Infrastructure is often neglected, but it can be crucial to a successful regeneration

Key to any successful regeneration will be the approach to the infrastructure. This covers ground treatment and remediation, highways, rail, water including river, power including gas, leisure and telecommunications. A number of key factors will need to be considered:

  • Generally, infrastructure does not form part of the client’s core business, so it tends to receive less attention. Also, infrastructure is unlikely to be the lead consultant’s specialism, so it becomes a secondary consideration
  • There is usually a requirement for upfront investment that is likely to affect cash flow
  • Infrastructure tends to have a high risk profile because there is a large degree of abnormality about the works
  • The scope of the infrastructure usually extends beyond the boundaries of the site – for example, a requirement for a new road junction
  • There is a need to deal with third parties, such as statutory authorities, that do not face the commercial pressures of the developer.
  • Infrastructure tends to feature in planning gain negotiations, via section 106 and so on.

Examples of where it is possible to use the infrastructure to create an opportunity include:

  • Upfront design and completion of enabling works can shorten the programme
  • You can increase margins by enhancing value from innovative remediation strategies
  • An in-depth understanding of the statutory authorities and the way they work provides a platform for negotiation
  • Using specialist operating vehicles such as infracos can create long-term revenue streams
  • Use flamboyant design to create a ‘sense of place’, which will create an increase in value
  • Use infrastructure to green the development, for example, heating plant and waste to energy
  • Use to deliver renewables agenda
  • Recognise where there are opportunities for tax breaks, grants and so on.

Infrastructure has the potential to facilitate a sustainable community, can have a significant effect on scheme viability and will be instrumental in creating the project programme. If you possess real understanding of the sector and are imaginative in the way you use it, you can create a real legacy for the community.

How it works in practice

Site 1,200 homes on brownfield in Essex
Context The site is based on a riverfront with poor transport links. The land is mostly below the flood plain and next to a major industrial facility. Residential values are low.
Solution Infrastructure was key to unlocking the site’s potential. Strategies devised were:

  • Transport: access to the highway network, access to public transport, traffic congestion off-site, major relief road construction, traversing the railway line, rail capacity
  • Flood risk assessment: tidal flooding from the Thames, sea wall reinforcement, site topography, building orientation
  • Drainage: infiltration-type sustainable drainage systems, new interceptor sewer for wider area that alleviated capacity problems
  • Water: low rainfall requiring water importation, sustainable initiatives in design
  • Gas: a low-pressure supply network without capacity

Outcome Infrastructure helped to provide an increase of 38% in scheme value.

Source

RegenerateLive

Postscript

By Richard A Jones, head of residential and regeneration, EC Harris