INTERIM RETAIL PLANNING GUIDELINES

Final Version February 2004

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Table of Contents

1.0 Introduction 1 1.1 Policy Objectives 2 1.2 Town Centre Strategy 3 1.3 Assessing New Developments - General Principles 5 1.4 Assessing New Developments - Specific Types of Retail Development 8 Annex 1: Town Centre Boundaries 17 Annex 2: The Assessment of Retail Impact 18 Annex 3: Glossary of Terms 20

TABLE 1: Guidelines Checklist

Retail Outlet

Town Centres

Neighbourhood Centres

Outside Centres Subject to Guidelines outlined in paragraph nos. below

Shopping Malls Y N N 1.4.1 Supermarkets Y Y Y 1.4.5 - 1.4.7; 1.3.1 - 1.3.10; Annex 2Showrooms Y N Y 1.4.8 - 1.4.12 Retail Parks N N Y 1.4.8 – 1.4.12 Factory Outlet Centres N N Y 14.13 - 1.4.15 Small Shops Y Y Y 1.4.16 - 1.4.18

Speciality Shopping Y N Y 1.4.19 - 1.4.22

Y Indicates General Acceptability subject to certain conditions as stipulated as per provisions in referenced guidelines

N Indicates it is Not Acceptable

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1.0 Introduction 1.0.1 In May 2001 the Malta Environment and Planning Authority

approved a Retail Topic Paper as part of the Structure Plan Review process. The Retail Topic Paper was subject to consultations with the following technical stakeholders namely, Association of General Traders and Retailers, Chamber of Commerce, Gozo Business Chamber and the Ministry for Economic Services. An extensive public consultation exercise organised by the Ministry for Economic Services was also undertaken. The findings and recommendations of the Retail Topic Paper form the basis of these planning guidelines.

1.0.2 These retail planning guidelines provide a comprehensive

framework to

• guide the Malta Environment and Planning Authority in the assessment of applications for development permission (including new development, redevelopment and change of use) in the interim period to the approval of Local Plans and the Structure Plan Review and,

• assist retailers and developers in formulating development proposals.

1.0.3 The intention of these guidelines is to provide the background

guidance and context against which the retail sector and developers can prepare proposals with a degree of certainty, as to the way in which any particular scheme will be judged. However, the onus is on an applicant to demonstrate convincingly that the proposal does comply closely with these guidelines.

1.0.4 These guidelines update the policy on retail development set out in

the current Structure Plan and give firm guidance on how to deal with retail development proposals. The current Structure Plan policies dealing specifically with the retail sector are COM6, COM7 and COM8 and the retail component is dealt with in the following general policies: IND13, HOU5, COM3, COM4 and SET7. These guidelines supersede the retail component of the Local Shops Policy, 1997.

1.0.5 Table 1 provides a synopsis of the preferred location for the

different types of retail outlets and the guidelines to be cross-referred to.

1.0.6 These guidelines start off by identifying the objectives for retail

planning. The next step is to identify general principles for the assessment of new retail developments. The criteria for the assessment of specialist retail developments are then outlined in the final section of this document.

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1.1 Policy Objectives 1.1.0 The challenge to be faced is how to accommodate new retail

development in a manner which is efficient, equitable and sustainable. It is important to establish the optimum location for new retail development, which is accessible to all sections of society and is of a scale, which allows the continued prosperity of town centres.

1.1.1 These guidelines identify five key objectives which have equal

weight

• The first objective is to channel investment into existing town centres, some of which are deteriorating as residential populations decrease and commercial activities begin to decentralize. This is in line with the first goal of the Structure Plan, which states that further social and economic development of the Maltese Islands should be encouraged and to ensure, as far as possible, that sufficient land and support infrastructure are available to accommodate it.

• The second objective is to strengthen the future health of town centres by adding to their shopping attractiveness and retain existing shopping uses. This objective also supports the first and third goals of the Structure Plan. The latter states that the quality of all aspects of the environment of both urban and rural areas should be radically improved.

• The third objective is to prevent/prohibit development of new retail facilities on undeveloped sites outside the urban areas. This also follows the Structure Plan goal which states that development activity is to be channelled into existing and planned urban areas, ensuring that land and buildings are used efficiently. This objective also promotes the urban containment strategy of the Structure Plan.

• The fourth objective is to encourage multi-purpose trips (and thus reduce the overall need to travel) by concentrating employment, shopping and leisure opportunities within town centres, together with social and community facilities. This is line with the Structure Plan goals, which promote further social and economic development and improve the quality of the urban environment.

• The fifth objective is to ensure that retail growth occurs in locations, which are well served by public transport. This leads to the realization of the transport objectives and to sustainability as a whole.

