Lochgelly Housing Development Project - Essay Example

Lochgelly Housing Development Project Abstract The Urban Initiative for the Fife Council in Scotland has prepared a report which deals with the scope of strategic growth and development in the town of Lochgelly, Scotland. This report aims to provide a brief synopsis of the Lochgelly development project in key areas of stakeholder interest in the project, the internal as well as external risk factors pertaining to such housing development projects in Lochgelly, the institutional frameworks which all development projects needs to conform to, the local and the strategic impact such a project might have on the economy of Fife, the costs of the project and the long-term benefits of such a project, the effectiveness of a front end development process which has been recommended, and finally the report s attempts to make useful recommendations regarding the scope of improvement of the developmental housing project in Lochgelly. Contents Introduction ................................................................................................................ 2 Context of the Report.................................................................................................. 3 Interest of stakeholders ..............................................................................................4 Interests of the Developers……………………………………………………………5 The Landowners………………………………………………………………………5 The Public Sector……………………………………………………………………...6 The Key Agencies……………………………………………………………………...6 Opportunities of the Project and Development Sites………………………………..6 The Risk Factors of the Project……………………………………………………….8 The Institutional and Regulatory Issues……………………………………………...9 The Strategic and Local Impact of the Project..…………………………………….10 The Cost/Benefits of the Project……………………………………………………...11 The Efficiency of the ‘Front-End’ Development…………………………………….11 Recommendations……………………………………………………………………..12 References.......................................................................................................................14 LOCHGELLY STRATEGIC HOUSING DEVELOPMENT Introduction The report covers the main factors which have helped to create the decision of the stakeholders with respect to the strategic housing development initiative in Scotlands Lochgelly. The National Planning Framework for Scotland has identified that the region of Scotland called Fife has tremendous potential for housing development. Not only is the place connected to Dundee and Edinburgh, the region is expected to have a huge population growth is coming 20 years. Exactly, about 11% growth in population is expected by the year 2031. Therefore, the General Register Office has made a plan where it requires more than 35,000 new homes to be built in the next 20 years. Since Lochgelly is a place located in Fife which is expected to be one of the hotbeds of developments in Fife, it is quite natural that the stakeholders would be having a lot of interest in housing projects in Lochgelly. Context of the Report Although Lochgelly was very well developed prior to 2004, after the coal mines closed, the town saw a decline in population and economic growth. The town has links with the roads in the south; it is also connected to by train tracks to Dundee and Edinburgh. On the side of the town, there are vast stretches of natural beauty. The structure Plan of 2006-2026 by the Fife Board has identified land locations in Lochgelly for building 1750 houses within the next 20 years. This development project will not only improve the economic condition, but it will also improve the job opportunities in the town of Lochgelly. Interests of Stakeholders During a housing development project, the engagement of stakeholders is of prime importance. The standards and structure plan has provided framework for the engagement of the stakeholders in the Lochgelly development project. The framework would also help in providing a guideline for the engagement process of the stakeholders. The Local Plan which was made during the Strategic Development Framework serves as a basis for identifying the developer and landowner interests in the envisaged development lands of Lochgelly. The vision of the development project is to regenerate the economy of the town by developing communities which are sustainable. The high quality infrastructure, environment and community will be such which will make the town of Lochgelly perpetually sustainable. The stakeholders however often have conflicting interests in the Lochgelly development project. Some of the stake holders in the development project include the developers, the land owners and the public sector. Interests of the Developers The developers are a sizeable proportion of the people involved in the housing development project. Some of the parties who fall under developers would include the public sector and the facilitative investors. The primary objective of the project and the role of the property developers of the project have been compared to that of a theatre director who needs to manage and coordinate the conflicting interests of the various staff and actors on the stage. The director therefore needs the energy and foresight to ensure that performance is satisfactory (Wilkinson and Reed, 2008: 2). The motive of the developers is simply making profit. They would often provide the financial and labor resources to implement the housing project; they would also be assessing the risks and opportunities provided by the huge project in Lochgelly. There might be several large private companies in and around Scotland who might show an interest in the Lochgelly development project, partly due to the complexity and size of the project and mainly due to the low price of the land and the strategic position of Lochgelly in Fife. The Landowners The landowners are the ones