance, procurement of the main contractor, submission of the Business Case. The Project Team are progressing with negotiations with potential finance partners, with the intention of securing funding and establishing a development vehicle which will also be subject to approval by Cabinet in November 2021.


Subject to Outline Planning and Cabinet approval, the detailed design will commence. There will be opportunities to work with Members, the community, and other stakeholders at this next phase to develop the design proposals. The first Reserved Matters Application (RMA) to cover Phase 1A will likely be submitted in Spring 2022 focussing on detailed design of blocks A, B, & C. The detailed design will include choice of materials, the varying heights within maximum parameters, the breaks in building facades, windows and doors, detailed landscape design, layout and design of homes, the types of non-residential space and adherence to the Design Code through checklist of rules set by the Outline application. 


Negotiations with other future occupiers will be further progressed, with interest being shown for the office space, hotel, leisure, bowling and food & beverage facilities.