The Role of Town Centres 1.1.2 The Malta Environment and Planning Authority attaches importance

to the improvement of town centres. The town centre is the focus for a range of commercial and community activities, resulting in a

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mix of, often interdependent, land uses, which contribute to a sense of place and identity. It includes a combination of natural features: historic buildings, cultural, civic and governmental buildings, as well as public open spaces. This physical form and mix of functions, which have evolved over a considerable period of time, makes a town centre different from a shopping centre and provides much of its character which can be further enhanced by introducing appropriate new uses into historic buildings. It also has a high level of accessibility to employment, services, and facilities for all the community.

1.1.3 Shopping provision is a key component of town centres, and makes

a major contribution to their vitality and viability. It is important therefore that they retain retailing as a core function.

1.1.4 In this guidance, the term "town centre" is used generally to cover

city, town and village centres, which provide a broad range of facilities and services and act as a focus for both the community and for public transport. It excludes small clusters of shops of purely local significance. The size of centre will influence the range of activities and its function. The scale of development possible and the opportunities available will differ from place to place.

Convenience and Comparison Goods 1.1.5 The term convenience goods is defined as food, alcoholic drink,

beverages, tobacco, newspapers, magazines and household cleaning materials.

1.1.6 The term comparison or non-food goods is defined as clothing,

footwear, furniture, household textiles, electrical goods, hardware, chemists goods, jewellery, recreational and other miscellaneous goods.

1.2 Town Centre Strategy 1.2.1 The Malta Environment and Planning Authority designates a

network of primary, secondary and tertiary town centres, where the intention is to encourage the expansion and intensification of shopping facilities and associated services. The Malta Environment and Planning Authority aims to reinforce the retail function of these designated centres, particularly for non-food shopping.

• Primary: Valletta, Sliema, Birkirkara, Hamrun, Paola, Victoria,

and Mosta. • Secondary: Fgura, Qormi, Rabat, Zurrieq, Zabbar, Birzebbugia,

Zejtun, Bormla, Naxxar, St.Paul’s Bay, San Gwann, Mellieha and St.Julians/Paceville.

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(Note: The Retail Topic Paper has recommended that a new secondary town centres be created in Tigne’ This recommendation would be implemented following the completion of the first phase of the Tigne’ project.)

• Tertiary: Birgu, Siggiewi, Marsa, Floriana, Ghaxaq, Ghajnsielem, Gzira, Nadur, Luqa, Balzan, Xaghra, Isla, Kirkop, and Safi.

1.2.2 Neighbourhood centres are locations to be designated in Local

Plans to accommodate a planned approach to the provision of local retail services in new and expanding housing areas. These areas should provide coherent groupings of appropriate facilities, with shared parking and service delivery provision, pedestrian access routes and planned public transport provision.

1.2.3 Most of the growth in non-food shopping will be accommodated

within the primary and secondary centres, as defined by the boundaries in Annex 1. Local Plans will define the boundaries for the tertiary town centres.

1.2.4 Within the designated town centres, the Malta Environment and

Planning Authority will encourage the development of:

• appropriate pedestrian priority and traffic management schemes • high quality landscaping of public areas, spaces and pedestrian

routes and the creation of new public squares or open spaces • projects to upgrade public transport facilities and associated

facilities • projects to improve the provision of managed town centre

parking facilities, which address the requirements of shoppers and short-term visitors as well as commuters and residents

• coordinated public/private sector initiatives to improve the management of the town centre

1.2.5 Positive action to promote change may include the identification of

development opportunities, better access for public transport, cyclists and pedestrians, and environmental improvements including improving the attractiveness of townscape and open spaces. Renewal opportunities may also arise where underused property and land might be brought back into more productive use through joint action or through other initiatives. Improved town centre management could also help in the co-ordination and implementation of a range of activities, which enhance the town centre.

1.2.6 The provision of appropriate public car parks can be assisted

directly through the Commuted Parking Payments Scheme (CPPS).

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1.3 Assessing New Developments – General

Principles 1.3.1 As far as possible new retail development is to be sited within town

centres or, if no sites are available, immediately on the edge of town centres with a presumption against development elsewhere, except where neighbourhood centres are being provided to meet neighbourhood needs and under the particular provisions as described in the discussion of Specific Types of Retail Development.

1.3.2 New development should be capable of being accessed by a

variety of transport modes without causing undue congestion. The demonstration of congestion arising from car usage should not be used as an argument against town centre development locations, where adequate public transport exists or could be provided, or where measures to alleviate congestion can be provided.