who have the legal right over the land. Therefore, for the project to be realized, it is essential that the landowners affirm the housing development project. The landowners can range from individuals, corporations, public authorities or even charities. Since it’s difficult to use compulsory purchase power, it’s impossible to implement a housing project without their consent. The main objective of the landowners is to increase the value of the land. The Public Sector The public sector on the other hand would have a different objective, unlike the similar objective of the landowners and developers of making profit. The public sector would keep the social ethics and economic development as the primary motive. Some of the typical objectives of the public sector would be to increase employment, improve the housing conditions and generally improve the economy of the Lochgelly town. The public sector would also attempt to improve the sewage system, schools and roads. Additionally, public authorities would always attempt to drive the project towards sustainability. The Key Agencies Some of the major agencies who want to be involved in the project include the Scottish Water and Enterprise, Scottish Environmental Protection Agencies and Natural Heritage. These agencies would be providing the developers with infrastructural assistance as well as providing the developers with financial grants. The developers can be of a variety of forms. A developer thus can be defined as an entrepreneur who is successful in identifying the need for a specific property and then take a risk by producing such a property for profit (Ratcliffe, Stubbs and Keeping, 2009: 349). For all the aforementioned stakeholders, the lands which would be of strategic importance are the M.F.E, Revive Consortium, Thomas Mitchell Homes and Lynch Homes. The MFE is situated to the railway line’s north and comprises of great recreational and park facilities, and non residential amenities. The Revive Consortium is a multiple ownership land which is proposed to be a golf course. On the other hand, the Thomas Mitchell Homes contains an industrial site and building which is vacant. A supermarket is proposed in the area. The last important stretch of land is called Lynch Homes, where it is proposed around five hundred residential homes and affordable housing will be constructed. Opportunities of the Project and Development Sites A development appraisal of the land in Lochgelly reveals that the place has certain strong transportation linkages. According to the survey by Fife council, the north of Lochgelly is ideal for expansion since the north has access to the train station and the arterial roads. This would make the north perfect for public amenities such as markets and schools. However, the train station also makes it a constraining factor for the development of to a town center. To the south of Lochgelly, a sound pedestrian accessibility is one of the positives. The local facilities are also easily available in the south. The motorway in the south means the noise and pollution levels are comparatively higher as well. On the other hand, the lands to the east have a good infrastructure, partly due to the existing wood industries in the area. The land is also directly linked to a motorway. To the west, the proximity to the town center, good pedestrian accessibility and public transportation make the west good for market development. However, there are a number of constraints which may hinder the housing development project if not rectified. First of all, the high rates of commuting owing to the long distance between Lochgelly and the nearest developed town. Secondly, the high levels of noise pollution and air pollution due to the area’s proximity to busy motorways. Moreover, the urban area is economically poor. Therefore, considering the opportunities and constraints, it is recommended that the lands to the north-west are the most preferable for development projects. Besides being close to the golf course, the land is also the most ideal land for development of town center and pedestrian accessibility. Since the housing development project is to build 1750 houses in Lochgelly, the north-west of the area would not be sufficient to hold such a large housing project. Therefore, it is suggested that the lands to the north-west and the south are also utilized to accommodate such a large project. In the lands of the south, there are however certain inherent problems. First of all, the lands to the south are prone to high noise levels. It’s also a place where there are extensive mining activities being carried on. Therefore, a thorough risk assessment of the mining in the land needs to be implemented before the housing project can carry on. The part of the east is unsuitable for housing since the east is contains a pipeline corridor which is a major hindrance to development. The Risk Factors of the Project There are several kinds of risks associated with this project. First of all, there’s the market related risk. The actual demand for the 1750 houses which is being supplied is a matter of concern. The financial resources for such as large project are another consideration. All these fall under the external risk factor. Since Lochgelly is currently an economically backward town with poor infrastructure and a scanty population, investing on such a town is definitely would carry a large financial risk. In order to determine the future demand for the town’s housing facilities; experts require making very accurate forecasts on future demand, based on several criteria and factors. Such forecasting can sometimes go wrong, therefore the risk of such forecasting will remain. The second major risk of the Lochgelly development project is the technological challenges which are involved in the project. The risks unloved in the construction of several