cd035 proposed supplementary guidance 1 - developer contributions (november 2013)

8/11/2019 CD035 Proposed Supplementary Guidance 1 - Developer Contributions (November 2013)

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SUPPLEMENTARY GUIDANCE 1

55

DEVELOPER

CONTRIBUTIONS

DEVELOPER

CONTRIBUTIONS


November 2013


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Contents

1. Introduction . . . . . . . . . . . . . . . . . . . . . . 22 . Str ateg y and Ap pro ach. . . . . . . . . . . . . . . . 23. National Policy and Legislative Framework . . . . 4

Unilateral Obligations. . . . . . . . . . . . . . 4

4. The Process. . . . . . . . . . . . . . . . . . . . . . . 55. Flat Rate Contributions. . . . . . . . . . . . . . . . 5

Secondary Schools . . . . . . . . . . . . . . . 5

Public Art . . . . . . . . . . . . . . . . . . . . . 6

6. Costs . . . . . . . . . . . . . . . . . . . . . . . . . . 67. Openness and Accountability . . . . . . . . . . . . 6

8. Developer Contributions Flow Chart . . . . . . . . 7Appendix 1 - Developer Contribution Policy . . . . . 8


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1. Introduction

1.1 Clackmannanshire Council has successfully sought toaddress the population decline and impact of structuraleconomic change experienced in the area in recent

decades. As a result of the strategy of economicand population growth, Clackmannanshire has seensignificant new housing development over the pastdecade which has helped turnaround a period of steadypopulation decline, with the areas population now risingabove 50,000.

1.2 This growth has utilised spare capacity inClackmannanshires infrastructure, such as in schools andacross the road network. The Council and its partnershave also invested in improving the areas infrastructure

in order to promote and keep pace with the considerablelevel of growth experienced in recent years. This includesthree new secondary schools, reconnection to thenational rail network, improved road links to the east andwest, an expanding high quality green transport networkand investment in Alloa town centre.

2. Strategy And Approach

2.1 The LDP for Clackmannanshire seeks to continueto promote a strategy for population growth, as akey driver of sustainable economic development in

Clackmannanshire. The Council therefore wishes toensure that infrastructure constraints are not a barrierto continued growth, through its own investmentprogrammes. However, on its own, the Council doesnot have the ability to provide the range of communityinfrastructure necessary to support planned growthand maximise quality of life for new and existingresidents. Nevertheless, the Council is determined toensure that inadequate infrastructure provision is not aconstraint on planned new development and also thatnew developments, be they residential or commercial,contribute fairly and reasonably to the provision ofinfrastructure required to serve them. For thesereasons, the Council will identify situations in whichcontributions from developers are required to ensure thatessential infrastructure to support new developmentcan be provided. Policy SC9 of the Plan sets out therequirements for Developer Contributions (see Appendix1). The purpose of this SG is to provide guidance on howthis policy will be applied. The SG provides the necessarybackground and detail to clarify what is expected of

developers, and to explain the circumstances whencontributions towards the provision or improvement ofinfrastructure are likely to be required

2.2 New development can put a strain on existinginfrastructure, for example where a new housingdevelopment results in capacity issues at the localprimary school. New development can also impact ongreen infrastructure and networks, and it is important

that in assessing the impact of development, the Councilconsiders its wider role in delivering the Central ScotlandGreen Network and how developer contributions can playa part in this.


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2.3 The Council wishes to strike a balance betweenreasonably requiring developments to meet their owninfrastructure needs and ensuring Clackmannanshireremains an attractive area in which to live and invest.The Council is therefore aware of and sympathetic

to the economic challenges facing the developmentindustry, and house building in particular, in the c urrenteconomic climate. Nevertheless, the importance ofachieving a good quality of life and protecting andenhancing our environment are fundamental to thesuccess of our communities and environment, evenwhen market conditions are challenging. To this end,the Council shall expect developer contributions thatare fair and reasonable, taking account of the viability ofdevelopments and the need to protect the public pursefrom the burden of expenditure that is only required as aresult of new development taking place.

2.4 The Council also expects new residential developmentsto deliver affordable housing, as set out in Policy SC2 ofthe Local Development Plan, and must balance prioritiesin administering policies on affordable housing anddeveloper contributions, whilst maintaining development

viability. Therefore, the cost to a developer of contributingto the provision of affordable housing will be takeninto account when considering the requirement forother potential infrastructure contributions. Wherea contribution towards affordable housing will betowards the higher end of the scale set in the AffordableHousing SG then a reduced level of contribution to otherinfrastructure requirements will normally be considered.In the case of allocated sites, contributions on which ahigh priority is placed are set out in the relevant Schedulecontained in the Local Development Plan. Emphasis onthe provision of affordable housing will be focused inareas where sufficient educational capacity exists. Inareas of insufficient educational capacity, an emphasiswill be placed on contributions towards addressingcapacity issues.

2.5 Taking account of the Plan Vision and the overall needsassessment for infrastructure in Clackmannanshire,contributions will be sought towards the following typeof infrastructure:

Education- Provision of new schools or extensions

to existing schools, including nurseries, primariesand secondary schools, or the provision of land foreducation or ancillary purposes, or commuted sumstowards such provision.