1.3.3 It should be ensured that appropriate servicing arrangements can

be provided which do not detract from the environmental quality of town centres nor cause additional congestion. The scale and form of new development should complement rather than detract from existing retail facilities and direct attractive pedestrian links should be provided between new developments, the existing central area and both public transport facilities and car parks.

1.3.4 Where there is doubt on any aspect of a planning application the

Malta Environment and Planning Authority will require a detailed justification related to the questionable matter. All applications for retail development should be assessed against the principles set out in this section of the Guidelines.

Location of Development 1.3.5 The preferred location for new retail development where practicable

and viable (in terms of the policy objectives outlined beforehand) is within a town centre. Where it is not possible to provide the form and scale of development that is required on a site within the town centre then consideration can be given to a site on the edge of the town centre so as to encourage the possibility of one journey serving several purposes. An edge of centre site, for the purposes of these guidelines, is taken to be one, which is within an easy and convenient walking distance from a town centre. The distance considered to be convenient will vary according to local circumstances but is not more than 100 metres from the edge of the town centre boundary, and less in smaller settlements. This is commonly known as the sequential approach to the location of retail development.

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1.3.6 A particular issue that will arise in the appraisal of alternative locations is the potentially contrasting performance in terms of urban design, accessibility and traffic congestion. Each case will have to be treated on its merits and a balance struck between a site’s relative performance against the various planning and transportation factors to be evaluated. In relation to urban design, applicants should make every effort to integrate successfully new retail development, much of which will be of a scale larger than the existing urban grain, into the townscape of existing centres.

1.3.7 It is likely that some retail development will take place in out of

centre locations. Not all centres, particularly small and historic towns will have sites that are suitable in terms of size, parking, traffic generation or servicing arrangements for large-scale developments in the town centre itself. In such centres, development should be of a scale appropriate to the size of the centre in order to minimise the potential for adverse impact. (Annex 2 provides an overview of the assessment of Retail Impact).

Impact On Vitality and Viability 1.3.8 New developments can have an adverse impact on the vitality and

viability of established town centres. Annex 2 provides the methodology for the assessment of vitality and viability of a town centre. This is a consequence of the competitive environment in which retailing operates. Though it is not the purpose of the Malta Environment and Planning Authority to prevent competition, proper planning and development includes promoting healthy town centres. Where new developments compromise this planning goal, they should be rejected in the public interest.

1.3.9 In making an application for development permission for retail

development which the Malta Environment and Planning Authority considers to be large scale in relation to existing town centres, the onus is on the applicant to demonstrate compliance with these guidelines and that there will not be a material adverse impact on the vitality and viability of any existing town centre. In the case of major development MEPA will advise the applicants to undertake a Retail Impact Assessment (RIA). Table 2 indicates the current retail sales areas within the primary and secondary town centres.

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TABLE 2: SALES AREAS OF PRIMARY AND SECONDARY TOWN

CENTRES

Sales Area by Centre (sq.m)

Convenience Businesses

(sq.m)

Comparison Businesses

(sq.m) All Shops (sq.m)Sliema 2348 19730 22078Valletta 1546 15572 17118Hamrun 653 7807 8460Victoria 1423 6463 7886

Birkirkara 339 3864 4203Paola 266 2877 3143Mosta 171 1978 2149

Total Primary Centres 6746 58291 65037Fgura 235 4287 4522Rabat 871 2074 2945Qormi 1086 1507 2593

Mellieha 585 1700 2285San Gwann 545 1214 1759

Bormla 653 799 1452Zabbar 436 951 1387

Birzebbugia 476 774 1250Zejtun 282 816 1098Zurrieq 431 299 730Naxxar 300 336 636

Total Secondary Centres 5900 14757 22657Source: Retail Topic Paper, 2001 1.3.10 In submitting evidence in relation to retail impact the applicant shall

address the following criteria and demonstrate whether or not the proposal would:

• Materially diminish the prospect of attracting private sector

investment into one or more town centres. • Cause an adverse impact on one or more town centres, either

singly or cumulatively with recent developments or other outstanding planning permissions, sufficient to undermine the quality of the centre or its role in the economic and social life of the community.

• Diminish the range of activities and services that a town centre can support.

• Cause an increase in the number of vacant properties in the primary retail area that is likely to persist in the long term.

• Ensure a high standard of access both by public transport, foot and private car so that the proposal is easily accessible by all sections of society.

• Link effectively with an existing town centre so that there is likely to be commercial synergy.

