The site
The site that our client Kelham Island Developments has requested a development proposal for is one with many challenges which would perhaps make such a project unattractive.
While Kelham Island as a whole is seen as a rapidly growing section of town which is attractive to many folk, thanks to its independent bars, restaurants and coffee shops, this site is perhaps lacking that charm. The current Westpack facility, situated at Gate 4 on Cornish Street, is arguably removed from the nightlife and atmosphere that particularly the younger generation desire. Much of Kelham has an industrial past and the site in question is yet to shed that skin. The lack of appetite for being in what remains an industrial zone is concerning when considering a development beyond industrial facilities.
Being situated next to the Don river, the site unfortunately has potential to cause issues for both the design and construction process as well the future occupiers of the building.
The problem
No site comes without challenges and quirks however with this site the developers run the risk of biting off more than they could chew.
The site in such close proximity to the river Don that it is at great a risk from flooding. A significant portion of the budget would need to be spent on some form of flood defence as well as making sure walls are well reinforced. Some form of permanent sump pump located within a chamber close to the water table may be necessary to detect a rise and attempt to remove water from compromising the building.
Since the area is prone to flooding a basement car park is perhaps not in the best interest of property, however it does offer some buffer to the interest of protecting human life. It is not just the flooding risks that make the basement a questionable addition to the scheme, it is a significant money sink. Extra excavation, piling and waterproofing for the basement level inflates the cost of the substructure elements with arguably a lacking return.
The goal for KID was to better utilise their floor space, a more cost-effective option for using such space would be a ground floor carpark with the building elevated on stilts. This decreases the flood risk to life and minimises the loss of property, just cars, rather than cars and shop inventory. As a bonus, it would dramatically help reduce the building costs.
Residential is always in demand and as such is a much more certain option for occupancy. Commercial lets are at the mercy of the economic cycle and vacancy rates can often become an issue as with prices dropping significantly compared to residential (Ellis and Naughtin 2010 pp.26-30). Because of this knowledge, it may be questioned whether in a rise of work from home and online shopping whether renting commercial space is a viable alternative to just more residential apartments.
It is worth remembering that the elemental cost plan is not a fully investigated cost plan as would be expected for tender documentation, the price determined is formed from loose design elements based on previous builds of a similar nature. The price may fluctuate significantly as components are changed and refined as can the rental rates and sale prices which are linked to the market as a whole.
Being in an area of town prone to flooding may already be a turn-off to many homebuyers and business owners, but also being in a still industry dominated location may further push away prospective buyers. This, combined with the smaller size of the site, leaves very limited scop for innovative development. Many developments, both residential and mixed-use benefit from economies of scale. Substructure is only built once, as is the roof. With the Westpack site, there is little room to take advantage of this, unlike the approved 10 storey apartment block approved for construction on a site down the road.