DEC Officer Report

Applicant: Mill Yard Services Limited Proposal Change of use of ground floor restaurant and café spaces from Class 1.3 (Food and Drink) and 1.4 (Hot Food Takeaway) to Class 2.1 (Office) Site Address Capital House 16 - 18 Circular Road Douglas Isle Of Man IM1 1AG Case Officer : Lucy Kinrade Site Visit: 17.05.2024 Expected Decision Level Planning Committee Recommended Decision: Permitted Date of Recommendation 03.06.2024

Conditions and Notes for Approval

C : Conditions for approval N : Notes attached to conditions

• C 1. The development hereby approved shall be begun before the expiration of four years from the date of this decision notice.

Reason: To comply with Article 26 of the Town and Country Planning (Development Procedure) Order 2019 and to avoid the accumulation of unimplemented planning approvals.

• C 2. The use hereby approved is for Class 2.1 Office as set out in the Town and Country Planning (Use Classes) Order 2019. Reason: the application has been assessed on this basis as requested in the application content.

This application has been recommended for approval for the following reason. The proposed change of use from restaurant and café (use class 1.3 and 1.4) to office (Use Class 2.1) is considered acceptable. The site is designated as mixed use and is capable of accommodating the proposed office use and therefore accords with Mixed Use Area 4 and paragraph 9.10.6 of The Area Plan for the East 2020, and with Strategic Policies 1, 2 and 9 and Spatial Policy 1 of the IOM Strategic Plan 2016. The existing use is not a community facility as listed in the IOMSP and so minded of the 'mixed use' town centre location does not undermine those community policies protecting community facilities. There are to be no visual or amenity impacts as a result of the proposal meeting with the tests of Strategic Policies 4 and 5, General Policy 2 (b, c, g) and Environment Policy 23, and given the highly sustainable location in the centre of Douglas the proposal poses no highway issues meeting with the tests of General Policy 2 (h and i), Strategic Policy 10 and Transport Policy 1 of the Isle of Man Strategic Plan

(2016). The application is therefore recommended for approval. Plans/Drawings/Information;

This approval relates to the following:

• o Drawing number PA 002
• o Drawing number 01

• - both date received 14th Feb 2024

• Drawing number PA 001 Rev A o Planning Statement

• - both date received 27th Feb 2024 _______________________________________________________________

Interested Person Status – Additional Persons

It is recommended that the occupiers of the following properties should be given Interested Person Status as they are considered to have sufficient interest in the subject matter of the application to take part in any subsequent proceedings and are mentioned in Article 4(2):

• o The occupiers of Thai Thai Restaurant (restaurant owners), 16-18 Circular Road, Douglas (letter address 'Carrera', St Georges Bridge, Abbeylands, Onchan)

• - as they satisfy all of the requirements of paragraph 2 of the Department's Operational Policy

on Interested Person Status. It is recommended that the occupiers of the following properties should not be given Interested Person Status as they are not considered to have sufficient interest in the subject matter of the application to take part in any subsequent proceedings and are not mentioned in Article 4(2):

• o Representative of Blue Café, Capital House, 16-18 Circular Road, Douglas
• o Representative of the Thai-Thai Restaurant Staff, Capital House, 16-18 Circular Road, Douglas

• whilst they identify the land occupied by them, they do not refer to the relevant issues in accordance with paragraph 2C of the Policy and they have not explained how the development would impact the lawful use of land owned or occupied by them and in relation to the relevant issues identified in paragraph 2C of the Policy, as is required by paragraph 2D of the Policy.

It is recommended that the owners/occupiers of the following properties should not be given Interested Person Status as they are not considered to have sufficient interest in the subject matter of the application to take part in any subsequent proceedings and are not mentioned in Article 4(2):

• o 4 Park Road, Douglas
• o The Old Parsonage Barn, St Judes
• o Hillside, Ballacraine, St Johns
• o 31 Arbory Street, Castletown
• o 28 Bennett Park, London
• o 5 Smithy Fold, Preston
• o Robinsons, Ballapaddag, CooiL Road, Douglas

• - as they are not within 20m of the application site and the development is not automatically required to be the subject of an EIA by Appendix 5 of the Strategic Plan, in accordance with

• paragraph 2B of the Policy and they have not explained how the development would impact the lawful use of land owned or occupied by them and in relation to the relevant issues identified in
• paragraph 2C of the Policy, as is required by paragraph 2D of the Policy. ________________________________________________________________

Officer’s Report

THE APPLICATION IS BEFORE COMMITTEE AS THE APPLICATION IS RECOMMENDED FOR APPROVAL AND THERE HAVE BEEN MORE THAN 4 OBJECTIONS RECEIVED FROM THE PUBLIC WHICH RAISE MATERIAL PLANNING ISSUES IN ACCORDANCE WITH 2(1)(A) OF THE PLANNING COMMITTEE STANDING ORDERS 2023_02

1.0 SITE - 1.1 The site relates to Capital House, Circular Road, Douglas. The site building is a large 6 storey (including basement) property containing mixed uses including a restaurant, deli and offices. There is a car parking available and associated to the building accessed via Princes Street Lane to the rear of the building.