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1.4 Assessing New Developments – Specific Types of Retail Development

1.4.1 The general principles for assessing all new retail development

(including redevelopments and change of use to retail) are set out in 1.3. This section of the Guidelines deals with specific retail development concepts. These are:

• Freestanding Shopping Malls • Neighbourhood Centres • Supermarkets • Showrooms and Retail Parks • Factory Outlet Centres • Small Shops outside Designated Town and Neighbourhood

Centres • Speciality Shopping

Freestanding Shopping Malls 1.4.2 Freestanding shopping malls aim to replicate the attractions of a

town centre in a purpose-built, managed environment with generous car parking. Malls, which seek to provide new shopping destinations outside existing centres, are specifically designed to draw trade away from existing cores. Malta is well served with town centres and it is considered inappropriate to foster the development of major freestanding shopping centres outside these locations. The intention is rather to channel retail investment into the enhancement of existing centres, as far as possible. Small-scale shopping malls can be accommodated within existing centres and such developments can contribute to the vitality and viability of existing centres.

Neighbourhood Centres 1.4.3 The provision of local retail services within new residential areas

needs to be improved. Current provision is largely ad-hoc, driven by individual entrepreneurs. Provision of appropriate infrastructure, such as shared parking facilities, is often lacking. Concentrations of local facilities, where they do occur, are often haphazard. Localised problems of traffic congestion caused by chaotic short-term parking and service deliveries are commonplace. Integration with public transport provision and the provision of other public sector services (e.g. post offices) is rare. Provision of local facilities within housing estates is likely to lead to local use for a wide range of services, including: small supermarkets, newsagents, post offices, health centres, chemists, and play areas. Planned growth of local level provision can be

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achieved by defining nodes for neighbourhood centres (normally based on appropriately located, unplanned concentrations of local shops).

1.4.4 The Retail Strategy provides for the modernisation and expansion

of local convenience shopping facilities. This would be achieved by allowing the continued development of very small convenience stores within residential areas, together with larger convenience stores in designated neighbourhood centres. The criteria for neighbourhood centres are the following:

• Convenience shops with a combined sales and storage area of

up to 250 square metres will be allowed in the neighbourhood centres, together with other defined local and community services.

• All new retail developments in residential areas will be evaluated in terms of their potential traffic and environmental impacts on neighbouring residents.

• Suitable short-stay parking provision will be required for the outlets within a neighbourhood centre.

• There is no clear size threshold for a neighbourhood centre, although it should incorporate a small cluster of between 4 and 12 shops, primarily selling convenience goods or providing retail services (e.g. hairdresser, dry cleaners, video hire) together with other social and community services for the immediate neighbourhood.

• The range of retail provision within a defined neighbourhood centre could be improved by allowing limited retail development within a distance of 100 metres from the edges of these centres.

Supermarkets 1.4.5 Supermarkets are an accepted component of the retail hierarchy.

They serve mainly the large weekly convenience goods shopping requirements of families. They require large clear areas of floorspace together with adjacent car parking as many people undertake their weekly bulk convenience shopping by car.

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1.4.6 Large supermarkets are defined as supermarkets with a combined

sales and storage area of at least 500 sq m. The aim is to accommodate modern facilities in all areas, to supplement existing convenience shopping provision in the designated centres and to serve residential neighbourhoods.

1.4.7 The criteria for assessing applications for supermarkets are:

• Large supermarkets should preferably be provided in a town centre or on the edge of the centre where public transport provision can be made available for shoppers who do not have the use of a car. In exceptional cases it will not be possible to bring forward sites which are in or on the edge of a town centre because of the site size requirements of large supermarkets, residential amenity, environmental constraints in historic towns or because the road network does not have the capacity for additional traffic and service vehicles. Where such proposals are approved, conditions will be applied to restrict future extensions to the retail uses and to prevent changes in the type of good sold.

• Such developments are also acceptable on appropriate sites in

existing and planned urban areas, offering good access to the arterial and distributor road network and good public transport connections.

• Industrial land or buildings will be considered appropriate for

supermarkets if it satisfies the following conditions:

a) The site is larger than 1000 sq m; b) Industrial land or buildings should not form part

of an industrial estate managed by MDC or under its control;

c) The development will not negatively impact neighbouring industrial concerns in particular and the area in general.

d) Such developments are only acceptable on industrial land and in industrial premises in existing and planned urban areas which offer good access to the arterial and distributor road network and have good public transport connections.

• New supermarkets will be permitted with a food sales area of up

to 1,500 square metres. Applying a 75 % convenience goods

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floor space area to a 25% comparison goods floor space area ratio (as recommended in the Retail Topic Paper) the total sales floorspace cap is 2000 square metres. Where the proposed development would affect an established tertiary centre, is reliant on a restricted rural catchment area, or negatively effects residential amenity, additional size restrictions may be appropriate. Supermarkets located in industrial areas will have a total sales floorspace of between 2500 and 3000 sq m. The sales floorspace should be distributed as follows: 75% for food sales and 25% for comparison goods.

