Business / Sella Ness accommodation block given ten-year planning extension
COUNCILLORS have approved an application to extend the temporary planning permission of the Sella Ness accommodation facility by a further ten years.
The 426-bedroom facility in Shetland’s North Mainland currently has temporary planning permission until the end of 2025.
The application for the ten-year extension was given the green light by Shetland Islands Council’s (SIC) planning committee on Thursday – a decision which had been recommended by officials.
However there was some concern raised over the condition of the building – with councillors keen to see its owner stick to its word over planned improvements.
The application was only brought in front of councillors because of an objection from Delting Community Council, which believed that the extension should be reduced to five years with a permanent, more environment friendly building constructed afterwards.
However the owner of the accommodation facility, Malthus Uniteam, had said a new build would not be viable.
In terms of the new extension, the owner cited ongoing demand from the nearby Sullom Voe Terminal (SVT) and Shetland Gas Plant (SGP) as well as from a number of potential future infrastructure projects like wind farm construction.
The building, currently operated by Sodexo, was opened in 2011 to house workers constructing the nearby Shetland Gas Plant. It has only ever had temporary planning consent.
Since the construction of the gas plant concluded it has been used mainly for visiting oil and gas workers but also to service other projects, such as the Viking Energy wind farm construction.
Thursday’s planning committee came nearly six years after a similar meeting in 2019 where the last extension was debated – but that one had a much different outcome.
On that occasion councillors were asked to extend the building’s temporary planning permission through to 2026 but they rejected the application.
Councillors suggested forecasted demand at the facility was “speculative” and that the development was contrary to the islands’ local development plan.
It also came amid strong concern from accommodation providers across Shetland and particularly in the North Mainland, where warnings were made that hotels and guest houses could be forced to close if Sella Ness was allowed to stay open.
But that 2019 decision was successfully appealed by the facility’s owner, with the SIC having to pay for their costs.
This time around there was no concern shown from the local accommodation sector, and the SIC’s economic development service supported the extension.
During the planning process the council’s economic development manager Tommy Coutts suggested keeping Sella Ness open would help to ease pressure on the local accommodation sector.
“While we have previously noted and explored concerns from the commercial visitor accommodation market in Shetland in relation to the facility, it is considered that the lack of capacity for temporary workers at scale could have negative impacts, both in terms of displacement of demand to private housing and tourist visitor accommodation, and the potential for constraints on key economic and infrastructure developments which require temporary workers,” he wrote.
At Thursday’s meeting planning officer Marianna Porter said it was considered that previous special circumstances around the demand for accommodation was expected to continue due to future infrastructure projects in Shetland.
Regarding Delting Community Council’s objection, she told councillors that the planning authority can only consider the application as submitted.
Delting chair Alastair Cooper – a former SIC councillor who presided over the development committee for many years – said the community council was keen to see a greater focus placed on having workers living within the community instead of in temporary accommodation.
He pointed how hundreds of new homes are set to be built in Lerwick at Staney Hill and the Knab.
“We fear that with a ten year planning permission the status quo as it is today is going to be maintained,” Cooper said.
He added that the community council believes there is a “lack of vision” regarding the situation.
Cooper said he would like to see the council have the “vision that our forefathers had”.
He also said improvements to the building were “much needed” and claimed folk were having to be decanted because of a leaking roof.
Speaking at Thursday’s meeting agent for the applicant Daniel Harrington said Sella Ness has played an important role in supporting large scale infrastructure projects and continues to meet the demands of oil and gas operators.
He said the accommodation facility is a “sustainable solution” for future development in areas like renewables and decarbonisation.
Malthus Uniteam director Ian Jamieson said some work to the building, such as on energy efficiency, has been delayed until the company secured more longer term consent.
However, he told the meeting that there is ongoing investment – with 12 new boilers worth a combined £100,000 on order on the basis that the company secured the extension.
Jamieson also said two external air conditioning units had been replaced last year at a total cost of £150,000, with four more in line to come in, while there are plans to upgrade lighting, windows and other facilities.
Regarding the claims of a leaking roof, he said there is a single leak in one room which has seen a resident being moved.
Jamieson said the only other instance of a leaking roof to his knowledge was when part of the roof came off in strong winds at the end of 2023.
He added that the company would likely have to consider renewing the entire roof covering anyway in the future due to its lifespan.
During questioning planning manager Iain McDiarmid told councillors there was no legal definition, as far as he was aware of, of “temporary” in planning law.
He said the assessment was on whether it is acceptable to maintain the building at the site for another decade, with councillors able to approve, refuse or suggest an amendment.
During debate councillors were in agreement that the application met planning policy and therefore should be granted.
Lerwick South councillor Cecil Smith noted that what was said by Cooper in objection would not likely sit well in front of an appeal.
Shetland Central member Davie Sandison also said the concern over the wider strategic situation with housing was not for the planning process, while North Isles councillor Robert Thomson noted how new housing was many years away yet.
Thomson said there was a “massive shortage” of accommodation in Shetland.
Shetland West councillor Mark Robinson added: “New housing is at best 10 years away and although I don’t particularly like this, I think we really don’t have any option but to agree with the application as it stands.”
He said he hoped the building would be maintained as discussed, adding that some wind farm workers had previously called the building “Cell Block H”.
Shetland Central member Catherine Hughson also raised her hopes that the building’s owner does undertake improvements.
Lerwick North and Bressay member Arwed Wenger also highlighted the close proximity of the building to Sullom Voe Terminal and the gas plant.
Planning documents showed that currently there is demand for around 300 workers from the oil and gas sector to be accommodated at the facility, which has amenities such as a dining area, bar, gym and a small external football pitch.
The new application for extending the consent through to November 2035 says SVT operator EnQuest has a forecast demand to 2040 for 160 rooms, while new gas plant operator Prax Group could need 40 rooms.
“There will also be projects at SVT or SGP that will require additional bed spaces above these figures,” it added.
This includes the decarbonisation of SVT which includes a shift in focus towards new energy opportunities like hydrogen production, as well as the decommission of existing infrastructure.
A document called Assessment of Worker Accommodation Demand and Supply in Shetland also suggests there is a “need to accommodate 310 workers” annually, with peak demand higher than this.
It added: “If Sella Ness was not available, this could lead to companies engaged at SVT and SGP scaling back operations, which would have significant impact on the deliverability of major renewable energy projects.”
The application added that without the Sella Ness facility there would have been “significant operational, logistical and accommodation challenges” associated with the construction of the Viking Energy wind farm.
Sella Ness accommodated between 120 and 150 people associated with the Viking project.
The application added that the camp “relieves pressure on the busy tourist accommodation” in Shetland.
It also lists a large number of potential projects in Shetland which could create demand for bedrooms at Sella Ness, from two proposed wind farms in Yell to a second HVDC power cable to the Scottish mainland, offshore wind projects, a new Brae school and housing developments in Lerwick.
An application statement added that the accommodation facility remains in good condition.
However, certainty over its longer term would help to enable capital investment to undertake upgrades.
The application documents add that the facility operates with between 25 and 35 staff depending on how busy it is, with buses generally used to transfer occupants to SVT and SGP.
Meanwhile the idea of developers behind future major projects in Shetland providing their own accommodation for visiting workers to ease pressure on the local rental and housing market has also raised its head in recent years.
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