2.0 THE PROPOSAL - 2.1 Proposed is the conversion of the restaurant and deli into multifunction space to be used by the office. The floor plan provided shows a large open reception area featuring a staff coffee bar from which are a number of various open and closed meeting rooms and access to toilets, shower rooms and lockers.

- 3.0 PLANNING HISTORY

3.1 The site has been subject to a number of previous applications most recent approval of 19/00339/B for a flue for the restaurant. - 3.2 Historically the building was Post Office HQ, and this changed following PA 10/00382/B when approval was granted for alterations and extensions to provide additional office floor space and creation of café bar and restaurant and later PA 10/01784/B was approved for further extension to provide sandwich bar and deli.

- 4.0 PLANNING POLICY

4.1 The application site is identified in the Area Plan for the East as falling within Mixed Use Area 4 - St Georges. The site is not within any Conservation Area and is not recognised on any map as being any primary retail or office frontage. The site is not recognised as being at any flood risk. In the assessment consideration shall be given to the following parts of the local Area Plan for the East as well as the IOM Strategic Plan 2016. - 4.2 The Area Plan for the East 2020:

• o Paragraph 9.10.6 Mixed Use Area 4 - St George's - This is the business district of Douglas and is characterised by offices, many serving financial institutions. Athol Street is notably the core of this area and is representative of the economic well-being of the Island. There is a smattering of food and drink uses supporting the area. The primary office frontage along Athol Street is notated by the hatched line on Map 5.
• o Town Centre - Mixed Use Proposal 4 There will be a presumption in favour of offices and financial and professional services along Athol Street. Within the area, but outside of Athol Street, offices, financial and professional services, food and drink and some residential uses will also be acceptable. Uses which conflict with these will generally not be supported. As this area lies partly within a Conservation Area, development plans should pay regard to the Conservation Area Character Appraisal for Athol Street and Victoria Street

4.3 The IOM Strategic Plan 2016: PRINCIPLE

• i. Strategic Policy 1: Development should make the best use of resources
• ii. Strategic Policy 2: Development located within existing towns and villages
• iii. Strategic Policy 4: no unacceptable environmental pollution or disturbance.
• iv. Strategic Policy 5: New development to make a positive contribution to the environment
• v. Strategic Policy 9: All new office development located in town centres
• vi. Strategic Policy 10: promote a more integrated transport network
• vii. Spatial Policy 1: Development in Douglas
• viii. Spatial Policy 6: principal gateways to the Island will be protected and enhanced.
• ix. Community Policy 1: Where relevant and appropriate, provision of neighbourhood centres.

• x. Community Policy 2: New community facilities should be located to serve the local population and be accessible to non-car users, and should where possible re-use existing vacant or underused buildings.
• xi. Community Policy 3: loss of a local community facility
• xii. Community Policy 4: loss of local shops or public houses. IMPACT OF DEVELOPMENT

• i. General Policy 2: general standards towards development
• ii. Environment Policy 23: consideration to potential adverse impact changes to existing neighbours.
• iii. Transport Policy 1: located close to existing public transport facilities
• iv. Transport Policy 4: highways designed to be capable of accommodating associated journeys.
• v. Transport Policy 7: parking in accordance with standards.
• vi. Appendix 7: parking standards - Neighbourhood shops = Spaces for staff, customers, and service vehicles will be required.

5.0 REPRESENTATIONS Copies of representations received can be viewed on the Government's website. This report contains summaries only.