Transportation infrastructure - Roads, footpaths,active travel networks, safe routes to school, publictransport provision, or commuted sums towards suchprovision.

Open space, recreation and play provision-Indoor and outdoor active sports facilities, allotments,

pitches, play areas, multi-use games areas (MUGAs), orcommuted sums towards such provision.

Green Infrastructure and natural habitats

- Contributions, including commuted sums,towards the strengthening and enhancement ofthe Clackmannanshire Green Network, includingbiodiversity improvements involving designatedand non-designated sites; landscape, forestry andwoodland improvements; and facilities to improveaccess and use of the countryside by local residents for

educational and recreational purposes. Public art provision - Commuted sums towards suchprovision, or in certain cases art installations integral tonew developments.


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Water environment and sustainable flood

management - Protection and enhancement of thewater environment and measures to reduce floodrisk, as part of wider flood management plans, orcommuted sums towards such provision. In this respect,

contributions are likely to relate to wider strategicwater/flood management schemes, rather than dealingwith an issue relating to the development site only.

Town centre enhancement- Works to enhance thepublic realm and improve the vitality and viabilityof town centres, or commuted sums towards suchinitiatives.

Core Paths network- Works to improve the rangeand quality of, and accessibility to the Core PathNetwork, or commuted sums towards such provision.

Libraries, health centres, community halls and

facilities- Provision of new facilities or extensionsto existing facilities, or the provision of land forcommunity facilities, or commuted sums towards suchprovision.

3. National Policy & Legislative Framework

3.1 The overarching principles of this approach will beguided by Government Circulars on conditions inplanning permissions (Circular 4/1998) and on Planning

Agreements (Circular 3/2012 Planning Obligations andGood Neighbour Agreements). As such, the assessmentof the need for developer contributions shall be based onthe following criteria:

necessity to make the proposed developmentacceptable in planning terms;

that a planning purpose is served; that the infrastructure is directly related to the

proposed development or is arising from thecumulative impact of development in the area;

that the infrastructure requirement fairly andreasonably relates in scale and kind to the proposeddevelopment;

that the infrastructure requirement is reasonable in allother respects.

Notes

1. It should be noted that whilst education contributions will be a priority for residential developments, non-residential

developments will not normally be expected to contribute to education provision.

2. The requirement for community infrastructure investment from developers does not relate to the provision of waterand drainage, gas, electricity or telecoms infrastructure. These are delivered by other public and private bodies and areoutwith the control of the Council.

3. The Council recognises that community infrastructure will very often be integral to a development.

Unilateral Obligations

3.2 Notwithstanding these criteria, the Planning etc.(Scotland) Act 2006 introduced changes to the planningagreements process to enable developers to unilaterallyoffer to enter into a planning agreement which appears

to the person entering into the obligation to be necessaryor expedient for the purpose of the obligation. In suchcases, the Council will require to consider whether theterms of such a unilateral obligation are material to thedetermination of the planning application.

3.3 The 2006 Act introduces a right for parties to applyto the Council to have planning obligations modifiedor discharged (s75A). Following on from this, s75Bestablishes a right of appeal where such an application is

refused or not determined in a prescribed timescale.3.4 In addition to s75 obligations and planning conditions,

developer contributions can be secured through otherlegislation, including the Local Government (Scotland)Act 1973, the Countryside (Scotland) Act 1967, theSewerage (Scotland) Act 1986 and the Roads (Scotland)Act 1984. Agreements under these acts can prove usefulwhere the nature of contributions is straightforwardand does not need to be secured through successorsin Title. Such agreements can also help speed up the

development process.


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4. The Process

4.1 Developer contributions shall normally be agreed at theplanning application stage. An indication of the needfor developer contributions for some sites is provided

in the LDP Schedule of Sites. However, in all casesthe Council will encourage early engagement withdevelopers to agree the need for, and the scale and natureof, contributions in relation to individual proposals.This should help reduce uncertainty, and speed up theplanning application process.

4.2 Contributions shall normally be negotiated and deliveredin accordance with the Developer Contributions flowchartin section 8 of this Supplementary Guidance. A keypart of this process will involve input from the Councils

Developer Contributions Team, made up of officers fromkey Services, who will provide detailed advice on thelevel and nature of contributions required for a partic ulardevelopment, and the manner in which this will besecured and delivered.

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5. Flat Rate Contributions

5.1 The Council has identified that the delivery of certaintypes of community infrastructure requires a consistentapproach to contributions from developers across the

Council area, rather than being specific to a site orindividual community. As such, contributions towardssecondary school provision and public art will be soughton a flat rate basis, as outlined below. Secondar yschool contributions shall only be sought in relation toresidential developments.

Secondary Schools

5.2 All of the Councils three academies operate at or closeto their full capacity, and planned housing growthwill create demand for secondary school places thatthese schools in their current form will be unable to

accommodate. The Council is currently appraising optionsfor delivery of an expanded secondary school estate,including extending existing academies and provision ofa new secondary school.