houses can’t be ignored. The risks of large construction projects which require sophisticated engineering cannot be eliminated altogether, however these risks can be identified and by identification of the risks, the potential negative impact can be substantially reduced, especially by allocating these risks to proper management procedures (Flyvbjerg, Bruzelius and Rothengatter, 2003: 84). Therefore, the construction risks would increase manifold when the housing project will be taken to the south of Lochgelly, since its already a mining district. In addition, the eastern side will pose a hindrance for construction since the pipeline will threaten the developments of housing. Finally, the other important risk will be the institutional risk. The institutional risk includes the land laws and regulations which all construction projects must abide by. Therefore, only after the planning permissions and other legal documentations are completely sorted out, the institutional risks can be reduced. Furthermore, the private sector housing development companies have often failed in delivering the housing infrastructure. Hence if the private companies are unsuccessful in constructing a proper infrastructure which is economically sustainable, then the project would be a loss to the economy of Scotland. The project also requires integrating the infrastructure with the landscape and the surrounding towns of Lochgelly. Finally, the whole development project in Lochgelly must be geared towards sustainability. Hence the risks of Lochgelly being unable sustain the population economically and transportation-wise will still remain. There are a number of agents involved in the development project. Some of them include the local, regional and national authorities, the communities and civil society organizations, the citizens who are willing to relocate, the research on the economic prospects of Lochgelly made by professional institutions and the involvement of the private sector. Since so many agents are working on the project, the risk of them having communication gaps is quite high. After all the possible risks (institutional, external and internal) have been analyzed, should the risk management plan be formulated. It is also recommended that the risk analysis is undertaken by the public sector enterprises, since they would be in the best position to produce a result which is for the economic and social welfare of the people. The Institutional and Regulatory Issues The Scottish Planning Policy has always tried to achieve a development which is sustainable. Hence, to realize the dream of sustainable development, it is important that the green house gas emissions are kept to the minimum, energy consumption is reduced, environmental friendly development procedures are integrated, and finally the general quality of life is improved. The housing project should redevelop the brown fields as well as the green fields. Since the size of brown fields is insufficient for meeting the housing demands, a large amount of green fields must be released by the SS1 or the Settlement Development Policy. The increase of residential areas and consequently the increase in population would be creating added pressure on the existent infrastructure. The policy of DC1 states that the Fife Council would require the developers of the project to address the shortcomings in the infrastructure of the community, in order to lessen the adverse effects of such a development on the community infrastructure. (Fife Council, 2009) However, the policy DC1 would be ensuring that the community infrastructure is expanded for accommodating the surge of new residents in the area. Some of the components of the community infrastructure which needs to be improved by the developers include the education, the sport facilities, the local shops, public transport and the healthcare facilities which already exist in the town. Some critics are of the opinion however, that the plan of putting the responsibility of infrastructural development to the developers by the Lochgelly Strategic Housing Development is not very ethical. The Strategic and Local Impact of the Project The housing sector of the UK and Scotland are facing stiff challenges for the last decade or so. Since the government policies are now more tilted towards environment protection, environmental friendly structures and sustainable development communities and infrastructure; the balancing of the core objectives of economic growth with the environmentally friendly structures is a challenge. Moreover, the economic, environmental and social impact of such projects on the sustainable development of the place is yet another challenge for the ones involved in the Lochgelly Housing Development Project. The project aims to integrate the Strategic Development Framework or the SDF, which attempts to create a housing which is compact and ‘walkable’. Landscape and Open Space Strategy is another strategy where open spaces are a key landscape structure. The landscape in this framework needs to be so designed which helps in creating connected spaces and strategic amenities for the residents. The Urban Form Strategy is yet another strategy which attempts to determine how the buildings, the blocks and the streets should be constructed so as to integrate them in the overall housing plan scheme. The Strategic Development Framework of Lochgelly also attempts to distribute community facilities at Lochgelly a lifestyle among the people which is sustainable. The immediate effect of such a large scale development with 1750 new houses and an increase of population would definitely scale up the transportation and other infrastructures in the town. This would automatically cause the pollution levels, the noise levels and the waste levels to go up, which would harm the environment in the long run. The Cost/Benefits of the Project Lochgelly has an enormous economic potential, although it was until recently considered as one of the last places to live in Britain, partly due to the ex-mining district that people associated Lochgelly with (Guardian,2004). Since the scope of employment in Lochgelly is pretty low, the young population has moved away for the town. The general prices of housing in Scotland is on the rise since 2007, however the prices in Lochgelly is substantially lower than the average housing prices in Scotland or for than matter, in the UK. The current population of the town is 6,749 among which more than 40% are over forty five (Scrol, 2001). Compared to the most expensive town in the UK, Henley upon Thames, the price of houses in Lochgelly is one seventh the house prices in Henley.