• The application drawing accompanying an application for

development permission should clearly delineate the areas to be devoted to the sale of convenience goods, comparison goods and storage together with servicing arrangements and customer access points.

• Off-street parking in accordance with Malta Environment and

Planning Authority requirements (as per TRA 4 and provisions in Explanatory Memorandum) will be required for supermarkets as well as appropriate goods vehicle servicing and access arrangements as in the Development Control Policy and Design Guidance 2000 of the Malta Environment and Planning Authority.

• Goods vehicle service arrangements, goods storage and access

arrangements, will not have detrimental impacts on neighbouring residents, businesses, or other land uses. Provision must be made for on-site/off street servicing and access.

• The supermarkets will not create nuisance for neighbouring

residents through noise, smell, lighting, hours of servicing, hours of operation or other factors.

• All large supermarket developments should be subject to a

Retail Impact Assessment as stipulated in Annex 3 of this document.

• At the discretion of the Malta Environment and Planning

Authority, the developer may be required to prepare a traffic impact statement illustrating the likely impact of their proposal on the highway network and may be required to accommodate their proposals (as required by policy TRA 3).

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Showrooms and Retail Parks 1.4.8 The strategy allows the development of large showrooms for the

retailing of selected, bulky non-food goods on appropriate urban sites. For the purposes of these guidelines, large showrooms are defined as showrooms with a combined sales and storage area of between 500 sq m and 2000 sq m. The aim is to offer a reasonable choice of available showroom locations throughout the Maltese Islands and Local Plans will identify the areas where such developments are to be sited.

1.4.9 Large Showrooms will be permitted within urban areas, provided

that:

• The goods for sale are restricted to the following categories: motor vehicles and boats; furniture and soft furnishings; bathrooms and ceramic tiles; DIY; hardware, tools and machinery; timber and building materials; and large electrical appliances including white goods, computers and home entertainment equipment.

• Off-street parking is provided in accordance with Malta

Environment and Planning Authority standards (as per TRA 4 and provisions in Explanatory Memorandum) for non-food retail outlets.

• Goods vehicle service arrangements, goods storage and access

arrangements, will not have detrimental impacts on neighbouring residents, businesses, or other land uses. Provision must be made for on-site/off street servicing and access.

• The showrooms will not create nuisance for neighbouring

residents through noise, smell, lighting, hours of servicing, hours of operation or other factors.

• External design should not adversely affect the scale and visual

amenity of the adjoining urban development.

• Traffic impact associated with the new development can be accommodated, without negative environmental impacts on the affected areas.

• Adequate provision is made for comfortable and safe pedestrian

access to the site from neighbouring residential and commercial areas.

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1.4.10 Suitable sites for large showrooms are rarely available within town

centres and the servicing and space requirements of such outlets are difficult to satisfy in congested town centre locations. Appropriate sites are within urban areas, offering good access to the arterial and distributor road network and good public transport connections Sites should accommodate adequate access, servicing and parking facilities, without negative impacts on surrounding residential areas. Industrial land is not considered appropriate for showroom development.

1.4.11 Clusters of large showrooms in retail parks, with shared access,

servicing and parking facilities, will be permitted in suitable urban locations. Appropriate sites for such retail parks will be identified within the Local Plans, where possible, but proposals on other urban sites will be considered in relation to the criteria above but not where they might be in conflict with Local Plan policies.

1.4.12 At the discretion of the Malta Environment and Planning Authority,

the developer may be required to prepare a traffic impact statement illustrating the likely impact of their proposal on the highway network and may be required to fund the necessary remedial highway works required to accommodate their proposals (as specified in TRA3).

Factory Outlet Centres 1.4.13 At its simplest, this form of retailing involves the selling of products

at discount prices in an individual factory shop usually located as part of or adjacent to the production facility. Such shops, which are an ancillary use to the main manufacturing activity, are not an established part of the retail scene in Malta, though examples of tourism related outlets for craft products (e.g. glass) might be found. Proposals for individual factory shops may be appropriate, provided the scale of the shop does not affect the viability of nearby town centres or raise significant traffic and transport issues. Unless the sale of goods can be regarded as a use incidental to the manufacturing process, such outlets should be treated as normal retail developments and assessed accordingly.

1.4.14 The success of these centres depends on drawing customers and

visitors from a wide catchment area, including tourists. There may be implications for existing town centres, even those some distance away from the proposal. In particular, they can lead to the diversion of expenditure on comparison shopping, particularly fashion and specialist goods which forms a key component of town centre turnover. Conversely, if a factory outlet centre is located so that it links well with a town centre and thus achieve commercial synergy it can assist in raising the profile of a town and enhancing

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aggregate town centre turnover on retail goods. The relatively small population of Malta suggests that there is market potential for only a limited number of factory outlet centres.

