Civic chiefs take another big step in making Station Approach a reality

It comes as Winchester City Council’s Station Approach committee rubber-stamped the outline business case for the project.

That followed councillors debating the scheme, which aims to create grade A office space near Winchester railway station and improve the public areas around it, last week.

Members of the overview and scrutiny committee heard the council has opted to get outline planning permission, an application for which is expected in the coming days, before selling the area to a developer. The meeting heard an application has to be submitted to fulfil the requirements of a £5million grant bid to the Enterprise M3 Local Enterprise Partnership (LEP).

Under an ‘income strip’ model, a fund will buy a “long leasehold interest” in the site, and after 40 years, the property will then revert back to city council ownership.

According to a report that went before the committee, the income strip model would benefit the council as it would not be liable for construction costs and would not need to be involved in a “potentially complicated construction project”. However, it would mean the council would have to pay an agreed rent, even if it was not generating income by letting out the office space.

Opposition Liberal Democrat councillors Lucille Thompson and Martin Tod raised concerns about whether the council would be able to attract tenants, with Cllr Thompson pointing out the country is “facing a financial cliff edge” if there is a no-deal Brexit.

Chris Cave, a parter at property consultants Vail Williams, reassured councillors that under their models “the numbers clearly say it’s viable”, but added: “What happens on March 29 or whatever date, I have no idea. It seems business as usual. We are assuming we will get out of this mess.”

The meeting also heard pre-rental agreements would be sought with potential tenants, while a number of business leader praised the scheme, including Paul Spencer, executive director of Winchester Business Improvement District (BID), who said: “I think this development provides an opportunity to attract and retain businesses... We think it’s a really fantastic opportunity.”

Ian Charie, head of programme at the council, also read a letter from Tim Bolton Carter, a director at investment firm Rathbones, which said he was “immensely frustrated” by the lack of office in Winchester to expand into.

Mr Bolton Carter said: “We are finding it increasingly likely we will have to look outside the city. We urge those responsible to move forward (with Station Approach) as fast as possible.”

There were also concerns over the public realm aspect of the development, and in particular trees being felled, although there was broad cross-party support for the scheme.

Conservative councillor Victoria Weston said: “We can’t ignore the benefits of this project to the district. It’s a positive development, it’s one that is needed for Winchester and the Winchester district.”

There was also backing from Lib Dem group leader Cllr Lucille Thompson, who said: “The scheme that we have in front of us is so much better than the last one and we welcome that.”

Fellow Lib Dem councillor Martin Tod said: “We were absolutely right to kill the dreadful scheme that was supported by those on the other side (Conservative councillors),” but added: “I would like to see the detail of the responses to the public input... I don’t think it’s acceptable that we can go to planning without the detail of those responses. We would not be doing our jobs as councillors and members of this committee if we didn’t do that.”

As previously reported, this is the council’s second attempt to redevelop the Carfax site and Station Approach areas after a previous scheme was scuppered in 2016. City councillors killed it off because they considered its bulk and height too great.