5.1 Douglas Borough Council - no objections (23/02/2024). - 5.2 Department of Infrastructure Highway Services - Do not oppose (23/02/2024 and 29/02/2024) - After reviewing this Application, Highway Services HDC finds it to have no significant negative impact upon highway safety, network functionality and/or parking as the site is in a sustainable location in Douglas City Centre and the proposals provide facilities for staff active travel. - 5.3 The owners of the 6 following properties submitted OBJECTIONS similar in nature which have been summarised in bullet points below:

• 1) 4 Park Road, Douglas (01/03/2024)
• 2) The Old Parsonage Barn, St Judes (28/02/2024)
• 3) Hillside, Ballacraine, St Johns (04/03/2024)
• 4) 31 Arbory Street, Castletown (04/03/2024)
• 5) 28 Bennett Park, London (29/02/2024)
• 6) 5 Smithy Fold, Preston (01/03/2024)

• o Douglas needs more restaurant venues like this rather than more offices
• o Proposal will increase demand for day time parking and cause daytime traffic congestion
• o The current restaurant is very popular and its size is suitable for larger parties
• o Would result in the loss of a facility which contributes to local community

5.4 The current occupants of the restaurant at 16-18 Circular Road wrote in OBJECTION, they current reside at Carrera, St Georges Bridge, Abbeylands, Onchan (letter dated 01/03/2024) their comments have been summarised below:

• o They currently lease the restaurant.
• o They established their business here after two previous companies failed to operate a restaurant in the same location
• o They have occupied the restaurant for 7 years and employ 12 staff
• o They have high reputation within the community including with supply chains
• o They provide day time and night time public trade and bring vibrancy to the area
• o The proposal increases office space and requires additional parking to be provided
• o Their restaurant links with Buck Road and is in keeping with the policies that are trying to achieve a balance between different use classes to achieve vibrant town centres

• o Proposal leaves use class 1.3 and still being mixed use and difficult to determine parking
• o The petition demonstrates how popular the restaurant is.
• o The change to an office would have negative impact on the area plan particularly parking and night-time vibrancy
• o As occupants of the building we request interest person status.

5.5 Robinsons, Ballapaddag, Cooil Road, Douglas OBJECTION - 04/03/2024 their comments have been summarised below:

• o The current restaurant purchases a large value of products from their business.
• o The restaurant is thriving and offers sit in, take away and coffee shop and offering high end hospitality to the Island.
• o Its unique selling point is its large size offering capability to cater large parties
• o Closing restaurants is concerning and there is huge cost in relocation and set up
• o The proposal will impact Robinsons as a supply chain.

5.6 The restaurant team occupying the unit also wrote in OBJECTION (04/03/2024) their objections have been summarised below:

• o Loss of the restaurant would be seriously impactful as demonstrated by the 130 signatures of the petition
• o The town has a dearth of office space and brownfield and redundant buildings should be prioritised for regeneration first and where it can be demonstrated that office space is needed
• o The loss of the restaurant will result in a displacement of staff and would be a loss to patrons and the general public.
• o Staff are at risk of losing their jobs and some staff also at risk of losing their accommodation which the restaurant currently provides for them
• o The office already has adequate office space and already have a coffee bar for their own staff.
• o Douglas is better served by having a restaurant for use by locals and visiting members than the creation of more empty office space.

5.7 A petition has been received stating an objection but no material planning matters states and the signed petition only containing names, signatures and contact phone numbers and there are no postal addresses given and therefore IPS cannot be considered for any individuals stated on that petition. - 5.8 A representative of Blue Café - objection (04/03/2024) their comments have been summarised as:

• o They currently lease the café from the owner of the restaurant.
• o The café is demonstrating positive growth
• o Loss of the restaurant may have repercussions on their café operation.

5.9 As part of the consultation process, comments were also sought from Manx Utilities dated 14/02/2024 but no response received as of 03/06/2024: - 5.10 The applicants provided a response to objections dated 05/04/2024 and these are summarised as follows:

• o They indicate that discussions regarding the conversion of the ground floor in excess of 12 months and they have already extended their agreed relocation date.
• o They understand that the restaurant owner intends to relocate the restaurant and not close it and so there would be no adverse effect to their customers or suppliers
• o The proposal is for additional support space for existing staff and to host meetings the change of use will not be creating additional permanent desks and therefore no increased people in the building and therefore not necessary to increase parking provision.
• o Their office business employs almost 200 people and their intention to create a reception and client meeting area to support the expanding business operations on the Island.
• o The restaurant lease expired in 2021 and will not be renewed.

• o They do not believe that any of the representations meet the definition of IPS and they feel it disingenuous that the restaurant team suggest they are victim in this matter.