1.4.15 Due to the potential economic benefits to town centres which can

arise from the close proximity of factory outlet centres and established town centres, particular attention should be given to the location of factory outlet centres on the edge-of-town centres or where a short public transport link can be provided. It should be recognized, however, that factory outlet centres are unlikely to succeed commercially in close proximity to the town centres because retailers do not normally choose to trade at a large discount in direct competition with their high street outlets. However, experience shows that this constraint is unlikely to arise with smaller or secondary town centres, especially those in areas which attract large numbers of tourists. Consequently, the most appropriate location for factory outlet centres is likely to be where commercial synergy can be achieved between an outlet centre and a town centre which would lead to economic benefits for the local area.

Small Shops outside Designated Town and Neighbourhood Centres 1.4.16 The Malta Environment and Planning Authority will encourage the

modernization and limited expansion of local convenience shopping facilities. This will be achieved by allowing the continued development of very small convenience shops within residential areas other than those areas zoned in the Temporary Provision Schemes or Local Plans for detached or semi-detached residential development (as per DC 2000 section 15.3).

1.4.17 Small shops (Class 4A as per Use Classes Order 1994 as

amended) in residential areas offer a vital service to the neighbourhood. In many locations, there is continued demand for new and expanded convenience shopping. As a general principle, local provision of such facilities will reduce the need to travel by encouraging shorter shopping trips, often on foot. Many small shops can be accommodated within residential areas without causing nuisance to neighbours. However, careful control of these uses is required in order to protect the residential character of the local neighbourhoods, prevent nuisance to neighbouring properties, and avoid localized traffic congestion within residential areas.

1.4.18 Small shops (Class 4A as per Use Classes Order 1994 as

amended) with a combined sales and storage area of up to 75 sq m will be allowed, without an automatic requirement for additional off-street parking provision provided that:

• The proposal will not threaten the residential character or

function of the area either by:

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- attracting a large number of customers from outside the immediate locality; or

- introducing a development which is not sympathetic with neighbouring residential buildings in terms of building line, scale or the design of the façade; or

- visual intrusion of signboards and advertisements (illuminated or otherwise)

• The shop will not create nuisance for neighbouring residents through noise, smell, lighting, hours of servicing, hours of congestion and operation or other factors

• The shop will not cause local traffic congestion, or jeopardize

the safety of road users or pedestrians, through customer parking or access by parking vehicles

• The shop will not encourage on-street parking on arterial or

distributor roads Speciality Shopping 1.4.19 Speciality shops can be defined as themed facilities for recreational

and leisure, which often form part of a wider, leisure–based development project. Speciality shopping provision will be encouraged within the designated primary, secondary and tertiary centres. In general, such facilities enhance the attractions of established centres to visitors, tourists and other users and reinforce the vitality and viability of the centre. Examples of speciality provision within designated town centres may include; craft markets, leisure-shopping facilities, food courts and themed restaurant areas. These may be located within restored historic properties, ancillary to other visitor attractions, in a waterfront area or in another location with recreational potential.

1.4.20 In exceptional cases, specialist-shopping facilities will be required

outside the designated town centres. Small speciality shopping developments may be permitted as ancillary uses, in association with tourist or leisure-oriented development. Other examples would include: duty free shopping complexes within port areas or ancillary retail activities in craft workshop areas.

1.4.21 Proposals for speciality shopping provision outside the designated

town centres will be considered on their individual merits and will be subject to the following requirements:

• The scale and type of specialist shopping provision proposed

will require careful justification: the developer will need to

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present detailed reasoning to justify the need to provide such facilities in the proposed location, rather than within a designated town centre

• The Malta Environment and Planning Authority must be satisfied

that the proposal will not undermine the vitality and viability of a primary, secondary or tertiary town centre

• Where such proposals are approved, conditions will be applied

to restrict future extensions to the retail uses and to prevent changes in the type of good sold

• Goods vehicle servicing arrangements, goods storage and

access arrangements will not have detrimental impacts on neighbouring residents, businesses, or other land uses

• The shop will not create a nuisance for neighbouring residents

through noise, smell, lighting, hours of servicing, hours of operation or other factors

• Traffic impacts associated with the new development can be

accommodated, without negative environmental impacts on the affected areas.