(Gaurdian,2004). The town of Lochgelly also has the scope of increasing employment in the area by ushering in new industries and businesses. The supermarkets and petrol stations in the area, especially in Auchterderran Road’s Wathermac site, would give a much needed impetus to the transportation and social amenity sector of the town. Moreover, since Lochgelly is just about a forty minute drive from Edinburgh, the housing prices are expected to go up. The investors can even start buying the low cost agricultural lands and sell it at a higher cost since it will eventually be purchased for housing purposes. The Efficiency of the ‘Front-End’ Development The front end development project study is complex as one needs to know the physical planning, market research site appraisal, economic and financial evaluation and constructions techniques. The feasibility study stage of a development project is the stage where the interests of all the parties which are involved in the decision making process is incorporated. Since the processes did not include the external risks related to the environment and markets as well as the internal risks; there is a high probability that certain changes may come about in the later stages of the project. This would definitely prove to be costly (Flyvbjerg, Bruzelius and Rothengatter, 2003: 88). Besides, there’s also a process zone which has been identified. The process zone consists of a few key stages. Project appreciation is the first stage which gives a deeper understanding of the Lochgelly project in terms of its spatial context and planning context. The vision and objective settings attempt to identify a number of key urban design objectives. Anticipation of the outcome is the process gives a more detailed view of the urban forms, landscape and community facilities which are going to be incorporated in the town. Implementation is the process which seeks to determine the design standards for the delivery and phasing of the project. Fife Council has made a plan for developing Lochgelly by attracting investors in the area, however the stakeholders and the participation of the public community has been left for the last stage of the development. Public dissatisfaction with the project may increase the risk of the project; hence it’s better to involve the public from the initial stages of the housing development project. Furthermore, the process hasn’t included a risk analysis for the project which deals with the environmental factors and the market. In addition, there is no viable study on the Lochgelly local market, which could once again prove to be costly if included in the later stages of the project. Recommendations One of the best ways of improving the front end process is by creating quality living spaces which are sustainable and can improve the quality of life of the people. Hence, it is important that the people, who would eventually be purchasing the homes and living in the Lochgelly town area, are involved in the project at the outset. Their comments and suggestions would serve as invaluable tools to modify the plan design and construction processes. Involving the stakeholders from the beginning of the project would also help the stakeholders understand the scope and the required scale of the housing development project in Lochgelly. The Scottish Government has recently helped Lochgelly to host a design charette, with consultation of the Scottish Sustainable Communities Initiative. This will help in bringing the local people in the design process of the housing project. The charette process will help in providing several useful and innovative suggestions for house design in Lochgelly. The feedback system of this process can help in the subsequent processing of the pre-application phase of the housing project. Sustainable development is a feature which integrates and combines the economic prosperity, social equity as well as the quality of the environment (Wilkinson, 2008:310). The planning authorities can even generate fresh new policies for a sustainable development process. The Scottish government, statutory agencies and the local authorities can benefit from the charette, since the consultation process will have wide ranging benefits for the government of Scotland. Scotland can also lead by example for having facilitated public participation and collaborative housing development initiative which other countries can follow as a baseline. Therefore, the charette can greatly improve the scope and the popularity of the housing project in a short span of time. All in all, it is essential for the Scottish authorities to involve the stakeholders and the public community at an early stage of the housing project, in order to avoid the risk and the costs of future delays and changes in the project. A collaborative approach which helps to coordinate all the important agencies involved in the Lochgelly Housing Development Project will ensure a thumping success for the project. References Adams, D., Watkins C. & White, M. (eds.) 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