- 6.0 ASSESSMENT

6.1 The key matters to consider in the assessment of this application are the principle of development, whether there would be any unacceptable loss of the Use Class 1.3 and 1.4 restaurant cafe, whether there would be any physical changes resulting in any visual or amenity impacts to the area, whether there would be any highway safety issues and whether there would be any other matters. - 6.2 Principle

• 6.2.1 The site falls within the centre of Douglas and in particular within the defined Mixed Use Area 4 - St George's which is recognised as being the business district of Douglas mostly characterised by offices but with a smattering of food and drink uses supporting the area and it recognises Athol Street as the core and having the main primary office frontage. Mixed Use Proposal 4 states that Athol Street should be maintained for offices, financial and professional services, but that outside of Athol Street a mix of offices, financial and professional services, food and drink and some residential uses will be acceptable. The proposal would result in the re-use of an existing ground floor as office within a building predominantly occupied by existing office and in a wider mixed use area outlined as being predominantly offices in the centre of Douglas and therefore the principle of the proposal would not undermine those policies directing such office development to key centres and would not undermine Mixed Use Proposal

4 of The Area Plan for the East (TAPE) and this weighs in favour of the application. 6.3 Loss of Use Class 1.3 and 1.4

• 6.3.1 Both TAPE and IOMSP set out objectives to help promote sustainability and best maintain and improve the viability, vitality and diversity of town centres by ensuring a mix of uses which interplay together and provide both daytime and night time economy. TAPE recognises that restaurants contribute to the tourism economy as well as for local residents to enjoy, and one of its town centre objectives is to allow small scale development which maintains the viability of local services and attractiveness of those localities as a place to live and fostering sustainable communities and their identity.

• 6.3.2 The proposal would result in the loss of a restaurant facility which currently contributes to both the night and day time economy including at weekends, and whose services are currently available for all visiting members of the public. Whereas the proposed office use it expected to be mostly active during the day and only available to those specifically working or visiting for business purposes and therefore not be available to the wider public but still contributing to the economy and vitality of the area.
• 6.3.3 Section 10.6 of the IOMSP sets out the nature of community facilities and these being facilities which people are dependent upon such as shops, post offices, off licenses, newsagents, grocery stores, pharmacies, doctors surgeries, hairdressers and other small shops of local nature and allied to this also community centres, all of which can be easily accessed on foot and without relying on public or private transport and can serve as a focus of community life and help sustain a small community. Community Policy 4 (CP4) indicates that development which involves the loss of local shops and public houses will only be permitted if it can be demonstrated that it is no longer or cannot be made commercially viable. The paragraph preceding CP4 elaborates that "loss of facilities such as neighbourhood shops in towns and or village shops and public houses reduces customer choice and can also necessitate people travelling further to meet their needs. This is a particular problem in rural areas where village shops, post offices and public houses can be central to village life. It would be preferable to retain viable facilities, or those that can be made viable and where a change of use or redevelopment is proposed developers will be expected to show evidence of attempts to market the property as a business in these areas." Restaurants are not specifically referenced and this site is not in a rural location and so it would be unreasonable to apply CP4 in this case.

• 6.3.4 And so, whilst it is accepted that the proposal will result in the loss of a restaurant and café facilities which contributes to the town centre, in terms of policy the 'Mixed Use' land use designation allows for such a chopping and changing between uses and with a principle in favour of office uses just as much as restaurant uses and so the proposal in this case is unobjectionable.

6.4 Visual and Amenity Impact

• 6.4.1 The identity of the area is recognised as mostly offices with some food and drink places. The proposal to convert the ground floor to further office space might take away some degree of active frontage compared to the current situation but this is not expected to unbalance the overall characteristic or identity of the area which is already predominantly offices as recognised in Mixed Use Area 4.

• 6.4.2 This site and area is already subject to a level of activity given its town centre location and being along a main road and so there are no amenity impacts beyond the current arrangement expected on any neighbouring properties.

6.5 Highway Safety

• 6.5.1 The application is provided with information showing the existing parking arrangements and cycle parking associated with the existing building and available for use. The site is situated within a highly sustainable location and the proposals provide facilities for staff active travel. The site is well served by existing bus routes and with high levels of public car parking available within nearby town centre car parks. No concerns have been raised by Highway Services and in this respect the proposal is considered acceptable in terms of highway safety.