1.4.22 Requirements for off-street parking, public transport facilities and

pedestrian access in association with speciality shopping facilities will require careful evaluation. There may be a requirement for off-street parking, in accordance with Malta Environment and Planning Authority standards for non-food outlets, for public transport provision and for comfortable and safe pedestrian access from neighbouring residential and commercial areas.

Out of Centre Developments 1.4.23 The Malta Environment and Planning Authority will not permit the

development of large scale shopping facilities outside the designated town centres with the exception of large supermarkets, large showrooms, retail parks, factory outlets and speciality shopping as outlined in the previous sections 1.4.5 - 1.4.22.

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Annex 1: Town Centre Boundaries

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Annex 2: The Assessment of Retail Impact (RIA) An RIA entails an economic evaluation of the proposed development’s likely impact on town centres and neighbourhood centres including consideration of the cumulative effects of recently completed developments and outstanding planning permissions. New developments can have an adverse impact on the vitality and viability of established town centres. This is a consequence of the competitive environment in which retailing operates. Though it is not the purpose of the Malta Environment and Planning Authority to prevent competition, proper planning and development of town centres remains an important land-use planning objective. Where new developments compromise this planning goal, they should be rejected in the public interest. In making an application for development permission for retail developments which the Malta Environment and Planning Authority considers to be large scale in relation to existing town centres, the onus is on the applicant to demonstrate compliance with these guidelines and that there will not be a material adverse impact on the vitality and viability of any town (including neighbourhood) centres emanating from the proposed development. RIAs need usually only adopt a broad approach. Parties should, where possible, agree data (such as trends in turnover, population, expenditure and efficiency in the use of existing retail floor space) before preparing impact assessments and present information on areas of dispute in a succinct and comparable form.

It is commonly accepted that there are six main steps to the assessment of retail impact:

1. Identification of catchment or study area including the primary and

secondary catchments. The approach used in the identification of the catchments should be clearly set out in the assessment. To avoid delay and remove uncertainty, developers and/or their agents may wish to liase with MEPA in arriving at a consensus view either about the methodology to be used in arriving at the catchment area or the catchment area itself.

2. Estimation of expenditure available within the defined catchment or study area.

3. Estimation of the turnover of existing centres within the catchment area, which are likely to be affected by a new development.

4. Estimation of the turnover of the new development for which a planning application is being lodged.

5. Estimation of the quantum of consumer retail spending available in the catchment area that will be diverted from existing centres to the new retail development; this assessment normally highlights the diversion of expenditure by zone within the catchment area. The diversion of expenditure is likely to be higher from the Primary as opposed to the secondary catchments.

6. Aggregation of the zonal diversions from each centre to the new development to provide an estimate of trade diversion; trade diversion

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is then expressed as a proportion of a centre’s turnover at the target year to provide a measure of impact.

NOTE: In relation to retail developments with both convenience/comparison

elements, turnover and consumer expenditure assessments need to be undertaken for both elements separately and the extent of the trade diversion to the proposed developments from various centres shown separately.

Many of these steps in the assessment of retail impact are relatively straightforward and make use of readily available data. The one matter that is less clear-cut in the assessment of impact is step (5), which is where the estimate of trade diversion from each of the centres in the retail system to the proposed development is made. A variety of approaches can be adopted at this stage of the assessment, some more sophisticated than others. It is not intended to impose a required methodology to this stage of the calculation. It is important for all approaches to be clearly substantiated, however, preferably using up to date information and survey evidence as far as possible. Unsubstantiated judgements and assertions do not assist in providing a clear assessment.

In submitting evidence in relation to retail impact the applicant shall address the following criteria and demonstrate whether or not the proposal would:

1. Materially diminish the prospect of attracting private sector investment into one or more town centres.

2. Cause an adverse impact on one or more town centres, either singly or cumulatively with recent developments or other outstanding planning permissions, sufficient to undermine the quality of the centre or its role in the economic and social life of the community.

3. Diminish the range of activities and services that a town centre can support.

4. Cause an increase in the number of vacant properties in the primary retail area that is likely to persist in the long term.

5. Ensure a high standard of access both by public transport, foot and private car so that the proposal is easily accessible by all sections of society.

6. Link effectively with an existing town centre so that there is likely to be commercial synergy.

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Annex 3: Glossary of Terms Combined sales and storage area

Sales area, together with portion of premises used by a retail business for storage of goods, inclusive of associated circulation space.