5.3 The future provision of secondary education will haveimplications for all communities in Clackmannanshire,and for this reason, a flat rate shall be applied toresidential developments, based on the SecondarySchool Contributions Table, below. Secondary education

contributions shall apply to residential developmentsonly.

Secondary School Contributions Table

No. Bedrooms per unit Contribution Rate

2 3,500

3 5,000

4 7,000

5+ 8,500


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Public Art

5.4 Contributions towards public art shall largely be providedon a flat rate basis.

Public Art Contributions Table

Development Type Contribution Rate

Residential 250 per flat/house

Retail* 15 per m of new gross floorspace

5.5 Public art contributions will also be sought for othercommercial developments, such as business, industrial,care homes, schools and leisure developments (excludingchanges of use of buildings). In such cases, contributionswill be proportionate to the scale and nature of theproposed development. Where proposals involves largerscale developments in prominent locations or publiclyaccessible buildings, the public art contribution may beincorporated into the development itself.

6. Costs

6.1 All costs will be agreed with the Council and will beindexed using the BCIS (Building Cost InformationService) All-In Trade Price Index, updated on a quarterly

basis, and are exclusive of VAT.7. Openness And Accountability

7.1 Financial contributions from developers will beaccounted for separately from the Councils finances,and the Council will ensure that these monies are usedsolely for the purposes originally intended. Developercontributions shall be ring-fenced for their intendedpurpose. Agreements on developer contributions shallinclude the time period for payments, including any

agreed phasing, and also the time period for the Councilto utilise payments. Where the Council does not utilisesome or all of a paid contribution, the balance of unusedcontribution shall be reimbursed to the developerwith interest calculated based on the Councils averageprevailing interest on revenue balances rate (IROB) overthe period in question.


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8. Developer Contributions Flow Chart

Planning Application Stage Post Planning Application Stage

Planning Application submitted toCouncil

Direct provision of infrastructure madeby developer prior to development

commencing or in another manner, asagreed by the Council

Developer contributions paid to Councilprior to development commencing or

in another manner, as agreed by theCouncilDevelopment Quality Team Consult

Developer Contributions TeamDC Team assess requirement for

level / type contribution and liaisewith applicant

Applicant may submitdevelopment appraisal

information confidentially todemonstrate any abnormal costs

associated with site

Council uses developercontribution to provide

agreed infrastructure within

specified time period or returnscontribution to developer

On-going monitoring of paymentand expenditure of developer

contributions and requirement

for any formal action in orderto ensure compliance withagreements / conditions

DC Team advise DQ Teamof proposed level / type of

contribution, method of securingand any proposed timescale /phasing of payments / works

Planning application assessedagainst development plan and

material considerations in normalway by DQ Team Terms of Planning Agreement or Condition discharged

Application determined.

If approved, then subject toconditions or planning agreementdealing with developer

contributions

Report of Handling prepared


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Appendix 1 - Developer Contribution Policy

Policy SC9 - Developer Contributions

A1.1 Policy SC9 aims to ensure that, where a new development

has an impact on infrastructure capacity or gives riseto the need for environmental mitigation measures,developers mitigate the impact by contributing new orimproved infrastructure or facilities.

A1.2 All residential developments with an impact oninfrastructure capacity will be expected to contribute,either through financial contributions or direct provision,towards new or improved infrastructure and themitigation of environmental impacts, commensuratewith the scale of the development, to address deficiencies

which are a consequence of the development takingplace.

A1.3 In considering proposals for non-residential andmixed use developments, the Council will assess therequirement for developer contributions on an individualbasis, in accordance with the principles set out above,and the provisions contained in Circular 1/2010, PlanningAgreements.

A1.4 The types of infrastructure and environmental mitigationmeasures which the Council will expect contributionstowards include:

Education provision Transportation infrastructure (including active travel

networks) Open space, recreation and play provision (including

sports facilities) Protection and enhancement of green networks and

natural habitats including the water environment andwoodlands

Public art provision Sustainable flood management Town centre enhancement Core paths network

Libraries, health centres, community halls and facilitiesA1.5 The nature of contributions shall vary from site to site,

depending on the infrastructure or facilitie s requirementswithin that particular area. The scale and nature ofcontributions required shall relate fairly and reasonablyto each development, taking account of the size andlocation of the site, the number of units (or newresidential floorspace) to be created, the type of housingto be provided, and consideration of clear evidence of anyabnormal costs associated with the development.

A1.6 The assessment of the nature of contributions shall bein accordance with the L DP Strategy, Vision, sub-areastrategies, policies and development guidelines; theOpen Space Strategy; the Green Infrastructure SG; and theWater SG. They shall also be informed by other relevant

strategies and plans of the Council and other agencies,as well as any particular issues raised by a planningapplication, relating to the nature of the site or theproposed development.

A1.7 Financial contributions or direct provision shall normallybe delivered through planning conditions and, whereappropriate, legal agreements negotiated between thedeveloper and the Council.

A1.8 The details of how contributions are negotiated, agreed

and delivered are set out in the Developer ContributionsSG.


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cd035 proposed supplementary guidance 1 - developer contributions (november 2013)

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