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Councillor Jowers (in respect of his membership of the Essex County Council) declared a non-pecuniary interest in this item pursuant to the provisions of Meetings General Procedure Rule 7(5).
The Committee considered a report by the Head of Commercial Services giving details of the updates made to the Council’s Community Infrastructure Levy Viability Evidence Base and the associated public consultation.
Daniel Cameron, Planning and Contributions Officer, presented the report, responded to questions and assisted the members in their discussions.
Daniel explained that in 2011 work commenced on implementing the Council’s Community Infrastructure Levy (CIL). In November 2011 the Draft Charging Schedule proposed the following charges:
• Residential development - £120/m²;
• Comparison retail - £90/m²;
• Convenience retailing - £240/m²;
• All other uses were exempt.
At this time a number of Inspector decisions were released which had a bearing on the how the Levy was applied. The most relevant required CIL to be viable at the same time as delivering policy compliant affordable housing. The Council’s policy at the time was 35% affordable housing but this was rarely being delivered because of viability concerns. It was therefore considered that the policy needed to be reviewed as part of the Core Strategy Focussed Review with the result that the Affordable Housing target was set at 20%. At the same time the Local Plan Committee was concerned about the impact of CIL on viability, especially with regard to small builders and, accordingly, it was decided to review the viability evidence base. These two processes have taken time to complete and in the meantime the Council has continued using Section 106 agreements to secure infrastructure contributions.
There had been recent changes to the planning system which curtailed Local Authorities ability to fund infrastructure from small sites through Section 106 Agreements. In April 2015 the CIL Regulations came into effect as statutory policy, meaning that all Councils, regardless of whether or not they had adopted CIL were bound by its Section 106 pooling limit. Councils cannot now take five or more pooled contributions towards an infrastructure type or project. Recent consultation by the Government has raised issues regarding the speed by which Section 106 agreements are completed and the impact that any delay in negotiating the agreement may have on the development process. A Government response to this consultation is expected which may limit the amount of time to negotiate a Section 106 agreement with a developer and, consequently, it has become more important that the Council progresses its intention to implement CIL.
BPS Chartered Surveyors had been instructed by the Council to update the evidence base used to test the viability of development and to advise on the charging schedule for the CIL and it was now proposed to undertake a six week web-based consultation on BPS’ findings which suggested the following charges:
• Residential development outside of Colchester urban area (Greenfield) - £150/m2;
• Residential development within Colchester urban area (Brownfield) - £0/ m2;
• All other uses would be CIL exempt.
In discussion members of the Committee referred to:
• The provision of comparative CIL charges, such as for Chelmsford City Council together with an explanation regarding the different charge thresholds for brownfield and greenfield sites and how charges are calculated where sites are partly brownfield and partly greenfield;
• Whether developers were likely to opt to develop in Local Authority areas whose charging regime was lower;
• The removal from planning policy of the Ministerial Statement on small sites;
• The situation at Grange Road Tiptree, the use of the CIL Regulations and whether this approach could be adopted elsewhere;
• Whether Parish Councils could continue to generate ideas for local community projects to be funded through CIL and how will the CIL funding would be apportioned between the local area and the Borough as a whole;
• The Council’s current target for achieving Affordable Housing within developments.
In response to questions from the Committee members the Planning and Contributions Officer, together with the Place Strategy Manager, explained that:
• The charges set out in the report were in draft form on which consultation would be conducted and, as part of the process of adopting the CIL, comparisons would be made with other Authorities such as Chelmsford City and Babergh and Mid Suffolk;
• The calculation of the charge for sites on differently designated land was undertaken on a pro-rata basis according to postcodes;
• It may prove more beneficial to calculate charges in accordance with the Zonal split for the Borough which allowed for higher sales values in rural areas to be taken into account;
• The different Local Authority charging regimes tended to provide ‘winners’ and ‘losers’ between Local Authorities meaning that one Local Authority may be more cost effective for certain categories of sites while being less so in relation to another category;
• The need for an evidence base to be provided in order to quantify the funding of infrastructure through developments;
• The CIL Regulations outlined how the funding would be apportioned and that it was a fairer mechanism to collect funding;
• The Council’s current target for delivery of Affordable Housing was 20%.
RESOLVED that –
(i) The viability evidence compiled by BPS Chartered Surveyors in October 2015 which served to update the Roger Tym and Partners Community Infrastructure Levy viability evidence base document of October 2011 be noted
(ii) The proposals to go out to public consultation on the updated viability evidence in advance of progressing with a more complete Community Infrastructure Levy draft charging schedule alongside the emergent Local Plan be approved.