Commuted Parking Payment Scheme (CPPS)

CPPS raises money to subsidise public parking provision by collecting money from developers who, in specific circumstances, are not required to make the usual provision to accommodate their parking requirements. The scheme is currently operational in Valletta, Floriana, Sliema and St. Julians (including Paceville). Within these areas, the scheme applies where there is a change of use to a more intensive category in terms of parking requirements. Qualifying projects may be on sites where parking provision is physically very awkward, within Urban Conservation Areas or in potential areas for pedestrianisation. Small shops and bars catering for a local clientele and developments with a parking requirement of 3 spaces or less are generally exempt from the scheme. When the Malta Environment and Planning Authority determines that the CPPS is applicable, a fee of Lm900 per missing space is charged. This is intended to be equivalent to the average cost of supplying an off-street parking space.

Convenience Goods Food, alcoholic drink, beverages, tobacco, newspapers and magazines and household cleaning materials

Comparison Goods Clothing, footwear, furniture, household textiles, electrical goods, hardware, chemists goods, jewellery, recreational and other miscellaneous goods

Gross floor area All floorspace within or incorporated into a development, measured up to the median line of the external walls. Gross floor area includes stairs, lift shafts and other circulation space, as well as floor areas of rooms and covered enclosures at roof top level.

Large supermarket Supermarket with a combined sales and storage area of at least 500 square metres.

Main town centre A primary or secondary town centre. Neighbourhood centre

Neighbourhood centres are locations to be designated in local plans to accommodate a planned approach to the provision of local retail services in new and expanding housing areas. These areas should provide coherent groupings of appropriate facilities, with shared parking and service delivery provision, pedestrian access routes and planned public transport provision.

Out of centre Not within a primary, secondary or tertiary town centre. Primary shopping street

The commercial heart of a main town centre. Normally, at least 75% of the properties should have a ground floor commercial use to qualify as a primary shopping street. However, the street must also be trading successfully and attracting strong pedestrian flows.

Primary town centre Town centre with a regional or sub-regional function for non-food shopping. The proposed primary town centres are Valletta, Sliema, Birkirkara, Hamrun, Paola, Victoria (Gozo) and Mosta.

Residential area Urban area where the predominant use is residential.

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Retail Retail uses are defined in the Use Classes Order (Class 4: Shops) as follows: Use for any of the following: a) retail sale of goods b) post office c) sale of tickets d) travel agency e) hairdressing f) direction of funerals g) display of goods for sale h) hiring out of domestic goods or personal goods or articles i) reception of goods to be washed, cleaned or repaired where the sale, display, or service is principally to visiting members of the public. This study applies this definition. However, a distinction is made between retail sale of goods [category (a)], showrooms [category (g)] and retail services (other categories). The consumer retail expenditure estimates and associated estimates of floorspace requirements relate to the retail sale of goods and showrooms.

Retail park Cluster of showrooms within an integrated, planned development. Access to the surrounding road network is shared and there may also be shared parking provision.

Sales area Area of a shop devoted to the display and sale of goods, including checkout areas. It excludes storage, internal parking, office areas, staff facilities, stairwells, foyers and lift areas.

Secondary town Centre

A significant non-food shopping centre serving local residents, or residents of closely neighbouring villages, and used by at least 2,500 people for non-food shopping (Estimates based on 1997 Shopper Survey). The proposed secondary town centres are Fgura, Qormi, Rabat, Zurrieq, Zabbar, Birzebbugia, Zejtun, Bormla, Naxxar, San Gwann, Mellieha and St. Julians/Paceville.

Sense of place Awareness of identity or special character associated with a physical location

Shop Use conforming to class 4A and 4C (Shops) of the Development Planning (Use Classes) Order of 1994 (See retail).

Showroom Premises primarily used to display goods for sale where little direct (over the counter) retail sale is intended. Showrooms normally have a gross floor area of at least 150 square metres and display a specialist range of bulky, non-food goods, such as: white goods; furniture; motor vehicles; household items, hardware and bathroom fittings.

Speciality Shopping Themed facilities for recreational shopping, often forming part of a wider, leisure-based development project. Frequently located in waterfront or historic locations.

Street market Collection of removable trading stalls in an outdoor location. Supermarket Shop with a sales area of at least 50 square metres, with at least

75% of sales area devoted to food and groceries, and with self-service provision for customers.

Tertiary town centre A significant non-food shopping centre, but serving a smaller number of people than a secondary town centre. The proposed tertiary town centres are: Birgu, Siggiewi, Marsa, Ghaxaq, Gzira, Nadur (G), Luqa, Balzan, Xaghra (G), Isla, Kirkop, Safi and Qala (G).

Town centre Primary, secondary or tertiary town centre. Urban area Areas within the limits to development or within the boundaries of

designated major projects, town centres, MDC industrial estates, industrial zones or ports as indicated on the Structure Plan Key Diagram.

White goods Large electrical appliances for the kitchen and washroom, including: fridge, freezer, dishwasher, washing machine and tumble dryer

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