6.6 Other matters

• 6.6.1 There are objections raised by the current restaurant tenants and the proposal having impact on their staff working and living arrangements. It is noted that the response from the applicants indicates that the restaurant lease has already expired and shall not be renewed. It is important to reiterate that land ownership matters and any leasing contracts are a civil matter outside of the remit of the planning process and the application has been assessed on the policy testing and taking into account the 'mixed use' land use designation of this site in the middle of Douglas.
• 7.0 CONCLUSION

7.1 The proposed change of use from restaurant and café (use class 1.3 and 1.4) to office (Use Class 2.1) is considered acceptable. The site is designated as mixed use and is capable of accommodating the proposed office use and therefore accords with Mixed Use Area 4 and paragraph 9.10.6 of The Area Plan for the East 2020, and with Strategic Policies 1, 2 and 9 and Spatial Policy 1 of the IOM Strategic Plan 2016. The existing use is not a community facility as listed in the IOMSP and so minded of the 'mixed use' town centre location does not undermine those community policies protecting community facilities. There are to be no visual or amenity impacts as a result of the proposal meeting with the tests of Strategic Policies 4 and 5, General Policy 2 (b, c, g) and Environment Policy 23, and given the highly sustainable location in the centre of Douglas the proposal poses no highway issues meeting with the tests of General Policy 2 (h and i), Strategic Policy 10 and Transport Policy 1 of the Isle of Man Strategic Plan

(2016). The application is therefore recommended for approval. 8.0 INTERESTED PERSON STATUS

8.1 By virtue of the Town and Country Planning (Development Procedure) Order 2019, the following persons are automatically interested persons:

• (a) the applicant (including an agent acting on their behalf);
• (b) any Government Department that has made written representations that the Department considers material;
• (c) the Highways Division of the Department of Infrastructure;

• (d) Manx National Heritage where it has made written representations that the Department considers material;
• (e) Manx Utilities where it has made written representations that the Department considers material;
• (f) the local authority in whose district the land the subject of the application is situated; and
• (g) a local authority adjoining the authority referred to in paragraph (f) where that adjoining authority has made written representations that the Department considers material. 8.2 The decision maker must determine:

• o whether any other comments from Government Departments (other than the Department of Infrastructure Highway Services Division) are material; and
• o whether there are other persons to those listed above who should be given Interested Person Status.

I can confirm that this decision has been made by the Planning Committee in accordance with the authority afforded to the it by the appropriate DEFA Delegation and that in making this decision the Committee has agreed the recommendation in relation to who should be afforded Interested Person Status.

Decision Made : Permitted Committee Meeting Date:10.06.24

Signed : Lucy Kinrade Presenting Officer

Further to the decision of the Committee an additional report/condition reason was required (included as supplemental paragraph to the officer report).

Signatory to delete as appropriate YES/NO See below

Customer note

This copy of the officer report reflects the content of the file copy and has been produced in this form for the benefit of our online services/ customers and archive records.

PLANNING COMMITTEE DECISION

Application No

24/00142/C

Applicant Mill Yard Services Limited Proposal Change of use of ground floor restaurant and café spaces from Class 1.3 (Food and Drink) and 1.4 (Hot Food Takeaway) to Class 2.1 (Office) Site Address Capital House 16 - 18 Circular Road Douglas Isle Of Man IM1 1AG Planning Officer Presenting Officer

Lucy Kinrade

As above

Addendum to the Officer Report

The members agreed with the overall approval recommendation of the application, however revoted on the IPS specifically the occupiers of Thai Thai Restaurant (restaurant owners) who were granted IPS as stated in the officer report as: "It is recommended that the occupiers of the following properties should be given Interested Person Status as they are considered to have sufficient interest in the subject matter of the application to take part in any subsequent proceedings and are mentioned in Article 4(2):

• o The occupiers of Thai Thai Restaurant (restaurant owners), 16-18 Circular Road, Douglas (letter address 'Carrera', St Georges Bridge, Abbeylands, Onchan)

• - as they satisfy all of the requirements of paragraph 2 of the Department's Operational Policy

on Interested Person Status." The members reviewed the comments raised by the above occupiers and considered that whilst the comments met the requirements of Parts A and B of the Operational Policy on Interested Person Status, the comments related more so to the commercial aspects and loss of the business and not relevant planning matters nor explained how would impact the lawful use of the land and so should not be granted IPS. The IPS wording therefore updated as follows: It is recommended that the occupiers of the following properties should not be given Interested Person Status as they are not considered to have sufficient interest in the subject matter of the application to take part in any subsequent proceedings and are mentioned in Article 4(2): o The occupiers of Thai Thai Restaurant (restaurant owners), 16-18 Circular Road, Douglas (letter address 'Carrera', St Georges Bridge, Abbeylands, Onchan)

• - whilst they identify the land occupied by them they have not explained how the development would impact the lawful use of land owned or occupied by them and in relation to the relevant issues identified in paragraph 2C of the Policy, as is required by paragraph 2D of the Policy.