atlas presentation: birmingham
TRANSCRIPT
PAS 106 Workshops
ADVISORY TEAM FOR
LARGE APPLICATIONS
Advisory Team for Large Applications
Impartial advice
Provided at the request of Local
Authorities …. but available to the
benefit of all partners
Large Scale (200+, 500+ housing units)
Projects at all stages in planning process
Working on “large sites”: urban
extensions, new settlements, LIF
projects, public sector land, garden cities
Introducing ATLAS
ATLAS Project Activity - Jan 2016
ESE SSW MID NTH Total Projects
Total Units
Total 16 17 17 26 75 239,816
LSIP/ HDF
- Sites >1,500 15 15 16 16 62 227,825
- Sites <1,500 1 1 1 10 13 11,991
- Housing Zones 1 3 3 5 12 23,067
- Priority Sites 3 4 0 2 9 44,870
Garden Cities
- DCLG Supported 3 1 1 0 5 42,700
- DCLG Awareness 4 0 0 0 4 31,500
Public Sector Land
- HCA Land 0 0 1 0 1 1,880
- OGDs Land 0 2 0 0 2 5,745
Large Site ( >1500)
Large Site ( <1500)
Public Sector Land
Garden City (supported)
Housing Zone
Garden City (aware)
Priority Sites
What we’ll cover
Look at challenges that large
sites present for s106’s
How to deal with these issues
in a timely manner
Tools and techniques from our
experience
Your experiences
Start early!!
Get clarity on vision & critical outcomes
Collaborate & share information
Ensure evidence is robust
Test alternative ways of doing things
Work positively to find solutions
Be flexible where possible
Don’t compromise too far
VisionDoes the potential solution fit
the agreed vision and
objectives / anticipated
outcomes? If not, is it
acceptable?
Impact on ViabilityWill the potential solution
close the viability gap and
enable the development to
proceed.
Prospect of DeliveryWill the potential solution be
deliverable, i.e. are the
appropriate partners on
board, is the solution eligible
for potential funding?
Level of
“Acceptable”
RiskWhat are the risks
associated with the
solution. Is this
considered
acceptable?
Some Key Themes
Pitfalls - of course it’s not
that simple…….
CIL can get in the way – relationship with s106
Reg 122 – contributions have to be necessary; directly
related; and fair & reasonable
Reg 123 – no longer pool more than 5 contributions for
type of piece of infrastructure
Evidence of Inspectors beginning to apply strictly
Starter Homes – unclear impact on viability and AH
provision going forward
Your Experiences…….
Political risk taking – setting priorities; being flexible etc.
Issues of openness and collaboration (not to mention
skills) on viability?
Pooling issues – is this starting to cause a problem?
Use of s106 Frameworks - any experiences?
Use of review mechanisms?
Views on Starter Homes
impact?
Creating quality
places
Requires balance and
mix of uses -
sustainability
Significant
infrastructure needs:
transport, utilities, social
& community
Often multiple land
owners
Over a long time –
many phases
Key ChallengesScale & Components
Number of organisations
involved
Local Authorities
Private Sector Public Bodies
Typical large scale approach
6000 homes
extension to
Scunthorpe
Significant
infrastructure –
flooding
Multiple ownerships
Define as much as
possible at policy
stage
Outline application stage –
design parameters
Breaking the site down
Site Specific Infrastructure
Delivery Plan
What infrastructure is needed?
Where is it needed?
When will it be needed?
How will it be paid for?
Who will deliver it?
CIL may well impact upon this?
40% affordable homes
£5.7m primary school
£5m secondary school
£2.1m community centre
£2.3m access road
£2.1m community centre
£1.4m guided bus
£0.8m local transport initiatives
£0.6m play area maintenance
£0.6m community payments
Example scope of obligations
Trumpington Meadows, Cambridge
1,200 units & associated mixed uses, approved Oct 2009. Scope of obligations:
Ecological mitigation
Allotments maintenance
Household waste / recycling
Sports facilities maintenance
Sports Development officer
Bus allowance
Library, health & police
Community Development
Youth facility, youth worker ….
etc
Initial land release:
“patient” money
Multiple developer
/ land interests
Phasing of
infrastructure &
enabling works
Long term returns
on investment-10,000
-8,000
-6,000
-4,000
-2,000
0
2,000
4,000
6,000
8,000
1 2 3 4 5 6 7 8 9 10
Additional ChallengesScale & land, phasing & cashflow
Dealing with the ChallengesCollaborative and Integrated Approach
Framework Agreements
Establishes a
mechanism for
collection and
management of
contributions
Agreed
infrastructure
package
Specifies what
infrastructure
needs to be
provided and
when
Framework AgreementsSome Considerations
Overall Planning Strategy agreed
Consistent approach to the Planning Applications
The components of proposed Framework S106
Agreement itself
Infrastructure Delivery Plans
Relationship to CIL
Development Framework Plans
Relationship to Masterplanning
Appraisal Tools Development Appraisal Tool
Works for up to 20 years
Populate income with: unit numbers, sizes, values and rents amongst
others and allows up to 5 phases Costs can be specified and
include developer overheads
and return for risk, and
planning obligations
Garden Cities Model
Bespoke for very large
schemes – at high level
Allows public funding to be
included
Allows for value capture
Review Mechanisms
NPPF promotes the approach – ‘to take account of
changes in market conditions over time and be sufficiently flexible to
prevent planned development from being stalled ‘(para 205)
Accept due to project viability, based on current costs
and values not all S106 obligations will be fully funded
Re-appraisals will need to be carried out
Involves risk – if viability does not improve then some
obligations will not be fully met!
Deferred obligations(one variable: value uplift)
Actual Sale
Price
Implementation
Baseline appraisal
Deferred
Obligations,
contingent on
uplift in values
Initial “Residual Regardless” contributions
Capped Total
Review MechanismsSome Key Principles
Baseline on viability approved up front
Be clear on S106 priorities and accept all cannot be provided
now!
Don’t review too often and keep any mechanisms simple
Take care re relationship to CIL Regs and pooling issues
Often based on 2 key variables – costs and sales values
Cap overall obligations
Has to work for the developer as well
Further Information
The ATLAS Guide:
Planning for Large Scale Development:
www.atlasplanning.com
The HCA’s guide to the Development
Appraisal Tool:
http://www.homesandcommunities.co.uk/ou
rwork/development-appraisal-tool